    [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 2006

    [[Page 527]]

                   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 2006 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 2006 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
    200,000 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. Also, the HOME
    Investment Partnerships Program is increased by $41 million. This
    increase reflects $200 million for the American Dream Downpayment
    Initiative. The 2006 budget continues to propose an expanded Self-Help
    Homeownership Opportunity Program (SHOP) in an effort to accelerate home
    ownership by lower-income families.

        The 2005 appropriation 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. Legislation will be
    proposed to provide Public Housing Agencies with substantial new
    flexibility to manage the voucher program in a way that controls costs
    and increases benefits to the two million families currently receiving
    assistance.

        HUD continues to focus on combating homelessness and eliminating
    chronic homelessness with $1.44 billion for Homeless Assistance overall,
    including up to $200 million for a Samaritan initiative to provide
    supportive housing linked to services for chronically homeless persons.
    Homeless assistance also includes $25 million for HUD's part in a three-
    agency faith-based Prisoner Reentry initiative.

        Funding in the 2006 budget for the Fair Housing Assistance and Fair
    Housing Initiatives programs (FHAP and FHIP) will continue to 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 replaced in 2006,
    along with other federal programs for community and economic
    development, by a proposed unified grant to be administered by the
    Department of Commerce. HUD will continue to provide funds for Indian
    Community Development.

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

        The 2006 budget includes $119 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 2006 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:

                         Tenant-Based Rental Assistance

                          (including transfer of funds)

        For activities and assistance for the provision of tenant-based
    rental assistance authorized under the United States Housing act of
    1937, as amended (42 U.S.C. 1437 et seq.) (``the Act'' herein), not
    otherwise provided for, [$14,885,000,000] $15,845,194,187, to remain
    available until expended, of which [$10,685,000,000] $11,645,194,187
    shall be available on October 1, [2004] 2005 and $4,200,000,000 shall be
    available on October 1, [2005] 2006: Provided, That the amounts made
    available under this heading are provided as follows:
            (1) [$13,462,989,000] $14,089,755,725 for renewals of expiring
        section 8 tenant-based annual contributions contracts (including
        renewals of enhanced vouchers under any provision of law authorizing
        such assistance under section 8(t) of the Act: Provided, That
        notwithstanding any other provision of law, from amounts provided
        under this paragraph, the Secretary for the calendar year [2005]
        2006 funding cycle shall [renew such contracts] provide renewal
        funding for each public housing agency based on [verified Voucher
        Management System (VMS) leasing and cost data averaged for the
        months of May, June, and July 2004] each public housing agency's
        2005 annual budget for renewal funding as calculated by HUD, prior
        to prorations, and by applying the [2005] 2006 Annual Adjustment
        Factor as established by the Secretary, and by making any necessary
        adjustments for the costs associated with the first-time renewal of
        tenant protection or HOPE VI vouchers: [Provided further, That if
        such data is not available, verifiable, or complete, the Secretary
        shall use verified VMS leasing and cost data averaged for the months
        of February, March, and April of 2004, and by applying the 2005
        Annual Adjustment Factor as established by the Secretary, and by
        making any necessary adjustments for the costs associated with the
        first-time renewal of tenant protection or HOPE VI vouchers:
        Provided further, That if such data is not available, verifiable, or
        complete, the Secretary shall use leasing and cost data from the
        most recent end-of-year financial statements for public housing
        agency fiscal years ending no later than March 31, 2004, and by
        applying the 2005 Annual Adjustment Factor as established by the
        Secretary, and by making any necessary adjustments for the costs
        associated with the first-time renewal of tenant protection or HOPE
        VI vouchers:] Provided further, That the Secretary shall, to the
        extent necessary to stay within the amount provided under this
        paragraph, pro rate each public housing agency's allocation
        otherwise established pursuant to this para

    [[Page 528]]

        graph: Provided further, That the entire amount provided under this
        paragraph shall be obligated to the public housing agencies based on
        the allocation and pro rata method described above[: Provided
        further, That public housing agencies participating in the Moving to
        Work demonstration shall be funded pursuant to their Moving to Work
        agreements and shall be subject to the same pro rata adjustments
        under the previous proviso: Provided further, That none of the funds
        provided 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];
            (2) [$163,000,000] $354,081,218 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, HOPE VI
        vouchers, mandatory and voluntary conversions, vouchers necessary to
        complete the consent decree requirements in Walker vs. U.S.
        Department of Housing and Urban Development, and tenant protection
        assistance including replacement and relocation assistance;
            (3) [$46,000,000] $55,000,000 for family self-sufficiency
        coordinators under section 23 of the Act;
            (4) [$2,904,000] $5,949,150 shall be transferred to the Working
        Capital Fund; and
            (5) [$1,210,107,000] $1,295,408,094 for administrative and other
        expenses of public housing agencies in administering the section 8
        tenant-based rental assistance program, of which up to $25,000,000
        shall be available to the Secretary to allocate to public housing
        agencies that need additional funds to administer their section 8
        programs: Provided, That [$1,185,107,000] $1,270,408,094 of the
        amount provided in this paragraph shall be allocated for the
        calendar year [2005] 2006 funding cycle on a pro rata basis to
        public housing agencies based on the amount public housing agencies
        were eligible to receive in calendar year [2004] 2005: Provided
        further, That all amounts provided under this paragraph shall be
        only for activities related to the provision of tenants-based rental
        assistance authorized under section 8, including related development
        activities.
            (6) $45,000,000 for additional rental subsidy due to increased
        rental costs resulting from unforeseen exigencies as determined by
        the Secretary.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0302-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Tenant Protection.................                     162         354
    00.02 Administrative Fees...............                   1,200       1,295
    00.03 Family Self Sufficiency
            Coordinators....................                      46          55
    00.04 Central Fund......................                                  45
    00.05 Working Capital Fund..............                       3           6
    00.06 Contract Renewals.................                   9,189      14,090
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                  10,600      15,845
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                  10,600      15,845
    23.95 Total new obligations.............                 -10,600     -15,845
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                  10,685      11,645
    40.35   Appropriation permanently
              reduced.......................                     -85
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                  10,600      11,645
    55.00   Advance appropriation...........                               4,200
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................                  10,600      15,845
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                  10,600      15,845
    73.20 Total outlays (gross).............                 -10,600     -15,845
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                  10,600      15,845
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                  10,600      15,845
    90.00 Outlays...........................                  10,600      15,845
    ---------------------------------------------------------------------------

        Tenant Based Rental Assistance. The 2005 Appropriations enacted
    several reforms to the funding structure of the Tenant-based Rental
    Assistance program (also known as the Housing Choice Voucher Program)
    but allows limited flexibility on the part of Public Housing Agencies
    (PHAs) to adjust to these changes. The Administration will submit a
    legislative proposal in 2005 that will expand the dollar-based approach
    adopted by Congress and include the necessary flexibility to run
    effective and efficient programs. These reforms will improve the
    delivery of rental and homeownership subsidies for low-income families
    in a fiscally responsible manner, thereby ensuring the long-term
    sustainability of the tenant-based voucher program. The proposal
    includes greater PHA discretion in meeting local housing objectives and
    provides for steady and predictable funding levels adjusted annually for
    inflation.

        The proposed funding level restores reductions imposed by the 2005
    pro-rations and adds funds to account for inflation.

                            Housing Certificate Fund

                                  (rescission)

        Of the unobligated balances, including recaptures and carryover,
    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 [2004] 2005 and
    prior years, [$1,557,000,000] $2,500,000,000 is rescinded, to be
    effected by the Secretary no later than September 30, [2005] 2006:
    Provided, 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:
    Provided further, That no amounts recaptured from amounts appropriated
    in prior years under this heading or the heading ``Annual contributions
    for assisted housing'' and no carryover of such appropriated amounts for
    project-based assistance shall be available for the calendar year [2005]
    2006 funding cycle for activities provided for under the heading
    ``Tenant-based rental assistance''[: Provided further, That amounts
    recaptured under this heading or the heading ``Annual contributions for
    assisted housing'' from amounts appropriated for project-based section 8
    activities may be used for amendments to section 8 project-based subsidy
    contracts or for performance-based contract administrators,
    notwithstanding the purposes for which such amounts were appropriated].
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0319-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Contract renewals.................      16,958       4,991
    00.02 Contract Administrator............         206         145
    00.03 Rental Assistance.................         173         129
    00.04 Jobs Plus.........................                       1
    00.05 Section 8 Amendments..............         320         307
    00.11 Administrative Fees...............       1,206         370
    00.12 Central Reserve...................         375          48
    00.14 Working Capital Fund..............           3
    00.15 Section 8 Counseling..............                       1
    00.16 Family Self Sufficiency
            Coordinators....................          48          48
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................      19,289       6,040
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       3,479       2,253
    22.00 New budget authority (gross)......      16,413       2,609      -2,500
    22.10 Resources available from
            recoveries of prior year
            obligations.....................       1,655       1,178       2,500

    [[Page 529]]

    22.75 Balance of contract authority
            withdrawn.......................          -5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      21,542       6,040
    23.95 Total new obligations.............     -19,289      -6,040
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       2,253
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation (definite)........      15,171
    40.35   Appropriation permanently
              reduced.......................        -114         -34
    40.36   Unobligated balance permanently
              reduced.......................      -2,844      -1,557      -2,500
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............      12,213      -1,591      -2,500
    55.00   Advance appropriation...........       4,200       4,200
          Mandatory:

    60.00   Appropriation...................                   5,000       5,000
    60.49   Portion applied to liquidate
              contract authority............                  -5,000      -5,000
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      16,413       2,609      -2,500
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..      31,105      26,383      22,149
    73.10 Total new obligations.............      19,289       6,040
    73.20 Total outlays (gross).............     -22,356      -9,096      -3,019
    73.45 Recoveries of prior year
            obligations.....................      -1,655      -1,178      -2,500
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..      26,383      22,149      16,630
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................      12,184       2,520
    86.93 Outlays from discretionary
            balances........................      10,172       6,576       3,019
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      22,356       9,096       3,019
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      16,413       2,609      -2,500
    90.00 Outlays...........................      22,356       9,096       3,019
    93.03 Obligated balance, start of year:
            Contract authority..............                  15,771      10,771
    93.04 Obligated balance, end of year:
            Contract authority..............      15,771      10,771       5,771
    ---------------------------------------------------------------------------

        The Housing Certificate Fund, until 2005, provided funding to both
    project-based and tenant-based components of the Section 8 program.
    Project-based Rental Assistance and Tenant-based Rental Assistance are
    now separately funded accounts, and the Housing Certificate Fund retains
    balances from previous years' appropriations and in 2006 includes a
    rescission of $2.5 billion of those balances.

                         Project-Based Rental Assistance

                          (including transfer of funds)

        For activities and assistance for the provision of project-based
    subsidy contracts under the United States Housing Act of 1937, as
    amended (42 U.S.C. 1437 et seq.) (``the Act'' herein), not otherwise
    provided for, [$5,341,000,000] $5,072,100,000, to remain available until
    expended: Provided, That the amounts made available under this heading
    are provided as follows:
            (1) [$5,237,100,000] $4,923,100,000 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 (including section 8 moderate
        rehabilitation contracts), for contracts entered into pursuant to
        section 441 of the McKinney-Vento Homeless Assistance Act, for
        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
        administrative and other expenses associated with project-based
        activities and assistance funded under this paragraph.
            (2) [$101,900,000] $147,200,000 for performance-based contract
        administrators for section 8 project-based assistance.
            (3) [$2,000,000] $1,800,000 shall be transferred to the Working
        Capital Fund[.]: Provided further, That amounts recaptured under
        this heading, the heading, `Annual Contributions for assisted
        housing,' or the heading, `Housing Certificate Fund,' for project-
        based section 8 activities may be used for renewals of or amendments
        to section 8 project-based subsidy contracts or for performance-
        based contract administrators, notwithstanding the purposes for
        which such amounts were appropriated. (Departments of Veterans
        Affairs and Housing and Urban Development, and Independent Agencies
        Appropriations Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0303-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Contract Renewals.................                   5,195       5,545
    00.02 Contract Administrators...........                     101         332
    00.03 Working Capital Fund..............                       2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                   5,298       5,879
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                   5,298       5,072
    22.10 Resources available from
            recoveries of prior year
            obligations.....................                                 807
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                   5,298       5,879
    23.95 Total new obligations.............                  -5,298      -5,879
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                   5,341       5,072
    40.35   Appropriation permanently
              reduced.......................                     -43
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                   5,298       5,072
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                               2,120
    73.10 Total new obligations.............                   5,298       5,879
    73.20 Total outlays (gross).............                  -3,178      -5,161
    73.45 Recoveries of prior year
            obligations.....................                                -807
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                   2,120       2,031
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                   3,178       3,041
    86.93 Outlays from discretionary
            balances........................                               2,120
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                   3,178       5,161
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                   5,298       5,072
    90.00 Outlays...........................                   3,178       5,161
    ---------------------------------------------------------------------------

        Project-based Rental Assistance. HUD subsidizes rents for
    approximately 1.3 million families in over 19,000 projects under the
    Section 8 project-based rent subsidy program. Unlike the tenant-based
    Section 8 program, subsidies in the project-based program are tied
    directly to the project. Tenants pay up to 30 percent of income toward
    the rent with HUD subsidizing the remainder. Rents are adjusted
    periodically subject to HUD guidelines and approval. The Section 8
    project-based program provides essential assistance to maintain the
    stock of affordable housing for low-and moderate-income families and
    individuals, many of whom are elderly or disabled. Program activity
    includes the following:

        Contract Renewals. Original Section 8 assistance contracts were
    entered into between HUD and project owners for periods of up to 40
    years. As contract terms expire they are renewed on an annual funding
    cycle and additional renewal budget authority is required to maintain
    the housing stock.

        Section 8 Amendments. A funding amendment to a Section 8 contract is
    required to maintain the project until its contract expiration date when
    actual costs incurred exceed the amount of budget authority originally
    set-aside for the project. These additional costs are proposed to be
    entirely funded in 2006 by utilizing excess balances remaining on
    expired Section 8 contracts that utilized less than anticipated
    resources in completing the contract. No new BA is requested in 2006 for
    Section 8 Amendment activity.

        Contract Administrators. HUD utilizes Performance Based Contract
    Administrators (PBCAs) to administer and monitor the project-based
    portfolio. There are presently 53 PHAs

    [[Page 530]]

    under contract to manage approximately 15,000 contracts with 775,000
    units. An additional 4,000 contracts with 287,000 units are anticipated
    to be added to the PBCA inventory in 2006. Further, funding is requested
    under the Project Rental Assistance heading for PBCA administration of
    an estimated 3,772 non-Section 8 contracts with 125,499 units. These
    will include Rent Supplement and Rental Assistance Program (RAP)
    contracts, Project Rental Assistance Contracts (PRAC) and Project
    Assistance Contracts (PAC), and Section 236 contracts. Funding for 2006
    is proposed to be derived by $147.2 million of new budget authority.

        Project-based Tenant Protection. Voucher assistance is provided to
    tenants who face dislocation as a result of actions taken by project
    owners or by HUD that are beyond their control. This occurs as a result
    of owners opting out of the program or being terminated by HUD. HUD's
    property disposition activities and prepayment activity under the
    Preservation program may also lead to Project-Based Tenant Protection
    requirements. For 2006 approximately $112 million will be required to
    assist an estimated 16,026 families. These project-based requirements,
    which are met through voucher assistance, are funded under the Tenant-
    Based heading.

        Working Capital Fund Transfer. A total of $1.8 million is requested
    in 2006 to fund development of and modifications to technology systems
    that service or are related to the programs or activities under this
    heading.

                                 Moving to Work

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0331-0-1-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           1           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           1           1           1
    ----------------------------------------------------------------------------

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

        The Moving-to-Work demonstration provides unprecedented autonomy and
    flexibility to a select group of high-performing public housing
    authorities (PHAs) in order to assess the potential impacts of Federal
    deregulation on resident households, housing developments, and local
    housing programs. Through waivers of requirements of the 1937 Housing
    Act, as amended, and related Federal regulations, participating PHAs can
    combine Federal funding allocated for public housing operating subsidy,
    capital subsidy, and Section 8 vouchers into a flexible housing
    assistance fund. PHAs may provide incentives to families that work, are
    seeking work, or are preparing for work, PHAs are also allowed to change
    administrative procedures and management policies so they can reallocate
    resources to better address local housing needs and priorities. No
    additional funding is being requested for this demonstration.

                           Public Housing Capital Fund

                         (including transfers of funds)

        For the Public Housing Capital Fund Program to carry out capital and
    management activities for public housing agencies, as authorized under
    section 9 of the United States Housing Act of 1937, as amended (42
    U.S.C. 1437g) (the ``Act'') [$2,600,000,000] $2,327,200,000, to remain
    available until September 30, [2008] 2009: Provided, That
    notwithstanding any other provision of law or regulation, during fiscal
    year [2005] 2006, 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 [$38,700,000] $11,000,000 shall be for
    carrying out activities under section 9(h) of such Act[, of which
    $12,500,000 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
    [$10,150,000] $13,230,000 shall be transferred to the Working Capital
    Fund: 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 [$30,000,000] $17,000,000 shall be available
    for the Secretary of Housing and Urban Development to make grants,
    notwithstanding section 205 of this Act, to public housing agencies for
    emergency capital needs resulting from unforeseen emergencies and
    natural disasters occurring in fiscal year [2005] 2006: Provided
    further, That of the total amount provided under this heading,
    [$53,500,000] $24,000,000 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 up to [$3,000,000] $8,820,000 is to
    support the costs of administrative and judicial receiverships in effect
    prior to date of enactment of this Act[: 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, of
    which up to $1,000,000 may be used for technical assistance in
    connection with such grants as authorized in section 9(h)(8) of such
    Act: 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: Provided further, That
    notwithstanding section 9(d)(1)(E) of the United States Housing Act of
    1937, any Neighborhood Networks computer center established with funding
    made available under this heading in this or any other Act, shall be
    available for use by residents of public housing and residents of other
    housing assisted with funding made available under this title in this
    Act or any other Act]. (Departments of Veterans Affairs and Housing and
    Urban Development, and Independent Agencies Appropriations Act, FY
    2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0304-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Capital Grants....................       3,001       2,492       2,253
    00.02 Emergency/Disaster................          14          95          17
    00.03 Technical Assistance..............          42         106          11
    00.04 Working Capital Fund..............          11          10          13
    00.05 Neighborhood Network Initiative...           8          38
    00.06 Resident Opportunities and
            Supportive Services.............          34         120          24
    00.07 Public Housing Amendments.........           1           2
    00.08 Administrative Receivership.......                       3           9
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       3,111       2,866       2,327
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         690         287
    22.00 New budget authority (gross)......       2,696       2,579       2,327
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          33
    22.75 Balance of contract authority
            withdrawn.......................         -21
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,398       2,866       2,327
    23.95 Total new obligations.............      -3,111      -2,866      -2,327
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         287
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       3,242       2,600       2,327

    [[Page 531]]

    40.35   Appropriation permanently
              reduced.......................         -16         -21
    40.49   Portion applied to liquidate
              contract authority............        -530
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       2,696       2,579       2,327
          Mandatory:

    60.00   Appropriation...................         530         500         500
    60.49   Portion applied to liquidate
              contract authority............        -530        -500        -500
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,696       2,579       2,327
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..      10,097       9,761       9,126
    73.10 Total new obligations.............       3,111       2,866       2,327
    73.20 Total outlays (gross).............      -3,414      -3,501      -3,509
    73.45 Recoveries of prior year
            obligations.....................         -33
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       9,761       9,126       7,944
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          22          36          43
    86.93 Outlays from discretionary
            balances........................       3,392       3,465       3,466
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,414       3,501       3,509
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       2,696       2,579       2,327
    90.00 Outlays...........................       3,414       3,501       3,509
    93.03 Obligated balance, start of year:
            Contract authority..............       3,299       2,748       2,248
    93.04 Obligated balance, end of year:
            Contract authority..............       2,748       2,248       1,748
    ---------------------------------------------------------------------------

        The Public Housing Capital Fund, a formula-driven program based on
    estimated need, is designed to respond to the capital and management
    improvement requirements of public housing.

        Of the $2.3 billion requested for the Public Housing Capital Fund,
    approximately $2.25 billion is provided to cover annual accrual needs.
    Other uses include up to $24 million to provide supportive services to
    public housing residents under the Resident Opportunities and Supportive
    Services (ROSS) program, up to $17 million for emergencies or disasters,
    up to $11 million for technical assistance, no less than $13.2 million
    for the Working Capital Fund and up to $8.8 million for administrative
    and judicial receiverships.

                          Public Housing Operating Fund

        For [2005] 2006 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)), [$2,458,000,000] $3,407,300,000, of which $10,000,000 in
    bonus funds shall be provided to public housing agencies that assist
    program participants in moving away from dependency on housing
    assistance programs: Provided, [That of the total amount provided under
    this heading, $8,000,000 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 cooperative agreement with the Department of Housing and Urban
    Development: Provided further, That any such 2005 payment shall be
    provided in an amount sufficient to cover only the period beginning with
    the start of a public housing agency's fiscal year and ending on
    December 31, 2005: Provided further,] That for fiscal year 2006 and all
    fiscal years thereafter, the Secretary shall provide assistance under
    this heading to public housing agencies on a calendar year basis:
    Provided further, That, in fiscal year [2005] 2006 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. (Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0163-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating Subsidy.................       3,571       2,423       3,397
    00.02 Voluntary Incentive Bonus.........                      10          10
    00.03 Department of Justice Anti-Drug...          10           8
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       3,581       2,441       3,407
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4           3
    22.00 New budget authority (gross)......       3,579       2,438       3,407
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,584       2,441       3,407
    23.95 Total new obligations.............      -3,581      -2,441      -3,407
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       3,600       2,458       3,407
    40.35   Appropriation permanently
              reduced.......................         -21         -20
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       3,579       2,438       3,407
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,861       2,007         848
    73.10 Total new obligations.............       3,581       2,441       3,407
    73.20 Total outlays (gross).............      -3,434      -3,600      -3,403
    73.45 Recoveries of prior year
            obligations.....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       2,007         848         852
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,577       1,685       2,555
    86.93 Outlays from discretionary
            balances........................       1,857       1,915         848
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,434       3,600       3,403
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,579       2,438       3,407
    90.00 Outlays...........................       3,434       3,600       3,403
    ---------------------------------------------------------------------------

        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.....................        $3,407             55%
    Dwelling Rental.........................         2,429             40%
    Investment..............................            66              1%
    Other Income............................           232              4%
                                             -------------  --------------

       Total, Operating Revenue.............         6,134            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. AEL is not based on actual cost data from PHAs.
    HUD is currently working with PHAs on a new operating subsidy formula
    based on the previously congressionally sanctioned cost study conducted
    by the Harvard Graduate School of Design.

    [[Page 532]]

        HUD remains committed to the principle and practices of real estate
    asset-based management and will at sometime in the near future present a
    plan for implementation.

        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...............................        $1,334             22%
    Administration..........................         1,728             28%
    General Operating Expenses..............           533              9%
    Maintenance.............................         2,216             36%
    Tenant Services.........................           152              2%
    Protective Services.....................           165              3%
    Capital Expenditures....................             6              0%
    Operating Reserve.......................             0              0%
                                             -------------  --------------

       Total, Operating Expenses/*/.........         6,134            100%
                                             -------------  --------------

         * Excludes Voluntary Graduation Bonuses.

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

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

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

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

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

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

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

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

        Voluntary Graduation Bonus.--This proposal provides up to $10
    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

                                 [(rescission)]

        [Of the unobligated balances remaining from funds appropriated in
    fiscal year 2001 and prior years under the heading ``Drug elimination
    grants for low-income housing'', $5,000,000 are rescinded.] (Departments
    of Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0197-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 New Approach Anti-Drug............           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          13          17          12
    22.00 New budget authority (gross)......                      -5
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          18          12          12
    23.95 Total new obligations.............          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          17          12          12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance permanently
              reduced.......................                      -5
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          67          17
    73.10 Total new obligations.............           1
    73.20 Total outlays (gross).............         -46         -17
    73.45 Recoveries of prior year
            obligations.....................          -5
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          17
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          46          17
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      -5
    90.00 Outlays...........................          46          17
    ---------------------------------------------------------------------------

        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 tenant screening and 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, $144,000,000, to remain available until September
    30, 2006, 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.]
    Of the unobligated balances remaining from funds appropriated in fiscal
    year 2005 under the heading, ``Revitalization of Severely Distressed
    Public Housing (HOPE VI),'' for grants to public housing agencies from
    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, $142,848,000 is cancelled.
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, FY 2005.)

    [[Page 533]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0218-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........         493         157
    00.02 Technical Assistance..............           5           8
    00.04 Tenant Protection.................          45
    00.05 Neighborhood Networks.............           5
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         548         165
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         559         165         143
    22.00 New budget authority (gross)......         149         143        -143
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         714         308
    23.95 Total new obligations.............        -548        -165
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         165         143
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         150         144        -143
    40.35   Appropriation permanently
              reduced.......................          -1          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         149         143        -143
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,722       2,668       2,243
    73.10 Total new obligations.............         548         165
    73.20 Total outlays (gross).............        -596        -590        -567
    73.45 Recoveries of prior year
            obligations.....................          -6
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       2,668       2,243       1,676
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................         596         590         567
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         149         143        -143
    90.00 Outlays...........................         596         590         567
    ---------------------------------------------------------------------------

        HOPE VI has surpassed its primary goal to demolish 100,000 severely
    distressed public housing units by 2003. No additional funds are
    requested for this program in 2006 and unobligated balances appropriated
    in 2005 are proposed for rescission.

                      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.),
    [$627,000,000] $582,600,000, to remain available until expended, [of
    which $2,200,000 shall be contracted through the Secretary as technical
    assistance and capacity building to be used by the National American
    Indian Housing Council in support of the implementation of NAHASDA;] of
    which [$4,500,000] $2,308,000 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 $2,600,000 shall be transferred to the Working
    Capital Fund]; of which $57,783,000 shall be for the Indian Community
    Development Block Grant program under title I of the Housing and
    Community Development Act of 1974, as amended (42 U.S.C. 5301 et seq.),
    for grants to Indian tribes notwithstanding section 106(a)(1) of such
    Act, of which up to $4,000,000 may be used for emergencies that
    constitute imminent threats to health and safety, notwithstanding any
    other provision of law (including section 205 of the Act) Provided, That
    of the amount provided under this heading, [$2,000,000] $4,800,000 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
    [$17,926,000] $37,938,222: 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] Expenses'', to be
    used only for the administrative costs of these guarantees. (Departments
    of Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, FY 2005.)

                                 [(rescission)]

        [Of the unobligated balances remaining from funds appropriated in
    fiscal year 2004 and prior years under the heading ``Native American
    housing block grants'' for activities related to title VI of NAHASDA,
    $21,000,000 are rescinded.] (Departments of Veterans Affairs and Housing
    and Urban Development, and Independent Agencies Appropriations Act, FY
    2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0313-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Indian Housing Block Grants.......         652         607         517
    00.02 Title VI Loan Guarantee Subsidy...           1           2           3
    00.03 Technical Assistance..............           4           4           5
    00.04 Working Capital Fund..............           3           3
    00.05 National American Indian Housing
            Council.........................           2           2
    00.07 Upward reestimate.................           1           4
    00.08 Indian Housing CDBG...............                                  58
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         663         622         583
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         123         114          97
    22.00 New budget authority (gross)......         651         605         583
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         777         719         680
    23.95 Total new obligations.............        -663        -622        -583
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         114          97          97
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         654         627         583
    40.35   Appropriation permanently
              reduced.......................          -4          -5
    40.36   Unobligated balance permanently
              reduced.......................                     -21
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         650         601         583
          Mandatory:

    60.00   Appropriation...................           1           4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         651         605         583
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         955         939         840
    73.10 Total new obligations.............         663         622         583
    73.20 Total outlays (gross).............        -676        -721        -727
    73.45 Recoveries of prior year
            obligations.....................          -3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         939         840         696
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         165         108         101
    86.93 Outlays from discretionary
            balances........................         510         609         626
    86.97 Outlays from new mandatory
            authority.......................           1           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         676         721         727
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         651         605         583
    90.00 Outlays...........................         676         721         727
    ---------------------------------------------------------------------------

    [[Page 534]]

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

    ----------------------------------------------------------------------------
    Identification code 86-0313-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Title VI..........................          17          18          38
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......          17          18          38
        Guaranteed loan subsidy (in percent):
    232001Title VI..........................       10.56       10.32       12.26
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....       10.56       10.32       12.26
        Guaranteed loan subsidy budget authority:
    233001Title VI..........................           2           2           5
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....           2           2           5
        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           4
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................           1           4
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................
    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 $37.9 million
    is proposed for this loan guarantee program for 2006. The subsidy rate
    for this program is set at 12.26 percent with a federal guarantee of 95
    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.

        The 2006 Budget allocates $58 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. 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.

                       Native Hawaiian Housing Block Grant

        For the Native Hawaiian Housing Block grant program, as authorized
    under title VIII of the Native American Housing Assistance and Self-
    Determination Act of 1996 (25 U.S.C. 4111 et seq.), $8,815,000, to
    remain available until expended, of which $352,606 shall be for training
    and technical assistance activities.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0235-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Native Hawaiian Housing Block
            Grant...........................                                   9
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                   9
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                   9
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..
    73.10 Total new obligations.............                                   9
    73.20 Total outlays (gross).............                                  -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                   8
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................                                   9
    90.00 Outlays...........................                                   1
    ---------------------------------------------------------------------------

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

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

    Public enterprise funds:

                Low-Rent Public Housing--Loans and Other Expenses

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4098-0-3-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program: Capital
            investment loans to PHAs........           1          30          30
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 33.0)...................           1          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)......          98         113         118
    22.60 Portion applied to repay debt.....         -97         -83         -83
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          21          50          55
    23.95 Total new obligations.............          -1         -30         -30
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          20          20          25
    ----------------------------------------------------------------------------

    [[Page 535]]

        New budget authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          20          30          30
    69.00 Offsetting collections (cash).....          78          83          88
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          98         113         118
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         515         440         357
    73.10 Total new obligations.............           1          30          30
    73.20 Total outlays (gross).............         -76        -113        -118
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         440         357         269
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          76         113         118
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -78         -83         -88
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          20          30          30
    90.00 Outlays...........................          -2          30          30
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4098-0-3-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,135       1,056         973
    1251  Repayments: Repayments and
            prepayments.....................         -79         -83         -88
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,056         973         885
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4098-0-3-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       1,916       1,649       1,382
    2251  Repayments and prepayments........        -267        -267        -267
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       1,649       1,382       1,115
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       1,649       1,382       1,115
    ---------------------------------------------------------------------------

        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, $30 million
    borrowed from the Treasury was forgiven in 2004, $30 million will be
    borrowed from the Treasury and forgiven in 2005, and an estimated $30
    million will be borrowed from the Treasury and forgiven in 2006.

        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 2003, 2004, 2005, and 2006 follows:

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4098-0-3-604

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    536

    460

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

    1601

    Direct loans, gross

    1,134

    1,056

    1602

    Interest receivable

    69

    65

    1604

    Direct loans and interest receivable, net

    1,203

    1,121

    1699

    Value of assets related to direct loans

    1,203

    1,121

    1999

    Total assets

    1,739

    1,581

        LIABILITIES:
          Federal liabilities:

    2102

    Interest payable

    137

    128

    2104

    Resources payable to Treasury

    1,133

    1,055

    2999

    Total liabilities

    1,270

    1,183

        NET POSITION:
    3100

    Appropriated capital

    475

    404

    3300

    Cumulative results of operations

    -6

    -6

    3999

    Total net position

    469

    398

    4999

    Total liabilities and net position

    1,739

    1,581

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

    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),
    [$5,000,000] $2,645,000, 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 [$145,345,000] $98,966,942.
        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] Expenses'', to be used only for the administrative costs
    of these guarantees. (Departments of Veterans Affairs and Housing and
    Urban Development, and Independent Agencies Appropriations Act, FY
    2005.)

                                 [(rescission)]

        [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 rescinded.] (Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, FY 2005.)

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0223-0-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    0101  Negative subsidies/subsidy
            reestimates.....................                       4
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0223-0-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........           2           5           3
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           2           5           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          33          36           3
    22.00 New budget authority (gross)......           5         -28           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          38           8           6
    23.95 Total new obligations.............          -2          -5          -3
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          36           3           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           5           5           3
    40.36   Unobligated balance permanently
              reduced.......................                     -33
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............           5         -28           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           1           1

    [[Page 536]]

    73.10 Total new obligations.............           2           5           3
    73.20 Total outlays (gross).............          -2          -5          -4
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           1           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1           1
    86.93 Outlays from discretionary
            balances........................           1           4           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           2           5           4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           5         -28           3
    90.00 Outlays...........................           2           5           4
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 86-0223-0-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Indian Housing Loan Guarantee.....         197         145          99
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......         197         145          99
        Guaranteed loan subsidy (in percent):
    232001Indian Housing Loan Guarantee.....        2.73        2.58        2.42
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        2.73        2.58        2.42
        Guaranteed loan subsidy budget authority:
    233001Indian Housing Loan Guarantee.....           5           5           3
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....           5           5           3
        Guaranteed loan subsidy outlays:
    234001Indian Housing Loan Guarantee.....           2           5           2
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............           2           5           2
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237001Downward reestimate subsidy budget
            authority.......................                      -4
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................                      -4
    ----------------------------------------------------------------------------

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

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

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

              Indian Housing Loan Guarantee Fund Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4104-0-3-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default Claims....................                       1           1
    00.02 Loan Guarantee Subsidy............           1           2           2
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............           1           3           3
    08.02 Downward Re-estimate..............                       4
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 33.0)...................           1           7           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           6           9           4
    22.00 New financing authority (gross)...           3           2           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           9          11           7
    23.95 Total new obligations.............          -1          -7          -3
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           9           4           4
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Federal sources......           3           2           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -1          -1           6
    73.10 Total new obligations.............           1           7           3
    73.20 Total financing disbursements
            (gross).........................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          -1           6           9
    87.00 Total financing disbursements
            (gross).........................           1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Payments from
                program account.............          -2          -2          -3
    88.40     Non-Federal sources...........          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -3          -2          -3
    ----------------------------------------------------------------------------

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

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4104-0-3-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........         197         145          99
    2121  Limitation available from carry-
            forward.........................         615         750         599
    2143  Uncommitted limitation carried
            forward.........................        -750        -599        -679
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................          62         296          19
    2199  Guaranteed amount of guaranteed
            loan commitments................          62         296          19
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          61         126         135
    2231  Disbursements of new guaranteed
            loans...........................          97          23          26
    2251  Repayments and prepayments........         -32         -13         -14
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................                      -1          -4
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         126         135         143
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         126         135         143
    ---------------------------------------------------------------------------

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    5

    8

    [[Page 537]]

    1999

    Total assets

    5

    8

        LIABILITIES:
    2204

    Non-Federal liabilities: Liabilities for loan guarantees

    5

    8

    2999

    Total liabilities

    5

    8

    4999

    Total liabilities and net position

    5

    8

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

           Native Hawaiian Housing Loan Guarantee Fund Program Account

                          (including transfer of funds)

        For the cost of guaranteed loans, as authorized by section 184A of
    the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-13b),
    [$1,000,000] $882,000, 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 [$37,403,000] $35,000,000.
        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] Expenses'', to be used only for the administrative costs
    of these guarantees. (Departments of Veterans Affairs and Housing and
    Urban Development, and Independent Agencies Appropriations Act, FY
    2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0233-0-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........                       2           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                       2           1
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    73.10 Total new obligations.............                       2           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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Native Hawaiian Housing...........          40          37          35
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......          40          37          35
        Guaranteed loan subsidy (in percent):
    232001Native Hawaiian Housing...........        2.73        2.58        2.42
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        2.73        2.58        2.42
        Guaranteed loan subsidy budget authority:
    233001Native Hawaiian Housing...........           1           1           1
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....           1           1           1
        Guaranteed loan subsidy outlays:
    234001Native Hawaiian Housing...........                       1           1
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............                       1           1
    ----------------------------------------------------------------------------

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

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

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

          Native Hawaiian Housing Loan Guarantee Fund Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4351-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

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

        New financing authority (gross), detail:
          Discretionary:

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

        Offsets:
          Against gross financing authority and
              financing disbursements:

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

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

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4351-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........          40          37          35
    2121  Limitation available from carry-
            forward.........................          80         120         156
    2143  Uncommitted limitation carried
            forward.........................        -120        -156        -190
                                               ---------   ---------  ----------
    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 guaran

    [[Page 538]]

    tees that resulted from obligations in any year). The amounts in this
    account are a means of financing and are not included in the budget
    totals. As required by the Federal Credit Reform Act of 1990, no
    administrative expenses can be recorded in the financing account.

              Title VI Indian Federal Guarantees Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4244-0-3-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default Claims....................                       1           1
    00.02 Guarantee Loan Subsidy............                       1           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                       2           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           8          10          14
    22.00 New financing authority (gross)...           2           6           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          10          16          19
    23.95 Total new obligations.............                      -2          -3
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          10          14          16
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1           2           5
          Mandatory:

    69.00   Offsetting collections (cash)...           1           4
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................           2           6           5
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                   2
    73.10 Total new obligations.............                       2           3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                       2           5
    87.00 Total financing disbursements
            (gross).........................
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -1          -2          -5
    88.00     Upward Reestimate.............          -1          -4
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -2          -6          -5
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........          -2          -6          -5
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4244-0-3-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........          17          18          38
    2121  Limitation available from carry-
            forward.........................         375         382          10
    2143  Uncommitted limitation carried
            forward.........................        -382         -10          -8
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................          10         390          40
    2199  Guaranteed amount of guaranteed
            loan commitments................           8           8          26
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          71          77          88
    2231  Disbursements of new guaranteed
            loans...........................          10          17          20
    2251  Repayments and prepayments........          -4          -5          -5
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................                      -1          -2
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          77          88         101
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          77          88         101
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4244-0-3-604

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    8

    10

    1999

    Total assets

    8

    10

        LIABILITIES:
    2204

    Non-Federal liabilities: Liabilities for loan guarantees

    8

    10

    2999

    Total liabilities

    8

    10

    4999

    Total liabilities and net position

    8

    10

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

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

                       COMMUNITY PLANNING AND DEVELOPMENT

                                  Federal Funds

    General and special funds:

                   Housing Opportunities for Persons With AIDS

        For carrying out the Housing Opportunities for Persons with AIDS
    program, as authorized by the AIDS Housing Opportunity Act (42 U.S.C.
    12901 et seq.), [$284,000,000] $268,000,000, to remain available until
    September 30, [2006] 2007, except that amounts allocated pursuant to
    section 854(c)(3) of such Act shall remain available until September 30,
    2008: 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]
    $2,400,000 of the funds under this heading for training, oversight, and
    technical assistance activities. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0308-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Housing for Persons with HIV/AIDS.         280         285         271
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         280         285         271
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          88         103         100
    22.00 New budget authority (gross)......         295         282         268
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         385         385         368
    23.95 Total new obligations.............        -280        -285        -271
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         103         100          97
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         297         284         268
    40.35   Appropriation permanently
              reduced.......................          -2          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         295         282         268
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         439         463         487

    [[Page 539]]

    73.10 Total new obligations.............         280         285         271
    73.20 Total outlays (gross).............        -254        -261        -262
    73.45 Recoveries of prior year
            obligations.....................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         463         487         496
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1          11          11
    86.93 Outlays from discretionary
            balances........................         253         250         251
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         254         261         262
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         295         282         268
    90.00 Outlays...........................         254         261         262
    ---------------------------------------------------------------------------

        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 $2.4 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 2006 will support approximately 67,000 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, $4,709,000,000, to remain available until September 30,
    2007, unless otherwise specified: Provided, That of the amount provided,
    $4,150,035,000 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
    $69,000,000 shall be for grants to Indian tribes notwithstanding section
    106(a)(1) of such Act, of which, notwithstanding any other provision of
    law (including section 205 of this Act), up to $4,000,000 may be used
    for emergencies that constitute imminent threats to health and safety;
    $3,300,000 shall be for a grant to the Housing Assistance Council;
    $2,400,000 shall be for a grant to the National American Indian Housing
    Council; $4,800,000 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; $4,800,000 shall be available as a grant to the Raza
    Development Fund of La Raza for the HOPE Fund, of which $500,000 is for
    technical assistance and fund management, and $4,300,000 is for
    investments in the HOPE Fund and financing to affiliated organizations;
    $43,700,000 shall be for grants pursuant to section 107 of the Act, of
    which $9,000,000 shall be for the Native Hawaiian block grant authorized
    under title VIII of the Native American Housing Assistance and Self-
    Determination Act of 1996, to remain available until expended, of which
    $500,000 shall be for training and technical assistance; $3,465,000
    shall be transferred to the Working Capital Fund; $25,000,000 shall be
    for grants pursuant to the Self Help Homeownership Opportunity Program;
    $34,500,000 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 $4,500,000 shall be for capacity building
    activities administered by Habitat for Humanity International;
    $2,000,000 shall be for the Special Olympics National Games Organizing
    Committee for planning, equipment, and operational expenses associated
    with the 2006 games in Ames, Iowa; $62,000,000 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
    $9,000,000 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, $42,000,000 shall
    be available for neighborhood initiatives that are utilized to improve
    the conditions of distressed and blighted areas and neighborhoods, to
    stimulate investment, economic diversification, and community
    revitalization in areas with population outmigration or a stagnating or
    declining economic base, or to determine whether housing benefits can be
    integrated more effectively with welfare reform initiatives: Provided,
    That amounts made available under this paragraph shall be provided in
    accordance with the terms and conditions specified in the statement of
    managers accompanying this Act.]
        [Of the amount made available under this heading, $262,000,000 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 statement of 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 108-7 is deemed to be amended with respect to item number 2
    with respect to amounts made available for the City of Boaz, Alabama by
    striking ``facilities renovation and expansion'' and inserting
    ``construction of a new library''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-7 is deemed to be amended with respect to item number 740
    by striking ``facilities renovation and construction'' and inserting
    ``an economic development planning study''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-7 is deemed to be amended with respect to item number 254
    by striking ``Greater Community Council in Louisville, Kentucky for
    construction of a facility for low-income, disabled persons'' and
    inserting ``Portland Promise, Inc., in Louisville, Kentucky for a multi-
    purpose facility''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-7 is deemed to be amended with respect to item number 10
    with respect to amounts made available to the St. Stephen Family Life
    Center in Louisville, Kentucky by striking ``renovation'' and inserting
    ``construction''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-7 is deemed to be amended with respect to item number 584
    with respect to amounts made available for Queens Borough Public Library
    in Queens, New York by striking ``for facilities rehabilitation and
    expansion of the Parsons Boulevard complex'' and inserting ``for
    facilities construction and renovations''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-199 is deemed to be amended with respect to item number
    198 by striking ``$160,000 for the Pine Mountain Beautification and
    Economic Development project in Harris County, Georgia for streetscape
    improvements'' and inserting ``$60,000 for the Beautification and
    Economic Development project in Harris County, Georgia for construction;
    and $100,000 for the Beautification and Economic Development project in
    the Town of Pine Mountain, Georgia for streetscape improvements''.]

    [[Page 540]]

        [The referenced statement of the managers under this heading in
    Public Law 108-199 is deemed to be amended with respect to item number
    96 with respect to amounts made available for the City of Corona,
    California by striking ``construction'' and inserting ``rehabilitation
    and conversion''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-199 is deemed to be amended with respect to item number
    257 with respect to amounts made available for Fort Dodge, Iowa by
    inserting ``planning, design and'' before the word ``facilities''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-199 is deemed to be amended with respect to item number
    776 with respect to amounts made available for Rice University by
    inserting ``planning, design and'' before the word ``construction''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-199 is deemed to be amended with respect to item number
    535 by striking ``facilities renovation, expansion and buildout for the
    D'Youville College Library Improvement project'' and inserting
    ``Administration building renovation''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-7 is deemed to be amended with respect to item number 215
    by striking ``construction of a fieldhouse located at 39th and Cottage
    Grove'' and inserting ``costs associated with construction of a LULA
    lift at Ogden Park''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-7 is deemed to be amended with respect to item number 831
    by striking ``Bread and Rose in Olympia, Washington for renovations to a
    homeless shelter'' and inserting ``Catholic Community Services in
    Olympia, Washington for construction of a homeless shelter''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-199 is deemed to be amended with respect to item number
    303 by striking ``Maine Environmental'' and inserting ``Marine
    Environmental''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-199 is deemed to be amended with respect to item number
    163 by striking ``a special needs evacuation, senior, multipurpose
    center'' and inserting ``for Lakefront improvements to Lake Toho''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-199 is deemed to be amended with respect to item number
    499 by striking ``relocation of and renovations to the Wolcott Carriage
    House'' and inserting ``facilities improvements to Erie Canal parks''.]
        [The referenced statement of the managers under this heading in
    title II of Public Law 107-73; H. Rept. 107-272 is deemed to be amended
    by striking ``Southern New Mexico Fair and Rodeo in Dona Ana County for
    infrastructure improvements and to build a multipurpose event center;''
    and inserting the following: ``Dona Ana County, New Mexico, for the
    Southern New Mexico State Fair to make infrastructure improvements and
    to build a multi-purpose event center;''.]
        [The referenced statement of the managers under this heading in
    title II of division G of the Consolidated Appropriations Resolution,
    2004 (Public Law 108-199; H. Rept. 108-401) is deemed to be amended with
    respect to item 218 by striking ``construction'' and inserting
    ``planning and design''.]
        [The statement of managers accompanying Public Law 106-74, as
    amended by chapter 8 of title II of the Emergency Supplemental Act, 2000
    (Public Law 106-246), is further amended by inserting ``, to remain
    available to be expended until September 30, 2007,'' after
    ``$25,000,000''.]
        [The referenced statement of managers under the heading in title II
    of division G of the Consolidated Appropriations Resolution, 2004
    (Public Law 108-199; H. Rept. 108-401) is deemed to be amended with
    respect to numbers 418 and 423 by striking both specified grants and
    inserting ``418. $900,000 to Northland Neighborhoods, Inc., in Clay
    County, Missouri for the expansion of the current Home Repair Program to
    provide home repairs to low- to moderate-income neighborhoods;''.]
        [The referenced statement of managers under this heading in title II
    of division G of the Consolidated Appropriations Resolution, 2004
    (Public Law 108-199; H. Rept. 108-401) is deemed to be amended with
    respect to item 791 by inserting ``for planning and design'' after
    ``Texas''.]
        [The referenced statement of managers under this heading in title II
    of division G of the Consolidated Appropriations Resolution, 2004
    (Public Law 108-199; H. Rept. 108-401) is deemed to be amended with
    respect to item 218 by striking ``construction'' and inserting
    ``planning and design''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-199 is deemed to be amended with respect to item number
    169 by striking ``for renovation of an aviation high technology
    facility'' and inserting the following: ``for a feasibility study of a
    facilities improvement to the Airco Complex and surrounding
    properties''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-7 is deemed to be amended with respect to item number 740
    by striking ``for facilities renovation and construction'' and inserting
    ``for development and continuation of the National Medal of Honor Museum
    of Military History''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-199 is deemed to be amended with respect to item number
    163 by striking ``for a special needs evacuation, senior, multipurpose
    center'' and inserting ``for construction at the Lakefront Improvement
    Project''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-7 is deemed to be amended with respect to item number 54
    by striking ``for renovation of facilities'' and inserting ``for the
    Screen Education Center''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-199 is deemed to be amended with respect to item number
    104 by striking ``to Sonoma State University in California for
    construction of the Green Music Center'' and inserting ``to Center
    Point, Inc., to acquire and renovate a facility for the adolescent
    residential treatment center''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-199 is deemed to be amended with respect to item number 4
    by striking ``for renovation of the old Uniontown Middle School'' and
    inserting ``for enhancements to facilities for industrial
    development''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-199 is deemed to be amended with respect to item number
    583 by striking ``$200,000 to the North Carolina Museum of Natural
    Sciences for construction of the Nature Research Center'' and inserting
    ``$200,000 to the Friends of the North Carolina Museum of Natural
    Sciences for construction of the Nature Research Center''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-199 is deemed to be amended with respect to item number
    469 by striking ``to Rutgers University in New Jersey land acquisition
    for LEAP University High School'' and inserting ``to the LEAP Academy
    University Charter High School in Camden City, New Jersey for facilities
    construction, renovation, and buildout''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-199 is deemed to be amended with respect to item number
    575 by striking ``construction'' and inserting ``acquisition,
    renovation''.]
        [The referenced statement of the managers under this heading in
    Public Law 108-199 is deemed to be amended with respect to item number
    683 by striking ``for construction related to Bailey Park and downtown
    streetscape, beautification, building renovation and restoration'' and
    inserting ``for master plan development, building acquisition,
    demolition, renovation and restoration''. ]
        [Section 167 of division H of Public Law 108-199 is amended by
    allocating the funding made available under the heading ``Community
    Development Fund for project number 177 (House Report 108-235) to the
    Chicago Children's Choir Academy in Illinois for facility design and
    construction''.]
        [The referenced statement of the managers under this heading in
    title II of division G of the Consolidated Appropriations Resolution,
    2004 (Public Law 108-199; H. Rept. 108-401) is deemed to be amended with
    respect to item 24 by striking ``Tuscaloosa County Commission for
    Community Development in Tuscaloosa County, Alabama;'' and inserting
    ``City of Tuscaloosa for community development in Tuscaloosa,
    Alabama;''.]
        [The referenced statement of the managers under this heading in
    title II of division G of the Consolidated Appropriations Resolution,
    2004 (Public Law 108-199; H. Rept. 108-401) is deemed to be amended with
    respect to item 796 by striking ``Community Center'' and

    [[Page 541]]

    inserting ``Convention Center''.] (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, FY 2005.)
        [For an additional amount for ``Community development fund'', for
    activities authorized under title I of the Housing and Community
    Development Act of 1974, for use only for disaster relief, long-term
    recovery, and mitigation in communities affected by disasters designated
    by the President between August 31, 2003 and October 1, 2004, except
    those activities reimbursable by the Federal Emergency Management Agency
    or available through the Small Business Administration, and for
    reimbursement for expenditures incurred from the regular Community
    Development Block Grant formula allocation used to achieve these same
    purposes, $150,000,000, to remain available until September 30, 2007:
    Provided, That the amounts provided herein are designated as an
    emergency requirement pursuant to section 402 of S. Con. Res. 95 (108th
    Congress), as made applicable to the House of Representatives by H. Res.
    649 (108th Congress) and applicable to the Senate by section 14007 of
    Public Law 108-287: Provided further, That all funds under this heading
    shall be awarded by the Secretary to states (including Indian tribes for
    all purposes under this heading) to be administered by each state in
    conjunction with its community development block grants program:
    Provided further, That notwithstanding 42 U.S.C. 5306(d)(2), states are
    authorized to provide such assistance to entitlement communities:
    Provided further, That in administering these funds, the Secretary may
    waive, or specify alternative requirements for, any provision of any
    statute or regulation that the Secretary administers in connection with
    the obligation by the Secretary or the use by the recipient of these
    funds (except for requirements related to fair housing,
    nondiscrimination, labor standards, and the environment), upon a finding
    that such waiver is required to facilitate the use of such funds, and
    would not be inconsistent with the overall purpose of the statute:
    Provided further, That the Secretary may waive the requirements that
    activities benefit persons of low and moderate income, except that at
    least 50 percent of the funds under this heading must benefit primarily
    persons of low and moderate income unless the Secretary makes a finding
    of compelling need: Provided further, That the Secretary shall publish
    in the Federal Register any waiver of any statute or regulation
    authorized under this heading no later than 5 days before the effective
    date of such waiver: Provided further, That any project or activity
    underway prior to a Presidential disaster declaration may not receive
    funds under this heading unless the disaster directly impacted the
    project: Provided further, That each state shall provide not less than
    10 percent in non-Federal public matching funds or its equivalent value
    (other than administrative costs) for any funds allocated to the state
    under this heading.] (Emergency Supplemental Appropriations for
    Hurricane Disasters Assistance Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0162-0-1-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Community Development Formula
            Grants..........................       4,174       4,117         691
    00.02 Working Capital Fund..............           5           3
    00.03 Housing Assistance Council........           3           3
    00.04 Indian Tribes.....................          78         142
    00.05 Special Purpose Grants............          49          78
    00.06 Youthbuild........................          64          67          61
    00.07 Self Help Homeownership
            Opportunity Program.............          25          52
    00.08 Capacity Building.................          28          69
    00.09 Economic Development Initiative
            Grants..........................         230         338         250
    00.10 Neighborhood Initiative
            Demonstration...................          51          32          30
    00.11 National American Indian Housing
            Council.........................           2           2
    00.12 National Housing Development
            Corporation.....................           5          10
    00.13 National Council of La Raza.......           5          10
    00.14 Wellstone Center for Community
            Building........................           9
    00.15 Alaska Native and Native Hawaiian
            Serving Instituttions...........           3
    00.16 Disaster Assistance...............                     151
    00.17 Native Hawaiian Block Grants......                       9           9
    00.18 Special Olympics..................                       2
    00.19 Hudson River Park Trust Grant.....                      31
    00.20 Gilman Institute Grant............                       1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       4,731       5,117       1,041
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,104       1,305       1,041
    22.00 New budget authority (gross)......       4,933       4,853
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       6,039       6,158       1,041
    23.95 Total new obligations.............      -4,731      -5,117      -1,041
    23.98 Unobligated balance expiring or
            withdrawn.......................          -3
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       1,305       1,041
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       4,964       4,741
    40.00   Appropriation...................                     150
    40.35   Appropriation permanently
              reduced.......................         -29         -38
    41.00   Transferred to other accounts...          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       4,933       4,853
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..      11,369      10,694      10,438
    73.10 Total new obligations.............       4,731       5,117       1,041
    73.20 Total outlays (gross).............      -5,388      -5,373      -5,353
    73.40 Adjustments in expired accounts
            (net)...........................         -17
    73.45 Recoveries of prior year
            obligations.....................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..      10,694      10,438       6,126
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          49          94
    86.93 Outlays from discretionary
            balances........................       5,339       5,279       5,353
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       5,388       5,373       5,353
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       4,933       4,853
    90.00 Outlays...........................       5,388       5,373       5,353
    ---------------------------------------------------------------------------

        The 2006 Budget proposes to consolidate the Community Development
    Block Grant (CDBG) program, and other set-asides within the Community
    Development Fund, into a new economic and community development program
    to be administered by the Department of Commerce. The new program would
    be designed to achieve greater results and focus on communities most in
    need of assistance.

        Some of the set-asides formerly funded under the Community
    Development Fund will remain at HUD. The Self-Help Homeownership
    Opportunity program (SHOP) is proposed for funding at $30 million as a
    separate program and an increase of $5 million reflecting the success of
    this program and its standing as a Presidential initiative. Further, the
    budget proposes $57.8 million for the Indian Community Development Block
    Grant program that will be funded as a set-aside within the Native
    American Housing Block Grant program and more fully integrate HUD's
    overall effort in this area. The Native Hawaiian Housing Block Grant
    program is proposed for funding at $9 million as a separate program
    within Public and Indian Housing. The budget also proposes $29 million
    within the Research and Technology Account for University Programs that
    have been and will continue to be administered by the Office of Policy
    Development and Research.

        The 2006 Budget also proposes to transfer the Youthbuild program
    from HUD to the Department of Labor, as recommended by the White House
    Task Force on Disadvantaged Youth, to allow for greater coordination of
    the program with Job Corps and other employment and training programs.
    The 2006 Budget includes $58.9 million in funding for this program.
    Youthbuild provides grants to local organizations to provide education
    and training to disadvantaged youth age 16-24. In addition to
    participating in classroom training, youth learn construction skills by
    helping to build affordable housing.

        All other Community Development Fund set-asides would be
    consolidated into the new Commerce program.

                    Empowerment Zones/Enterprise Communities

        [For grants in connection with a second round of empowerment zones
    and enterprise communities, $10,000,000, to remain available until
    September 30, 2005, for ``Urban Empowerment Zones'', as authorized in
    section 1391(g) of the Internal Revenue Code of 1986

    [[Page 542]]

    (26 U.S.C. 1391(g)), including $666,666 for each empowerment zone for
    use in conjunction with economic development activities consistent with
    the strategic plan of each empowerment zone.] (Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0315-0-1-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Develop urban sites...............          15          10
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          15          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          15          10
    23.95 Total new obligations.............         -15         -10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          15          10
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         204         171         131
    73.10 Total new obligations.............          15          10
    73.20 Total outlays (gross).............         -48         -50         -50
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         171         131          81
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          48          50          50
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          15          10
    90.00 Outlays...........................          48          50          50
    ---------------------------------------------------------------------------

        The 2006 Budget proposes to consolidate grant funding for this
    program into a new economic and community development program to be
    administered by the Department of Commerce. 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 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, $24,000,000, to remain
    available until September 30, 2006.] (Departments of Veterans Affairs
    and Housing and Urban Development, and Independent Agencies
    Appropriations Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0314-0-1-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Cleanup and develop contaminated
            sites...........................          27          50
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          27          50
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          27          26
    22.00 New budget authority (gross)......          25          24
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          53          50
    23.95 Total new obligations.............         -27         -50
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          26
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          25          24
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          98         114         151
    73.10 Total new obligations.............          27          50
    73.20 Total outlays (gross).............         -10         -13         -14
    73.45 Recoveries of prior year
            obligations.....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         114         151         137
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          10          13          14
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          25          24
    90.00 Outlays...........................          10          13          14
    ---------------------------------------------------------------------------

        The 2006 Budget proposes to consolidate the Brownfield's program
    into a new economic and community development program to be administered
    by the Department of Commerce. The new program would be designed to
    achieve greater results and focus on communities most in need of
    assistance.

        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.

                               Youthbuild Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0219-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                       1           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           1           1           1
    ----------------------------------------------------------------------------

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

        The Youthbuild program had been funded as a set-aside within the
    CDBG program since 1996. The 2006 Budget proposes to fund the Youthbuild
    program within the U.S. Department of Labor to allow for greater
    coordination with other employment and training programs. 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, [$1,865,000,000,] $1,741,000,000 to remain available until
    September 30, [2007] 2008: Provided, That of the total amount provided
    in this paragraph, [up to $42,000,000 shall be available for housing
    counseling under section 106 of the Housing and Urban Development Act of
    1968, and $2,000,000] 1,000,000 shall be transferred to the Working
    Capital Fund.
        In addition to amounts otherwise made available under this heading,
    [$50,000,000] $200,000,000, to remain available until September 30,
    [2007] 2008, for assistance to homebuyers as authorized under title I of
    the American Dream Downpayment Act. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, FY 2005.)

    [[Page 543]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0205-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 HOME grants.......................       1,946       1,903       1,944
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       1,946       1,903       1,944
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         372         448         445
    22.00 New budget authority (gross)......       2,006       1,900       1,941
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          16
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,394       2,348       2,386
    23.95 Total new obligations.............      -1,946      -1,903      -1,944
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         448         445         442
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       2,018       1,915       1,941
    40.35   Appropriation permanently
              reduced.......................         -12         -15
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       2,006       1,900       1,941
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       4,914       5,247       5,500
    73.10 Total new obligations.............       1,946       1,903       1,944
    73.20 Total outlays (gross).............      -1,597      -1,650      -1,700
    73.45 Recoveries of prior year
            obligations.....................         -16
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       5,247       5,500       5,744
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           9          38          39
    86.93 Outlays from discretionary
            balances........................       1,588       1,612       1,661
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,597       1,650       1,700
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       2,006       1,900       1,941
    90.00 Outlays...........................       1,597       1,650       1,700
    ---------------------------------------------------------------------------

                                 Performance Metrics

    ----------------------------------------------------------------------------
    Identification code 86-0205-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        HOME Investment Partnerships Program:
    31001 Total number of years of
            affordability provided for low-
            income households residing in
            units produced from the
            investment of HOME funds........      778649      775000
    31005 Annual increase in the average
            ``blended'' HOME investment per
            unit............................       0.064       <3.0%
    31006 Number of HOME production units
            that are completed (includes
            rental units produced, new
            homebuyers, and existing
            homeowners assisted)............      62,021      58,309
    ---------------------------------------------------------------------------

        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 2006 request will result
    in the production of 82,420 units of affordable housing through new
    construction, rehabilitation, or acquisition. In addition, tenant-based
    rental assistance will be provided for 11,339 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.

        The HOME request also includes $10 million for technical assistance.

                   Self-Help Homeownership Opportunity Program

        For the Self-Help Homeownership Opportunity Program, as authorized
    under section 11 of Housing Opportunity Program Extension Act of 1996,
    as amended, $30,000,000, to remain available until September 30, 2008.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0176-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Self Help Housing Opportunity
            Program.........................                                  30
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                  30
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  30
    23.95 Total new obligations.............                                 -30
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                  30
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..
    73.10 Total new obligations.............                                  30
    73.20 Total outlays (gross).............                                  -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                  29
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................                                  30
    90.00 Outlays...........................                                   1
    ---------------------------------------------------------------------------

        The 2006 Budget proposes to fund the Self-Help Homeownership
    Opportunity Program (SHOP) in a separate account. Funding of $30 million
    is provided for acquisition and preparation of land to assist the
    efforts of national and regional consortia. SHOP funds assist low-income
    homebuyers willing to contribute ``sweat equity'' toward the
    construction of their house. The funds will increase nonprofit
    organizations' ability to leverage funds from other sources and produce
    at least 1,500 new homeownership units. SHOP was previously funded as a
    set-aside within the Community Development Fund.

                           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,
    [$1,250,515,000] $1,415,000,000, of which [$1,230,515,000]
    $1,395,000,000 shall remain available until September 30, [2007] 2008,
    and of which $20,000,000 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 up to
    [$11,500,000] $11,674,000 of the funds appropriated under this heading
    shall be

    [[Page 544]]

    available for the national homeless data analysis project and technical
    assistance: Provided further, That [$2,500,000] $1,000,000 of the funds
    appropriated under this heading shall be transferred to the Working
    Capital Fund: Provided further, That all balances for Shelter Plus Care
    renewals previously funded from the Shelter Plus Care Renewal account
    [shall be] and transferred to this account[, to] be available, if
    recaptured, for Shelter Plus Care renewals in fiscal year [2005] 2006.
        In addition, $25,000,000 is provided for fiscal year 2006, to be
    transferred to ``Training and Employment Services,'' Employment and
    Training Administration, Department of Labor, and shall be for the
    Prisoner Re-Entry Initiative as established under that heading.
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0192-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Homeless assistance grants........       1,346       1,383       1,451
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       1,346       1,383       1,451
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,754       1,697       1,616
    22.00 New budget authority (gross)......       1,260       1,241       1,440
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          47          50          50
    22.22 Unobligated balance transferred
            from other accounts.............                      11
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,061       2,999       3,106
    23.95 Total new obligations.............      -1,346      -1,383      -1,451
    23.98 Unobligated balance expiring or
            withdrawn.......................         -18
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       1,697       1,616       1,655
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,267       1,251       1,440
    40.35   Appropriation permanently
              reduced.......................          -7         -10
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,260       1,241       1,440
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,393       2,460       2,507
    73.10 Total new obligations.............       1,346       1,383       1,451
    73.20 Total outlays (gross).............      -1,232      -1,300      -1,431
    73.32 Obligated balance transferred from
            other accounts..................                      14
    73.45 Recoveries of prior year
            obligations.....................         -47         -50         -50
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       2,460       2,507       2,477
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           8          12          22
    86.93 Outlays from discretionary
            balances........................       1,224       1,288       1,409
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,232       1,300       1,431
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,260       1,241       1,440
    90.00 Outlays...........................       1,232       1,300       1,431
    ---------------------------------------------------------------------------

        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 address the multiple issues of homelessness. Many
    communities have made great strides in creating comprehensive approaches
    to ending chronic homelessness through the development of State
    Interagency Councils and local ten-year plans. Requested funding will 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. A major emphasis will be
    placed on permanent housing by requiring 30 percent of funds to be used
    for permanent housing.

        The Administration will propose legislation to combine HUD's three
    competitive programs--Shelter Plus Care, Supportive Housing, and Section
    8 Moderate Rehabilitation Single Room Occupancy into a single program
    with enough flexibility to better meet community needs. The Department
    continues to pursue expanded interagency efforts to meet the needs of
    the homeless. The new consolidated program will incorporate up to $200
    million for the Samaritan Housing Initiative which will specifically
    address the supportive housing needs of chronically homeless
    individuals.

        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 homeless management
    information systems (HMIS) support, including the continuing operation
    of tracking systems required by House Report 105-610.

        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. Upon enactment,
    these funds will be transferred to the Department of Labor.

                     Rural Housing and Economic Development

        [For the Office of Rural Housing and Economic Development in the
    Department of Housing and Urban Development, $24,000,000 to remain
    available until expended, which amount shall be competitively awarded by
    September 1, 2005, 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.]
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0324-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Rural Housing.....................          24          51
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          24          51
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          25          27
    22.00 New budget authority (gross)......          25          24
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          51          51
    23.95 Total new obligations.............         -24         -51
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          27
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          25          24
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          40          40          66
    73.10 Total new obligations.............          24          51
    73.20 Total outlays (gross).............         -23         -25         -25
    73.45 Recoveries of prior year
            obligations.....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          40          66          41
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................          25          24
    90.00 Outlays...........................          23          25          25
    ---------------------------------------------------------------------------

    [[Page 545]]

        The 2006 Budget proposes to consolidate the Rural Housing and
    Economic Development program into a new economic and community
    development program to be administered by the Department of Commerce.
    The new program would be designed to achieve greater results and focus
    on communities most in need of assistance. A 2006 PART assessment rated
    this program as ``ineffective.''

                         Urban Development Action Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0170-0-1-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          35           7           7
    22.00 New budget authority (gross)......         -30
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           7           7           7
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           7           7           7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance permanently
              reduced.......................         -30
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          10           7           7
    73.20 Total outlays (gross).............          -1
    73.45 Recoveries of prior year
            obligations.....................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           7           7           7
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................         -30
    90.00 Outlays...........................           1
    ---------------------------------------------------------------------------

        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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           6          11
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
    22.21 Unobligated balance transferred to
            other accounts..................                     -11
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          11
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          11
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          25          14
    73.20 Total outlays (gross).............          -6
    73.31 Obligated balance transferred to
            other accounts..................                     -14
    73.45 Recoveries of prior year
            obligations.....................          -5
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          14
    ----------------------------------------------------------------------------

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

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

        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 2006. The 2005
    Appropriations Act transferred all remaining balances in this account to
    the Homeless Assistance Grant account where Shelter Plus Care renewals
    have been funded since 2003.

    Public enterprise funds:

                      Revolving Fund (Liquidating Programs)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4015-0-3-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Section 312 expenses..............                       1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 32.0)...................                       1           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          21          13           2
    22.00 New budget authority (gross)......           2           1           1
    22.40 Capital transfer to general fund..         -10         -11          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          13           3           2
    23.95 Total new obligations.............                      -1          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          13           2           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...           2           1           1
    ----------------------------------------------------------------------------

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

        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.....          -2          -1          -1
    ----------------------------------------------------------------------------

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

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4015-0-3-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           7           6           4
    1251  Repayments: Repayments and
            prepayments.....................          -1          -1          -1
    1263  Write-offs for default: Direct
            loans...........................                      -1          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           6           4           2
    ---------------------------------------------------------------------------

    [[Page 546]]

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    24

    15

    1207

    Non-Federal assets: Advances and prepayments

    1

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

    1601

    Direct loans, gross

    7

    6

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -7

    -6

    1604

    Direct loans and interest receivable, net

    1606

    Foreclosed property

    2

    2

    1699

    Value of assets related to direct loans

    2

    2

    1999

    Total assets

    27

    17

        LIABILITIES:
          Non-Federal liabilities:

    2201

    Accounts payable

    1

    2207

    Other

    8

    1

    2999

    Total liabilities

    9

    1

        NET POSITION:
    3100

    Appropriated capital

    2

    3

    3300

    Cumulative results of operations

    16

    13

    3999

    Total net position

    18

    16

    4999

    Total liabilities and net position

    27

    17

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

    Credit accounts:

              Community Development Loan Guarantees Program Account

                          (including transfer of funds)

        [For the cost of guaranteed loans, $6,000,000, to remain available
    until September 30, 2006, 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''.]
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, FY 2005.)

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0198-0-1-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    0101  Negative subsidies/subsidy
            reestimates.....................           7          15
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0198-0-1-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Community development loan
            guarantee credit subsidy........           6           7
    00.07 Upward Reestimate of Loan
            Guarantee.......................          24           2
    00.08 Interest on reestimate............           2
    00.09 Administrative expense............           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 33.0)...................          33          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           5           5           4
    22.00 New budget authority (gross)......          33           9
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          38          14           4
    23.95 Total new obligations.............         -33         -10
    23.98 Unobligated balance expiring or
            withdrawn.......................                                  -4
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           5           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

    60.00   Appropriation...................          26           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          33           9
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          19          16          16
    73.10 Total new obligations.............          33          10
    73.20 Total outlays (gross).............         -33         -10          -7
    73.40 Adjustments in expired accounts
            (net)...........................          -3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          16          16           9
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1           2
    86.93 Outlays from discretionary
            balances........................           6           6           7
    86.97 Outlays from new mandatory
            authority.......................          26           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          33          10           7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          33           9
    90.00 Outlays...........................          33          10           7
    ---------------------------------------------------------------------------

        Guaranteed Loans.--No funds are requested for the Community
    Development Loan Guarantee program (Section 108) in 2006. The purposes
    of this program will be met by a new economic and community development
    program to be administered by the Department of Commerce.

        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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Community development loan
            guarantee levels................         287         275
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......         287         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           7           7
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............           6           7           7
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235001Community development loan
            guarantee levels................          26           2
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................          26           2
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237001Community development loan
            guarantee levels................          -7         -15
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................          -7         -15
    ----------------------------------------------------------------------------

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

    [[Page 547]]

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

             Community Development Loan Guarantees Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4096-0-3-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    08.02 Payment of Downward Reestimate to
            Receipt Account.................           5          12
    08.04 Payment of Downward Reestimate to
            Receipt Account (Interest)......           2           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           7          15
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          65          90          87
    22.00 New financing authority (gross)...          32          12          10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          97         102          97
    23.95 Total new obligations.............          -7         -15
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          90          87          97
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          35          12          10
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -3
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          32          12          10
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         -19         -15          -7
    73.10 Total new obligations.............           7          15
    73.20 Total financing disbursements
            (gross).........................          -6          -7          -7
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         -15          -7         -14
    87.00 Total financing disbursements
            (gross).........................           6           7           7
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal Sources: Payments from
                Program Account.............                      -7          -7
    88.00     Federal sources: Upward
                reestimate (Interest).......         -30          -2
    88.00     Federal sources...............          -2
    88.25     Interest on uninvested funds..          -3          -3          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -35         -12         -10
          Against gross financing authority only:

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

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........         -29          -5          -3
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4096-0-3-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........         275         275
    2121  Limitation available from carry-
            forward.........................         237         223         211
    2142  Uncommitted loan guarantee
            limitation......................                                -211
    2143  Uncommitted limitation carried
            forward.........................        -225        -211
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................         287         287
    2199  Guaranteed amount of guaranteed
            loan commitments................         287         287
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       2,183       2,301       2,363
    2231  Disbursements of new guaranteed
            loans...........................         312         312         312
    2251  Repayments and prepayments........        -194        -250        -300
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       2,301       2,363       2,375
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       2,301       2,363       2,375
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4096-0-3-451

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    46

    75

    1999

    Total assets

    46

    75

        LIABILITIES:
    2204

    Non-Federal liabilities: Liabilities for loan guarantees

    46

    75

    2999

    Total liabilities

    46

    75

    4999

    Total liabilities and net position

    46

    75

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

        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
    2006.

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

            Community Development Loan Guarantees Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4097-0-3-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...           3
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -1
    69.47   Portion applied to repay debt...          -2
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -6          -5          -5
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          -5          -5          -5
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....          -3
          Against gross budget authority only:

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

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

    [[Page 548]]

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4097-0-3-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           2
    1251  Repayments: Repayments and
            prepayments.....................          -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4097-0-3-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          47          39          24
    2251  Repayments and prepayments........          -8         -15         -15
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          39          24           9
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          39          24           9
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4097-0-3-451

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    -6

    -5

            Investments in US securities:
    1106

    Receivables, net

    6

    5

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

    1701

    Defaulted guaranteed loans, gross

    2

    1704

    Defaulted guaranteed loans and interest receivable, net

    2

    1799

    Value of assets related to loan guarantees

    2

    1999

    Total assets

    2

        LIABILITIES:
    2103

    Federal liabilities: Debt

    2

    2999

    Total liabilities

    2

    4999

    Total liabilities and net position

    2

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

        No funding is requested for new Section 108 loans in 2006.

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

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

                                HOUSING PROGRAMS

                                  Federal Funds

    General and special funds:

                             Housing for the Elderly

                          (including transfer of funds)

        For capital advances, including amendments to capital advance
    contracts, for housing for the elderly, as authorized by section 202 of
    the Housing Act of 1959, as amended, and for project rental assistance
    for the elderly under section 202(c)(2) of such Act, including
    amendments to contracts for such assistance and renewal of expiring
    contracts for such assistance for up to a 1-year term, and for
    supportive services associated with the housing, [$747,000,000]
    $741,000,000, to remain available until September 30, [2008] 2009, of
    which amount [$50,000,000] $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]
    amounts made available under this heading, [$18,000,000 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)] shall be available for Real Estate Assessment Center inspections
    and inspection-related activities associated with section 202 capital
    advance projects: Provided further, That $450,000 shall be transferred
    to the Working Capital Fund: 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.
        [Title II of the Departments of Veterans Affairs and Housing and
    Urban Development, and Independent Agencies Appropriations Act, 2004, is
    amended under this heading by striking the fourth proviso.] (Departments
    of Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0320-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Elderly and disabled housing
            grants..........................       1,259         747         741
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       1,259         747         741
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,897       1,392       1,260
    22.00 New budget authority (gross)......         773         741         741
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          23
    22.21 Unobligated balance transferred to
            other accounts..................                    -126
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,693       2,007       2,001
    23.95 Total new obligations.............      -1,259        -747        -741
    23.98 Unobligated balance expiring or
            withdrawn.......................         -43
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       1,392       1,260       1,260
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         778         747         741
    40.35   Appropriation permanently
              reduced.......................          -5          -6
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         773         741         741
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       5,227       5,367       4,112
    73.10 Total new obligations.............       1,259         747         741
    73.20 Total outlays (gross).............      -1,096        -875        -875
    73.31 Obligated balance transferred to
            other accounts..................                  -1,127
    73.45 Recoveries of prior year
            obligations.....................         -23
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       5,367       4,112       3,978
    ----------------------------------------------------------------------------

    [[Page 549]]

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2
    86.93 Outlays from discretionary
            balances........................       1,094         875         875
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,096         875         875
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         773         741         741
    90.00 Outlays...........................       1,096         875         875
    ---------------------------------------------------------------------------

        This account consolidates funds activity under the Section 202
    Housing for the Elderly Program. It funds capital grants for
    construction of low-income housing, operating subsidies, conversion of
    existing properties to assisted living, and Service coordinators.

                      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, $240,000,000] tenant-based rental assistance,
    renewal and amendment of tenant-based contracts, and the renewal of
    project-based rental assistance contracts, $119,900,000, to remain
    available until September 30, 2009: Provided, That $450,000 shall be
    transferred to the Working Capital Fund: Provided further, That, of the
    amount provided under this heading [$28,890,000] $80,000,000 shall be
    for amendments [to existing] or renewal of tenant-based assistance
    contracts entered into prior to fiscal year [2004] 2005 (only one
    amendment authorized for any such contract): Provided further, That of
    the amount provided under this heading, the Secretary may make available
    up to [$10,000,000] $34,000,000 for incremental tenant-based rental
    assistance, as authorized by section 811 of such Act (which assistance
    is 5 years in duration): Provided further, That all tenant-based
    assistance made available under this heading shall continue to remain
    available only to persons with disabilities: 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 5 years in duration: Provided further That amounts made available
    under this heading shall be available for Real Estate Assessment Center
    Inspections and inspection-related activities associated with Section
    811 Capital Advance Projects.
        [Title II of the Departments of Veterans Affairs and Housing and
    Urban Development, and Independent Agencies Appropriations Act, 2004, is
    amended under this heading by striking the fourth proviso and inserting
    ``Provided further, That all section 811 balances outstanding, as of
    September 30, 2003, shall be transferred to the appropriation under this
    heading.'']. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0237-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Housing for the Disabled..........          47         240         120
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          47         240         120
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                     202         326
    22.00 New budget authority (gross)......         249         238         120
    22.22 Unobligated balance transferred
            from other accounts.............                     126
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         249         566         446
    23.95 Total new obligations.............         -47        -240        -120
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         202         326         326
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         251         240         120
    40.35   Appropriation permanently
              reduced.......................          -2          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         249         238         120
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                      45       1,157
    73.10 Total new obligations.............          47         240         120
    73.20 Total outlays (gross).............          -2        -255        -258
    73.32 Obligated balance transferred from
            other accounts..................                   1,127
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          45       1,157       1,019
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2
    86.93 Outlays from discretionary
            balances........................                     255         258
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           2         255         258
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         249         238         120
    90.00 Outlays...........................           2         255         258
    ---------------------------------------------------------------------------

        This account consolidates all activities funded under section 811,
    Housing for Persons With Disabilities program, including new capital
    grants, project rental assistance, main stream vouchers, and renewal and
    amendments as appropropriate.

                          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 $39,700,000, to remain available until September 30,
    2007: 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      2004 actual   2005 est.   2006 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:
    21.40 Unobligated balance carried
            forward, start of year..........
    22.00 New budget authority (gross)......                                  40
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                                  40
    23.95 Total new obligations.............                                  -5
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                                  35
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                  40
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                   5
    73.20 Total outlays (gross).............                                  -4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                   4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  40
    90.00 Outlays...........................                                   4
    ---------------------------------------------------------------------------

        The Housing Counseling Assistance Program provides comprehensive
    housing counseling services to eligible homeowners

    [[Page 550]]

    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 2006,
    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.

                         Other Assisted Housing Programs

                            Rental Housing Assistance

        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-1) in State-aided, non-
    insured rental housing projects, $26,400,000, to remain available until
    expended.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0206-0-1-999      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Rent supplement...................          31          36           8
    00.02 Homeownership and rental housing
            assistance (Sections 235 and
            236)............................         530         629          19
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         561         665          27
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,392       1,414         349
    22.00 New budget authority (gross)......         413        -400          26
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         170
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,975       1,014         375
    23.95 Total new obligations.............        -561        -665         -27
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       1,414         349         348
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         676         578         578
    40.00   Appropriation...................                                  26
    40.49   Portion applied to liquidate
              contract authority............        -676        -578        -578
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                                  26
    49.00   Contract authority..............         495
    49.35   Contract authority permanently
              reduced.......................         -82        -400
                                               ---------   ---------  ----------
    49.90     Contract authority (total
                discretionary)..............         413        -400
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         413        -400          26
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       6,761       6,522       6,586
    73.10 Total new obligations.............         561         665          27
    73.20 Total outlays (gross).............        -630        -601        -589
    73.45 Recoveries of prior year
            obligations.....................        -170
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       6,522       6,586       6,024
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                  16
    86.93 Outlays from discretionary
            balances........................         630         601         573
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         630         601         589
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         413        -400          26
    90.00 Outlays...........................         630         601         589
    93.01 Unobligated balance, start of
            year: Contract authority........                                 311
    93.02 Unobligated balance, end of year:
            Contract authority..............                     311         311
    93.03 Obligated balance, start of year:
            Contract authority..............                               6,017
    93.04 Obligated balance, end of year:
            Contract authority..............                   6,017       5,452
    ---------------------------------------------------------------------------

        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
    17,290 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.

        The table below reflects the consolidated outlay total for: the
    Housing Certificate Fund; Tenant-Based Rental Assistance; Project-Based
    Rental Assistance; the Public Housing Capital Fund; and the Other
    Assisted Housing account.

                             SUMMARY OF OUTLAYS \1\

                            (in millions of dollars)

                                         2004 actual  2005 est.   2006 est.
    Subsidized housing programs, total..      26,400      27,218      28,354
    Low-income housing assistance (sec.
    8)..................................      22,356      22,874      24,025
    Public housing capital fund.........       3,414       3,743       3,740
    Rent supplement.....................          56          54          52
    Homeownership assistance (sec. 235).           5           4           3
    Rental housing assistance (sec. 236)         559         533         524
    College housing grants..............          10          10          10

        \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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       2           2
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           1           2           2
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           2           2           2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          16          12          10
    73.20 Total outlays (gross).............          -2          -2          -2
    73.45 Recoveries of prior year
            obligations.....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          12          10           8
    ----------------------------------------------------------------------------

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

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

    [[Page 551]]

    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 2006. 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 [2005] 2006 so as to result in a final fiscal year
    [2005] 2006 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 [2005] 2006 appropriation.
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0234-0-1-376      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           9          13          13
    22.00 New budget authority (gross)......           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          13          13          13
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          13          13          13
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           4
    ----------------------------------------------------------------------------

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

    Public enterprise funds:

                         Rental Housing Assistance Fund

                                 [(rescission)]

        [Of the amounts made available under the heading ``Rent Supplement''
    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. 1715z-1) in State-
    aided, non-insured rental housing projects, up to $675,000,000 is
    cancelled.] (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4041-0-3-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Refunds of Excess Income..........                       5           5
    09.02 Payments to Flexible Subsidy Fund.          14
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          14           5           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          15           7          16
    22.00 New budget authority (gross)......           5          14          14
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          20          21          30
    23.95 Total new obligations.............         -14          -5          -5
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           7          16          25
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...           5          14          14
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                  -9
    73.10 Total new obligations.............          14           5           5
    73.20 Total outlays (gross).............         -14         -14         -14
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                      -9         -18
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          14
    86.97 Outlays from new mandatory
            authority.......................                      14          14
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          14          14          14
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....          -5         -14         -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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.2  Refund of Excess Income...........           1           5           5
    94.0  Payments to Flexible Subsidy Fund.          13
                                               ---------   ---------  ----------
    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, [2004] 2005, and any
    collections made during fiscal year [2005] 2006 and all subsequent
    fiscal years, shall be transferred to the Flexible Subsidy Fund, as
    authorized by section 236(g) of the National Housing Act, as amended.
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4044-0-3-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           7          42          62
    22.00 New budget authority (gross)......          35          20          20
                                               ---------   ---------  ----------

    [[Page 552]]

    23.90   Total budgetary resources
              available for obligation......          42          62          82
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          42          62          82
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............          35          20          20
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           2         -18
    73.20 Total outlays (gross).............                     -20         -20
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           2         -18         -38
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          35          20          20
    86.93 Outlays from discretionary
            balances........................         -35
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                      20          20
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -13         -12         -12
    88.40     Non-Federal sources...........         -22          -8          -8
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -35         -20         -20
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -34
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4044-0-3-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         656         707         703
    1231  Disbursements: Direct loan
            disbursements...................
    1251  Repayments: Repayments and
            prepayments.....................         -14          -4          -4
    1264  Write-offs for default: Writeoff
            for default: Other adjustments,
            net.............................          65
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         707         703         699
    ---------------------------------------------------------------------------

        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.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4044-0-3-604

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    9

    44

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

    1601

    Direct loans, gross

    718

    707

    1602

    Interest receivable

    81

    87

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -592

    -591

    1699

    Value of assets related to direct loans

    207

    203

    1999

    Total assets

    216

    247

        LIABILITIES:
    2207

    Non-Federal liabilities: Other

    3

    2999

    Total liabilities

    3

        NET POSITION:
    3100

    Appropriated capital

    -308

    -308

    3300

    Cumulative results of operations

    524

    552

    3999

    Total net position

    216

    244

    4999

    Total liabilities and net position

    216

    247

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

                        Nehemiah Housing Opportunity Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4071-0-3-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       2           2
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           2           2           2
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           2           2           2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          10           9           9
    73.20 Total outlays (gross).............           1
    73.45 Recoveries of prior year
            obligations.....................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           9           9           9
    ----------------------------------------------------------------------------

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

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

        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 [2005] 2006, commitments to guarantee loans to
    carry out the purposes of section 203(b) of the National Housing Act, as
    amended, shall not exceed a loan principal of $185,000,000,000.
        During fiscal year [2005] 2006, 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, [$356,906,000] $355,000,000, of which not to
    exceed [$352,906,000] $351,000,000 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,
    [$78,000,000] $62,600,000, of which [$15,000,000] $18,281,000 shall be
    transferred to the Working Capital Fund: Provided, That to the extent
    guaranteed loan commitments exceed $65,500,000,000 on or before April 1,
    [2005] 2006, an additional $1,400 for administrative contract expenses
    shall be available for each $1,000,000 in additional guaranteed loan
    commitments (including a pro rata amount for any amount below
    $1,000,000), but in no case shall funds made available by this proviso
    exceed $30,000,000. (Departments of Veterans Affairs

    [[Page 553]]

    and Housing and Urban Development, and Independent Agencies
    Appropriations Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0183-0-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.07 Reestimates of loan guarantee
            negative subsidy................       5,947       2,003
    00.08 Interest on reestimates of loan
            guarantee subsidy...............       1,082         391
    00.09 Administrative expenses, salaries
            & expenses transfer.............         357         354         355
    00.12 Non-overhead administrative
            expenses for FHA contracts......          75          77          63
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       7,461       2,825         418
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         441         431         418
    22.22 Unobligated balance transferred
            from other accounts.............       7,029       2,394
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       7,470       2,825         418
    23.95 Total new obligations.............      -7,461      -2,825        -418
    23.98 Unobligated balance expiring or
            withdrawn.......................         -10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         444         434         418
    40.35   Appropriation permanently
              reduced.......................          -3          -3
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         441         431         418
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          72          81          80
    73.10 Total new obligations.............       7,461       2,825         418
    73.20 Total outlays (gross).............      -7,452      -2,826        -420
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          81          80          78
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         383         360         349
    86.93 Outlays from discretionary
            balances........................          40          72          71
    86.98 Outlays from mandatory balances...       7,029       2,394
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       7,452       2,826         420
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         441         431         418
    90.00 Outlays...........................       7,452       2,826         420
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 86-0183-0-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001MMI Fund, Direct loans............                      50          50
                                               ---------   ---------  ----------
    115901Total direct loan levels..........                      50          50
        Direct loan subsidy (in percent):
    132001MMI Fund, Direct loans............        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)..........     107,699     116,550      90,336
    215004Standby commitment authority......                  68,450      94,664
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......     107,699     185,000     185,000
        Guaranteed loan subsidy (in percent):
    232001MMI Fund, Section 203(b)..........       -2.47       -1.82       -1.70
    232002Subsidy rate......................        0.00        0.00        0.00
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....       -2.47       -1.82       -1.70
        Guaranteed loan subsidy budget authority:
    233001MMI Fund, Section 203(b)..........      -2,660      -2,121      -1,536
    233003Loan guarantee levels.............
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....      -2,660      -2,121      -1,536
        Guaranteed loan subsidy outlays:
    234001MMI Fund, Section 203(b)..........      -2,660      -2,121      -1,536
    234003Loan guarantee levels.............
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............      -2,660      -2,121      -1,536
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235001MMI Fund, Section 203(b)..........       7,029       2,394
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................       7,029       2,394
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237001MMI Fund, Section 203(b)..........                     -56
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................                     -56
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................       7,461       2,825         418
    358001Outlays from balances.............          40          81          80
    359001Outlays from new authority........       7,412       2,744         338
    ---------------------------------------------------------------------------

        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 2006, 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 Incentives 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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0183-0-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          54          77          63
    25.3  Other purchases of goods and
            services from Government
            accounts........................         378         354         355
    41.0  Grants, subsidies, and
            contributions...................       5,947       2,003
    43.0  Interest and dividends............       1,082         391
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       7,461       2,825         418
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 86-0183-2-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001MMI Fund, Section 203(b)..........                             -10,840
    215002Zero Downpayment..................                              25,334
    215003Payment Incentives................                               7,950
    215004Loan guarantee levels.............                             -22,444
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......
        Guaranteed loan subsidy (in percent):
    232001MMI Fund, Section 203(b)..........                               -0.31
    232002Zero Downpayment..................                               -0.91
    232003Payment Incentives................                               -0.47
    232004Subsidy rate......................                                0.00
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....                                0.00
        Guaranteed loan subsidy budget authority:
    233001MMI Fund, Section 203(b)..........                                 -63
    233002Zero Downpayment..................                                -231

    [[Page 554]]

    233003Payment Incentives................                                 -37
    233004Subsidy budget authority..........
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....                                -331
        Guaranteed loan subsidy outlays:
    234001MMI Fund, Section 203(b)..........                                 -63
    234002Zero Downpayment..................                                -231
    234003Payment Incentives................                                 -37
    234004Subsidy outlays...................
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............                                -331
    ---------------------------------------------------------------------------

          FHA--Mutual Mortgage Insurance Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4242-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................                      50          50
    00.02 Interest paid to Treasury.........                       2           2
    00.03 Claims & other....................                       4           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                      56          56
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3           3
    22.00 New financing authority (gross)...                     105         105
    22.60 Portion applied to repay debt.....                     -52         -49
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           3          56          56
    23.95 Total new obligations.............                     -56         -56
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           3
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

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

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).                      55          55
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................                     105         105
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                      56          56
    73.20 Total financing disbursements
            (gross).........................                     -56         -56
    87.00 Total financing disbursements
            (gross).........................                      56          56
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..                      -1          -1
    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 2006 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      2004 actual   2005 est.   2006 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:
    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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    3

    3

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1405

    Allowance for subsidy cost (-)

    -3

    -3

    1499

    Net present value of assets related to direct loans

    -3

    -3

    1999

    Total assets

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

        FHA--Mutual Mortgage Insurance Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4587-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Loan guarantee default claim
            payments........................       7,282       5,941       5,397
    00.02 Other capital investment &
            operating expenses..............         509         992         753
    00.08 Interest payments to Treasury.....         604         695         304
                                               ---------   ---------  ----------
    00.91   Subtotal, capital/operating
              expenses......................       8,395       7,628       6,454
          Negative Subsidy Activity:

    08.01   Payment of negative subsidy to
              capital reserve for new
              business......................       2,660       2,121       1,536
    08.02   Reestimate of loan guarantee
              subsidy (downward reestimates)                      23
    08.04   Interest on reestimates of loan
              guarantee subsidy.............                      31
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............       2,660       2,175       1,536
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      11,056       9,803       7,990
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         308       3,458       3,193
    22.00 New financing authority (gross)...      18,495      11,038       7,137
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          11
    22.60 Portion applied to repay debt.....      -4,300      -1,500      -2,000
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      14,514      12,996       8,330
    23.95 Total new obligations.............     -11,056      -9,803      -7,990
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       3,458       3,193         340
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............       3,000         349         237

    [[Page 555]]

          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).       8,333       8,295       6,900
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         133
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....       8,466       8,295       6,900
          Mandatory:

    69.00   Offsetting collections (cash)...       7,029       2,394
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................      18,495      11,038       7,137
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         832         840       1,335
    73.10 Total new obligations.............      11,056       9,803       7,990
    73.20 Total financing disbursements
            (gross).........................     -10,904      -9,308      -7,638
    73.45 Recoveries of prior year
            obligations.....................         -11
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -133
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         840       1,335       1,687
    87.00 Total financing disbursements
            (gross).........................      10,904       9,308       7,638
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Transfer of Reestimates from
                reserves in Capital Reserve
                account.....................      -7,029      -2,394
    88.00     Federal sources...............         133
    88.25     Interest on uninvested funds..        -345          -9         -21
    88.40     Fees and premiums.............      -2,901      -2,766      -2,832
    88.40     Recoveries on defaults........      -5,220      -5,520      -4,047
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........     -15,362     -10,689      -6,900
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............        -133
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............       3,000         349         237
    90.00 Financing disbursements...........      -4,458      -1,381         738
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4587-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........     185,000     185,000     185,000
    2142  Uncommitted loan guarantee
            limitation......................     -77,301     -68,450     -94,664
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................     107,699     116,550      90,336
    2199  Guaranteed amount of guaranteed
            loan commitments................     107,699     116,550      90,336
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........     382,234     364,285     411,085
    2231  Disbursements of new guaranteed
            loans...........................     107,699     116,550      90,336
    2251  Repayments and prepayments........    -118,366     -63,808     -55,316
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -695        -739        -801
    2262    Terminations for default that
              result in acquisition of
              property......................      -6,459      -5,132      -4,549
    2263    Terminations for default that
              result in claim payments......        -128         -71         -64
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........     364,285     411,085     440,691
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..     364,285     411,085     440,691
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......         232         410       1,181
    2331    Disbursements for guaranteed
              loan claims...................         695         771         801
    2351    Repayments of loans receivable..        -517
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         410       1,181       1,982
    ---------------------------------------------------------------------------

        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

    2003 actual\1\

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    1,140

    4,298

            Investments in US securities:
    1106

    Receivables, net

    7,029

    2,362

          Non-Federal assets:

    1201

    Investments in non-Federal securities, net

    116

    116

    1206

    Receivables, net

    258

    308

          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501

    Defaulted guaranteed loans receivable, gross

    232

    410

    1502

    Interest receivable

    2

    1504

    Foreclosed property

    2,773

    2,095

    1505

    Allowance for subsidy cost

    -841

    -993

    1599

    Net value of assets related to defaulted guaranteed loan

    2,164

    1,514

    1901

    Other Federal assets: Other assets

    353

    485

    1999

    Total assets

    11,060

    9,083

        LIABILITIES:
          Federal liabilities:

    2101

    Accounts payable

    54

    2103

    Federal liabilities, Debt

    8,135

    6,835

          Non-Federal liabilities:

    2201

    Accounts payable

    642

    610

    2204

    Liabilities for loan guarantees

    2,008

    1,316

    2207

    Other

    275

    268

    2999

    Total liabilities

    11,060

    9,083

    4999

    Total liabilities and net position

    11,060

    9,083

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

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4587-2-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Loan guarantee default claim
            payments........................                                  17
    00.08 Interest payments to Treasury.....                                  18
                                               ---------   ---------  ----------
    00.91   Subtotal, capital/operating
              expenses......................                                  35
          Negative Subsidy Activity:

    08.01   Payment of negative subsidy to
              capital reserve for new
              business......................                                 331
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                 366
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........
    22.00 New financing authority (gross)...                                 790
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                                 790
    23.95 Total new obligations.............                                -366
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                                 424
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............                                 790
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                 366
    73.20 Total financing disbursements
            (gross).........................                                -366
    87.00 Total financing disbursements
            (gross).........................                                 366
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.40     Fees and premiums from MMI....                                 217
    88.40     Fees and premiums from Zero
                Downpayment.................                                -760
    88.40     Fees and premiums from Payment
                Incentives..................                                -239
    88.40     Recoveries on defaults........                                  -8
                                               ---------   ---------  ----------

    [[Page 556]]

    88.90       Total, offsetting
                  collections (cash)........                                -790
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........                                -424
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4587-2-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........
    2142  Uncommitted loan guarantee
            limitation......................                              22,444
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                              22,444
    2199  Guaranteed amount of guaranteed
            loan commitments................                             -10,840
    2199  Guaranteed amount of guaranteed
            loan commitments................                              25,334
    2199  Guaranteed amount of guaranteed
            loan commitments................                               7,950
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........
    2231  Disbursements of new guaranteed
            loans...........................                             -10,840
    2231  Disbursements of new guaranteed
            loans...........................                              25,334
    2231  Disbursements of new guaranteed
            loans...........................                               7,950
    2251  Repayments and prepayments........
    2251  Repayments and prepayments........
    2251  Repayments and prepayments........
          Adjustments:

    2262    Terminations for default that
              result in acquisition of
              property......................                                   3
    2262    Terminations for default that
              result in acquisition of
              property......................                                 -15
    2262    Terminations for default that
              result in acquisition of
              property......................                                  -5
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........                              22,427
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                              22,427
    ---------------------------------------------------------------------------

             FHA--Mutual Mortgage Insurance Capital Reserve Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0236-0-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........      26,183      23,520      24,607
    22.00 New budget authority (gross)......       3,783       3,469       2,790
    22.21 Unobligated balance transferred to
            other accounts..................      -7,029      -2,394
    22.22 Unobligated balance transferred
            from other accounts.............         583          12
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      23,520      24,607      27,397
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........      23,520      24,607      27,397
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...       3,812       3,469       2,790
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -29
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........       3,783       3,469       2,790
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..        -277        -248        -248
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          29
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..        -248        -248        -248
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources--negative
                subsidy from new business...      -2,660      -2,121      -1,536
    88.00     Federal sources--downward
                reestimates.................                     -56
    88.20     Interest on Federal securities      -1,152      -1,292      -1,254
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -3,812      -3,469      -2,790
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          29
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................      -3,812      -3,469      -2,790
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...      23,819      23,321      27,721
    92.02 Total investments, end of year:
            Federal securities: Net.........      23,321      27,721      30,324
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2004 actual  2005 est.   2006 est.
    Enacted/requested:
      Budget Authority..................
      Outlays...........................      -3,812      -3,469      -2,790
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................
      Outlays...........................                                -349
                                        ------------------------------------
    Total:
      Budget Authority..................
      Outlays...........................      -3,812      -3,469      -3,139
                                        ====================================

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    2,421

    301

            Investments in US securities:
    1102

    Treasury securities, net

    23,701

    23,178

    1106

    Receivables, net

    277

    302

    1999

    Total assets

    26,399

    23,781

        LIABILITIES:
    2101

    Federal liabilities: Accounts payable

    7,029

    2,362

    2999

    Total liabilities

    7,029

    2,362

        NET POSITION:
    3300

    Cumulative results of operations

    19,370

    21,419

    3999

    Total net position

    19,370

    21,419

    4999

    Total liabilities and net position

    26,399

    23,781

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

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0236-2-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........
    22.00 New budget authority (gross)......                                 349
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                                 349
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                                 349
    ----------------------------------------------------------------------------

    [[Page 557]]

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...                                 349
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources--negative
                subsidy from MMI, Sec 203(b)                                 -63
    88.00     Federal sources--downward
                reestimates.................
    88.00     Federal sources--negative
                subsidy from Payment
                Incentives..................                                -231
    88.00     Federal sources--negative
                subsidy from Payment
                Incentives..................                                 -37
    88.20     Interest on Federal securities                                 -18
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                                -349
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................                                -349
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...
    92.02 Total investments, end of year:
            Federal securities: Net.........                                 333
    ---------------------------------------------------------------------------

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

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.03 Acquisition of real properties....         107         118          30
    01.04 Acquisition of notes..............           1
    01.07 Capitalized expenses..............          16          16          16
    01.08 Loss mitigation activities........           5           4           4
                                               ---------   ---------  ----------
    01.91   Total capital investment........         129         138          50
    02.02 Other Operation expenses..........          -2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         127         138          50
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         583          12
    22.00 New budget authority (gross)......         138         138          50
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.21 Unobligated balance transferred to
            other accounts..................        -583         -12
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         139         138          50
    23.95 Total new obligations.............        -127        -138         -50
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         138         138          50
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         456         276         286
    73.10 Total new obligations.............         127         138          50
    73.20 Total outlays (gross).............        -306        -128         -40
    73.45 Recoveries of prior year
            obligations.....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         276         286         296
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         138         138          50
    86.98 Outlays from mandatory balances...         168         -10         -10
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         306         128          40
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.40     Fees and premiums.............          -3         -13          -9
    88.40     Proceeds from sale of real
                property....................        -131        -125         -41
    88.40     Recoveries on defaulted
                mortgages...................          -3
    88.40     Other.........................          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -138        -138         -50
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         168         -10         -10
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           1           2           2
    1264  Write-offs for default: Other
            adjustments, net................           1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           2           2           2
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      24,952      19,392      14,858
    2251  Repayments and prepayments........      -5,452      -4,420      -3,421
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....          -1
    2262    Terminations for default that
              result in acquisition of
              property......................        -107        -114         -53
    2263    Terminations for default that
              result in claim payments......
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      19,392      14,858      11,384
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      19,392      14,858      11,384
    ----------------------------------------------------------------------------

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

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

        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.

    [[Page 558]]

        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)

                                         2004 actual  2005 est.   2006 est.
    Mortgage insurance written (in
        fiscal year):
      Units.............................     925,702   1,024,857     950,343
      Amount (in millions of dollars)...    $107,699    $116,550    $112,780
                                        ====================================
    Insurance maintenance: Outstanding
        balance of insurance in force,
        end of year:
      Mortgage insurance (in millions of
        dollars)........................    $364,285    $411,085    $440,691
                                        ====================================

        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

    2003 actual\1\

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    1,038

    288

          Non-Federal assets:

    1206

    Receivables, net

    26

    26

    1207

    Advances and prepayments

    5

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

    1699

    Value of assets related to direct loans

    1701

    Defaulted guaranteed loans, gross

    9

    9

    1702

    Interest receivable

    16

    1703

    Allowance for estimated uncollectible loans and interest (-)

    -4

    -2

    1704

    Defaulted guaranteed loans and interest receivable, net

    21

    7

    1706

    Foreclosed property

    33

    13

    1799

    Value of assets related to loan guarantees

    54

    20

    1901

    Other Federal assets: Other assets

    2

    1999

    Total assets

    1,123

    336

        LIABILITIES:
          Non-Federal liabilities:

    2201

    Accounts payable

    425

    236

    2204

    Liabilities for loan guarantees

    111

    85

    2207

    Unearned revenue and advances, and other

    206

    150

    2999

    Total liabilities

    742

    471

        NET POSITION:
    3300

    Cumulative results of operations

    381

    -135

    3999

    Total net position

    381

    -135

    4999

    Total liabilities and net position

    1,123

    336

    -----------------------------------------------------------------------------------------------
        \1\ Estimated result on GAAP basis pending final audit.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          -2
    32.0  Land and structures...............         123         134          46
    33.0  Investments and loans.............           1
    42.0  Insurance claims and indemnities..           5           4           4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         127         138          50
    ---------------------------------------------------------------------------

                    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,
    [$10,000,000] $8,800,000, to remain available until expended: Provided,
    That [these funds are available to subsidize] commitments to guarantee
    loans shall not exceed $35,000,000,000 in total loan principal, any part
    of which is to be guaranteed[, of up to $35,000,000,000].
        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, [$227,767,000] $231,400,000, of
    which [$207,767,000] $211,400,000 shall be transferred to the
    appropriation for ``Salaries and [expenses] 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, [$86,000,000] $71,900,000,
    of which [$9,600,000] $10,800,000 shall be transferred to the Working
    Capital Fund: Provided, That to the extent guaranteed loan commitments
    exceed [$8,426,000,000] $8,426,000,000 on or before April 1, [2005]
    2006, 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.

                                 [(rescission)]

        [Of the unobligated balances remaining from credit subsidy
    appropriated in fiscal year 2004 and prior years under the heading
    ``General and special risk program account'', $30,000,000 are
    rescinded.] (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, FY 2005.)

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    0101  Negative subsidies/subsidy
            reestimates.....................         281         190         357
    0102  Negative subsidies/subsidy
            reestimates.....................         138         208
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........           4          10           9
    00.07 Reestimate of credit subsidy......         451         634
    00.08 Interest on reestimates of loan
            guarantee subsidy...............          66         133
    00.09 Administrative expenses, salaries
            & expenses transfer.............         228         226         231
    00.10 Administrative contract expenses..          68          85          72
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         817       1,088         312
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          65          77          47
    22.00 New budget authority (gross)......         853       1,058         312
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         918       1,135         359
    23.95 Total new obligations.............        -817      -1,088        -312
    23.98 Unobligated balance expiring or
            withdrawn.......................         -25
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          77          47          47
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         338         324         312
    40.35   Appropriation permanently
              reduced (accross-the board
              rescission)...................          -2          -3
    40.36   Unobligated balance permanently
              reduced (rescission)..........                     -30
                                               ---------   ---------  ----------

    [[Page 559]]

    43.00     Appropriation (total
                discretionary)..............         336         291         312
          Mandatory:

    60.00   Appropriation...................         517         767
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         853       1,058         312
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          87          91          63
    73.10 Total new obligations.............         817       1,088         312
    73.20 Total outlays (gross).............        -810      -1,116        -316
    73.40 Adjustments in expired accounts
            (net)...........................          -3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          91          63          59
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         248         300         295
    86.93 Outlays from discretionary
            balances........................          45          49          21
    86.97 Outlays from new mandatory
            authority.......................         517         767
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         810       1,116         316
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         853       1,058         312
    90.00 Outlays...........................         810       1,116         316
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Single-family PMMs................                       2           2
    115002Multifamily bridge loans..........                       2           2
    115003Unused Limitation Authority.......          50          46          46
                                               ---------   ---------  ----------
    115901Total direct loan levels..........          50          50          50
        Direct loan subsidy (in percent):
    132001Single-family PMMs................        0.00        0.00        0.00
    132002Multifamily bridge loans..........        0.00        0.00        0.00
    132003Unused Limitation Authority.......        0.00        0.00        0.00
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        0.00        0.00        0.00
        Direct loan subsidy budget authority:
    133001Single-family PMMs................
    133002Multifamily bridge loans..........
    133003Unused Limitation Authority.......
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....
        Direct loan subsidy outlays:
    134001Single-family PMMs................
    134002Multifamily bridge loans..........
    134003Unused Limitation Authority.......
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Apartments NC/SC..................       1,701       2,500       2,600
    215003221d3 NP/Coop owned apts..........          11          50          52
    215004Tax Credits NC....................       1,079       1,100       1,100
    215005Mixed Income (Hope d4)............
    215006Apartments Refinance..............       2,270       2,300       2,300
    215007241a Supplemental Loans for Apts..           3          10          10
    215008Operating Loss Loans for Apts
            (plus 232)......................           4           4           4
    215009HFA Risk Sharing..................         260         400         416
    215012GSE Risk Sharing..................          17          50          52
    215013FHA Full Insurance for Health Care
            Facilities (plus 241/232).......         271         525         546
    215014Health Care Refinances............       1,285       1,300       1,300
    215015Hospitals.........................       1,313         600         600
    215016Other Rental (incl
            207(mhp),220,231)...............         198         400         416
    215017Section 234: Condominiums.........      14,585      11,190       7,266
    215018Section 203(k): Rehabilitation
            Mortgages.......................         659         632         589
    215019Title 1 Property Improvement......          68          98          99
    215020Title 1 Manufactured Housing......          69         110         110
    215021Home Equity Conversion Mortgages..                               3,552
    215022Standby Authority.................       5,207      13,731      13,988
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......      29,000      35,000      35,000
        Guaranteed loan subsidy (in percent):
    232001Apartments NC/SC..................       -0.62       -0.03       -0.18
    232003221d3 NP/Coop owned apts..........        5.35       10.58        9.74
    232004Tax Credits NC....................       -1.59       -4.45       -3.54
    232005Mixed Income (Hope d4)............        0.00        0.00        0.00
    232006Apartments Refinance..............       -2.13       -2.46       -1.84
    232007241a Supplemental Loans for Apts..        8.60        6.22        5.43
    232008Operating Loss Loans for Apts
            (plus 232)......................       17.84       16.45       15.89
    232009HFA Risk Sharing..................       -1.67       -0.79       -0.67
    232012GSE Risk Sharing..................       -1.08       -1.04       -0.83
    232013FHA Full Insurance for Health Care
            Facilities (plus 241/232).......       -0.22       -0.06       -0.76
    232014Health Care Refinances............       -1.28       -1.80       -1.26
    232015Hospitals.........................       -3.33       -2.02       -1.76
    232016Other Rental (incl
            207(mhp),220,231)...............       -0.08       -0.40       -0.73
    232017Section 234: Condominiums.........       -1.03       -0.40       -2.19
    232018Section 203(k): Rehabilitation
            Mortgages.......................       -0.02        0.59       -1.12
    232019Title 1 Property Improvement......        1.86        1.92        1.79
    232020Title 1 Manufactured Housing......       -0.14        0.12        1.10
    232021Home Equity Conversion Mortgages..        0.00        0.00       -1.74
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....       -1.00       -0.51       -0.98
        Guaranteed loan subsidy budget authority:
    233001Apartments NC/SC..................         -11          -1          -5
    233003221d3 NP/Coop owned apts..........           1           5           5
    233004Tax Credits NC....................         -17         -49         -39
    233005Mixed Income (Hope d4)............
    233006Apartments Refinance..............         -48         -57         -42
    233007241a Supplemental Loans for Apts..                       1           1
    233008Operating Loss Loans for Apts
            (plus 232)......................           1           1           1
    233009HFA Risk Sharing..................          -4          -3          -3
    233012GSE Risk Sharing..................                      -1
    233013FHA Full Insurance for Health Care
            Facilities (plus 241/232).......          -1                      -4
    233014Health Care Refinances............         -16         -23         -16
    233015Hospitals.........................         -44         -12         -11
    233016Other Rental (incl
            207(mhp),220,231)...............                      -2          -3
    233017Section 234: Condominiums.........        -150         -45        -159
    233018Section 203(k): Rehabilitation
            Mortgages.......................                       4          -7
    233019Title 1 Property Improvement......           1           2           2
    233020Title 1 Manufactured Housing......                                   1
    233021Home Equity Conversion Mortgages..                                 -62
    233022Standby authority.................          12
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....        -276        -180        -341
        Guaranteed loan subsidy outlays:
    234001Apartments NC/SC..................          -9          -3          -4
    234003221d3 NP/Coop owned apts..........                       4           5
    234004Tax Credits NC....................         -26         -41         -41
    234005Mixed Income (Hope d4)............
    234006Apartments Refinance..............         -54         -55         -46
    234007241a Supplemental Loans for Apts..           1           1           1
    234008Operating Loss Loans for Apts
            (plus 232)......................           1           1           1
    234009HFA Risk Sharing..................          -4          -3          -3
    234012GSE Risk Sharing..................
    234013FHA Full Insurance for Health Care
            Facilities (plus 241/232).......          -7                      -3
    234014Health Care Refinances............         -18         -22         -18
    234015Hospitals.........................         -12         -20         -11
    234016Other Rental (incl
            207(mhp),220,231)...............                      -1          -3
    234017Section 234: Condominiums.........        -151         -45        -159
    234018Section 203(k): Rehabilitation
            Mortgages.......................                       4          -7
    234019Title 1 Property Improvement......           1           2           2
    234020Title 1 Manufactured Housing......                                   1
    234021Home Equity Conversion Mortgages..                                 -62
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............        -278        -178        -347
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235024General and Special Risk..........         517         767
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................         517         767
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237024General and Special Risk..........        -138        -208
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................        -138        -208
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority, S&E Transfer....         228         226         231
    351001Budget authority..................          93          85          82
    358001Outlays from balances.............          42          48          19
    359001Outlays from new authority........         248         293         289
    ---------------------------------------------------------------------------

        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

    [[Page 560]]

    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.

        For 2006, the annual premium for mortgage guarantees under the tax
    credit and apartment refinance risk categories will be reduced to 45
    basis points, matching the rate for the Sec. 221(d)(4) new construction/
    substantial rehabilitation apartment development program.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..          51          75          61
    25.2  Other services....................          17          10          11
    25.3  Other purchases of goods and
            services from Government
            accounts........................         228         226         231
    41.0  Grants, subsidies, and
            contributions...................         521         777           9
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         817       1,088         312
    ---------------------------------------------------------------------------

         FHA--General and Special Risk Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4077-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Capital investment, claims and other:
          Capital investment, claims and other:

    00.01   Default claims and other........       1,098       1,509       1,517
    00.05   Interest paid to Treasury.......          67         100         102
    00.08   Asset sale negative subsidy
              payment to the receipt account                      80          20
    00.14   Contract Costs..................          34          20          20
                                               ---------   ---------  ----------
    00.91     Direct Program by Activities--
                Subtotal (1 level)..........       1,199       1,709       1,659
    08.01   Payment of negative subsidy to
              receipt account...............         339         190         357
    08.02   Downward subsidy rate reestimate          99         127
    08.04   Interest on subsidy rate
              reestimates...................          40          81
                                               ---------   ---------  ----------
    08.91     Direct Program by Activities--
                Subtotal (1 level)..........         478         398         357
                                               ---------   ---------  ----------
    10.00     Total new obligations.........       1,677       2,107       2,016
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         751       1,147       1,240
    22.00 New financing authority (gross)...       2,072       2,200       1,425
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,824       3,347       2,665
    23.95 Total new obligations.............      -1,677      -2,107      -2,016
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       1,147       1,240         649
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

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

    68.00   Offsetting collections (cash)...       1,423       2,100       1,325
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -9
    68.47   Portion applied to repay debt...        -259        -300        -300
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......       1,155       1,800       1,025
          Mandatory:

    69.00   Offsetting collections (cash)...         517
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       2,072       2,200       1,425
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         108         285         884
    73.10 Total new obligations.............       1,677       2,107       2,016
    73.20 Total financing disbursements
            (gross).........................      -1,508      -1,508      -1,508
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           9
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         285         884       1,392
    87.00 Total financing disbursements
            (gross).........................       1,508       1,508       1,508
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.          -3          -9          -9
    88.00     Repayment of principal and
                interest from liquidating
                account.....................         -15         -15         -15
    88.00     Subsidy reestimate from
                program account.............        -517        -767
    88.00     Federal resources -other......
    88.25     Interest on uninvested funds..         -93         -95         -95
    88.40     Fees and premiums.............        -588        -434        -467
    88.40     Recoveries on defaulted
                mortgages...................        -145         -70         -99
    88.40     Title I recoveries............         -28          -3          -2
    88.40     Single family property
                recoveries..................        -251        -395        -332
    88.40     Gross Proceeds from sale of
                mortgage notes (liquidating)                     -80         -20
    88.40     Gross Proceeds from Mortgage
                Note Sales..................        -267        -199        -183
    88.40     Multifamily property
                recoveries..................          -1                      -3
    88.40     Non-Federal Resources-other...         -33         -33        -100
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,941      -2,100      -1,325
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           9
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         141         100         100
    90.00 Financing disbursements...........        -432        -592         183
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4077-0-3-371   2004 actual\1\   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........      29,000      35,000      35,000
    2142  Uncommitted loan guarantee
            limitation......................      -5,207     -13,731     -13,988
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................      23,793      21,269      21,012
    2199  Guaranteed amount of guaranteed
            loan commitments................      23,793      21,269      21,012
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      72,048      78,257      84,272
    2231  Disbursements of new guaranteed
            loans...........................      24,379      20,511      23,440
    2251  Repayments and prepayments........     -17,072     -12,985     -16,936
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -736      -1,049      -1,122
    2262    Terminations for default that
              result in acquisition of
              property......................        -306        -389        -333
    2263    Terminations for default that
              result in claim payments......         -56         -73         -62
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      78,257      84,272      89,259
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      78,257      84,272      89,259
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......         584         704       1,481
    2331    Disbursements for guaranteed
              loan claims...................         736       1,049       1,122
    2351    Repayments of loans receivable..        -440        -272        -284
    2361    Write-offs of loans receivable..        -176
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         704       1,481       2,319
    ---------------------------------------------------------------------------

        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

    [[Page 561]]

    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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    859

    1,432

            Investments in US securities:
    1106

    Receivables, net

    531

    767

          Non-Federal assets:

    1201

    Investments in non-Federal securities, net

    4

    4

    1206

    Receivables, net

    24

    17

          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501

    Defaulted guaranteed loans receivable, gross

    584

    704

    1502

    Interest receivable

    48

    73

    1504

    Foreclosed property

    420

    394

    1505

    Allowance for subsidy cost

    -685

    -682

    1599

    Net value of assets related to defaulted guaranteed loan

    367

    489

    1901

    Other Federal assets: Other assets

    9

    -12

    1999

    Total assets

    1,794

    2,697

        LIABILITIES:
          Federal liabilities:

    2101

    Accounts payable Intragovernmental

    138

    208

    2103

    Debt

    660

    800

    2105

    Other Federal Liabilities

    87

          Non-Federal liabilities:

    2201

    Accounts payable

    85

    36

    2202

    Interest payable

    9

    12

    2203

    Non Federal Debt

    34

    2204

    Liabilities for loan guarantees

    809

    1,409

    2207

    Other

    93

    111

    2999

    Total liabilities

    1,794

    2,697

    4999

    Total liabilities and net position

    1,794

    2,697

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

           FHA--General and Special Risk Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4105-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

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

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

        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      2004 actual   2005 est.   2006 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           4
    1251  Repayments: Repayments and
            prepayments.....................                      -4          -4
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           2           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
    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

    2003 actual

    2004 actual

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

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

              FHA--Loan Guarantee Recovery Fund--Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4106-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3           5           6

    [[Page 562]]

    22.00 New financing authority (gross)...           1           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           4           6           6
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           5           6           6
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..                      -1          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          -1          -1          -1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....          -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 86-4106-0-3-371      2004 actual   2005 est.   2006 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.........................           3           2
    2143  Uncommitted limitation carried
            forward.........................          -2
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................           1           2
    2199  Guaranteed amount of guaranteed
            loan commitments................           1           2
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........           5           6           5
    2231  Disbursements of new guaranteed
            loans...........................           2           2
    2251  Repayments and prepayments........          -1          -3          -3
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........           6           5           2
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..           6           5           2
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4106-0-3-371

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    4

            Investments in US securities:
    1102

    Treasury securities, par

    3

    1999

    Total assets

    3

    4

        LIABILITIES:
    2204

    Non-Federal liabilities: Liabilities for loan guarantees

    3

    4

    2999

    Total liabilities

    3

    4

    4999

    Total liabilities and net position

    3

    4

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

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

        FHA--General and Special Risk Insurance Funds Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.02   Interest on debentures..........          27          30          30
    00.03   Other operating costs...........           1           5           5
    00.06   PAE & 3rd party restructuring
              fees..........................          25          25          25
                                               ---------   ---------  ----------
    00.91     Total operating expenses......          53          60          60
          Capital investment: Claims and other:

    01.01   Acquisition of defaulted Title I
              notes.........................           1           1           1
    01.02   Assignment of mortgages.........          31          54          40
    01.03   Debenture Claims................          70
    01.04   Mark-To-Market Restructures.....         582         484         172
    01.05   Acquisition of real properties..           8           2           1
    01.10   Capitalized Expenses............          26          34          30
    01.11   Escrow Advances.................         176         125         105
    01.12   Upfront Grants..................          64         100         100
    01.13   Other...........................           7           7           7
    01.14   M&M Contract....................           3           3           3
    01.16   Payment to the Financing
              Account-Asset Sale............                      80          20
                                               ---------   ---------  ----------
    01.91     Total capital investment......         968         890         479
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,021         950         539
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          84         137
    22.00 New budget authority (gross)......       1,337       1,450       1,039
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          31
    22.40 Capital transfer to general fund..         -84        -137
    22.60 Portion applied to repay debt.....        -210        -500        -500
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,158         950         539
    23.95 Total new obligations.............      -1,021        -950        -539
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         137
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................         724         462         183
    67.10   Authority to borrow.............         130         500         500
    69.00 Offsetting collections (cash).....         483         488         356
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,337       1,450       1,039
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         600         543         236
    73.10 Total new obligations.............       1,021         950         539
    73.20 Total outlays (gross).............      -1,047      -1,257        -642
    73.45 Recoveries of prior year
            obligations.....................         -31
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         543         236         133
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       1,047         713         404
    86.98 Outlays from mandatory balances...                     544         238
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,047       1,257         642
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.40     Fees and premiums.............         -45         -70         -65
    88.40     Proceeds from sale of real
                property....................         -12          -9          -8
    88.40     Proceeds from sale of mortgage
                notes.......................        -142        -124        -110
    88.40     Foreclosure Sale..............        -209         -35
    88.40     Recoveries on defaulted
                mortgages...................         -55        -174         -95
    88.40     Interest, dividends and
                revenue.....................         -20         -50         -50
    88.40     Other collections.............                     -26         -28
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -483        -488        -356
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         854         962         683
    90.00 Outlays...........................         565         769         286
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...           4           4           6

    [[Page 563]]

    92.02 Total investments, end of year:
            Federal securities: Par value...           4           6           6
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2004 actual  2005 est.   2006 est.
    Enacted/requested:
      Budget Authority..................         854         962         683
      Outlays...........................         564         769         286
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                -100
      Outlays...........................                                 -60
                                        ------------------------------------
    Total:
      Budget Authority..................         854         962         583
      Outlays...........................         564         769         226
                                        ====================================

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          21          20          15
    1251  Repayments: Repayments and
            prepayments.....................          -1          -5          -5
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          20          15          10
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      17,070      12,556       7,476
    2251  Repayments and prepayments........      -3,822      -4,539      -1,139
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -684        -539        -213
    2262    Terminations for default that
              result in acquisition of
              property......................          -8          -2          -1
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      12,556       7,476       6,123
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      12,556       7,476       6,123
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......       2,415       2,773       2,754
    2331    Disbursements for guaranteed
              loan claims...................         684         539         213
    2351    Repayments of loans receivable..        -209        -175         -95
    2361    Write-offs of loans
              receivable\1\.................        -134        -383          -6
    2364    Other adjustments, net..........          17
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       2,773       2,754       2,866
    ---------------------------------------------------------------------------

        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.

        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

    2003 actual\1\

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    681

    676

            Investments in US securities:
    1102

    Treasury securities, par

    4

    4

          Non-Federal assets:

    1201

    Investments in non-Federal securities, net

    2

    3

    1206

    Receivables, net

    49

    53

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

    1601

    Direct loans, gross

    21

    20

    1699

    Value of assets related to direct loans

    21

    20

    1701

    Defaulted guaranteed loans, gross

    2,420

    2,773

    1702

    Interest receivable

    145

    137

    1703

    Allowance for estimated uncollectible loans and interest (-)

    -886

    -914

    1704

    Defaulted guaranteed loans and interest receivable, net

    1,679

    1,996

    1706

    Foreclosed property

    9

    1

    1799

    Value of assets related to loan guarantees

    1,688

    1,997

    1901

    Other Federal assets: Other assets

    132

    145

    1999

    Total assets

    2,577

    2,898

        LIABILITIES:
          Federal liabilities:

    2101

    Accounts payable

    14

    2105

    Other Liabilities

    47

          Non-Federal liabilities:

    2201

    Accounts payable

    54

    -8

    2202

    Interest payable

    16

    14

    2203

    Debt

    265

    149

    2204

    Liabilities for loan guarantees

    3,323

    2,264

    2207

    Unearned revenue and advances

    370

    321

    2999

    Total liabilities

    4,042

    2,787

        NET POSITION:
    3100

    Appropriated capital

    2,026

    1,686

    3300

    Cumulative results of operations

    -3,491

    -1,575

    3999

    Total net position

    -1,465

    111

    4999

    Total liabilities and net position

    2,577

    2,898

    -----------------------------------------------------------------------------------------------
        \1\ Preliminary pending final audit.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          29          40          40
    32.0  Land and structures...............          98         137         131
    33.0  Investments and loans.............         860         663         318
    43.0  Interest and dividends............          34          30          30
    44.0  Repayments to financing account...                      80          20
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,021         950         539
    ---------------------------------------------------------------------------

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-4-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investment: Claims and other:

    01.12   Upfront Grants..................                                 -80
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 33.0)...................                                 -80
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 -80
    23.95 Total new obligations.............                                  80
    ----------------------------------------------------------------------------

    [[Page 564]]

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                                -100
    69.00 Offsetting collections (cash).....                                  20
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................                                 -80
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                 -80
    73.20 Total outlays (gross).............                                  40
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                 -40
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Proceeds from sale of
              real property.................                                 -20
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                -100
    90.00 Outlays...........................                                 -60
    ----------------------------------------------------------------------------

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

        Under several statutory provisions, HUD has the authority to remedy
    problems with the operation and repair of FHA-insured multi-family
    properties. These authorities allow the use of rehabilitation grants and
    property sales at prices below their market value for properties in
    mortgage default. These authorities impose costs on the FHA insurance
    fund and, as there is little restriction to their use, represent an
    open-ended liability. This proposal would make several FHA multi-family
    authorities subject to appropriations. By making their use subject to
    appropriations, the Administration and Congress will be able to set the
    level of activity for these authorities and have an opportunity to
    better control their use. The 2006 Budget lowers spending under these
    authorities (relative to the current law baseline level) and therefore
    creates savings.

         Housing for the Elderly or Handicapped Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4115-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Maintenance security and
            collateral......................                       5           5
    01.01 Operating expenses: Interest on
            borrowings......................         164         161         161
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         164         166         166
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         609          28
    22.00 New budget authority (gross)......         191         166         166
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.40 Capital transfer to general fund..         -25         -28
    22.60 Portion applied to repay debt.....        -584
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         192         166         166
    23.95 Total new obligations.............        -164        -166        -166
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          28
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...       1,044         770         770
    69.47   Portion applied to repay debt...        -853        -604        -604
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         191         166         166
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         111          84          84
    73.10 Total new obligations.............         164         166         166
    73.20 Total outlays (gross).............        -190        -166        -166
    73.45 Recoveries of prior year
            obligations.....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          84          84          84
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         190         166         166
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                    -590        -590
    88.40     Non-Federal sources...........      -1,044        -180        -180
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,044        -770        -770
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -853        -604        -604
    90.00 Outlays...........................        -854        -604        -604
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4115-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       7,449       6,991       6,811
    1251  Repayments: Repayments and
            prepayments.....................        -420        -180        -180
    1264  Write-offs for default: Other
            adjustments, net................         -38
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       6,991       6,811       6,631
    ---------------------------------------------------------------------------
        Note.--Amounts for direct loan obligations reflect reservations of
    section 202 funds. Loan obligations shown under the program and
    financing schedule reflect loans that have reached the initial closing
    stage of processing.

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

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

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

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

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

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

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4115-0-3-371

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    719

    111

    [[Page 565]]

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

    1601

    Direct loans, gross

    7,449

    6,991

    1602

    Interest receivable

    79

    78

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -18

    -17

    1604

    Direct loans and interest receivable, net

    7,510

    7,052

    1606

    Acquired Real Property

    8

    31

    1699

    Value of assets related to direct loans

    7,518

    7,083

    1999

    Total assets

    8,237

    7,194

        LIABILITIES:
          Federal liabilities:

    2102

    Interest payable

    108

    81

    2103

    Debt

    2,640

    1,203

    2104

    Resources payable to Treasury

    4,291

    4,266

    2207

    Non-Federal liabilities: Other

    17

    18

    2999

    Total liabilities

    7,056

    5,568

        NET POSITION:
    3100

    Unexpended Appropriations

    19

    19

    3300

    Revolving Fund: Cumulative results of operations

    1,162

    1,607

    3999

    Total net position

    1,181

    1,626

    4999

    Total liabilities and net position

    8,237

    7,194

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4115-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    32.0  Land and structures...............                       5           5
    43.0  Interest and dividends............         164         161         161
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         164         166         166
    ---------------------------------------------------------------------------

                      Manufactured Housing Fees Trust Fund

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-8119-0-7-376      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Receipts:
    02.00 Mobile home inspection and
            monitoring fees, Manufactured
            housing.........................           9          13          13
        Appropriations:
    05.00 Manufactured housing fees trust
            fund............................          -9         -13         -13
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-8119-0-7-376      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Transfer to salaries and expenses.           2           1           2
    00.02 Other program costs...............           7          12          11
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................           9          13          13
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3           3           3
    22.00 New budget authority (gross)......           9          13          13
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          12          16          16
    23.95 Total new obligations.............          -9         -13         -13
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           3           3           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.26   Appropriation (trust fund)......           9          13          13
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           3           2           2
    73.10 Total new obligations.............           9          13          13
    73.20 Total outlays (gross).............         -10         -13         -13
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           2           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           4          10          10
    86.93 Outlays from discretionary
            balances........................           6           3           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          10          13          13
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           9          13          13
    90.00 Outlays...........................          10          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 2004, 230,255 transportable sections were
    produced, for a total of 127,931 manufactured homes.

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

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

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

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

        An estimated 600 filings in 2006 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

    [[Page 566]]

    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.

        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.

    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, [2006] 2007.
        For administrative expenses necessary to carry out the guaranteed
    mortgage-backed securities program, [$10,695,000] $11,360,000, to be
    derived from the GNMA guarantees of mortgage-backed securities
    guaranteed loan receipt account, of which not to exceed [$10,695,000]
    $11,360,000, shall be transferred to the appropriation for ``Salaries
    and expenses''. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, FY 2005.)

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0186-0-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............       2,084       2,478       2,835
        Receipts:
    02.20 GNMA-guarantees of mortgage backed
            securities guarantee loans, N...         405         368         368
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...       2,489       2,846       3,203
        Appropriations:
    05.00 Guarantees of mortgage-backed
            securities loan guarantee
            program.........................         -11         -11         -11
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............       2,478       2,835       3,192
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0186-0-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.09 Administrative expenses, salaries
            and expenses....................          11          11          11
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.3)...................          11          11          11
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          11          11          11
    23.95 Total new obligations.............         -11         -11         -11
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (special fund)....          11          11          11
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............          11          11          11
    73.20 Total outlays (gross).............         -11         -11         -11
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          11          11          11
    ----------------------------------------------------------------------------

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

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

    ----------------------------------------------------------------------------
    Identification code 86-0186-0-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Ginnie Mae mortgage-backed
            securities......................     146,066     160,000     160,000
    215002Standby commitment authority......                  40,000      40,000
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......     146,066     200,000     200,000
        Guaranteed loan subsidy (in percent):
    232001Ginnie Mae mortgage-backed
            securities......................       -0.27       -0.23       -0.23
    232002Standby commitment authority......        0.00        0.00        0.00
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....       -0.27       -0.23       -0.23
        Guaranteed loan subsidy budget authority:
    233001Ginnie Mae mortgage-backed
            securities......................        -405        -368        -368
    233002Standby commitment authority......
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....        -405        -368        -368
        Guaranteed loan subsidy outlays:
    234001Ginnie Mae mortgage-backed
            securities......................        -405        -368        -368
    234002Standby commitment authority......
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............        -405        -368        -368
    ----------------------------------------------------------------------------

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

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

           Guarantees of Mortgage-Backed Securities Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4240-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default Claim Payments............         260          70         600
    00.03 Advances and other................          18          28          29
    00.04 Operating expenses................           6          25          27
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............         284         123         656
    08.01 Payment to receipt account for
            negative subsidy................         405         368         368
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         689         491       1,024
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         783         550         539
    22.00 New financing authority (gross)...         456         480         491
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,239       1,030       1,030
    23.95 Total new obligations.............        -689        -491      -1,024
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         550         539           6
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         456         480         491
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          55         317          55
    73.10 Total new obligations.............         689         491       1,024
    73.20 Total financing disbursements
            (gross).........................        -427        -753      -1,024
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         317          55          55
    87.00 Total financing disbursements
            (gross).........................         427         753       1,024
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..         -55         -57         -62
    88.40     Guarantee Fees................        -307        -323        -329
    88.40     Commitment and other fees.....         -31         -35         -33
    88.40     Multiclass fees...............         -35         -37         -39
    88.40     Repayment of advances.........         -15         -15         -16
    88.40     Servicing Fees................          -1          -2          -2

    [[Page 567]]

    88.40     Repayment on Mortgages........         -12         -11         -10
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -456        -480        -491
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........         -29         273         533
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4240-0-3-371      2004 actual   2005 est.   2006 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.........................      37,052      90,986     130,986
    2143  Uncommitted limitation carried
            forward.........................     -90,986    -130,986    -170,986
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................     146,066     160,000     160,000
    2199  Guaranteed amount of guaranteed
            loan commitments................     146,066     160,000     160,000
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........     473,799     453,163     492,358
    2231  Disbursements of new guaranteed
            loans...........................     149,081     160,000     160,000
    2251  Repayments and prepayments........    -169,457    -120,735     -80,934
    2261  Adjustments: Terminations for
            default that result in loans
            receivable......................        -260         -70        -600
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........     453,163     492,358     570,824
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..     453,163     492,358     570,824
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......                     260         330
    2331    Disbursements for guaranteed
              loan claims...................         260          70         600
    2351    Repayments of loans receivable..
    2361    Write-offs of loans receivable..
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         260         330         930
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4240-0-3-371

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    839

    868

    1206

    Non-Federal assets: Receivables, net

    26

    25

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

    1601

    Direct loans, gross

    50

    40

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -13

    -7

    1699

    Value of assets related to direct loans

    37

    33

    1803

    Other Federal assets: Property, plant and equipment, net

    69

    385

    1999

    Total assets

    971

    1,311

        LIABILITIES:
          Non-Federal liabilities:

    2201

    Accounts payable

    151

    82

    2207

    Other

    10

    398

    2999

    Total liabilities

    161

    480

        NET POSITION:
    3300

    Cumulative results of operations

    810

    831

    3999

    Total net position

    810

    831

    4999

    Total liabilities and net position

    971

    1,311

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

          Guarantees of Mortgage-Backed Securities Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Administrative contract expenses..          57          53          57
          Operating expenses:

    00.03   Servicing expenses..............           2           7           7
                                               ---------   ---------  ----------
    00.91     Total operating expenses......          59          60          64
          Capital investment:

    01.01   Advances of guaranty payments...          19          47          45
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          78         107         109
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       7,229       7,543       7,900
    22.00 New budget authority (gross)......         392         464         470
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       7,621       8,007       8,370
    23.95 Total new obligations.............         -78        -107        -109
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       7,543       7,900       8,261
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                      53          57
    69.00 Offsetting collections (cash).....         392         411         413
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         392         464         470
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of
            year\1\.........................         -28         -21         -99
    73.10 Total new obligations.............          78         107         109
    73.20 Total outlays (gross).............         -71        -185        -106
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         -21         -99         -96
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          71         185         106
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.20     Interest on Federal securities        -373        -398        -401
    88.40     Repayments of guaranteed
                payments....................         -13         -12         -11
    88.40     Servicing income..............          -1          -1          -1
    88.40     Repayments on mortgages.......          -5
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -392        -411        -413
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      53          57
    90.00 Outlays...........................        -321        -226        -307
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...       7,241       7,562       7,905
    92.02 Total investments, end of year:
            Federal securities: Par value...       7,562       7,905       8,213
    ---------------------------------------------------------------------------
        \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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         105          12          17
    1232  Disbursements: Purchase of loans
            assets from the public..........          19          47          45
    1252  Repayments: Proceeds from loan
            asset sales to the public or
            discounted......................         -13         -12         -11
    1263  Write-offs for default: Direct
            loans...........................         -99         -30         -28
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          12          17          23
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         109          96          82

    [[Page 568]]

    2251  Repayments and prepayments........         -13         -14         -15
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          96          82          67
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of
            year\1\.........................          96          82          67
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4238-0-3-371

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

            Investments in US securities:
    1102

    Treasury securities, par

    7,216

    7,540

    1106

    Receivables, net

    63

    63

    1206

    Non-Federal assets: Receivables, net

    11

    7

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

    1601

    Direct loans, gross

    105

    12

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -105

    -9

    1699

    Value of assets related to direct loans

    3

    1999

    Total assets

    7,290

    7,613

        LIABILITIES:
          Non-Federal liabilities:

    2201

    Accounts payable

    34

    38

    2207

    Other

    509

    505

    2999

    Total liabilities

    543

    543

        NET POSITION:
    3300

    Cumulative results of operations

    6,747

    7,070

    3999

    Total net position

    6,747

    7,070

    4999

    Total liabilities and net position

    7,290

    7,613

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

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          59          60          64
    33.0  Investments and loans.............          19          47          45
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          78         107         109
    ---------------------------------------------------------------------------

                         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, [$45,500,000]
    $69,738,000, to remain available until September 30, [2006: Provided,
    That of the total amount provided under this heading, $7,000,000 shall
    be for the Partnership for Advancing Technology in Housing (PATH)
    Initiative: Provided further, That of the amounts made available for
    PATH under this heading, $3,500,000 shall not be subject to the
    requirements of section 205 of this title] 2007, of which $29,038,000 is
    for grants pursuant to section 107 of the Housing and Community
    Development Act of 1974, as amended, as follows: $2,989,000 to support
    Alaska Native serving institutions and Native Hawaiian serving
    institutions as defined under the Higher Education Act, as amended;
    $2,562,000 for tribal colleges and universities to build, expand,
    renovate, and equip their facilities and to expand the role of the
    colleges into the community through the provision of needed services
    such as health programs, job training and economic development
    activities; $8,967,000 for Historically Black Colleges and Universities
    program, of which up to $2,000,000 may be used for technical assistance;
    $5,979,000 for the Community Outreach Partnership Program; $5,979,000
    for the Hispanic Serving Institutions Program; and $2,562,000 for the
    Community Development Work Study Program. (Departments of Veterans
    Affairs and Housing and Urban Development and Independent Agencies
    Appropriations Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0108-0-1-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Housing Research..................          41          40          41
    00.02 PATH..............................           8          10
    00.03 University Programs...............                                  29
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          49          50          70
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           7           5
    22.00 New budget authority (gross)......          47          45          70
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          54          50          70
    23.95 Total new obligations.............         -49         -50         -70
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          47          46          70
    40.35   Appropriation permanently
              reduced.......................                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          47          45          70
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          30          36          43
    73.10 Total new obligations.............          49          50          70
    73.20 Total outlays (gross).............         -43         -43         -56
    73.40 Adjustments in expired accounts
            (net)...........................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          36          43          57
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          23          18          28
    86.93 Outlays from discretionary
            balances........................          20          25          28
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          43          43          56
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          47          45          70
    90.00 Outlays...........................          43          43          56
    ---------------------------------------------------------------------------

        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 2006, 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 for the
    Partnership for Advancing Technology (PATH) program in 2006. Research
    and evaluation activities will also support the Department in carrying
    out its responsibilities under the Government Performance and Results
    Act.

        In 2006 the University Partnership Program grants will be funded
    from this account. These grants, pursuant to Section 107 of the Housing
    and Community Development Act of 1974, were funded under the Community
    Development Block Grant account. These programs were and will continue

    [[Page 569]]

    to be administered by the Office of Policy Development and Research. The
    University Partnership Programs provide grants to colleges and
    universities to assist institutions of higher education in forming
    partnerships with the communities in which they are located to undertake
    a range of activities that foster and achieve neighborhood development
    and revitalization. Funds also support a work study program for
    disadvantaged and minority students in graduate level community building
    curricula. The University Partnership Programs include the following:
    Alaska Native and Native Hawaiian Serving Institutions program, Tribal
    Colleges and University program, Historically Black Colleges and
    Universities program, Community Outreach Partnerships program, Hispanic
    Serving Institutions program and the Community Development Work Study
    Program.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0108-0-1-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          46          47          38
    41.0  Grants, subsidies, and
            contributions...................           3           3          32
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          49          50          70
    ---------------------------------------------------------------------------

                       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,
    [$46,500,000] $38,800,000, to remain available until September 30,
    [2006] 2007, of which [$20,000,000] $16,100,000 shall be to carry out
    activities pursuant to such section 561: Provided, That no funds made
    available under this heading shall be used to lobby the executive or
    legislative branches of the Federal Government in connection with a
    specific contract, grant or loan. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0144-0-1-751      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Fair housing assistance...........          39          28          23
    00.02 Fair housing initiatives..........          24          21          16
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          63          49          39
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          23           8           5
    22.00 New budget authority (gross)......          48          46          39
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          72          54          44
    23.95 Total new obligations.............         -63         -49         -39
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           8           5           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          48          46          39
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          49          65          68
    73.10 Total new obligations.............          63          49          39
    73.20 Total outlays (gross).............         -46         -46         -43
    73.45 Recoveries of prior year
            obligations.....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          65          68          64
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1           3           3
    86.93 Outlays from discretionary
            balances........................          45          43          40
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          46          46          43
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          48          46          39
    90.00 Outlays...........................          46          46          43
    ---------------------------------------------------------------------------

                                 Performance Metrics

    ----------------------------------------------------------------------------
    Identification code 86-0144-0-1-751      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Fair Housing Initiatives Program:
    218603The percentage of enforcement
            efforts that result in
            complaints referred to HUD by
            FHIPs will increase by 2
            percentage points...............
    218604The percentage of complaints
            settled.........................
    218605The average amount of allocated
            PEI funding used per complaint
            referred to FHAPs and HUD.......
    218606Percentage of the general public
            who can correctly identify six
            or more of the eight scenarios
            describing illegal conduct as
            unlawful........................                                 60%
    218609Amount of FHOI funding allocated
            to each new fair housing
            organization established........
        Fair Housing Assistance Program:
    243803Improve the public's confidence in
            enforcement by reducing by four
            percentage points, from FY 2004,
            the number of aged cases in the
            overall FHAP inventory..........                     39%         35%
    243804In order to increase the nation's
            capacity to provide coordinated
            enforcement of fair housing
            laws, certify two new
            substantially equivilent
            agencies under the Fair Housing
            Act.............................         100         100         102
    243805FHAP grantees increase access to
            sale and rental housing by
            completing fair housing
            conciliation/settlement
            agreements in at least 33
            percent of the complaints files
            in FY 2005......................        2044        2150        2150
    243806Increase the percentage of FHAP
            complaints closed in 100 days or
            less to 60 percent..............                     60%
    243807Percentage of the general public
            who can correctly identify six
            or more of the eight scenarios
            describing illegal conduct as
            unlawful........................                                 60%
    243808Comparision between the amount of
            FHAP funding spent on training
            per person versus the amount of
            training money allocated per
            person for training through the
            National Fair Housing T.........      $2,801      $1,789
    ---------------------------------------------------------------------------

        The Budget proposes an appropriation of $38.8 million in 2006 to
    fund fair housing activities that support efforts to end housing
    discrimination. Of the amount requested, $22.7 million is for the Fair
    Housing Assistance Program and $16.1 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 104 in 2006 from 100
    in 2005.

        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.

    [[Page 570]]

                          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,
    [$168,000,000] $119,000,000, to remain available until September 30,
    [2006] 2007, of which [$9,900,000] $8,815,000 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 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 section 305(c) of the Multifamily Housing
    Property Disposition Reform Act of 1994[: Provided further, That of the
    total amount made available under this heading, $47,000,000 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]. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0174-0-1-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Lead abatement....................         180         177         119
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         180         177         119
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          14          10
    22.00 New budget authority (gross)......         174         167         119
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         190         177         119
    23.95 Total new obligations.............        -180        -177        -119
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         175         168         119
    40.35   Appropriation permanently
              reduced.......................          -1          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         174         167         119
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         364         429         472
    73.10 Total new obligations.............         180         177         119
    73.20 Total outlays (gross).............        -113        -134        -138
    73.45 Recoveries of prior year
            obligations.....................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         429         472         453
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       3           2
    86.93 Outlays from discretionary
            balances........................         113         131         136
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         113         134         138
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         174         167         119
    90.00 Outlays...........................         113         134         138
    ---------------------------------------------------------------------------

        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 2006 Budget includes $93 million for HUD's
    Lead Hazard Control Program competitive grants and $8.8 million for
    operation LEAP. The Technical Support Program and the Healthy Homes
    Initiative are also funded at $8.8 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 million
    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, that enables
    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; and 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, [$1,120,000,000] $1,152,519,000,
    of which [$560,400,000] $562,400,000 shall be provided from the various
    funds of the Federal Housing Administration, [$10,695,000] $10,695,000
    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] $146,000 shall
    be provided

    [[Page 571]]

    by transfer from the ``Native American housing block grants'' account,
    [$250,000] $244,000 shall be provided by transfer from the ``Indian
    housing loan guarantee fund program'' account and [$35,000] $34,000
    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: (1) appoint
    qualified personnel to conduct investigations of potential or actual
    violations; (2) establish minimum training requirements and other
    qualifications for personnel that may be appointed to conduct
    investigations; (3) establish guidelines and timeframes for the conduct
    and completion of investigations; (4) prescribe the content, format and
    other requirements for the submission of final reports on violations;
    and (5) 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 up to $20,000,000 may be transferred to the
    Working Capital Fund[: 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]. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0143-0-1-999      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Direct program:
          Direct program:

    00.01   Housing, mortgage credit,
              regulatory and energy
              conservation..................         239         237         253
    00.02   Community planning and
              development programs..........          44          43          46
    00.03   Equal opportunity and research
              programs......................          47          46          49
    00.04   Departmental management, legal
              and audit services............          48          47          50
    00.05   Field direction and
              administration................         173         170         181
    09.01 Reimbursable program..............         576         568         574
                                               ---------   ---------  ----------
    09.99   Total reimbursable program......         576         568         574
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,127       1,111       1,153
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          16
    22.00 New budget authority (gross)......       1,120       1,111       1,153
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,136       1,111       1,153
    23.95 Total new obligations.............      -1,127      -1,111      -1,153
    23.98 Unobligated balance expiring or
            withdrawn.......................          -8
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         547         547         579
    40.35   Appropriation permanently
              reduced.......................          -3          -4
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         544         543         579
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............         576         568         574
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,120       1,111       1,153
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         117         129         128
    73.10 Total new obligations.............       1,127       1,111       1,153
    73.20 Total outlays (gross).............      -1,105      -1,112      -1,144
    73.40 Adjustments in expired accounts
            (net)...........................         -10
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         129         128         137
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         995         987       1,020
    86.93 Outlays from discretionary
            balances........................         110         125         124
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,105       1,112       1,144
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -576        -568        -574
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         544         543         579
    90.00 Outlays...........................         530         544         570
    ---------------------------------------------------------------------------

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0143-0-1-999      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         333         345         361
    11.3      Other than full-time permanent           3           3           3
    11.5      Other personnel compensation..           7           7           7
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         343         355         371
    12.1    Civilian personnel benefits.....          83          85          89
    21.0    Travel and transportation of
              persons.......................           9           8          10
    23.1    Rental payments to GSA..........          49          48          52
    23.3    Communications, utilities, and
              miscellaneous charges.........          12          12          13
    24.0    Printing and reproduction.......           2           2           2
    25.1    Advisory and assistance services          41          23          29
    25.2    Other services..................           2           2           2
    25.3    Other purchases of goods and
              services from Government
              accounts......................           1           1           1
    25.4    Operation and maintenance of
              facilities....................           2           2           3
    25.7    Operation and maintenance of
              equipment.....................           1           1           1
    26.0    Supplies and materials..........           3           2           3
    31.0    Equipment.......................           3           1           3
    42.0    Insurance claims and indemnities                       1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         551         543         579
    99.0  Reimbursable obligations..........         576         568         574
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,127       1,111       1,153
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-0143-0-1-999      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       4,420       4,307       4,346
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       4,612       4,493       4,535
    ---------------------------------------------------------------------------

                           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,
    [$104,000,000] $103,000,000, of which $24,000,000 shall be provided

    [[Page 572]]

    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 $300,000
    shall be transferred to the Working Capital Fund]. (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0189-0-1-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          76          79          79
    09.01 Reimbursable program..............          24          24          24
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         100         103         103
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         101         103         103
    23.95 Total new obligations.............        -100        -103        -103
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          77          80          79
    40.35   Appropriation permanently
              reduced.......................                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          77          79          79
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          24          24          24
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         101         103         103
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          21          19          19
    73.10 Total new obligations.............         100         103         103
    73.20 Total outlays (gross).............        -100        -103        -103
    73.40 Adjustments in expired accounts
            (net)...........................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          19          19          19
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          83          85          85
    86.93 Outlays from discretionary
            balances........................          17          18          18
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         100         103         103
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -24         -24         -24
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          77          79          79
    90.00 Outlays...........................          77          79          79
    ---------------------------------------------------------------------------

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0189-0-1-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          38          40          41
    11.5      Other personnel compensation..           5           5           5
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          43          45          46
    12.1    Civilian personnel benefits.....          12          12          13
    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
    25.1    Advisory and assistance services           8           9           9
    25.2    Other services..................           1           1           1
    25.3    Other purchases of goods and
              services from Government
              accounts......................           1           1
    26.0    Supplies and materials..........           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          76          79          79
    99.0  Reimbursable obligations..........          24          24          24
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         100         103         103
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-0189-0-1-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         495         497         489
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         162         163         161
    ---------------------------------------------------------------------------

                                 GSE Regulation

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0142-2-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.00 GSE Regulation expenses...........                                   6
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                   6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                   6
    23.95 Total new obligations.............                                  -6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...                                   6
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                   6
    73.20 Total outlays (gross).............                                  -6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                   6
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....                                  -6
    ----------------------------------------------------------------------------

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

        The Administration's proposal to strengthen GSE regulation will
    include authority for the cost of HUD's responsibilities under the
    Federal Housing Enterprise Safety and Soundness Act of 1992, and
    amendments as proposed, to 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 their
    charters, 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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    99.0  Reimbursable obligations:
            Reimbursable obligations........                                   6
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                   6
    ---------------------------------------------------------------------------

    [[Page 573]]

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-0142-2-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................                                  19
    ---------------------------------------------------------------------------

                 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, $59,209,000, 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, $5,000,000 is for litigation and to continue ongoing special
    investigations of the Federal housing enterprises: Provided further,
    That the Director shall submit a spending plan for the amounts provided
    under this heading no later than January 15, 2005: Provided further,
    That not less than 80 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.] (Departments of Veterans Affairs and Housing and Urban Development,
    and Independent Agencies Appropriations Act, FY 2005.)

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Receipts:
    02.60 Office of Federal Housing
            Enterprise Oversight............          40          59          60
    02.61 Office of Federal Housing
            Enterprise Oversight............                                 -60
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..          40          59
        Appropriations:
    05.00 Office of Federal Housing
            Enterprise Oversight............         -40         -59         -60
    05.01 Office of Federal Housing
            Enterprise Oversight............                                  60
                                               ---------   ---------  ----------
    05.99   Total appropriations............         -40         -59
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          40          59          60
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          40          59          60
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          40          59          60
    23.95 Total new obligations.............         -40         -59         -60
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (special fund)....          40          59          60
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           7           8           9
    73.10 Total new obligations.............          40          59          60
    73.20 Total outlays (gross).............         -39         -58         -61
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           8           9           8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          33          50          52
    86.93 Outlays from discretionary
            balances........................           6           8           9
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          39          58          61
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          40          59          60
    90.00 Outlays...........................          39          58          61
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2004 actual  2005 est.   2006 est.
    Enacted/requested:
      Budget Authority..................          40          59          60
      Outlays...........................          39          58          61
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                 -60
      Outlays...........................                                 -52
                                        ------------------------------------
    Total:
      Budget Authority..................          40          59
      Outlays...........................          39          58           9
                                        ====================================

        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 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 that will be
    proposed in 2005. The Administration continues to support direct funding
    of these activities with mandatory assessments on Fannie Mae and Freddie
    Mac.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation:
              Personnel Compensation........          18          29          30
    12.1    Civilian personnel benefits.....           4           8           9
    23.2    Rental payments to others.......           4           5           5
    25.2    Other services..................          11          11           9
    31.0    Equipment.......................           1           4           5
    32.0    Land and structures.............           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          39          58          59
    99.5  Below reporting threshold.........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          40          59          60
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         152         218         225
    ---------------------------------------------------------------------------

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5272-2-2-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................                                 -60
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                 -60
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 -60
    23.95 Total new obligations.............                                  60
    ----------------------------------------------------------------------------

    [[Page 574]]

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (special fund)....                                 -60
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..
    73.10 Total new obligations.............                                 -60
    73.20 Total outlays (gross).............                                  52
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                  -8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 -52
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 -60
    90.00 Outlays...........................                                 -52
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5272-2-2-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation:
              Personnel Compensation........                                 -30
    12.1    Civilian personnel benefits.....                                  -9
    23.2    Rental payments to others.......                                  -5
    25.2    Other services..................                                  -9
    31.0    Equipment.......................                                  -5
    32.0    Land and structures.............                                  -1
                                               ---------   ---------  ----------
    99.0      Direct obligations............                                 -59
    99.5  Below reporting threshold.........                                  -1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                 -60
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-5272-2-2-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................                                -225
    ---------------------------------------------------------------------------

    Intragovernmental funds:

                              Working Capital Fund

        For additional capital for the Working Capital Fund (42 U.S.C. 3535)
    for the development of, modifications to, and infrastructure for
    Department-wide information technology systems, for the continuing
    operation of both Department-wide and program-specific information
    systems, and for program-related development activities, [$270,000,000]
    $265,000,000, to remain available until September 30, [2006] 2007:
    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 or from within this Act may be used only for the
    purposes specified under this Fund, in addition to the purposes for
    which such amounts were appropriated. (Departments of Veterans Affairs
    and Housing and Urban Development, and Independent Agencies
    Appropriations Act, FY 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4586-0-4-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........         283         269         262
    09.01 Reimbursable program..............         108          78          57
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         391         347         319
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         119          32          16
    22.00 New budget authority (gross)......         299         319         322
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           6          12          12
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         424         363         350
    23.95 Total new obligations.............        -391        -347        -319
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          32          16          31
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         235         270         265
    40.35   Appropriation permanently
              reduced.......................          -1          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         234         268         265
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          69          51          57
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -4
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          65          51          57
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         299         319         322
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         132         240         137
    73.10 Total new obligations.............         391         347         319
    73.20 Total outlays (gross).............        -281        -438        -321
    73.45 Recoveries of prior year
            obligations.....................          -6         -12         -12
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           4
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         240         137         123
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         149         232         233
    86.93 Outlays from discretionary
            balances........................         132         206          88
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         281         438         321
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -69         -51         -57
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         234         268         265
    90.00 Outlays...........................         212         387         264
    ---------------------------------------------------------------------------

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4586-0-4-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          34          32          33
    12.1    Civilian personnel benefits.....           5           5           5
    21.0    Travel and transportation of
              persons.......................           1           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........          15           5           5
    25.1    Advisory and assistance services         217         211         206
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................          10          13          10
                                               ---------   ---------  ----------
    99.0      Direct obligations............         283         269         262
          Reimbursable obligations:

    25.1    Advisory and assistance services         108          78          57
                                               ---------   ---------  ----------
    99.0      Reimbursable obligations......         108          78          57
                                               ---------   ---------  ----------

    [[Page 575]]

    99.9    Total new obligations...........         391         347         319
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-4586-0-4-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         373         350         350
    ---------------------------------------------------------------------------

                            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 [2005] 2006 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 [2005] 2006 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
        [2005] 2006 under such clause (ii) because the areas in the State
        outside of the metropolitan statistical areas that qualify under
        clause (i) in fiscal year [2005] 2006 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 [2005] 2006, 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).
        (c) Notwithstanding any other provision of law, the amount allocated
    for fiscal year [2005] 2006 under section 854(c) of the AIDS Housing
    Opportunity Act (42 U.S.C. 12903(c)), to the City of New York, New York,
    on behalf of the New York-Wayne-White Plains, New York-New Jersey
    Metropolitan Division (hereafter ``metropolitan division'') of the New
    York-Newark-Edison, NY-NJ-PA Metropolitan Statistical Area, shall be
    adjusted by the Secretary of Housing and Urban Development by: (1)
    allocating to the City of Jersey City, 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 Hudson County, New Jersey, and adjusting for
    the proportion of the metropolitan division's high incidence bonus if
    this area in New Jersey also has a higher than average per capita
    incidence of AIDS; and (2) allocating to the City of Paterson, 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 Bergen County and
    Passaic County, New Jersey, and adjusting for the proportion of the
    metropolitan division's high incidence bonus if this area in New Jersey
    also has a higher than average per capita incidence of AIDS. The
    recipient cities shall use amounts allocated under this subsection to
    carry out eligible activities under section 855 of the AIDS Housing
    Opportunity Act (42 U.S.C. 12904) in their respective portions of the
    metropolitan division that is located in New Jersey.
        (d) Notwithstanding any other provision of law, the amount allocated
    for fiscal year 2006 under section 854(c) of the AIDS Housing
    Opportunity Act (42 U.S.C. 12903(c)) to areas with a higher than average
    per capita incidence of AIDS, shall be adjusted by the Secretary on the
    basis of area incidence reported over a three year period.
        Sec. 204. (a) During fiscal year [2005] 2006, in the provision of
    rental assistance under section 8(o) of the United States Housing Act of
    1937 (42 U.S.C. 1437f(o)) in connection with a program to demonstrate
    the economy and effectiveness of providing such assistance for use in
    assisted living facilities that is carried out in the counties of the
    State of Michigan specified in subsection (b) of this section,
    notwithstanding paragraphs (3) and (18)(B)(iii) of such section 8(o), a
    family residing in an assisted living facility in any such county, on
    behalf of which a public housing agency provides assistance pursuant to
    section 8(o)(18) of such Act, may be required, at the time the family
    initially receives such assistance, to pay rent in an amount exceeding
    40 percent of the monthly adjusted income of the family by such a
    percentage or amount as the Secretary of Housing and Urban Development
    determines to be appropriate.
        (b) The counties specified in this subsection are Oakland County,
    Macomb County, Wayne County, and Washtenaw County, in the State of
    Michigan.
        Sec. 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 [2005] 2006 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 [2005] 2006, HUD shall
    transmit this information to the Committees by March 15, [2005] 2006 for
    30 days of review.
        Sec. 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.

    [[Page 576]]

        Sec. 211. Notwithstanding any other provision of law, in fiscal year
    [2005] 2006, 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. 212. (a) Notwithstanding any other provision of law, the amount
    allocated for fiscal year [2005] 2006 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''), shall be
    adjusted by the Secretary of Housing and Urban Development by allocating
    to the State of New Jersey the proportion of the metropolitan division's
    amount that is based on the number of cases of AIDS reported in the
    portion of the metropolitan division that is located in New Jersey, and
    adjusting for the proportion of the metropolitan division's high
    incidence bonus if this area in New Jersey also has a higher than
    average per capita incidence of AIDS. 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
    [2005] 2006 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] 2006 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. 213. Notwithstanding any other provision of law, for this
    fiscal year and every fiscal year thereafter, funds appropriated for
    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. 214. The Secretary of Housing and Urban Development shall
    submit an annual report no later than August 30, 2005 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. 215. The Department of Housing and Urban Development shall
    submit the Department's fiscal year 2006 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 specified in
    the report accompanying this Act.]
        Sec. [216.] 213. [That incremental voucher] Incremental vouchers
    previously made available under the heading ``Housing Certificate Fund''
    or renewed under the heading, ``Tenant-Based Rental Assistance,'' for
    non-elderly disabled families shall, to the extent practicable, continue
    to be provided to non-elderly disabled families upon turnover.
        [Sec. 217. The installment contract between the Village of Hanna
    City, Illinois and the General Services Administration is in the nature
    of a purchase money mortgage which will be paid off at initial closing.
    The Department of Housing and Urban Development shall accept the Village
    of Hanna City, Illinois' holding of equitable title to this property as
    sufficient for the purposes of the section 202 housing program.]
        Sec. [218] 214. 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. 219. (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. 220. 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

    [[Page 577]]

                    ``(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. 221. 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'';
                    (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. 222. 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. 223. 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. 224. The portion of any athletic scholarship assistance that
    is available for housing costs shall be considered adjusted income for
    purposes of section 3(b)(5) of the United States Housing Act of 1937.
    The Secretary of Housing and Urban Development shall by notice establish
    criteria under which persons who receive athletic scholarship assistance
    may be denied housing assistance under the United States Housing Act of
    1937.]
        [Sec. 225. The funds made available for Native Alaskans under the
    heading ``Native American Housing Block Grants'' in title II of this Act
    shall be allocated to the same Native Alaskan housing block grant
    recipients that received funds in fiscal year 2004.]
        Sec. 215. Payment Incentives for Certain Single Family Mortgages.
        The National Housing Act (12 U.S.C. 1701 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 follows: 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. 216. The National Housing Act (12 U.S.C. 1701 et seq.) is
    amended as follows:
        (a) In section 203 by adding the following new subsection at the
    end:
        ``(y) Notwithstanding any other 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.''; and
        (b) in section 519(e):
            (1) by striking ``and'' after ``203(h)'' and inserting a comma;
        and
            (2) by inserting after ``203(i),'' ``and 203(y),''.
        Sec. 217. Clarification Regarding Mortgage Insurance for Purchase of
    Existing Health Care Facilities.--Section 223(f)(1) of the National
    Housing Act is amended by inserting ``purchase or'' immediately before
    ``refinancing of existing debt''. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, FY 2005.)

                          General Fund Receipt Accounts

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      86-271910  FHA-general and special
        risk, Negative subsidies............         281         190         357
      86-271930  FHA-general and special
        risk, Downward reestimates of
        subsidies...........................         138         208
      86-274330  Indian housing loan
        guarantees, Downward reestimates of
        subsidies...........................                       4
      86-277330  Community development loan
        guarantees, Downward reestimates....           7          15
                                               ---------   ---------  ----------
    General Fund Offsetting receipts from
     the public.............................         426         417         357
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