[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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