Appendix - Department of Housing and Urban Development

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

THE BUDGET FOR FISCAL YEAR 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)

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)

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

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

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)

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)

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

[[Page 537]]

1999

Total assets

LIABILITIES:
2204

Non-Federal liabilities: Liabilities for loan guarantees

2999

Total liabilities

4999

Total liabilities and net position

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

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)

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)

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)

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

1999

Total assets

LIABILITIES:
2204

Non-Federal liabilities: Liabilities for loan guarantees

2999

Total liabilities

4999

Total liabilities and net position

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

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)

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)

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

1207

Non-Federal assets: Advances and prepayments

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

1601

Direct loans, gross

1603

Allowance for estimated uncollectible loans and interest (-)

-7

-6

1604

Direct loans and interest receivable, net

1606

Foreclosed property

1699

Value of assets related to direct loans

1999

Total assets

LIABILITIES:
Non-Federal liabilities:

2201

Accounts payable

2207

Other

2999

Total liabilities

NET POSITION:
3100

Appropriated capital

3300

Cumulative results of operations

3999

Total net position

4999

Total liabilities and net position

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

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)

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)

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

1999

Total assets

LIABILITIES:
2204

Non-Federal liabilities: Liabilities for loan guarantees

2999

Total liabilities

4999

Total liabilities and net position

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

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)

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

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

1701

Defaulted guaranteed loans, gross

1704

Defaulted guaranteed loans and interest receivable, net

1799

Value of assets related to loan guarantees

1999

Total assets

LIABILITIES:
2103

Federal liabilities: Debt

2999

Total liabilities

4999

Total liabilities and net position

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

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)

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)

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

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

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

2999

Total liabilities

NET POSITION:
3100

Appropriated capital

-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)

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)

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

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

1405

Allowance for subsidy cost (-)

-3

1499

Net present value of assets related to direct loans

-3

1999

Total assets

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

FHA--Mutual Mortgage Insurance Guaranteed Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Loan guarantee default claim
payments........................ 7,282 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

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

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

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)

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)

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

1207

Advances and prepayments

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

1702

Interest receivable

1703

Allowance for estimated uncollectible loans and interest (-)

-4

-2

1704

Defaulted guaranteed loans and interest receivable, net

1706

Foreclosed property

1799

Value of assets related to loan guarantees

1901

Other Federal assets: Other assets

1999

Total assets

1,123

336

LIABILITIES:
Non-Federal liabilities:

2201

Accounts payable

425

236

2204

Liabilities for loan guarantees

111

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)

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

[[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

1206

Receivables, net

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

1501

Defaulted guaranteed loans receivable, gross

584

704

1502

Interest receivable

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

-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

Non-Federal liabilities:

2201

Accounts payable

2202

Interest payable

2203

Non Federal Debt

2204

Liabilities for loan guarantees

809

1,409

2207

Other

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)

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

1499

Net present value of assets related to direct loans

1999

Total assets

LIABILITIES:
Federal liabilities:

2103

Treasury borrowing

2104

Resources payable to Treasury

2999

Total liabilities

4999

Total liabilities and net position

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

FHA--Loan Guarantee Recovery Fund--Financing Account

Program and Financing (in millions of dollars)

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

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

Investments in US securities:
1102

Treasury securities, par

1999

Total assets

LIABILITIES:
2204

Non-Federal liabilities: Liabilities for loan guarantees

2999

Total liabilities

4999

Total liabilities and net position

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

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

FHA--General and Special Risk Insurance Funds Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
Operating expenses:

00.02 Interest on debentures.......... 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)

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

Non-Federal assets:

1201

Investments in non-Federal securities, net

1206

Receivables, net

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

1601

Direct loans, gross

1699

Value of assets related to direct loans

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

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

2105

Other Liabilities

Non-Federal liabilities:

2201

Accounts payable

-8

2202

Interest payable

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)

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

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

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

2103

Debt

2,640

1,203

2104

Resources payable to Treasury

4,291

4,266

2207

Non-Federal liabilities: Other

2999

Total liabilities

7,056

5,568

NET POSITION:
3100

Unexpended Appropriations

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)

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)

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)

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)

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

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

1601

Direct loans, gross

1603

Allowance for estimated uncollectible loans and interest (-)

-13

-7

1699

Value of assets related to direct loans

1803

Other Federal assets: Property, plant and equipment, net

385

1999

Total assets

971

1,311

LIABILITIES:
Non-Federal liabilities:

2201

Accounts payable

151

2207

Other

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)

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)

[[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

1206

Non-Federal assets: Receivables, net

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

1601

Direct loans, gross

105

1603

Allowance for estimated uncollectible loans and interest (-)

-105

-9

1699

Value of assets related to direct loans

1999

Total assets

7,290

7,613

LIABILITIES:
Non-Federal liabilities:

2201

Accounts payable

2207

Other

509

505

2999

Total liabilities

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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
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Personnel Summary

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