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 2008

[[Page 505]]

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 2008 Budget for HUD includes major reform
proposals for the Federal Housing Administration (FHA), the Housing
Choice Voucher program, and the Community Development Block Grant (CDBG)
program. These reforms will enhance the effectiveness of HUD's programs.

The Department continues to emphasize expanding homeownership
opportunities for all. Toward that goal, in 2007 FHA will introduce
financing options for families who have good credit histories but lack
the savings needed for the downpayment on a home, and for families who
have impaired credit histories and who would normally be served only by
the sub-prime market. Also, the Budget provides nearly $2 billion for
the HOME Investment Partnerships Program, including $50 million for the
American Dream Downpayment Initiative. The improved performance of FHA
and other homeownership efforts will help meet the goal of adding 5.5
million new minority homeowners by 2010.

While maintaining a budget-based approach, the 2008 Budget proposes
changes to the Housing Choice Voucher Program to give State and local
housing authorities more decision-making authority to better address the
unique needs of their communities, such as the flexibility to serve more
households. The Budget also proposes to update the funding allocation
formula to better reflect current needs.

HUD continues to support and improve Public Housing and has
initiated the effort to adopt asset-based project management to allow
significant improvements and efficiencies. The Budget provides $4
billion for the Public Housing Operating subsidies and $2 billion for
the Public Housing Capital Fund.

HUD continues to support reduction of over-crowding in Indian
country with $627 million in housing grants. The Budget also continues
support for Indian community development.

HUD continues to focus on combating homelessness and eliminating
chronic homelessness with $1.6 billion for Homeless Assistance,
including up to $50 million for a Samaritan initiative to provide
supportive housing linked to services for chronically homeless persons.
Homeless assistance includes $25 million for HUD's part in a three-
agency faith-based initiative for ex-offender activities.

Funding in the 2008 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, along with other
Federal programs for community and economic development, will be
reformed in 2008 to increase the focus and effectiveness of Federal
efforts to provide adequate economic opportunity in low-income
communities. HUD has proposed legislation to revise the CDBG allocation
formula to better target needy communities, to provide bonus funds tied
to performance, and to make further reforms to increase CDBG's
effectiveness.

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 2008 Budget includes $116 million in lead hazard reduction
grants to continue the 10-year program to eradicate lead hazards in
housing.

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 evaluate 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 2007 and 2008 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 PROGRAMS

Federal Funds

Prevention of Resident Displacement

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0311-0-1-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
09.00 Reimbursable program.............. 36
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 36
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 69 7 7
22.00 New budget authority (gross)...... -26
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 43 7 7
23.95 Total new obligations............. -36
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 7 7 7
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

58.00 Spending authority from
offsetting collections:
Offsetting collections (cash). -26
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 10 1 1
73.10 Total new obligations............. 36
73.20 Total outlays (gross)............. -45
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 1 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -26
86.93 Outlays from discretionary
balances........................ 71
--------- --------- ----------
87.00 Total outlays (gross)........... 45
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... 26
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 71
---------------------------------------------------------------------------

HUD received $79 million from FEMA in 2005 via a mission assignment
to provide housing assistance to families that

[[Page 506]]

were affected by Hurricane Katrina. Eligible recipients included
families that were previously assisted by HUD or those that were
homeless prior to Hurricane Katrina. Similar activities will be
continued under the $390 million supplemental appropriation pursuant to
P.L. 109-148, the Robert T. Stafford Disaster Relief and Emergency Act
(42 U.S.C. 5121 et seq.) under the Tenant-Based Rental Assistance
account.

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, $16,000,000,000, to remain available until
expended, of which $11,800,000,000 shall be available on October 1,
2007, and $4,200,000,000 shall be available on October 1, 2008:
Provided, That the amounts made available under this heading are
provided as follows:
(1) $14,444,506,000 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 2008 funding cycle shall provide
renewal funding for each public housing agency based on the amount
public housing agencies were eligible to receive in calendar year
2007, and by applying the 2008 Annual Adjustment Factor as
established by the Secretary, and by making any necessary
adjustments for the costs associated with deposits to Family Self-
Sufficiency Program escrow accounts or 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 paragraph:
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 up to
$100,000,000 shall be available for additional rental subsidy due to
unforeseen exigencies as determined by the Secretary and for the
one-time funding of housing assistance payments resulting from the
portability provisions of the housing choice voucher program;
(2) $150,000,000 for section 8 rental assistance for relocation
and replacement of housing units under lease 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, and tenant protection
assistance including replacement and relocation assistance:
Provided, That additional section 8 tenant protection rental
assistance costs may be funded in 2008 by utilizing unobligated
balances, including recaptures and carryover, remaining from funds
appropriated to the Department of Housing and Urban Development
under this heading, the heading ``Annual Contributions for Assisted
Housing'', the heading ``Housing Certificate Fund'', and the heading
``Project-based rental assistance'', for fiscal year 2007 and prior
years;
(3) $48,000,000 for family self-sufficiency coordinators under
section 23 of the Act;
(4) $6,494,000 shall be transferred to the Working Capital
Fund; and
(5) $1,351,000,000 for administrative and other expenses of
public housing agencies in administering the section 8 tenant-based
rental assistance program, of which up to $5,000,000 shall be
available as an incentive bonus as determined by the Secretary for
administrative expenses for PHAs that voluntarily consolidate, and
of which up to $35,000,000 shall be available to the Secretary to
allocate to public housing agencies that need additional funds to
administer their section 8 programs, with up to $30,000,000 to be
for fees associated with section 8 tenant protection rental
assistance: Provided, That no less than $1,311,000,000 of the amount
provided in this paragraph shall be allocated for the calendar year
2008 funding cycle to public housing agencies based on a formula
tied to the number of assisted households, as determined by the
Secretary: Provided further, That all amounts provided under this
paragraph shall be only for activities related to the provision of
tenant-based rental assistance authorized under section 8, including
related development activities.

Note.--A regular 2007 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 109-289, Division B, as
amended). The amounts included for 2007 in this budget reflect the
levels provided by the continuing resolution.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0302-0-1-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Tenant Protection................. 139 215 150
00.02 Administrative Fees............... 1,023 1,243 1,351
00.03 Family Self Sufficiency
Coordinators.................... 93 48 48
00.05 Working Capital Fund.............. 6 6 6
00.06 Contract Renewals................. 12,404 14,035 14,445
00.07 Disaster Assistance............... 132 258
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 13,797 15,805 16,000
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 87 724
22.00 New budget authority (gross)...... 14,401 15,081 16,000
22.10 Resources available from
recoveries of prior year
obligations..................... 33
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 14,521 15,805 16,000
23.95 Total new obligations............. -13,797 -15,805 -16,000
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 724
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 11,764 10,881 11,800
40.35 Appropriation permanently
reduced....................... -114
40.36 Unobligated balance permanently
reduced....................... -1,407
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 10,243 10,881 11,800
55.00 Advance appropriation........... 4,200 4,200 4,200
55.35 Advance appropriation
permanently reduced........... -42
--------- --------- ----------
55.90 Advance appropriation (total
discretionary).............. 4,158 4,200 4,200
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 14,401 15,081 16,000
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 482 1,280 1,763
73.10 Total new obligations............. 13,797 15,805 16,000
73.20 Total outlays (gross)............. -12,966 -15,322 -15,987
73.45 Recoveries of prior year
obligations..................... -33
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,280 1,763 1,776
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 12,517 13,875 14,720
86.93 Outlays from discretionary
balances........................ 449 1,447 1,267
--------- --------- ----------
87.00 Total outlays (gross)........... 12,966 15,322 15,987
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 14,401 15,081 16,000
90.00 Outlays........................... 12,966 15,322 15,987
---------------------------------------------------------------------------

Tenant Based Rental Assistance.--The Tenant-based Rental Assistance
program (also known as the Housing Choice Voucher Program) provides
approximately 2 million families with subsidies to afford housing in the
private market. Congress and the Administration have implemented a
number of policy changes over the past several years to assist the most
needy families and encourage Public Housing Authorities (PHAs) to spend
their allotted funds. For example, the Voucher program no longer funds a
set number of units,

[[Page 507]]

but appropriates funds to PHAs on a budget-based system making them more
accountable in managing their budgets.

The Budget proposes legislative changes that would: 1) provide
incentives for PHAs to spend their funds to maximize assistance; 2)
maximize appropriated funds by changing the way funds are allocated to
PHAs; and 3) factor unused funds into future allocations. First, the
Administration proposes to require administrative fees to be distributed
according to the number of families housed. Currently, PHAs receive a
flat amount per year for administrative costs based on a distribution
that does not provide an incentive to increase the number of families
served. Second, the Budget proposes eliminating the cap on the number of
families that each PHA can assist, thereby unlocking funds at PHAs that
are unable to spend funds beyond their authorized number of units. A new
funding allocation formula for PHAs would follow elimination of the cap,
and would be based on the level of spending by PHAs over the most recent
year. Current funding is based on the higher of a three-month snapshot
of PHA's expenditures from summer 2004 or full year expenditures in
2004, which distributes funds across the 2,400 PHAs that administer
Vouchers. Third, the Budget proposes to identify and adjust for unspent
prior year balances from PHAs. PHAs that end a year with significant
unspent balances, despite having been given the opportunity to draw down
such balances by providing housing for additional low-income families,
would have their funds for the next year reduced. According to HUD, at
the end of 2006, over one billion dollars in balances remained in PHA
accounts, of which more than half represents balances that could not be
spent due to the current cap on the number of units. In addition, in
order to encourage the consolidation of small PHAs, a bonus
administrative fee will be offered to PHAs that participate in this
streamlining effort. Legislation to implement the Administration's
reform proposal will be submitted to Congress early in 2007.

Housing Certificate Fund

(cancellation)

Of the unobligated balances, including recaptures and carryover,
remaining from funds appropriated to the Department of Housing and Urban
Development under this heading, the heading ``Annual contributions for
assisted housing'', the heading ``Tenant-based rental assistance'', and
the heading ``Project-based rental assistance'', for fiscal year 2007
and prior years, $1,300,000,000 is cancelled, to be effected by the
Secretary no later than September 30, 2008: Provided, That, if
insufficient funds exist under these headings, the remaining balance may
be derived from any other heading under this title: Provided further,
That any such balances governed by reallocation provisions under the
statute authorizing the program for which the funds were originally
appropriated shall be available for the cancellation: Provided further,
That any obligated balances of contract authority from fiscal year 1974
and prior that have been terminated shall be cancelled.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0319-0-1-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Contract renewals................. 156 3
00.02 Contract Administrator............ 94
00.03 Rental Assistance................. 27
00.05 Section 8 Amendments.............. 275 300 300
00.11 Administrative Fees............... 3
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 555 303 300
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,414 1,329
22.00 New budget authority (gross)...... -605 -2,050 -1,300
22.10 Resources available from
recoveries of prior year
obligations..................... 1,076 1,189 1,600
22.75 Balance of contract authority
withdrawn....................... -1 -165
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,884 303 300
23.95 Total new obligations............. -555 -303 -300
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1,329
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance permanently
reduced....................... -605 -2,050 -1,300
Mandatory:

60.00 Appropriation................... 2,500 3,000 3,000
60.49 Portion applied to liquidate
contract authority............ -2,500 -3,000 -3,000
--------- --------- ----------
62.50 Appropriation (total
mandatory)..................
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... -605 -2,050 -1,300
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 18,808 13,087 9,248
73.10 Total new obligations............. 555 303 300
73.20 Total outlays (gross)............. -5,200 -2,953 -2,881
73.45 Recoveries of prior year
obligations..................... -1,076 -1,189 -1,600
--------- --------- ----------
74.40 Obligated balance, end of year.. 13,087 9,248 5,067
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 5,200 2,953 2,881
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -605 -2,050 -1,300
90.00 Outlays........................... 5,200 2,953 2,881
----------------------------------------------------------------------------

Memorandum (non-add) entries:
93.03 Obligated balance, start of year:
Contract authority.............. 13,241 10,740 7,740
93.04 Obligated balance, end of year:
Contract authority.............. 10,740 7,740 4,740
---------------------------------------------------------------------------

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. The Housing Certificate Fund retains and
recovers balances from previous years' appropriations. In 2008, a
cancellation of $1.3 billion of those balances is proposed.

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, $5,813,000,000, to remain available until expended:
Provided, That the amounts made available under this heading are
provided as follows:
(1) no less than $5,522,810,000 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) up to $286,230,000 for performance-based contract
administrators for section 8 project-based assistance;
(3) $3,960,000 to be transferred to the Working Capital Fund;
and
(4) amounts which are recaptured under this heading, the
heading ``Annual Contributions for Assisted Housing'', or the
heading ``Housing Certificate Fund,'' may be used for renewals of or
amendments to section 8 project-based contracts or for performance-
based contract administrators, notwithstanding the purposes for
which such amounts were appropriated.

[[Page 508]]

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0303-0-1-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Contract Renewals................. 5,336 5,499 5,523
00.02 Contract Administrators........... 168 147 286
00.03 Working Capital Fund.............. 1 1 4
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 5,505 5,647 5,813
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 610 189
22.00 New budget authority (gross)...... 5,037 5,458 5,813
22.10 Resources available from
recoveries of prior year
obligations..................... 47
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,694 5,647 5,813
23.95 Total new obligations............. -5,505 -5,647 -5,813
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 189
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 5,088 5,458 5,813
40.35 Appropriation permanently
reduced....................... -51
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 5,037 5,458 5,813
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2,530 2,620 2,555
73.10 Total new obligations............. 5,505 5,647 5,813
73.20 Total outlays (gross)............. -5,368 -5,712 -5,752
73.45 Recoveries of prior year
obligations..................... -47
--------- --------- ----------
74.40 Obligated balance, end of year.. 2,620 2,555 2,616
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2,710 3,002 3,197
86.93 Outlays from discretionary
balances........................ 2,658 2,710 2,555
--------- --------- ----------
87.00 Total outlays (gross)........... 5,368 5,712 5,752
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 5,037 5,458 5,813
90.00 Outlays........................... 5,368 5,712 5,752
---------------------------------------------------------------------------

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. Currently, roughly 80 percent of contracts are
renewed annually; the other 20 percent of contracts are funded from
previously appropriated funds for long-term contracts.

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 2008 by utilizing recoveries of excess
balances remaining on expired Section 8 contracts that utilized less
than anticipated resources in completing the contract. No new BA is
requested in 2008 for Section 8 Amendment activity.

Contract Administrators.--HUD utilizes Performance Based Contract
Administrators (PBCAs) to administer and monitor a vast majority of the
project-based portfolio. Funding of $286 million is requested for 2008.

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. These project-based requirements, which are met through
voucher assistance, are funded under the Tenant-Based heading.

Working Capital Fund Transfer.--$4 million is requested in 2008 to
fund development of and modifications to technology systems that service
or are related to the programs or activities under this heading.

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'') $2,024,000,000, to remain available until
September 30, 2011: Provided, That notwithstanding any other provision
of law or regulation, during fiscal year 2008, 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 $14,890,000 shall be for
carrying out activities under section 9(h) of such Act; $16,847,000
shall be transferred to the Working Capital Fund; up to $10,000,000 is
to support the costs of administrative and judicial receiverships; and
up to $15,345,000 shall be to support the ongoing Public Housing
Financial and Physical Assessment activities of the Real Estate
Assessment Center (REAC): Provided further, That no funds may be used
under this heading for the purposes specified in section 9(k) of the
Act.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0304-0-1-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Capital Grants.................... 2,235 2,115 1,967
00.02 Emergency/Disaster................ 46 20
00.03 Technical Assistance.............. 39 11 15
00.04 Working Capital Fund.............. 16 15 17
00.05 Neighborhood Networks............. 15
00.06 Resident Opportunities and
Supportive Services............. 51 24
00.07 Administrative Receivership....... 7 8 10
00.08 Financial and Physical Assessment
Support......................... 15 15
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 2,409 2,208 2,024
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 322 335 335
22.00 New budget authority (gross)...... 2,420 2,208 2,024
22.10 Resources available from
recoveries of prior year
obligations..................... 16
22.35 Unexpired unobligated balance
transfer to expired account (-). -8
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,750 2,543 2,359

[[Page 509]]

23.95 Total new obligations............. -2,409 -2,208 -2,024
23.98 Unobligated balance expiring or
withdrawn....................... -6
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 335 335 335
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 2,464 2,208 2,024
40.35 Appropriation permanently
reduced....................... -25
40.36 Unobligated balance permanently
reduced....................... -19
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 2,420 2,208 2,024
Mandatory:

60.00 Appropriation................... 550 500 500
60.49 Portion applied to liquidate
contract authority............ -550 -500 -500
--------- --------- ----------
62.50 Appropriation (total
mandatory)..................
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 2,420 2,208 2,024
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 9,142 8,373 7,499
73.10 Total new obligations............. 2,409 2,208 2,024
73.20 Total outlays (gross)............. -3,161 -3,082 -3,076
73.40 Adjustments in expired accounts
(net)........................... -1
73.45 Recoveries of prior year
obligations..................... -16
--------- --------- ----------
74.40 Obligated balance, end of year.. 8,373 7,499 6,447
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 116 43 46
86.93 Outlays from discretionary
balances........................ 3,045 3,039 3,030
--------- --------- ----------
87.00 Total outlays (gross)........... 3,161 3,082 3,076
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 2,420 2,208 2,024
90.00 Outlays........................... 3,161 3,082 3,076
----------------------------------------------------------------------------

Memorandum (non-add) entries:
93.03 Obligated balance, start of year:
Contract authority.............. 2,139 1,582 1,082
93.04 Obligated balance, end of year:
Contract authority.............. 1,582 1,082 582
---------------------------------------------------------------------------

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 $2.02 billion requested for the Public Housing Capital Fund,
approximately $1.96 billion is provided to cover annual accrual needs.
Other uses include up to $15 million for technical assistance, $17
million for the Working Capital Fund, up to $15 million for public
housing financial and physical assessment support, and up to $10 million
for administrative and judicial receiverships. Funds for the Resident
Opportunity and Supportive Services are not requested in 2008 in order
to eliminate an unusually large pipeline of unobligated funds. Funds for
disaster relief will no longer be requested; the FEMA disaster
assistance is available for any needs that are not covered by the
required property insurance.

Public Housing Operating Fund

For 2008 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)),
$4,000,000,000 of which $5,940,000 shall be for technical assistance
related to the transition and implementation of asset-based management
in public housing: Provided, That in fiscal year 2008 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.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0163-0-1-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Operating Subsidy................. 3,564 3,565 3,994
00.02 Transition to asset management
fund............................ 6
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 3,564 3,565 4,000
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1
22.00 New budget authority (gross)...... 3,564 3,564 4,000
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,565 3,565 4,000
23.95 Total new obligations............. -3,564 -3,565 -4,000
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 3,600 3,564 4,000
40.35 Appropriation permanently
reduced....................... -36
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 3,564 3,564 4,000
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 872 940 891
73.10 Total new obligations............. 3,564 3,565 4,000
73.20 Total outlays (gross)............. -3,496 -3,614 -3,891
--------- --------- ----------
74.40 Obligated balance, end of year.. 940 891 1,000
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2,673 2,673 3,000
86.93 Outlays from discretionary
balances........................ 823 941 891
--------- --------- ----------
87.00 Total outlays (gross)........... 3,496 3,614 3,891
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3,564 3,564 4,000
90.00 Outlays........................... 3,496 3,614 3,891
---------------------------------------------------------------------------

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 2008 request proposes a 12
percent increase in operating subsidies. This reflects recognition of
higher utility costs as well as providing more funding for day-to-day
expenses.

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..................... $4,000 58%
Dwelling Rental......................... 2,522 37%
Investment.............................. 114 2%
Other Income............................ 187 3%
------------- --------------

Total, Operating Revenue............. $6,823 100%
------------- --------------

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, after consultation with PHAs, has adopted a new operating subsidy
formula based on the

[[Page 510]]

previously congressionally sanctioned cost study conducted by the
Harvard Graduate School of Design.

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............................... $1,602 23%
Administration.......................... 1,999 29%
General Operating Expenses.............. 565 8%
Maintenance............................. 2,286 34%
Tenant Services......................... 189 3%
Protective Services..................... 182 3%
------------- --------------

Total, Operating Expenses............ $6,823 100%
------------- --------------

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.--Covers 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.

Asset-Based Management Technical Assistance.--Provides contracting
and consultative services to support PHA's transitioning to project-
based accounting and asset-based management.

Drug Elimination Grants for Low-Income Housing

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0197-0-1-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -3
22.10 Resources available from
recoveries of prior year
obligations..................... 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation......
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance permanently
reduced....................... -3
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 7 3 1
73.20 Total outlays (gross)............. -1 -2 -1
73.45 Recoveries of prior year
obligations..................... -3
--------- --------- ----------
74.40 Obligated balance, end of year.. 3 1
----------------------------------------------------------------------------

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

Net budget authority and outlays:
89.00 Budget authority.................. -3
90.00 Outlays........................... 1 2 1
---------------------------------------------------------------------------

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 fighting crime and
drugs is not directly related to HUD's core mission--it is the mission
of 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)

Of the unobligated balances remaining from funds appropriated in
fiscal year 2007 under the heading ``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, $99,000,000 is
cancelled: Provided, That any remaining unobligated amounts under this
heading, including recoveries and carryover, may be used for grants,
technical assistance and other eligible activities as provided under
this heading, of which up to $2,000,000 may be used for technical
assistance and contract expertise, for grants, contracts or cooperative
agreements, including training and cost of necessary travel for
participants and employees of the Department: Provided further, That the
Department shall recover unexpended obligations from nonperforming
grantees as determined by the Secretary from funds appropriated for
fiscal year 2001 and prior years under this heading.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0218-0-1-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program activity........... 182 56
00.02 Technical Assistance.............. 1 3
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 183 59
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 143 59 183
22.00 New budget authority (gross)...... 99 183 -99
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 242 242 84
23.95 Total new obligations............. -183 -59
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 59 183 84
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 100 183
40.35 Appropriation permanently
reduced....................... -1 -99
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 99 183 -99
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2,138 1,754 1,253
73.10 Total new obligations............. 183 59
73.20 Total outlays (gross)............. -567 -560 -535
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,754 1,253 718
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3 -3

[[Page 511]]

86.93 Outlays from discretionary
balances........................ 564 560 538
--------- --------- ----------
87.00 Total outlays (gross)........... 567 560 535
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 99 183 -99
90.00 Outlays........................... 567 560 535
---------------------------------------------------------------------------

The HOPE VI program in coordination with funding from the Public
Housing Capital Fund has completed its goal of contributing to the
demolition of 100,000 severely distressed public housing units. The HOPE
VI program, while completing its goal, was found to be more costly than
other programs and slow to complete redevelopments. The budget proposes
no additional funds and requests a cancellation of the expected 2007
appropriation, currently estimated at $99 million.

The remaining balance in this program of over $1.8 billion at the
end of 2006 will spend out over several years as the redevelopment
projects are completed. Cumulative results of the HOPE VI program as of
March 31, 2006 follow: 63,885 households have been relocated, 78,115
units have been demolished, 50,482 units (new and rehabilitated) have
been completed, and 48,012 completed units have been occupied.

In an effort to encourage the completion of delayed HOPE VI projects
and to promote the efficient use of funds, the budget proposes that the
Department recover unexpended HOPE VI obligations from nonperforming
grantees whose funds were appropriated in fiscal year 2001 and prior
years. These recovered funds may then be reused for new HOPE VI grants
and technical assistance. Grants to Public Housing Authorities that are
part of the Moving to Work demonstration and those in receivership will
be exempt from these recoveries.

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.),
$626,965,000, to remain available until expended: Provided, That,
notwithstanding the Native American Housing Assistance and Self-
Determination Act of 1996, to determine the amount of the allocation
under title I of such Act for each Indian tribe, the Secretary shall
apply the formula under section 302 of such Act with the need component
based on single-race Census data and with the need component based on
multi-race Census data, and the amount of the allocation for each Indian
tribe shall be the greater of the two resulting allocation amounts:
Provided further, That of the amounts made available under this heading,
$4,250,000 shall be to support the inspection of Indian housing units,
contract expertise, training, and technical assistance in the training,
oversight, and management of such Indian housing and tenant-based
assistance, including up to $300,000 for related travel: Provided
further, That of the amount provided under this heading, $1,980,000
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
$17,000,000: Provided further, That for administrative expenses to carry
out the guaranteed loan program, up to $148,500 from amounts in the
third proviso, which shall be transferred to and merged with the
appropriation for ``Salaries and Expenses.''

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0313-0-1-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Title VI Loan Guarantee Subsidy... 2 2 2
00.07 Upward reestimate................. 2 2
00.10 Indian Housing Block Grants....... 606 620 621
00.11 Technical Assistance.............. 2 4 4
00.13 National American Indian Housing
Council......................... 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 613 628 627
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 61 77 75
22.00 New budget authority (gross)...... 626 626 627
22.10 Resources available from
recoveries of prior year
obligations..................... 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 690 703 702
23.95 Total new obligations............. -613 -628 -627
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 77 75 75
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 630 624 627
40.35 Appropriation permanently
reduced....................... -6
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 624 624 627
Mandatory:

60.00 Appropriation................... 2 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 626 626 627
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 910 933 975
73.10 Total new obligations............. 613 628 627
73.20 Total outlays (gross)............. -587 -586 -579
73.45 Recoveries of prior year
obligations..................... -3
--------- --------- ----------
74.40 Obligated balance, end of year.. 933 975 1,023
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 175 175 176
86.93 Outlays from discretionary
balances........................ 410 409 403
86.97 Outlays from new mandatory
authority....................... 2 2
--------- --------- ----------
87.00 Total outlays (gross)........... 587 586 579
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 626 626 627
90.00 Outlays........................... 587 586 579
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0313-0-1-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Title VI.......................... 13 17 17
--------- --------- ----------
215999Total loan guarantee levels....... 13 17 17
Guaranteed loan subsidy (in percent):
232001Title VI.......................... 12.26 11.99 12.12
--------- --------- ----------
232999Weighted average subsidy rate..... 12.26 11.99 12.12
Guaranteed loan subsidy budget authority:
233001Title VI.......................... 2 2 2
--------- --------- ----------
233999Total subsidy budget authority.... 2 2 2
Guaranteed loan subsidy outlays:
234001Title VI.......................... 1 2 2
--------- --------- ----------
234999Total subsidy outlays............. 1 2 2
Guaranteed loan upward reestimates:
235001Title VI.......................... 2 2
--------- --------- ----------
235999Total upward reestimate budget
authority....................... 2 2
Guaranteed loan downward reestimates:
237001Title VI.......................... -2 -7
--------- --------- ----------
237999Total downward reestimate subsidy
budget authority................ -2 -7
---------------------------------------------------------------------------

Title I of the Native American Housing Assistance and Self-
Determination Act (NAHASDA) of 1996 (P.L. 104-330) au

[[Page 512]]

thorized the Native American Housing Block Grant program. This program
provides an allocation of funds on a formula basis to Indian tribes and
their tribally designated housing entities to help them address housing
needs within their communities.

The Native American Housing Block Grant program includes a
guaranteed loan provision (Title VI). A guarantee level of $17 million
is proposed for this loan guarantee program for 2008. 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.

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.), $5,940,000, to
remain available until expended of which $299,211 shall be for training
and technical activities, including up to $100,000 for related travel.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0235-0-1-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Native Hawaiian Housing Block
Grant........................... 6 6
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 6 6
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 9 6
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 4
73.10 Total new obligations............. 6 6
73.20 Total outlays (gross)............. -2 -3
--------- --------- ----------
74.40 Obligated balance, end of year.. 4 7
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1
86.93 Outlays from discretionary
balances........................ 2 2
--------- --------- ----------
87.00 Total outlays (gross)........... 2 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 9 6
90.00 Outlays........................... 2 3
---------------------------------------------------------------------------

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.

Low-Rent Public Housing--Loans and Other Expenses

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4098-0-3-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
09.01 Reimbursable program: Capital
investment loans to PHAs........ 2 2 2
--------- --------- ----------
10.00 Total new obligations (object
class 33.0)................... 2 2 2
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 20
22.00 New budget authority (gross)...... 98 95 101
22.40 Capital transfer to general fund.. -28
22.60 Portion applied to repay debt..... -88 -93 -99
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2 2 2
23.95 Total new obligations............. -2 -2 -2
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 10 2 2
69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 88 93 99
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 98 95 101
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 369 305 212
73.10 Total new obligations............. 2 2 2
73.20 Total outlays (gross)............. -66 -95 -101
--------- --------- ----------
74.40 Obligated balance, end of year.. 305 212 113
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 66 95 101
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -88 -93 -99
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 10 2 2
90.00 Outlays........................... -22 2 2
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4098-0-3-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 973 885 792
1251 Repayments: Repayments and
prepayments..................... -88 -93 -99
--------- --------- ----------
1290 Outstanding, end of year........ 885 792 693
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

[[Page 513]]

2210 Outstanding, start of year........ 1,390 1,140 873
2251 Repayments and prepayments........ -250 -267 -267
--------- --------- ----------
2290 Outstanding, end of year........ 1,140 873 606
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 1,123 790 600
---------------------------------------------------------------------------

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, $10 million
borrowed from the Treasury was forgiven in 2006, $2 million will be
borrowed from the Treasury and forgiven in 2007, and an estimated $2
million will be borrowed from the Treasury and forgiven in 2008.

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 net operating income for 2005 and
2006 follows:

Balance Sheet (in millions of dollars)

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

2005 actual

2006 actual

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

Federal assets: Fund balances with Treasury

389

305

1601

Direct loans, gross

973

885

1602

Interest receivable

1604

Direct loans and interest receivable, net

1,032

939

1699

Value of assets related to direct loans

1,032

939

1999

Total assets

1,421

1,244

LIABILITIES:
Federal liabilities:

2102

Interest payable

118

107

2104

Resources payable to Treasury

972

884

2999

Total liabilities

1,090

991

NET POSITION:
3100

Appropriated capital

338

259

3300

Cumulative results of operations

-7

-6

3999

Total net position

331

253

4999

Total liabilities and net position

1,421

1,244

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

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),
$7,450,000, 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, up to $367,000,000:
Provided further, That up to $750,000 shall be for administrative
contract expenses including information technology to carry out the loan
guarantee program.
In addition, for administrative expenses to carry out the
guaranteed loan program, up to $247,500 from amounts in the first
paragraph which shall be transferred to and merged with the
appropriation for ``Salaries and Expenses.''

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0223-0-1-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Guaranteed loan subsidy........... 5 6 6
00.07 Upward reestimate................. 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 5 7 6
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 4 4 2
22.00 New budget authority (gross)...... 4 5 7
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 9 9 9
23.95 Total new obligations............. -5 -7 -6
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 4 2 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 4 4 7
Mandatory:

60.00 Appropriation................... 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 4 5 7
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 3 2 7
73.10 Total new obligations............. 5 7 6
73.20 Total outlays (gross)............. -5 -2 -5
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 2 7 8
----------------------------------------------------------------------------

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

Net budget authority and outlays:
89.00 Budget authority.................. 4 5 7
90.00 Outlays........................... 5 2 5
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0223-0-1-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Indian Housing Loan Guarantee..... 190 251 367
--------- --------- ----------
215999Total loan guarantee levels....... 190 251 367
Guaranteed loan subsidy (in percent):
232001Indian Housing Loan Guarantee..... 2.42 2.35 2.42
--------- --------- ----------
232999Weighted average subsidy rate..... 2.42 2.35 2.42
Guaranteed loan subsidy budget authority:
233001Indian Housing Loan Guarantee..... 5 5 6
--------- --------- ----------
233999Total subsidy budget authority.... 5 5 6
Guaranteed loan subsidy outlays:
234001Indian Housing Loan Guarantee..... 4 1 4
--------- --------- ----------
234999Total subsidy outlays............. 4 1 4
Guaranteed loan upward reestimates:
235001Indian Housing Loan Guarantee..... 1
--------- --------- ----------
235999Total upward reestimate budget
authority....................... 1
Guaranteed loan downward reestimates:
237001Indian Housing Loan Guarantee..... -1 -1
--------- --------- ----------
237999Total downward reestimate subsidy
budget authority................ -1 -1
---------------------------------------------------------------------------

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

[[Page 514]]

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)

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 10 14 14
22.00 New financing authority (gross)... 6 2 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 16 16 18
23.95 Total new obligations............. -2 -2 -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 14 14 17
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

Spending authority from
offsetting collections:
69.00 Offsetting collections (cash). 7 2 4
69.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -1
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 6 2 4
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -3 -2
73.10 Total new obligations............. 2 2 1
73.20 Total financing disbursements
(gross)......................... -2
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 1
--------- --------- ----------
74.40 Obligated balance, end of year.. -2 1
----------------------------------------------------------------------------

Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... 2
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources: Payments from
program account............. -4 -1 -4
88.00 Federal sources Upward
Restimate................... -1
88.25 Interest on uninvested funds.. -1
88.40 Non-Federal sources........... -2
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -7 -2 -4
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -5 -2 -4
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4104-0-3-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 116 158 367
2121 Limitation available from carry-
forward......................... 169 98 5
2142 Uncommitted loan guarantee
limitation...................... 3
2143 Uncommitted limitation carried
forward......................... -98 -5 -5
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 190 251 367
2199 Guaranteed amount of guaranteed
loan commitments................ 190 251 367
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 192 362 584
2231 Disbursements of new guaranteed
loans........................... 171 251 367
2251 Repayments and prepayments........ -28 -28
2263 Adjustments: Terminations for
default that result in claim
payments........................ -1 -1 -1
--------- --------- ----------
2290 Outstanding, end of year........ 362 584 922
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 362 581 916
---------------------------------------------------------------------------

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

2005 actual

2006 actual

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

Federal assets: Fund balances with Treasury

1999

Total assets

LIABILITIES:
Non-Federal liabilities:

2204

Liabilities for loan guarantees

2207

Unearned revenues and advances

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),
$1,044,000, 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
$41,504,255.
In addition, for administrative expenses to carry out the
guaranteed loan program, up to $34,650 from amounts in the first
paragraph which shall be transferred to and merged with the
appropriation for ``Salaries and Expenses.''

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0233-0-1-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Guaranteed loan subsidy........... 1 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 1 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 4 5 4
22.00 New budget authority (gross)...... 1 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5 5 5

[[Page 515]]

23.95 Total new obligations............. -1 -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 5 4 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

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

Change in obligated balances:
73.10 Total new obligations............. 1 1
73.20 Total outlays (gross)............. -1
----------------------------------------------------------------------------

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

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

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

----------------------------------------------------------------------------
Identification code 86-0233-0-1-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Native Hawaiian Housing........... 43 41
--------- --------- ----------
215999Total loan guarantee levels....... 43 41
Guaranteed loan subsidy (in percent):
232001Native Hawaiian Housing........... 2.42 2.35 2.42
--------- --------- ----------
232999Weighted average subsidy rate..... 0.00 2.35 2.42
Guaranteed loan subsidy budget authority:
233001Native Hawaiian Housing........... 1 1
--------- --------- ----------
233999Total subsidy budget authority.... 1 1
Guaranteed loan subsidy outlays:
234001Native Hawaiian Housing........... 1 1
--------- --------- ----------
234999Total subsidy outlays............. 1 1
---------------------------------------------------------------------------

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

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

Native Hawaiian Housing Loan Guarantee Fund Financing Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4351-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Direct Program Activity........... 1 1
--------- --------- ----------
10.00 Total new obligations........... 1 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New financing authority (gross)... 1 1
23.95 Total new obligations............. -1 -1
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1 1
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1
73.10 Total new obligations............. 1 1
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 2
----------------------------------------------------------------------------

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 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 36 36 41
2121 Limitation available from carry-
forward......................... 155 191 184
2143 Uncommitted limitation carried
forward......................... -191 -184 -184
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 43 41
2199 Guaranteed amount of guaranteed
loan commitments................ 43 41
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 2 2 43
2231 Disbursements of new guaranteed
loans........................... 43 41
2251 Repayments and prepayments........ -2 -4
--------- --------- ----------
2290 Outstanding, end of year........ 2 43 80
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 2 43 80
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the government
resulting from the loan guarantees committed in 2001 and beyond
(including modifications of loan guarantees that resulted from
obligations in any year). The amounts in this account are a means of
financing and are not included in the budget totals. As required by the
Federal Credit Reform Act of 1990, no administrative expenses can be
recorded in the financing account.

Title VI Indian Federal Guarantees Financing Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4244-0-3-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Default Claims.................... 2 2
08.02 Downward Reestimate............... 2 6
08.04 Interest on Downward Reestimate... 1
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 2 7
--------- --------- ----------
10.00 Total new obligations........... 2 9 2
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 15 18 13
22.00 New financing authority (gross)... 5 4 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 20 22 15
23.95 Total new obligations............. -2 -9 -2
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 18 13 13
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

Spending authority from
offsetting collections:
69.00 Offsetting collections (cash). 4 4 2
69.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 1
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 5 4 2
----------------------------------------------------------------------------

[[Page 516]]

Change in obligated balances:
72.40 Obligated balance, start of year.. -1 8
73.10 Total new obligations............. 2 9 2
73.20 Total financing disbursements
(gross)......................... -2
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. -1 8 10
----------------------------------------------------------------------------

Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... 2
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -2 -2 -2
88.00 Upward Reestimate............. -1 -2
88.25 Interest on uninvested funds.. -1
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -4 -4 -2
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. -1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -2 -4 -2
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4244-0-3-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 17 17 17
2121 Limitation available from carry-
forward......................... 30 35 35
2142 Uncommitted loan guarantee
limitation...................... 1
2143 Uncommitted limitation carried
forward......................... -35 -35 -35
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 13 17 17
2199 Guaranteed amount of guaranteed
loan commitments................ 12 17 17
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 80 83 92
2231 Disbursements of new guaranteed
loans........................... 9 15 15
2251 Repayments and prepayments........ -6 -4 -5
2263 Adjustments: Terminations for
default that result in claim
payments........................ -2 -2
--------- --------- ----------
2290 Outstanding, end of year........ 83 92 100
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 79 92 100
---------------------------------------------------------------------------

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.

Balance Sheet (in millions of dollars)

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

2005 actual

2006 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

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

COMMUNITY PLANNING AND DEVELOPMENT

Federal 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.), $300,100,000, to remain available until September 30,
2009, except that amounts allocated pursuant to section 854(c)(3) of
such Act shall remain available until September 30, 2010: 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 $1,485,000 of the funds under
this heading for training, oversight, and technical assistance
activities; and $1,485,000 shall be transferred to the Working Capital
Fund.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0308-0-1-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Housing for Persons with HIV/AIDS. 296 296 300
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 296 296 300
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 99 89 89
22.00 New budget authority (gross)...... 286 296 300
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 385 385 389
23.95 Total new obligations............. -296 -296 -300
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 89 89 89
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 289 296 300
40.35 Appropriation permanently
reduced....................... -3
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 286 296 300
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 468 455 442
73.10 Total new obligations............. 296 296 300
73.20 Total outlays (gross)............. -309 -309 -309
--------- --------- ----------
74.40 Obligated balance, end of year.. 455 442 433
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1 6 6
86.93 Outlays from discretionary
balances........................ 308 303 303
--------- --------- ----------
87.00 Total outlays (gross)........... 309 309 309
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 286 296 300
90.00 Outlays........................... 309 309 309
---------------------------------------------------------------------------

The Housing Opportunities for Persons with AIDS (HOPWA) 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. HOPWA funds provide stable
housing arrangements, help reduce risks of homelessness and improve
access to care for program participants. The requested funding for 2008
will support approximately 67,000 housing units for persons with HIV/
AIDS and their families. A legislative proposal to amend the HOPWA
authorization language will be transmitted to Congress allowing HUD the
oppor

[[Page 517]]

tunity to update the current program formula. Whereas the current
formula distributes formula grant resources by the cumulative number of
AIDS cases, the revised formula will account for the present number of
people living with AIDS as well as the housing costs in that
jurisdiction.

States and metropolitan areas receive 90 percent of 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 that do not qualify for a
formula allocation. In addition, $1.5 million is used for technical
assistance to grantees and project sponsors to strengthen management of
programs and ensure responsiveness in meeting client needs. Another $1.5
million is transferred to the Working Capital Fund.

Community Development Fund

(including transfers of funds)

(including cancellation)

For assistance to units of State and local government, and to other
entities, for economic and community development activities, and for
other purposes, $3,036,570,000, to remain available until September 30,
2010, unless otherwise specified: Provided, That of the amount provided,
$2,974,580,000 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 second paragraph and amounts made
available under the third paragraph), not to exceed 20 percent of any
grant made with funds appropriated under this heading shall be expended
for planning and management development and administration: Provided
further, That $1,570,000 shall be transferred to the Working Capital
Fund: Provided further, That $3,000,000 is for technical assistance as
authorized by section 107(b)(4) of such Act: Provided further, That
$57,420,000 shall be for grants to federally-recognized Indian tribes
notwithstanding section 106(a)(1) of such Act, of which, notwithstanding
any other provision of law (including section 305 of this Act), up to
$3,960,000 may be used for emergencies that constitute imminent threats
to health and safety.
Of the unobligated balances remaining from funds appropriated in
fiscal year 2007 and prior years under this heading, for grants for the
Economic Development Initiative (EDI), $306,900,000 is cancelled.
Of the unobligated balances remaining from funds appropriated in
fiscal year 2007 and prior years under this heading, for grants for
neighborhood initiatives, $49,500,000 is cancelled.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0162-0-1-451 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Community Development Formula
Grants.......................... 3,823 4,355 2,619
00.02 Working Capital Fund.............. 2 2
00.03 Indian Tribes..................... 70 119 57
00.04 Special Purpose Grants............ 38 5 3
00.05 Youthbuild........................ 64 50
00.06 Self Help Homeownership
Opportunity Program............. 25
00.07 Economic Development Initiative
Grants.......................... 255 598
00.08 Neighborhood Initiative
Demonstration................... 41 67
00.09 National Council of La Raza....... 5
00.10 Disaster Assistance............... 11,436 5,257
00.11 Native Hawaiian Block Grants...... 8 1
00.12 Hudson River Park Trust Grant..... 31
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 15,798 10,452 2,681
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,181 6,237
22.00 New budget authority (gross)...... 20,851 4,215 2,681
22.10 Resources available from
recoveries of prior year
obligations..................... 1
22.22 Unobligated balance transferred
from other accounts............. 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 22,036 10,452 2,681
23.95 Total new obligations............. -15,798 -10,452 -2,681
23.98 Unobligated balance expiring or
withdrawn....................... -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 6,237
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 20,920 4,215 3,037
40.35 Appropriation permanently
reduced....................... -42
40.36 Unobligated balance permanently
reduced....................... -356
41.00 Transferred to other accounts... -27
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 20,851 4,215 2,681
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 10,659 21,413 24,037
73.10 Total new obligations............. 15,798 10,452 2,681
73.20 Total outlays (gross)............. -5,012 -7,828 -8,000
73.40 Adjustments in expired accounts
(net)........................... -31
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 21,413 24,037 18,718
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 130 84 54
86.93 Outlays from discretionary
balances........................ 4,882 7,744 7,946
--------- --------- ----------
87.00 Total outlays (gross)........... 5,012 7,828 8,000
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 20,851 4,215 2,681
90.00 Outlays........................... 5,012 7,828 8,000
---------------------------------------------------------------------------

The Community Development Block Grant (CDBG) program provides
flexible annual formula grants to State and local governments to benefit
mainly low- to moderate-income persons. The funding is used for a wide-
range of community and economic development activities, such as housing
rehabilitation and construction, job creation and retention, public
services, and improving public infrastructure.

The Budget will re-propose the CDBG Reform Act, which adopts an
improved formula to better target funds to communities with the greatest
need and to hold communities accountable for results. The current
formula has not been updated in almost 30 years and results in many
lower-income communities receiving less assistance than wealthier
communities. The reformed program would be designed with a Challenge
Grant Fund component, a new allocation formula to better target funds to
communities most in need of assistance, and other reforms to achieve
greater results and enable communities to focus on addressing
deficiencies and opportunities for improvement as noted in the PART
analysis. Legislation to authorize these reforms will be transmitted in
early 2007.

As part of the reforms, HUD programs such as Brownfields Economic
Development Initiatve, Community Development Loan Guarantee Program
(Section 108), and Rural Housing and Economic Development are proposed
for termination. These programs are duplicative--their activities are
eligible to be funded by CDBG and other Federal programs.

The Indian Community Development Block Grant program will continue
to be funded in this account at $57 million. This program provides
eligible grantees with direct grants for use in developing viable Indian
and Alaska Native Communities, including decent housing, a suitable
living environment, and economic opportunities, primarily for low and
moderate income persons.

The Youthbuild Transfer Act (P.L. 109-281), signed in September
2006, transferred the Youthbuild program from HUD to the Department of
Labor, as recommended by the White House Task Force on Disadvantaged
Youth, to allow for great

[[Page 518]]

er coordination of the program with Job Corps and other employment and
training programs. Funding for this program in 2007 was included in the
budget for the Department of Labor. Youthbuild provides grants to local
organizations to provide education and training to disadvantaged youth
ages 16-24. In addition to participating in classroom training, young
people/participants learn construction skills by helping to build
affordable housing.

Empowerment Zones/Enterprise Communities/Renewal Communities

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0315-0-1-451 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 133 94 59
73.20 Total outlays (gross)............. -39 -35 -30
--------- --------- ----------
74.40 Obligated balance, end of year.. 94 59 29
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 39 35 30
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 39 35 30
---------------------------------------------------------------------------

No funding is requested for Empowerment Zones/Enterprise
Communities/Renewal Communities (EZ/EC/RC). No authorization for new
grants or tax incentives have been provided for this program since 2001.
Prior grants and tax benefits to communities that are still active
complement the goals of the proposed Community Development Block Grant
program reforms.

The EZ/EC/RC initiative helps revitalize distressed neighborhoods by
attracting business development and providing employment opportunities
to residents of high poverty urban areas.

Brownfields Redevelopment

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0314-0-1-451 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Cleanup and develop contaminated
sites........................... 15 11
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 15 11
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 24 11
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 26 11
23.95 Total new obligations............. -15 -11
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 11
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 10
40.36 Unobligated balance permanently
reduced....................... -10
--------- --------- ----------
43.00 Appropriation (total
discretionary)..............
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 127 122 111
73.10 Total new obligations............. 15 11
73.20 Total outlays (gross)............. -18 -22 -28
73.45 Recoveries of prior year
obligations..................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 122 111 83
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 18 22 28
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 18 22 28
---------------------------------------------------------------------------

The 2008 Budget requests no funding for the Brownfields Economic
Development Initiative (BEDI) program. BEDI activities can be funded
with Community Development Block Grant (CDBG) funds. The program is
proposed to be terminated as a part of the broader CDBG program reforms.

BEDI is a competitive grant program designed to stimulate and
promote economic and community development, and is used in conjunction
with the Community Development Loan Guarantee program. Brownfields are
abandoned, idled, and underused industrial and commercial facilities and
land where expansion and redevelopment is burdened by real or potential
environmental contamination.

Grants are made in accordance with selection criteria deemed
appropriate for brownfield projects, including the extent to which an
applicant is currently operating a brownfields program and is working
with environmental regulatory agencies, as well as the projected future
economic benefits of its development to the community.

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, $1,916,640,000, to remain available until September 30, 2010,
of which $3,465,000 shall be transferred to the Working Capital Fund:
Provided further, That up to $9,900,000 shall be available for technical
assistance.
In addition to amounts otherwise made available under this heading,
$50,000,000, to remain available until September 30, 2010, for
assistance to homebuyers as authorized under title I of the American
Dream Downpayment Act.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0205-0-1-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 HOME grants....................... 1,807 1,805 1,967
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 1,807 1,805 1,967
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 318 270 270
22.00 New budget authority (gross)...... 1,757 1,805 1,967
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,077 2,075 2,237
23.95 Total new obligations............. -1,807 -1,805 -1,967
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 270 270 270
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,775 1,805 1,967
40.35 Appropriation permanently
reduced....................... -18
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,757 1,805 1,967
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 5,557 5,550 5,485
73.10 Total new obligations............. 1,807 1,805 1,967
73.20 Total outlays (gross)............. -1,812 -1,870 -1,901
73.45 Recoveries of prior year
obligations..................... -2
--------- --------- ----------

[[Page 519]]

74.40 Obligated balance, end of year.. 5,550 5,485 5,551
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 15 36 39
86.93 Outlays from discretionary
balances........................ 1,797 1,834 1,862
--------- --------- ----------
87.00 Total outlays (gross)........... 1,812 1,870 1,901
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,757 1,805 1,967
90.00 Outlays........................... 1,812 1,870 1,901
---------------------------------------------------------------------------

The HOME Investment Partnerships Program is authorized by the
National Affordable Housing Act (P.L. 101-625). This program provides
annual formula grant assistance to States and units of local government
to increase homeownership and expand the supply of affordable housing
for low to very-low income persons. Eligible activities include
acquisition, rehabilitation, and new construction of housing, and
tenant-based rental assistance.

In its PART assessment, the HOME program received a ``Moderately
Effective'' rating based on the program's potentially significant impact
on affordable housing problems, the progress towards its annual
performance goals, and its ability to demonstrate improved efficiency
over time. The 2008 Budget supports the PART analysis and will result
over time in the production of 91,150 units of affordable housing
through new construction, rehabilitation, and/or acquisition. Tenant-
based rental assistance will be provided for 18,750 units.

In addition, the $50 million requested for the American Dream
Downpayment Initiative (ADDI) will help expand homeownership
opportunities to 6,500 low-income first-time homebuyers and also support
expansion of minority homeownership. Legislation to reauthorize ADDI
will be submitted in early 2007.

Self-Help and Assisted Homeownership Opportunity Program

For the Self-Help and Assisted Homeownership Opportunity Program,
as authorized under Section 11 of the Housing Opportunity Program
Extension Act of 1996, as amended, $69,700,000, to remain available
until September 30, 2010, of which up to $990,000 is for technical
assistance, and of which $30,000,000 is for capacity building for
community development and affordable housing for the Local Initiatives
Support Corporation and the Enterprise Community Partners, Inc. for
activities 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.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0176-0-1-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Self Help Housing Opportunity
Program......................... 20 40
00.02 Capacity Building................. 29 30
00.03 National American Indian Housing
Council......................... 1 1
00.04 Housing Assistance Council........ 3 3
00.05 Special Olympics.................. 1 1
00.06 National Council of La Raza....... 4 4
00.07 National Housing Development
Corporation..................... 2 2
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 11 60 70
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 49
22.00 New budget authority (gross)...... 60 11 70
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 60 60 70
23.95 Total new obligations............. -11 -60 -70
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 49
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 61 11 70
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 60 11 70
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 7 48
73.10 Total new obligations............. 11 60 70
73.20 Total outlays (gross)............. -4 -19 -28
--------- --------- ----------
74.40 Obligated balance, end of year.. 7 48 90
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 4
86.93 Outlays from discretionary
balances........................ 19 28
--------- --------- ----------
87.00 Total outlays (gross)........... 4 19 28
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 60 11 70
90.00 Outlays........................... 4 19 28
---------------------------------------------------------------------------

Self-Help Homeownership Opportunity Program (SHOP) funds assist low-
income homebuyers willing to contribute ``sweat equity'' toward the
construction of their houses. The funds increase the ability of non-
profit organizations to leverage funds from other sources and will
produce at least 2,000 new homeownership units. The 2006 PART Assessment
found SHOP to be ``Effective.''

SHOP was previously funded as a set-aside within the Community
Development Fund, but became a separate account in 2006. The Budget
requests $40 million for grants to eligible national and regional non-
profits and consortia for land acquisition for home siting and
improvement of utilities and other site infrastructure, of which,
$990,000 will be used for technical assistance.

In addition, the Budget requests $30 million for the National
Community Development Initiative (NCDI), which is authorized by Section
4 of the HUD Demonstration Act of 1993. These funds are provided to
national non-profit intermediaries (Local Initatives Support Corporation
and the Enterprise Community Partners, Inc.) to develop the capacity of
community development corporations to undertake community development
and affordable housing projects.

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,
$1,560,990,000, of which $1,540,990,000 shall remain available until
September 30, 2010, 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

[[Page 520]]

Act, and the Welfare-to-Work grant program: Provided further, That up to
$8,000,000 of the funds appropriated under this heading shall be
available for the national homeless data analysis project and technical
assistance: Provided further, That $2,475,000 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 and
transferred to this account shall be available, if recaptured, for
Shelter Plus Care renewals in fiscal year 2008. In addition, $25,000,000
is provided for fiscal year 2008, 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.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0192-0-1-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Homeless assistance grants........ 1,403 1,577 1,680
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 1,403 1,577 1,680
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,572 1,546 1,372
22.00 New budget authority (gross)...... 1,327 1,353 1,586
22.10 Resources available from
recoveries of prior year
obligations..................... 68 50 50
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,967 2,949 3,008
23.95 Total new obligations............. -1,403 -1,577 -1,680
23.98 Unobligated balance expiring or
withdrawn....................... -18
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1,546 1,372 1,328
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,340 1,353 1,586
40.35 Appropriation permanently
reduced....................... -13
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,327 1,353 1,586
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2,517 2,474 2,623
73.10 Total new obligations............. 1,403 1,577 1,680
73.20 Total outlays (gross)............. -1,346 -1,378 -1,395
73.40 Adjustments in expired accounts
(net)........................... -32
73.45 Recoveries of prior year
obligations..................... -68 -50 -50
--------- --------- ----------
74.40 Obligated balance, end of year.. 2,474 2,623 2,858
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 7 14 16
86.93 Outlays from discretionary
balances........................ 1,339 1,364 1,379
--------- --------- ----------
87.00 Total outlays (gross)........... 1,346 1,378 1,395
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,327 1,353 1,586
90.00 Outlays........................... 1,346 1,378 1,395
---------------------------------------------------------------------------

The Homeless Assistance Grants account provides funds for the
Shelter Plus Care, Supportive Housing, Emergency Shelter Grants, and
Section 8 Moderate Rehabilitation Single Room Occupancy programs. These
programs, which award funds through the Continuum of Care process,
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. Increased funding will support
the Administration's goal to end chronic homelessness by creating new
permanent supportive housing for this population. In addition, the
Budget places a major emphasis on permanent housing by requiring 30
percent of funds to be used for this purpose.

The Administration will again propose legislation to combine HUD's
three competitive grant programs--Shelter Plus Care, Supportive Housing,
and Section 8 Moderate Rehabilitation Single Room Occupancy--into a
single program with flexibility to better meet community needs. The new
consolidated program will incorporate up to $50 million for the
Samaritan Housing Initiative that will specifically address the
supportive housing needs of chronically homeless individuals. The
Department continues to pursue expanded interagency efforts to meet the
needs of the homeless and to accomplish the Administration's goal of
ending chronic homelessness.

Funding is also requested for technical assistance to provide, among
other services, 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.

The Budget also includes $25 million for Reintegration of Ex-
Offenders, 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

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0324-0-1-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Rural Housing..................... 24 44
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 24 44
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 27 20
22.00 New budget authority (gross)...... 17 24
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 44 44
23.95 Total new obligations............. -24 -44
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 20
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 17 24
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 39 42 64
73.10 Total new obligations............. 24 44
73.20 Total outlays (gross)............. -21 -22 -27
--------- --------- ----------
74.40 Obligated balance, end of year.. 42 64 37
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 21 22 27
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 17 24
90.00 Outlays........................... 21 22 27
---------------------------------------------------------------------------

The 2008 Budget requests no funding for the Rural Housing and
Economic Development (RHED) program. The program is duplicative
particularly with programs provided through the U.S. Department of
Agriculture, which manages a portfolio of rural housing and economic
development grants programs that vastly exceed HUD's RHED program in
terms of programs and services, budget and staffing.

[[Page 521]]

The RHED program was created to encourage innovative approaches to
serve the housing and economic development needs of the nation's rural
communities.

Urban Development Action Grants

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0170-0-1-451 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 5 2 2
22.21 Unobligated balance transferred to
other accounts.................. -3
--------- --------- ----------
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.. 4 4 2
73.20 Total outlays (gross)............. -2 -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 4 2
----------------------------------------------------------------------------

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

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

The Urban Development Action Grants program was terminated in 1990.
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.

Revolving Fund (Liquidating Programs)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4015-0-3-451 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Section 312 expenses.............. 1 1
--------- --------- ----------
10.00 Total new obligations (object
class 32.0)................... 1 1
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 1 1 1
69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1 2 2
----------------------------------------------------------------------------

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

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 2 2
86.98 Outlays from mandatory balances... 1 1
--------- --------- ----------
87.00 Total outlays (gross)........... 3 3
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -1 -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1 1 1
90.00 Outlays........................... 2 2
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4015-0-3-451 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 6 6 4
1251 Repayments: Repayments and
prepayments..................... -1 -1
1263 Write-offs for default: Direct
loans........................... -1 -1
--------- --------- ----------
1290 Outstanding, end of year........ 6 4 2
---------------------------------------------------------------------------

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. The operational expenses are financed from
repayments of loans and recaptures, therefore no appropriation is
requested.

The Section 312 loan program portfolio, which provided first and
junior lien financing at below market interest rates for the
rehabilitation of homes in low-income neighborhoods, constituted a large
portion of the account activities. This program ceased to originate new
loans over ten years ago. Since the sale of the Section 312 loan
portfolio to the private sector, activity in this account has been
considerably reduced.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4015-0-
3-451

2005 actual

2006 actual

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

Federal assets: Fund balances with Treasury

1601

Direct loans, gross

1603

Allowance for estimated uncollectible loans and interest (-)

-6

1604

Direct loans and interest receivable, net

1606

Foreclosed property

1699

Value of assets related to direct loans

1999

Total assets

LIABILITIES:
2207

Non-Federal liabilities: Other

2999

Total liabilities

NET POSITION:
3100

Appropriated capital

3999

Total net position

4999

Total liabilities and net position

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

Community Development Loan Guarantees Program Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0198-0-1-451 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Community development loan
guarantee credit subsidy........ 5 3 1
00.07 Upward Reestimate of Loan
Guarantee....................... 2 7
00.08 Interest on reestimate............ 1
00.09 Administrative expense............ 1
--------- --------- ----------
10.00 Total new obligations........... 8 11 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 3 2 2
22.00 New budget authority (gross)...... 7 11
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 10 13 2
23.95 Total new obligations............. -8 -11 -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 2 2 1
----------------------------------------------------------------------------

[[Page 522]]

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 4 3
Mandatory:

60.00 Appropriation................... 3 8
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 7 11
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 17 13 8
73.10 Total new obligations............. 8 11 1
73.20 Total outlays (gross)............. -11 -16 -5
73.40 Adjustments in expired accounts
(net)........................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 13 8 4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3
86.93 Outlays from discretionary
balances........................ 5 8 5
86.97 Outlays from new mandatory
authority....................... 3 8
--------- --------- ----------
87.00 Total outlays (gross)........... 11 16 5
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 7 11
90.00 Outlays........................... 11 16 5
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0198-0-1-451 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Community development loan
guarantee levels................ 220 136 45
--------- --------- ----------
215999Total loan guarantee levels....... 220 136 45
Guaranteed loan subsidy (in percent):
232001Community development loan
guarantee levels................ 2.20 2.17 2.20
--------- --------- ----------
232999Weighted average subsidy rate..... 2.20 2.17 2.20
Guaranteed loan subsidy budget authority:
233001Community development loan
guarantee levels................ 5 3 1
--------- --------- ----------
233999Total subsidy budget authority.... 5 3 1
Guaranteed loan subsidy outlays:
234001Community development loan
guarantee levels................ 7 7 5
--------- --------- ----------
234999Total subsidy outlays............. 7 7 5
Guaranteed loan upward reestimates:
235001Community development loan
guarantee levels................ 3 8
--------- --------- ----------
235999Total upward reestimate budget
authority....................... 3 8
Guaranteed loan downward reestimates:
237001Community development loan
guarantee levels................ -6 -5
--------- --------- ----------
237999Total downward reestimate subsidy
budget authority................ -6 -5
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority.................. 1
3590 Outlays from new authority........ 1
---------------------------------------------------------------------------

Guaranteed Loans.--The 2008 Budget requests no funding for the
Community Development Loan Guarantee program (Section 108). The program
activities can be funded with Community Development Block Grant (CDBG)
funds and/or other private financing options, and is proposed to be
terminated as a part of the broader CDBG and federal economic
development program reforms.

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.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0198-0-1-451 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
12.1 Civilian personnel benefits....... 1
33.0 Investments and loans............. 5 10 1
43.0 Interest and dividends............ 2 1
--------- --------- ----------
99.9 Total new obligations........... 8 11 1
---------------------------------------------------------------------------

Community Development Loan Guarantees Financing Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4096-0-3-451 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
08.02 Payment of Downward Reestimate to
Receipt Account................. 5 4
08.04 Payment of Downward Reestimate to
Receipt Account (Interest)...... 1 2
--------- --------- ----------
10.00 Total new obligations........... 6 6
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 86 90 104
22.00 New financing authority (gross)... 10 20 9
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 96 110 113
23.95 Total new obligations............. -6 -6
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 90 104 113
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

Spending authority from
offsetting collections:
69.00 Offsetting collections (cash). 14 20 9
69.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -4
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 10 20 9
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -17 -13 -7
73.10 Total new obligations............. 6 6
73.20 Total financing disbursements
(gross)......................... -6
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 4
--------- --------- ----------
74.40 Obligated balance, end of year.. -13 -7 -7
----------------------------------------------------------------------------

Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... 6
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal Sources: Payments from
Program Account............. -10 -16 -5
88.25 Interest on uninvested funds.. -4 -4 -4
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -14 -20 -9
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 4
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -8 -20 -9
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4096-0-3-451 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 135 136
2121 Limitation available from carry-
forward......................... 159 74 74

[[Page 523]]

2142 Uncommitted loan guarantee
limitation......................
2143 Uncommitted limitation carried
forward......................... -74 -74 -29
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 220 136 45
2199 Guaranteed amount of guaranteed
loan commitments................ 220 136 45
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 2,302 2,386 2,473
2231 Disbursements of new guaranteed
loans........................... 358 270 198
2251 Repayments and prepayments........ -274 -183 -175
--------- --------- ----------
2290 Outstanding, end of year........ 2,386 2,473 2,496
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 2,386 2,473 2,496
---------------------------------------------------------------------------

Guaranteed loans.--The Community Development Loan Guarantee program
has provided a mechanism for the Federal guarantee of private loans. The
financing account shows the status of privately financed guaranteed loan
commitments made in and after 1992. No funding is requested for new
section 108 loans in 2008. An accompanying liquidating account shows
activity for Federal Financing Bank (FFB) direct loan activity obligated
prior to July 1, 1986, and any pre-1992 loan guarantee activity.

Balance Sheet (in millions of dollars)

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

2005 actual

2006 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

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

Community Development Loan Guarantees Liquidating Account

Program and Financing (in millions of dollars)

Spending authority from
offsetting collections:
69.00 Offsetting collections (cash). 1
69.47 Portion applied to repay debt. -1
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)...........
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -4 -3 -3
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 1
--------- --------- ----------
74.40 Obligated balance, end of year.. -3 -3 -3
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -1
----------------------------------------------------------------------------

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

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4097-0-3-451 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 39 39 37
2251 Repayments and prepayments........ -2 -2
--------- --------- ----------
2290 Outstanding, end of year........ 39 37 35
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 39 37 35
---------------------------------------------------------------------------

Guaranteed loans.--Guaranteed loan assistance under the Community
Development Loan Guarantee program is 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. Until 1986, the Federal Financing Board (FFB) in the
Department of Treasury financed these guaranteed loans. The Consolidated
Omnibus Budget Reconciliation Act of 1985 required private financing of
all loan guarantees committed after July 1, 1986. The 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.

As required by the Federal Credit Reform Act of 1990, this
liquidating 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.

Balance Sheet (in millions of dollars)

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

2005 actual

2006 actual

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

1101

Fund balances with Treasury

-4

Investments in US securities:
1106

Receivables, net

1999

Total assets

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

HOUSING PROGRAMS

Federal 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, $575,000,000, to remain
available until September 30, 2011, of which up to $415,450,000 shall be
for capital advance and project-based rental assistance awards,
including up to $25,000,000 for a demonstration program that leverages
project awards with other sources of development financing, such as tax
credit incentives, to expand housing assistance: Provided, That, of the
amount provided under this heading, up to $71,000,000 shall be for
service coordinators and the continuation of existing congregate service
grants for residents of assisted housing projects, and of which up to
$24,750,000 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 further, That amounts
under this heading shall be available for Real Estate Assessment Center
inspections and inspection-related activities associated with section
202 capital advance projects: Pro

[[Page 524]]

vided further, That $1,400,000 of the total amount made available under
this heading 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.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0320-0-1-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Expansion......................... 753 725 700
00.02 Rental assistance renewal and
operating expenses.............. 138 165 189
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 891 890 889
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,009 834 691
22.00 New budget authority (gross)...... 726 747 575
22.10 Resources available from
recoveries of prior year
obligations..................... 16
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,751 1,581 1,266
23.95 Total new obligations............. -891 -890 -889
23.98 Unobligated balance expiring or
withdrawn....................... -26
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 834 691 377
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 742 747 575
40.35 Appropriation permanently
reduced....................... -7
40.36 Unobligated balance permanently
reduced....................... -9
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 726 747 575
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 4,266 4,212 4,227
73.10 Total new obligations............. 891 890 889
73.20 Total outlays (gross)............. -922 -875 -874
73.40 Adjustments in expired accounts
(net)........................... -7
73.45 Recoveries of prior year
obligations..................... -16
--------- --------- ----------
74.40 Obligated balance, end of year.. 4,212 4,227 4,242
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 922 875 874
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 726 747 575
90.00 Outlays........................... 922 875 874
---------------------------------------------------------------------------

This account consolidates activities 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. For the first
time in 2008, the account is displayed as two general activities--
``Expansion'' and ``Rental Assistance Renewal and Operating Expenses''--
to provide better information on programmatic functions and resource
usage. Expansion funds include capital grants for new unit construction
and project rental assistance provided for an initial period to each new
project, while Rental Assistance Renewal and Operating Expenses cover
the cost of activities associated with existing units and other
expenses. Up to $25 million of 2008 Expansion funds may be used for a
demonstration project that leverages additional capital from various
sources--such as private investors through tax credits--to support the
construction of additional elderly housing units.

The 2008 Budget expands the number of housing units assisted by this
program by providing $415 million to construct approximately 3,000 new
units of housing. In addition, all housing previously supported will
continue to receive operating subsidies. Finally, congregate services
and other supportive social services for residents, such as benefit
counseling, will receive $71 million, and upgrades of developments to
assisted living facilities are funded at $25 million.

HOUSING FOR THE ELDERLY

2006 actual 2007 est. 2008 est.
Units eligible for payment.... 82,359 88,418 94,351

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 (42 U.S.C. 8013), 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, $125,000,000, to remain
available until September 30, 2011: Provided, That $600,000 shall be
transferred to the Working Capital Fund: Provided further, That up to
$29,500,000 shall be for additional housing assistance under section
811(b)(2) including up to $15,000,000 for a demonstration program that
leverages project awards with other sources of development financing,
such as tax credit incentives, to expand housing assistance: Provided
further, That, of the amount provided under this heading up to
$74,745,000 shall be for tenant-based assistance contracts including
renewal or amendment of such contracts: 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.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0237-0-1-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Expansion......................... 177 160 150
00.02 Rental assistance renewal and
operating expenses.............. 92 95 100
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 269 255 250
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 276 230 215
22.00 New budget authority (gross)...... 231 240 125
22.10 Resources available from
recoveries of prior year
obligations..................... 10
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 517 470 340
23.95 Total new obligations............. -269 -255 -250
23.98 Unobligated balance expiring or
withdrawn....................... -18
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 230 215 90
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 239 240 125
40.35 Appropriation permanently
reduced....................... -2
40.36 Unobligated balance permanently
reduced....................... -6
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 231 240 125
----------------------------------------------------------------------------

[[Page 525]]

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,215 1,170 1,165
73.10 Total new obligations............. 269 255 250
73.20 Total outlays (gross)............. -301 -260 -259
73.40 Adjustments in expired accounts
(net)........................... -3
73.45 Recoveries of prior year
obligations..................... -10
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,170 1,165 1,156
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 301 260 259
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 231 240 125
90.00 Outlays........................... 301 260 259
---------------------------------------------------------------------------

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. For the first time in 2008, the account is
displayed as two general activities--``Expansion'' and ``Rental
Assistance Renewal and Operating Expenses''--to provide better
information on programmatic functions and resource usage. Expansion
funds include capital grants for new housing unit construction and
project rental assistance provided for an initial period to each new
project, while Rental Assistance Renewal and Operating Expenses cover
costs associated with existing units and other expenses. Up to $15
million of 2008 Expansion funds may be used for a demonstration project
that leverages additional capital from various sources--such as private
investors through tax credits--to support the construction of additional
disabled housing units..

HOUSING FOR PERSONS WITH DISABILITIES

2006 actual 2007 est. 2008 est.
Units eligible for payment.... 23,243 24,759 26,180

Housing Counseling Assistance

For contracts, grants, and other assistance other than loans, as
authorized under section 106 of the Housing and Urban Development Act of
1968, as amended, $50,000,000, to remain available until September 30,
2009: 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, meeting their financial needs by accessing home equity, 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 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Housing Assistance................ 5
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 5
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 50
23.95 Total new obligations............. -5
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 45
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 50
----------------------------------------------------------------------------

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

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 5
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 50
90.00 Outlays........................... 5
---------------------------------------------------------------------------

The Housing Counseling Assistance Program provides comprehensive
housing counseling services to eligible homeowners and tenants,
including home purchase, financial management, and rental counseling.
This program has been funded through a set-aside under the HOME program
appropriation for the past several years. However, in 2008, 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. 1715z-1) in State-aided, non-insured
rental housing projects, $27,600,000, to remain available until
expended.

(cancellation)

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, $27,600,000 is cancelled.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0206-0-1-999 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Rent supplement................... 3 7 8
00.02 Homeownership and rental housing
assistance (Sections 235 and
236)............................ 11 18 20
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 14 25 28
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 492 970 970
22.00 New budget authority (gross)...... 26 25
22.10 Resources available from
recoveries of prior year
obligations..................... 466
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 984 995 970
23.95 Total new obligations............. -14 -25 -28
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 970 970 942
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 26 25 28
40.36 Unobligated balance permanently
reduced....................... -28
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 26 25
Mandatory:

60.00 Appropriation................... 623 578 578
60.49 Portion applied to liquidate
contract authority............ -623 -578 -578
--------- --------- ----------

[[Page 526]]

62.50 Appropriation (total
mandatory)..................
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 26 25
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 6,861 5,833 5,307
73.10 Total new obligations............. 14 25 28
73.20 Total outlays (gross)............. -576 -551 -505
73.45 Recoveries of prior year
obligations..................... -466
--------- --------- ----------
74.40 Obligated balance, end of year.. 5,833 5,307 4,830
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 15
86.93 Outlays from discretionary
balances........................ 576 536 505
--------- --------- ----------
87.00 Total outlays (gross)........... 576 551 505
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 26 25
90.00 Outlays........................... 576 551 505
----------------------------------------------------------------------------

Memorandum (non-add) entries:
93.01 Unobligated balance, start of
year: Contract authority........ 104 509 457
93.02 Unobligated balance, end of year:
Contract authority.............. 509 457 356
93.03 Obligated balance, start of year:
Contract authority.............. 6,861 5,833 5,307
93.04 Obligated balance, end of year:
Contract authority.............. 5,833 5,307 4,813
---------------------------------------------------------------------------

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
17,239 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 that provided homeowners a 10-year interest
reduction subsidy on their mortgages.

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.

This account includes funding necesssary to amend Rent Supplement
and Rental Assistance Payment (RAP) contracts in state-aided multifamily
housing projects to address cost increases beyond the maximum annual
payment limitation previously established for the affected contracts. As
some of these rental assistance contracts are terminated due to
prepayments or other reasons, remaining balances are recovered. The
account includes language to cancel the amounts recovered from projects
where rental assistance has been terminated.

The table below provides a summary of outlays by program.

SUMMARY OF OUTLAYS

(in millions of dollars)

2006 actual 2007 est. 2008 est.
Total......................... 576 551 505
Rent supplement............... 50 50 50
Homeownership assistance
(Section 235)................. 4 4 3
Rental housing assistance
(Section 236)................. 516 491 446
College housing grants........ 6 6 6

Homeownership and Opportunity for People Everywhere Grants (HOPE
Grants)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0196-0-1-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 8 7 6
73.20 Total outlays (gross)............. -1 -1 -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 7 6 5
----------------------------------------------------------------------------

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

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

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 I, from FHA-insured and Government-held multifamily
properties in HOPE II, and from Government-owned or -held single family
properties in HOPE III. 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. This schedule reflects the
expenditure of prior year balances.

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 $16,000,000, 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 2008 so as to result in a final fiscal year 2008
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 2008 appropriation: Provided further,
That for the dispute resolution and installation programs, the Secretary
of Housing and Urban Development may assess and collect fees from any
program participant: Provided further, That such collections shall be
deposited into the Fund, and the Secretary, as provided herein, may use
such collections, as well as fees collected under section 620, for
necessary expenses of such Act: Provided further, That notwithstanding
the requirements of section 620 of such Act, the Secretary may carry out
responsibilities of the Secretary under such Act through the use of
approved service providers that are paid directly by the recipients of
their services.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0234-0-1-376 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 16 20 20
22.00 New budget authority (gross)...... 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 20 20 20
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 20 20 20
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

[[Page 527]]

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

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

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

Interstate Land Sales

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5270-0-2-376 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............
--------- --------- ----------
01.99 Balance, start of year............
Receipts:
02.60 Interstate land sales fund........ 1 1 1
--------- --------- ----------
04.00 Total: Balances and collections... 1 1 1
Appropriations:
05.00 Interstate land sales............. -1 -1 -1
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5270-0-2-376 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Transfer to salaries and expenses. 1 1 1
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 1 1 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1 1 1
23.95 Total new obligations............. -1 -1 -1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.20 Appropriation (special fund).... 1 1 1
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 1 1 1
73.20 Total outlays (gross)............. -1 -1 -1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 1 1 1
----------------------------------------------------------------------------

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

The Interstate Land Sales Full Disclosure Act provides protection to
the public with respect to purchase 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.

Rental Housing Assistance Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4041-0-3-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
09.01 Refunds of Excess Income.......... 11 14 14
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 11 14 14
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 10 4 4
22.00 New budget authority (gross)...... 5 14 14
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 15 18 18
23.95 Total new obligations............. -11 -14 -14
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 4 4 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 5 14 14
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -14
73.10 Total new obligations............. 11 14 14
73.20 Total outlays (gross)............. -11 -28 -28
--------- --------- ----------
74.40 Obligated balance, end of year.. -14 -28
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 5 14 14
86.98 Outlays from mandatory balances... 6 14 14
--------- --------- ----------
87.00 Total outlays (gross)........... 11 28 28
----------------------------------------------------------------------------

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........................... 6 14 14
---------------------------------------------------------------------------

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.

Flexible Subsidy Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4044-0-3-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 3 41 74
22.00 New budget authority (gross)...... 38 33 33
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 41 74 107
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 41 74 107
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

58.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 38 33 33
----------------------------------------------------------------------------

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

[[Page 528]]

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

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -10 -5 -5
88.40 Non-Federal sources........... -28 -28 -28
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -38 -33 -33
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -38 -32 -33
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4044-0-3-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 703 699 695
1251 Repayments: Repayments and
prepayments..................... -4 -4 -4
--------- --------- ----------
1290 Outstanding, end of year........ 699 695 691
---------------------------------------------------------------------------

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

2005 actual

2006 actual

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

Federal assets: Fund balances with Treasury

1601

Direct loans, gross

707

670

1602

Interest receivable

1603

Allowance for estimated uncollectible loans and interest (-)

-591

-567

1699

Value of assets related to direct loans

203

198

1999

Total assets

247

241

LIABILITIES:
2207

Non-Federal liabilities: Other

2999

Total liabilities

NET POSITION:
3100

Appropriated capital

-308

-376

3300

Cumulative results of operations

552

613

3999

Total net position

244

237

4999

Total liabilities and net position

247

241

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

Nehemiah Housing Opportunity Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4071-0-3-604 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1
22.00 New budget authority (gross)...... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1 1 1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1 1 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

58.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 11 11 10
73.20 Total outlays (gross)............. -1 -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 11 10 9
----------------------------------------------------------------------------

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

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -1
----------------------------------------------------------------------------

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

Federal Housing Administration

mutual mortgage insurance program account

(including transfers of funds)

During fiscal year 2008, 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 2008, 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, $351,450,000, of which not to exceed
$347,490,000 shall be transferred to the appropriation for ``Salaries
and expenses''; and not to exceed $3,960,000 shall be transferred to the
appropriation for ``Office of Inspector General''. In addition, for
administrative contract expenses, $77,400,000, of which $25,550,000
shall be transferred to the Working Capital Fund, and of which up to
$5,000,000 shall be for education and outreach of FHA single family loan
products: Provided, That to the extent guaranteed loan commitments
exceed $65,500,000,000 on or before April 1, 2008, 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.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0183-0-1-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.07 Reestimates of loan guarantee
subsidy--upward re-estimate..... 2,881 1,148
00.08 Interest on reestimates of loan
guarantee subsidy............... 523 202
00.09 Administrative expenses, salaries
& expenses transfer............. 351 362 352
00.12 Non-overhead administrative
expenses for FHA contracts...... 62 52 77
--------- --------- ----------
10.00 Total new obligations........... 3,817 1,764 429
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 414 414 429
22.22 Unobligated balance transferred
from other accounts............. 3,404 1,350
--------- --------- ----------

[[Page 529]]

23.90 Total budgetary resources
available for obligation...... 3,818 1,764 429
23.95 Total new obligations............. -3,817 -1,764 -429
23.98 Unobligated balance expiring or
withdrawn....................... -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 418 414 429
40.35 Appropriation permanently
reduced....................... -4
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 414 414 429
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 94 82 82
73.10 Total new obligations............. 3,817 1,764 429
73.20 Total outlays (gross)............. -3,818 -1,764 -426
73.40 Adjustments in expired accounts
(net)........................... -11
--------- --------- ----------
74.40 Obligated balance, end of year.. 82 82 85
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 378 346 358
86.93 Outlays from discretionary
balances........................ 36 68 68
86.98 Outlays from mandatory balances... 3,404 1,350
--------- --------- ----------
87.00 Total outlays (gross)........... 3,818 1,764 426
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 414 414 429
90.00 Outlays........................... 3,818 1,764 426
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0183-0-1-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001MMI Fund, Direct loans............ 3 50 50
--------- --------- ----------
115999Total direct loan levels.......... 3 50 50
Direct loan subsidy (in percent):
132001MMI Fund, Direct loans............ 0.00 0.00 0.00
----------------------------------------------------------------------------

Guaranteed loan levels supportable by subsidy
budget authority:
215001MMI Fund, Section 203(b).......... 51,783 44,418 39,705
--------- --------- ----------
215999Total loan guarantee levels....... 51,783 44,418 39,705
Guaranteed loan subsidy (in percent):
232001MMI Fund, Section 203(b).......... -1.70 -0.37 -0.01
--------- --------- ----------
232999Weighted average subsidy rate..... -1.70 -0.37 -0.01
Guaranteed loan subsidy budget authority:
233001MMI Fund, Section 203(b).......... -880 -164 -4
--------- --------- ----------
233999Total subsidy budget authority.... -880 -164 -4
Guaranteed loan subsidy outlays:
234001MMI Fund, Section 203(b).......... -880 -164 -4
--------- --------- ----------
234999Total subsidy outlays............. -880 -164 -4
Guaranteed loan upward reestimates:
235001MMI Fund, Section 203(b).......... 3,404 1,350
--------- --------- ----------
235999Total upward reestimate budget
authority....................... 3,404 1,350
Guaranteed loan downward reestimates:
237001MMI Fund, Section 203(b).......... -103 -554
--------- --------- ----------
237999Total downward reestimate subsidy
budget authority................ -103 -554
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority.................. 414 414 429
3580 Outlays from balances............. 36 5 5
3590 Outlays from new authority........ 378 409 420
---------------------------------------------------------------------------

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

In 2008, FHA is requesting an aggregate limitation of $185 billion
on loan guarantees and is proposing legislative changes to reform FHA,
including the consolidation of all single family programs under this
account.

In 2002, the President issued America's Homeownership Challenge to
increase first-time minority homeowners by 5.5 million through 2010. The
Budget continues Administration efforts to modernize FHA with proposals
for new mortgage products targeted toward families who face the
obstacles of having poor credit histories or little savings. These new
mortgages will have premiums tied to credit records and the size of
downpayments. This will result in more families having access to
mortgage financing and will reward families with lower mortgage payments
for having good credit histories and saving more for downpayments. The
Budget also proposes to increase the FHA single-family loan limit from
87 percent to 100 percent of the conforming loan limit.

Because of adverse loan performance and improved estimation
techniques, the baseline credit subsidy rate for FHA's single family
program--assuming no programmatic changes--is positive, meaning that
total costs exceed receipts on a present value basis, and therefore
would require appropriations of credit subsidy budget authority to
continue operation. The 2008 baseline includes no budget authority to
cover these costs and assumes FHA would use its existing authorities to
increase premiums to avoid the need for credit subsidy appropriations.
Under the Budget's policy proposals, FHA will be able to set premiums
that are based on risk and are sufficient to avoid the need for credit
subsidy appropriations. The Budget also proposes to move the
Condominium, the Section 203(k) rehabilitation and Home Equity
Conversion programs from the General and Special Risk funds to the MMI
fund in order to consolidate single-family programs in one fund. The
proposal includes a removal of the statutory cap on the number of Home
Equity Conversion Mortgages insured by FHA. The effects of these
proposals are illustrated in separate schedules published for the MMI
and General and Special Risk funds.

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.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0183-0-1-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
25.2 Other services.................... 43 29 53
25.3 Other purchases of goods and
services from Government
accounts........................ 370 385 376
41.0 Grants, subsidies, and
contributions................... 2,881 1,148
43.0 Interest and dividends............ 523 202
--------- --------- ----------
99.9 Total new obligations........... 3,817 1,764 429
---------------------------------------------------------------------------

FHA--Mutual Mortgage Insurance Program Account

(Legislative proposal, not subject to PAYGO)

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

----------------------------------------------------------------------------
Identification code 86-0183-2-1-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001MMI Fund, Section 203(b).......... 17,291
215004MMI HECM.......................... 25,000
--------- --------- ----------
215999Total loan guarantee levels....... 42,291
Guaranteed loan subsidy (in percent):
232001MMI Fund, Section 203(b).......... -0.59
232004MMI HECM.......................... -1.35
--------- --------- ----------
232999Weighted average subsidy rate..... -0.82
Guaranteed loan subsidy budget authority:
233001MMI Fund, Section 203(b).......... -338

[[Page 530]]

233004MMI HECM.......................... -338
--------- --------- ----------
233999Total subsidy budget authority.... -676
Guaranteed loan subsidy outlays:
234001MMI Fund, Section 203(b).......... -338
234004MMI HECM.......................... -338
--------- --------- ----------
234999Total subsidy outlays............. -676
---------------------------------------------------------------------------

FHA--Mutual Mortgage Insurance Direct Loan Financing Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4242-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct loans...................... 3 50 50
00.02 Interest paid to Treasury......... 2 2
00.03 Claims & other.................... 1 4 4
--------- --------- ----------
10.00 Total new obligations........... 4 56 56
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 5 5
22.00 New financing authority (gross)... 5 105 105
22.60 Portion applied to repay debt..... -1 -54 -49
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 9 56 56
23.95 Total new obligations............. -4 -56 -56
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 5
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 1 50 50
69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 4 55 55
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 5 105 105
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 4 56 56
73.20 Total financing disbursements
(gross)......................... -4 -56 -56
----------------------------------------------------------------------------

Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... 4 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........ -4 -50 -50
88.40 Repayment of interest......... -4 -4
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -4 -55 -55
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 1 50 50
90.00 Financing disbursements........... 1 1
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4242-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 50 50 50
1142 Unobligated direct loan limitation
(-)............................. -47
--------- --------- ----------
1150 Total direct loan obligations... 3 50 50
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 1
1231 Disbursements: Direct loan
disbursements................... 3 50 50
1251 Repayments: Repayments and
prepayments..................... -4 -50 -50
--------- --------- ----------
1290 Outstanding, end of year........
---------------------------------------------------------------------------

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 2008 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.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4242-0-
3-371

2005 actual

2006 actual

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

Federal assets: Fund balances with Treasury

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

1401

Direct loans receivable, gross

1405

Allowance for subsidy cost (-)

-3

1499

Net present value of assets related to direct loans

-2

1999

Total assets

LIABILITIES:
2103

Federal liabilities: Federal Liabilities--Debt

2999

Total liabilities

4999

Total liabilities and net position

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

FHA--Mutual Mortgage Insurance Guaranteed Loan Financing Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4587-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Loan guarantee default claim
payments........................ 5,317 5,685 6,185
00.02 Interest on Treasury Borrowing.... 342 278 245
00.03 Other capital investment &
operating expenses.............. 662 489 426
--------- --------- ----------
00.91 Subtotal, capital/operating
expenses...................... 6,321 6,452 6,856
08.01 Payment of negative subsidy to
capital reserve for new business 880 190 4
08.02 Reestimate of loan guarantee
subsidy (downward reestimates).. 39 512
08.04 Interest on reestimates of loan
guarantee subsidy............... 64 42
08.05 Loan modification payment
(negative subsidy) to capital
reserve account 86-0236......... 9 13
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 992 757 4
--------- --------- ----------
10.00 Total new obligations........... 7,313 7,209 6,860
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 3,389 4,313 5,100
22.00 New financing authority (gross)... 9,981 9,996 7,472
22.10 Resources available from
recoveries of prior year
obligations..................... 1
22.60 Portion applied to repay debt..... -1,745 -2,000 -2,000
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 11,626 12,309 10,572
23.95 Total new obligations............. -7,313 -7,209 -6,860
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 4,313 5,100 3,712
----------------------------------------------------------------------------

[[Page 531]]

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 535 1,000 1,000
Spending authority from
offsetting collections:
69.00 Offsetting collections........ 3,404 1,350
69.00 Offsetting collections (cash). 6,042 7,646 6,472
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 9,446 8,996 6,472
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 9,981 9,996 7,472
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,080 1,159 1,304
73.10 Total new obligations............. 7,313 7,209 6,860
73.20 Total financing disbursements
(gross)......................... -7,233 -7,064 -6,724
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,159 1,304 1,440
----------------------------------------------------------------------------

Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... 7,233 7,064 6,724
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Transfer of Reestimates from
reserves in Capital Reserve
account..................... -3,404 -1,350
88.25 Interest on uninvested funds.. -293 -236 -196
88.40 Fees and premiums............. -1,907 -2,092 -2,291
88.40 Recoveries on defaults........ -3,842 -5,318 -3,985
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -9,446 -8,996 -6,472
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 535 1,000 1,000
90.00 Financing disbursements........... -2,213 -1,932 252
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4587-0-3-371 2006 actual 2007 est. 2008 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...................... -133,217 -140,582 -145,295
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 51,783 44,418 39,705
2199 Guaranteed amount of guaranteed
loan commitments................ 51,783 44,418 39,705
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 319,846 304,476 304,372
2231 Disbursements of new guaranteed
loans........................... 51,783 44,418 39,705
2251 Repayments and prepayments........ -60,715 -34,509 -33,220
Adjustments:

2261 Terminations for default that
result in loans receivable.... -150 -49 -57
2262 Terminations for default that
result in acquisition of
property...................... -5,018 -5,566 -6,047
2263 Terminations for default that
result in claim payments...... -149 -70 -81
2264 Other adjustments, net.......... -1,121 -4,328 -4,381
--------- --------- ----------
2290 Outstanding, end of year........ 304,476 304,372 300,291
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 304,476 304,372 300,291
----------------------------------------------------------------------------

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

2310 Outstanding, start of year...... 343 341
2331 Disbursements for guaranteed
loan claims................... 150 49 57
2351 Repayments of loans receivable.. -291
2364 Other adjustments, net.......... 139 -390 -57
--------- --------- ----------
2390 Outstanding, end of year...... 341
---------------------------------------------------------------------------

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

2005 actual

2006 actual

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

1101

Fund balances with Treasury

4,469

5,473

Investments in US securities:
1106

Receivables, net

2,292

1,330

Non-Federal assets:

1201

Investments in non-Federal securities, net

192

1206

Receivables, net

290

255

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

1501

Defaulted guaranteed loans receivable, gross

343

341

1502

Interest receivable

1504

Foreclosed property

2,405

2,539

1505

Allowance for subsidy cost

-1,441

-1,257

1599

Net value of assets related to defaulted guaranteed loan

1,308

1,624

1901

Other Federal assets: Other assets

363

481

1999

Total assets

8,914

9,256

LIABILITIES:
Federal liabilities:

2101

Accounts payable

103

576

2103

Federal liabilities, Debt

6,235

5,025

Non-Federal liabilities:

2201

Accounts payable

671

613

2204

Liabilities for loan guarantees

1,803

2,828

2207

Other

102

214

2999

Total liabilities

8,914

9,256

4999

Total liabilities and net position

8,914

9,256

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

FHA--Mutual Mortgage Insurance Guaranteed Loan Financing Account

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4587-2-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Loan guarantee default claim
payments........................ 41
00.02 Interest on Treasury Borrowing.... -36
--------- --------- ----------
00.91 Subtotal (capital/operating
expenses)..................... 5
08.01 Payment of negative subsidy to
capital reserve account for new
busines......................... 676
--------- --------- ----------
10.00 Total new obligations........... 681
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New financing authority (gross)... 954
23.95 Total new obligations............. -681
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 273
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

Spending authority from
offsetting collections:
69.00 Offsetting collections........
69.00 Offsetting collections (cash). 954
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 954
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 681
73.20 Total financing disbursements
(gross)......................... -829
--------- --------- ----------
74.40 Obligated balance, end of year.. -148
----------------------------------------------------------------------------

Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... 829
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.25 Interest on uninvested funds.. 26

[[Page 532]]

88.40 Fees and premiums............. -965
88.40 Recoveries on default......... -15
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -954
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -125
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4587-2-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2142 Uncommitted loan guarantee
limitation...................... 42,291
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 42,291
2199 Guaranteed amount of guaranteed
loan commitments................ 42,291
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........
2231 Disbursements of new guaranteed
loans........................... 42,291
2251 Repayments and prepayments........ -1,467
Adjustments:

2261 Terminations for default that
result in loans receivable.... -1
2262 Terminations for default that
result in acquisition of
property...................... -40
2263 Terminations for default that
result in claim payments......
2264 Other adjustments, net.......... -349
--------- --------- ----------
2290 Outstanding, end of year........ 40,434
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 40,434
----------------------------------------------------------------------------

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

2310 Outstanding, start of year......
2331 Disbursements for guaranteed
loan claims................... 1
2331 Disbursements for guaranteed
loan claims...................
2364 Other adjustments, net.......... -1
--------- --------- ----------
2390 Outstanding, end of year......
---------------------------------------------------------------------------

FHA--Mutual Mortgage Insurance Capital Reserve Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0236-0-1-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 23,262 21,959 22,450
22.00 New budget authority (gross)...... 2,101 1,841 1,123
22.21 Unobligated balance transferred to
other accounts.................. -3,404 -1,350 -4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 21,959 22,450 23,569
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 21,959 22,450 23,569
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

Spending authority from
offsetting collections:
69.00 Offsetting collections (cash). 1,273 1,664 1,119
69.00 Offsetting collections (cash). 889 177 4
69.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -61
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 2,101 1,841 1,123
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -260 -199 -199
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 61
--------- --------- ----------
74.40 Obligated balance, end of year.. -199 -199 -199
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources --negative
subsidy from new business... -881 -164 -4
88.00 Federal sources--downward
reestimates................. -103 -554
88.00 Federal sources--loan
modification................ -9 -13
88.20 Interest on Federal securities -1,169 -1,110 -1,119
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -2,162 -1,841 -1,123
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 61
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -2,162 -1,841 -1,123
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 22,642 22,030 21,433
92.02 Total investments, end of year:
Federal securities: Net......... 22,030 21,433 20,804
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2006 actual 2007 est. 2008 est.
Enacted/requested:
Budget Authority............
Outlays..................... -2,162 -1,841 -1,123
Legislative proposal, not subject to
PAYGO:
Budget Authority............
Outlays..................... -676

Total:
Budget Authority............
Outlays..................... -2,162 -1,841 -1,799

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 mandatory
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

2005 actual

2006 actual

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

1101

Fund balances with Treasury

728

Investments in US securities:
1102

Treasury securities, net

22,481

21,807

1106

Receivables, net

362

775

1999

Total assets

23,571

22,672

LIABILITIES:
2101

Federal liabilities: Accounts payable

2,292

1,330

2999

Total liabilities

2,292

1,330

NET POSITION:
3300

Cumulative results of operations

21,279

21,342

3999

Total net position

21,279

21,342

4999

Total liabilities and net position

23,571

22,672

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

[[Page 533]]

FHA--Mutual Mortgage Insurance Capital Reserve Account

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0236-2-1-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 676
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 676
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

Spending authority from
offsetting collections:
69.00 Offsetting collections (cash).
69.00 Offsetting collections (cash). 676
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 676
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources --negative
subsidy from new business... -676
88.00 Federal sources--downward
reestimates.................
88.00 Federal sources--loan
modification................
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -676
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -676
----------------------------------------------------------------------------

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......... 846
---------------------------------------------------------------------------

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

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4070-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
01.03 Acquisition of real properties.... 64 37 24
01.07 Capitalized expenses.............. 2 9 6
01.08 Loss mitigation activities........ 4 2 2
--------- --------- ----------
01.91 Total capital investment........ 70 48 32
02.02 Other Operation expenses.......... 14 14 14
--------- --------- ----------
10.00 Total new obligations........... 84 62 46
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 38 47 21
22.00 New budget authority (gross)...... 49 36 24
22.10 Resources available from
recoveries of prior year
obligations..................... 44
22.22 Unobligated balance transferred
from other accounts............. 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 131 83 49
23.95 Total new obligations............. -84 -62 -46
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 47 21 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 49 36 24
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 266 232 227
73.10 Total new obligations............. 84 62 46
73.20 Total outlays (gross)............. -74 -67 -46
73.45 Recoveries of prior year
obligations..................... -44
--------- --------- ----------
74.40 Obligated balance, end of year.. 232 227 227
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 49 36 24
86.98 Outlays from mandatory balances... 25 31 22
--------- --------- ----------
87.00 Total outlays (gross)........... 74 67 46
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.40 Fees and premiums............. -2 -2 -2
88.40 Recoveries on defaulted
mortgages................... -47 -34 -22
88.40 Other.........................
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -49 -36 -24
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 25 31 22
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4070-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 3 3 2
1264 Write-offs for default: Other
adjustments, net................ -1 -1
--------- --------- ----------
1290 Outstanding, end of year........ 3 2 1
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4070-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 16,074 12,773 10,517
2251 Repayments and prepayments........ -3,237 -2,219 -1,912
2262 Adjustments: Terminations for
default that result in
acquisition of property......... -64 -37 -24
--------- --------- ----------
2290 Outstanding, end of year........ 12,773 10,517 8,581
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 12,773 10,517 8,581
----------------------------------------------------------------------------

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

2310 Outstanding, start of year...... 8 7
2331 Disbursements for guaranteed
loan claims................... 2 2 1
2361 Write-offs of loans receivable.. -9 -1
2364 Other adjustments, net.......... -3
--------- --------- ----------
2390 Outstanding, end of year...... 7
---------------------------------------------------------------------------

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 (in

[[Page 534]]

cluding modifications of loans insured in any year) is recorded in the
corresponding program (86-0183) and financing (86-4587 and 86-4242)
accounts.

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

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

PROGRAM HIGHLIGHTS

(in millions of dollars)

2006 actual 2007 est. 2008 est.
Mortgage insurance written (in
fiscal year):
Amount (in millions of dollars)... $51,783 $44,418 $81,996
Units............................... 408,435 344,326 679,220
====================================
Insurance maintenance: Outstanding
balance of insurance in force,
end of year:
Mortgage insurance (in millions of
dollars)........................ $317,249 $314,889 $349,306
====================================

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

2005 actual

2006 actual

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

Federal assets: Fund balances with Treasury

304

279

1206

Non-Federal assets: Receivables, net

1601

Direct loans, gross

1701

Defaulted guaranteed loans, gross

1703

Allowance for estimated uncollectible loans and interest (-)

-3

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

353

319

LIABILITIES:
Non-Federal liabilities:

2201

Accounts payable

227

196

2204

Liabilities for loan guarantees

2207

Unearned revenue and advances, and other

113

2999

Total liabilities

393

282

NET POSITION:
3300

Cumulative results of operations

-40

3999

Total net position

-40

4999

Total liabilities and net position

353

319

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

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4070-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
25.2 Other services.................... 14 14 14
32.0 Land and structures............... 66 46 30
42.0 Insurance claims and indemnities.. 4 2 2
--------- --------- ----------
99.9 Total new obligations........... 84 62 46
---------------------------------------------------------------------------

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,
$8,600,000, to remain available until expended: Provided, That
commitments to guarantee loans shall not exceed $35,000,000,000 in total
loan principal, any part of which is to be guaranteed.
Gross obligations for the principal amount of direct loans, as
authorized by sections 204(g), 207(l), 238, and 519(a) of the National
Housing Act, shall not exceed $50,000,000, of which not to exceed
$30,000,000 shall be for bridge financing in connection with the sale of
multifamily real properties owned by the Secretary and formerly insured
under such Act; and of which not to exceed $20,000,000 shall be for
loans to nonprofit and governmental entities in connection with the sale
of single-family real properties owned by the Secretary and formerly
insured under such Act.
In addition, for administrative expenses necessary to carry out the
guaranteed and direct loan programs, $229,086,000, of which $209,286,000
shall be transferred to the appropriation for ``Salaries and Expenses'';
and of which $19,800,000 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, $78,111,000, of which
$15,692,000 shall be transferred to the Working Capital Fund: Provided,
That to the extent guaranteed loan commitments exceed $8,426,000,000 on
or before April 1, 2008, 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.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0200-0-1-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Guaranteed loan subsidy........... 3 5 14
00.07 Reestimate of credit subsidy...... 303 107
00.08 Interest on reestimates of loan
guarantee subsidy............... 58 2
00.09 Administrative expenses, salaries
& expenses transfer............. 229 229 229
00.10 Administrative contract expenses.. 75 71 71
--------- --------- ----------
10.00 Total new obligations........... 668 414 314
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 51 57 63
22.00 New budget authority (gross)...... 678 420 316
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 729 477 379
23.95 Total new obligations............. -668 -414 -314
23.98 Unobligated balance expiring or
withdrawn....................... -4
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 57 63 65
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 320 311 316
40.35 Appropriation permanently
reduced....................... -3
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 317 311 316
Mandatory:

60.00 Appropriation................... 361 109
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 678 420 316
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 99 101 97
73.10 Total new obligations............. 668 414 314
73.20 Total outlays (gross)............. -652 -418 -325
73.40 Adjustments in expired accounts
(net)........................... -14
--------- --------- ----------
74.40 Obligated balance, end of year.. 101 97 86
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 251 293 299
86.93 Outlays from discretionary
balances........................ 40 16 26
86.97 Outlays from new mandatory
authority....................... 361 109
--------- --------- ----------
87.00 Total outlays (gross)........... 652 418 325
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 678 420 316

[[Page 535]]

90.00 Outlays........................... 652 418 325
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2006 actual 2007 est. 2008 est.
Enacted/requested:
Budget Authority............ 678 420 316
Outlays..................... 652 418 325
Legislative proposal, not subject to
PAYGO:
Budget Authority............
Outlays..................... -8

Total:
Budget Authority............ 678 420 316
Outlays..................... 652 418 317

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

----------------------------------------------------------------------------
Identification code 86-0200-0-1-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Apartments NC/SC.................. 615 707 785
215002221d3 NP/Coop owned apts.......... 23 51 102
215003Tax Credits NC.................... 867 928 1,091
215005Apartments Refinance.............. 2,566 2,441 2,374
215006241a Supplemental Loans for Apts.. 4 4 6
215007Operating Loss Loans for Apts
(plus 232)...................... 1 2 3
215008HFA Risk Sharing.................. 140 149 156
215009GSE Risk Sharing.................. 9 9 11
215010FHA Full Insurance for Health Care
Facilities (plus 241/232)....... 303 312 339
215011Health Care Refinances............ 1,450 2,180 3,069
215012Hospitals......................... 943 900 900
215013Other Rental (incl 207(mph), 220,
231)............................ 119 130 324
215014Section 234: Condominiums......... 3,161 3,224 3,419
215015Section 203(k): Rehabilitation
Mortgages....................... 406 421 446
215016Home Equity Conversion Mortgages.. 17,994 8,939
215017Title 1 Property Improvement...... 57 43 59
215018Title 1 Manufactured Housing...... 44 59 43
215022Standby Authority................. 14,501 21,873
--------- --------- ----------
215999Total loan guarantee levels....... 28,702 35,000 35,000
Guaranteed loan subsidy (in percent):
232001Apartments NC/SC.................. -0.18 -0.61 -2.02
232002221d3 NP/Coop owned apts.......... 9.74 6.31 5.67
232003Tax Credits NC.................... -3.54 -2.78 -3.20
232005Apartments Refinance.............. -1.84 -1.63 -4.09
232006241a Supplemental Loans for Apts.. 5.43 3.93 2.99
232007Operating Loss Loans for Apts
(plus 232)...................... 15.89 17.34 15.43
232008HFA Risk Sharing.................. -0.67 -0.68 -1.25
232009GSE Risk Sharing.................. -0.83 -0.89 -1.42
232010FHA Full Insurance for Health Care
Facilities (plus 241/232)....... -0.76 -2.42 -0.68
232011Health Care Refinances............ -1.26 -0.91 -1.58
232012Hospitals......................... -1.76 -1.83 -2.66
232013Other Rental (incl 207(mph), 220,
231)............................ -0.73 -1.56 -1.82
232014Section 234: Condominiums......... -2.19 -1.49 -0.88
232015Section 203(k): Rehabilitation
Mortgages....................... -1.12 0.31 1.89
232016Home Equity Conversion Mortgages.. -1.74 -2.82 0.00
232017Title 1 Property Improvement...... 1.79 0.97 0.52
232018Title 1 Manufactured Housing...... 1.10 0.83 0.13
--------- --------- ----------
232999Weighted average subsidy rate..... -1.74 -2.01 -1.94
Guaranteed loan subsidy budget authority:
233001Apartments NC/SC.................. -1 -4 -16
233002221d3 NP/Coop owned apts.......... 2 3 6
233003Tax Credits NC.................... -30 -25 -35
233005Apartments Refinance.............. -45 -40 -107
233007Operating Loss Loans for Apts
(plus 232)...................... 1
233008HFA Risk Sharing.................. -1 -1 -2
233010FHA Full Insurance for Health Care
Facilities (plus 241/232)....... -3 -10 -2
233011Health Care Refinances............ -22 -20 -48
233012Hospitals......................... -17 -16 -24
233013Other Rental (incl 207(mph), 220,
231)............................ -1 -2 -6
233014Section 234: Condominiums......... -69 -48 -30
233015Section 203(k): Rehabilitation
Mortgages....................... -5 1 8
233016Home Equity Conversion Mortgages.. -313 -252
233017Title 1 Property Improvement...... 1
233018Title 1 Manufactured Housing...... 1
--------- --------- ----------
233999Total subsidy budget authority.... -504 -413 -255
Guaranteed loan subsidy outlays:
234001Apartments NC/SC.................. -1 -3 -16
234002221d3 NP/Coop owned apts.......... 1 3 5
234003Tax Credits NC.................... -30 -20 -35
234005Apartments Refinance.............. -47 -30 -107
234006241a Supplemental Loans for Apts.. 1
234008HFA Risk Sharing.................. -1 -1 -2
234010FHA Full Insurance for Health Care
Facilities (plus 241/232)....... -1 -10 -2
234011Health Care Refinances............ -21 -17 -48
234012Hospitals......................... -7 -22 -24
234013Other Rental (incl 207(mph), 220,
231)............................ -1 -2 -6
234014Section 234: Condominiums......... -69 -48 -30
234015Section 203(k): Rehabilitation
Mortgages....................... -5 1 8
234016Home Equity Conversion Mortgages.. -313 -252
234017Title 1 Property Improvement...... 1
234018Title 1 Manufactured Housing...... 1 1
--------- --------- ----------
234999Total subsidy outlays............. -493 -400 -256
Guaranteed loan upward reestimates:
235024General and Special Risk.......... 361 109
--------- --------- ----------
235999Total upward reestimate budget
authority....................... 361 109
Guaranteed loan downward reestimates:
237024General and Special Risk.......... -180 -1,746
--------- --------- ----------
237999Total downward reestimate subsidy
budget authority................ -180 -1,746
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority.................. 297 308 300
3580 Outlays from balances............. 40 12 17
3590 General and Special Risk.......... 248 292 285
---------------------------------------------------------------------------

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

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

The Budget proposes to increase the FHA multifamily loan limit to
account for geographic differences in construction costs and implements
a modest administrative premium for multifamily loan guarantees to help
offset taxpayer costs for loans to certain developments. The
administrative premium will only apply to the 221d4 new construction/
substantial rehabilitation program and the apartment refinancing
program. The Budget also proposes a consolidation of FHA single-family
programs under the Mutual Mortgage Insurance fund, which would shift
several programs currently financed through this account, as reflected
in separate schedules in this section.

Object Classification (in millions of dollars)

FHA--General and Special Risk Program Account

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0200-2-1-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Guaranteed loan subsidy........... -8
--------- --------- ----------

[[Page 536]]

10.00 Total new obligations (object
class 41.0)................... -8
----------------------------------------------------------------------------

Budgetary resources available for obligation:
23.95 Total new obligations............. 8
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 8
----------------------------------------------------------------------------

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

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ -8
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -8
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 86-0200-2-1-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Apartments NC/SC.................. 63
215005Apartments Refinance.............. 189
215014Section 234: Condominiums......... -3,419
215015Section 203(k): Rehabilitation
Mortgages....................... -446
215022Standby Authority................. 3,613
Guaranteed loan subsidy (in percent):
232014Section 234: Condominiums......... 0.88
232015Section 203(k): Rehabilitation
Mortgages....................... -1.89
--------- --------- ----------
232999Weighted average subsidy rate..... -0.60
Guaranteed loan subsidy budget authority:
233001Apartments NC/SC.................. -1
233005Apartments Refinance.............. -8
233014Section 234: Condominiums......... 30
233015Section 203(k): Rehabilitation
Mortgages....................... -8
--------- --------- ----------
233999Total subsidy budget authority.... 13
Guaranteed loan subsidy outlays:
234001Apartments NC/SC.................. -1
234005Apartments Refinance.............. -8
234014Section 234: Condominiums......... 30
234015Section 203(k): Rehabilitation
Mortgages....................... -8
--------- --------- ----------
234999Total subsidy outlays............. 13
---------------------------------------------------------------------------

FHA--General and Special Risk Guaranteed Loan Financing Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4077-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Capital investment, claims and other
00.01 Default claims.................... 803 1,128 1,517
00.02 Interest paid to Treasury......... 101 60 60
00.03 Other capital investments and
operating expenses.............. 67 62 52
00.09 Asset sale negative subsidy
payment to the receipt account.. 2
00.14 Contract Costs.................... 13 15 15
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 986 1,265 1,644
08.01 Payment of negative subsidy to
receipt account................. 507 408 267
08.02 Downward subsidy rate reestimate.. 118 1,360
08.04 Interest on subsidy rate
reestimates..................... 62 386
08.05 Payment of Subsidy to receipt
account for savings............. 86 87
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 687 2,240 354
--------- --------- ----------
10.00 Total new obligations........... 1,673 3,505 1,998
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2,496 2,713 844
22.00 New financing authority (gross)... 1,935 1,636 1,270
22.10 Resources available from
recoveries of prior year
obligations..................... 5
22.60 Portion applied to repay debt..... -50
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 4,386 4,349 2,114
23.95 Total new obligations............. -1,673 -3,505 -1,998
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 2,713 844 116
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 350 486 400
Spending authority from
offsetting collections:
69.00 Offsetting collections (cash). 2,020 1,368 1,088
69.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -45
69.47 Portion applied to repay debt. -390 -218 -218
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 1,585 1,150 870
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 1,935 1,636 1,270
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 131 210 260
73.10 Total new obligations............. 1,673 3,505 1,998
73.20 Total financing disbursements
(gross)......................... -1,634 -3,455 -1,801
73.45 Recoveries of prior year
obligations..................... -5
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 45
--------- --------- ----------
74.40 Obligated balance, end of year.. 210 260 457
----------------------------------------------------------------------------

Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... 1,634 3,455 1,801
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Payments from program account. -3 -5 -14
88.00 Gross Proceeds from sale of
mortgage notes (liquidating) -2
88.00 Subsidy reestimate from
program account............. -361 -109
88.00 Federal Resources -Other......
88.00 Payment from Liquidating Acct
from legislative savings.... -18 -18
88.25 Interest on uninvested funds.. -187 -187 -187
88.40 Fees and premiums............. -839 -636 -453
88.40 Recoveries on defaulted
mortgages................... -189 -4 -67
88.40 Title I recoveries............ -17 -1 -1
88.40 Single family property
recoveries.................. -158 -336 -299
88.40 Gross Proceeds from Mortgage
Note Sales.................. -242 -46 -22
88.40 Multifamily property
recoveries.................. -1 -2
88.40 Non-Federal Resources-other... -22 -25 -25
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -2,020 -1,368 -1,088
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 45
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... -40 268 182
90.00 Financing disbursements........... -386 2,087 713
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4077-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 35,000 35,000 35,000
2142 Uncommitted loan guarantee
limitation...................... -6,298 -14,501 -21,873
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 28,702 20,499 13,127
2199 Guaranteed amount of guaranteed
loan commitments................ 28,702 20,499 13,127
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 81,274 91,180 93,420
2231 Disbursements of new guaranteed
loans........................... 27,840 20,499 13,127
2251 Repayments and prepayments........ -17,131 -17,131 -15,137
Adjustments:

2261 Terminations for default that
result in loans receivable.... -557 -876 -1,220

[[Page 537]]

2262 Terminations for default that
result in acquisition of
property...................... -240 -249 -293
2263 Terminations for default that
result in claim payments...... -6 -3 -4
--------- --------- ----------
2290 Outstanding, end of year........ 91,180 93,420 89,893
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 91,180 93,420 89,893
----------------------------------------------------------------------------

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

2310 Outstanding, start of year...... 655 577 1,376
2331 Disbursements for guaranteed
loan claims................... 557 876 1,220
2351 Repayments of loans receivable.. -403 -56 -94
2361 Write-offs of loans receivable.. -232 -21 -19
--------- --------- ----------
2390 Outstanding, end of year...... 577 1,376 2,483
---------------------------------------------------------------------------

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

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4077-0-
3-371

2005 actual

2006 actual

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

1101

Fund balances with Treasury

2,628

2,924

Investments in US securities:
1106

Receivables, net

228

109

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

655

576

1502

Interest receivable

1504

Foreclosed property

387

350

1505

Allowance for subsidy cost

-655

-633

1599

Net value of assets related to defaulted guaranteed loan

447

341

1901

Other Federal assets: Other assets

1999

Total assets

3,414

3,409

LIABILITIES:
Federal liabilities:

2101

Accounts payable Intragovernmental

297

1,809

2103

Debt

1,310

1,230

2105

Other Federal Liabilities

Non-Federal liabilities:

2201

Accounts payable

2202

Interest payable

2203

Non Federal Debt

2204

Liabilities for loan guarantees

1,564

156

2207

Other

131

140

2999

Total liabilities

3,414

3,409

4999

Total liabilities and net position

3,414

3,409

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

FHA--General and Special Risk Guaranteed Loan Financing Account

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4077-2-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Capital investment, claims and other
08.01 Payment of negative subsidy to
receipt account................. -21
--------- --------- ----------
10.00 Total new obligations........... -21
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New financing authority (gross)... -8
23.95 Total new obligations............. 21
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 13
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). -8
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. -21
73.20 Total financing disbursements
(gross)......................... 21
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... -21
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Payments from program account. 8
88.00 Gross Proceeds from sale of
mortgage notes (liquidating)
88.00 Subsidy reestimate from
program account.............
88.00 Federal Resources -Other......
88.00 Payment from Liquidating Acct
from legislative savings....
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... 8
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -13
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4077-2-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2142 Uncommitted loan guarantee
limitation...................... -3,613
--------- --------- ----------
2150 Total guaranteed loan
commitments................... -3,613
2199 Guaranteed amount of guaranteed
loan commitments................ -3,613
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........
2231 Disbursements of new guaranteed
loans........................... -3,613
2251 Repayments and prepayments........
--------- --------- ----------
2290 Outstanding, end of year........ -3,613
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. -3,613
---------------------------------------------------------------------------

FHA--General and Special Risk Direct Loan Financing Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4105-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct loans...................... 1 1
--------- --------- ----------
10.00 Total new obligations........... 1 1
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 1 1 1
Spending authority from
offsetting collections:

[[Page 538]]

69.00 Offsetting collections (cash). 1 1
69.47 Portion applied to repay debt. -1 -1 -1
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... -1
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 1 1
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 1 1
73.20 Total financing disbursements
(gross)......................... -1 -1
----------------------------------------------------------------------------

Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... 1 1
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.40 Interest received on loans....
88.40 Repayment of Principal........ -1 -1
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -1 -1
----------------------------------------------------------------------------

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

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4105-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 50 50 50
1142 Unobligated direct loan limitation
(-)............................. -50 -49 -49
--------- --------- ----------
1150 Total direct loan obligations... 1 1
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 2 2 2
1231 Disbursements: Direct loan
disbursements................... 1 1
1251 Repayments: Repayments and
prepayments..................... -1 -1
--------- --------- ----------
1290 Outstanding, end of year........ 2 2 2
---------------------------------------------------------------------------

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.

FHA--Loan Guarantee Recovery Fund--Financing Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4106-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 3 3 4
22.00 New financing authority (gross)... 1 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3 4 5
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 3 4 5
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1 1
----------------------------------------------------------------------------

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

Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... 1 1
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

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

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4106-0-3-371 2006 actual 2007 est. 2008 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......................... 2 2 2
2143 Uncommitted limitation carried
forward......................... -2 -2 -2
--------- --------- ----------
2150 Total guaranteed loan
commitments...................
2199 Guaranteed amount of guaranteed
loan commitments................
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 4 4 3
2231 Disbursements of new guaranteed
loans...........................
2251 Repayments and prepayments........ -1 -1
--------- --------- ----------
2290 Outstanding, end of year........ 4 3 2
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 4 3 2
---------------------------------------------------------------------------

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. One loan has been made since
2004.

Balance Sheet (in millions of dollars)

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

2005 actual

2006 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

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

[[Page 539]]

FHA--General and Special Risk Insurance Funds Liquidating Account

Program and Financing (in millions of dollars)

00.02 Interest on debentures.......... 10 15 15
00.03 Other operating costs........... 3 3
00.06 PAE & 3rd party restructuring
fees.......................... 36 21 12
--------- --------- ----------
00.91 Total operating expenses...... 46 39 30
Capital investment: Claims and other

01.01 Acquisition of defaulted Title I
notes......................... 1 1 1
01.02 Assignment of mortgages......... 52 202 181
01.03 Debenture Claims................ 2
01.04 Mark-To-Market Restructures..... 175 206 67
01.05 Acquisition of real properties.. 1 2 2
01.10 Capitalized Expenses............ 1 55 55
01.11 Escrow Advances................. 137 100 100
01.12 Upfront Grants.................. 40
01.13 Other........................... 10 10
01.14 M&M Contract.................... 2 3 3
01.16 Payment to the Financing
Account-Asset Sale............ 2
--------- --------- ----------
01.91 Total capital investment...... 413 579 419
--------- --------- ----------
10.00 Total new obligations........... 459 618 449
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 35 160
22.00 New budget authority (gross)...... 624 718 549
22.10 Resources available from
recoveries of prior year
obligations..................... 28
22.40 Capital transfer to general fund.. -35 -160
22.60 Portion applied to repay debt..... -33 -100 -100
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 619 618 449
23.95 Total new obligations............. -459 -618 -449
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 160
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 183 413 201
67.10 Authority to borrow............. 9 100 100
Spending authority from
offsetting collections:
69.00 Offsetting collections (cash). 426 205 248
69.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 6
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 432 205 248
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 624 718 549
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 607 558 635
73.10 Total new obligations............. 459 618 449
73.20 Total outlays (gross)............. -474 -541 -512
73.45 Recoveries of prior year
obligations..................... -28
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -6
--------- --------- ----------
74.40 Obligated balance, end of year.. 558 635 572
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 1 200 98
86.98 Outlays from mandatory balances... 473 341 414
--------- --------- ----------
87.00 Total outlays (gross)........... 474 541 512
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.40 Fees and premiums............. -74 -73 -118
88.40 Proceeds from sale of real
property.................... -22 -20 -20
88.40 Proceeds from sale of mortgage
notes....................... -6 -10 -10
88.40 Recoveries on defaulted
mortgages................... -283 -47 -45
88.40 Interest, dividends and
revenue..................... -40 -50 -50
88.40 Other collections............. -1 -5 -5
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -426 -205 -248
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -6
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 192 513 301
90.00 Outlays........................... 48 336 264
----------------------------------------------------------------------------

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

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4072-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 15
1251 Repayments: Repayments and
prepayments..................... -15
--------- --------- ----------
1290 Outstanding, end of year........
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4072-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 8,457 6,475 5,726
2251 Repayments and prepayments........ -1,751 -342 -303
Adjustments:

2261 Terminations for default that
result in loans receivable.... -230 -405 -249
2262 Terminations for default that
result in acquisition of
property...................... -1 -2 -1
--------- --------- ----------
2290 Outstanding, end of year........ 6,475 5,726 5,173
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 6,475 5,366 4,811
----------------------------------------------------------------------------

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

2310 Outstanding, start of year...... 2,983 2,988 3,360
2331 Disbursements for guaranteed
loan claims................... 230 409 249
2351 Repayments of loans receivable.. -181 -33 -35
2361 Write-offs of loans receivable.. -44 -4 -3
2364 Other adjustments, net..........
--------- --------- ----------
2390 Outstanding, end of year...... 2,988 3,360 3,571
---------------------------------------------------------------------------

The General Insurance fund provides insurance for a large number of
specialized mortgage insurance programs, including insurance of loans
for property improvements, 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 is 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 are
recorded in corresponding program (86-0200) and financing (86-4077 and
86-4105) accounts.

The Budget proposes to extend restructuring authorities under the
Multifamily Assisted Housing Reform and Affordability Act of 1997 to the
end of fiscal year 2011.

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

[[Page 540]]

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 86-4072-0-
3-371

2005 actual

2006 actual

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

1101

Fund balances with Treasury

638

712

Investments in US securities:
1102

Treasury securities, par

Non-Federal assets:

1201

Investments in non-Federal securities, net

1206

Receivables, net

1601

Direct loans, gross

1699

Value of assets related to direct loans

1701

Defaulted guaranteed loans, gross

2,983

2,988

1702

Interest receivable

143

138

1703

Allowance for estimated uncollectible loans and interest (-)

-851

-823

1704

Defaulted guaranteed loans and interest receivable, net

2,275

2,303

1706

Foreclosed property

1799

Value of assets related to loan guarantees

2,283

2,311

1901

Other Federal assets: Other assets

-12

1999

Total assets

2,990

3,128

LIABILITIES:
2105

Federal liabilities: Other Liabilities

Non-Federal liabilities:

2201

Accounts payable

2202

Interest payable

2203

Debt

2204

Liabilities for loan guarantees

1,164

447

2207

Unearned revenue and advances

292

2999

Total liabilities

1,354

828

NET POSITION:
3100

Appropriated capital

1,683

765

3300

Cumulative results of operations

-47

1,535

3999

Total net position

1,636

2,300

4999

Total liabilities and net position

2,990

3,128

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

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4072-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
25.2 Other services.................... 38 37 28
32.0 Land and structures............... 42 57 57
33.0 Investments and loans............. 367 509 349
43.0 Interest and dividends............ 10 15 15
44.0 Repayments to financing account... 2
--------- --------- ----------
99.9 Total new obligations........... 459 618 449
---------------------------------------------------------------------------

Housing for the Elderly or Handicapped Fund Liquidating Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4115-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Maintenance security and
collateral...................... 1 15 15
01.01 Operating expenses: Interest on
borrowings...................... 5
--------- --------- ----------
10.00 Total new obligations........... 6 15 15
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 73
22.00 New budget authority (gross)...... 1,515 1,200 1,200
22.40 Capital transfer to general fund.. -1,199 -1,258 -1,185
22.60 Portion applied to repay debt..... -239
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 79 15 15
23.95 Total new obligations............. -6 -15 -15
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 73
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1,515 1,200 1,200
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 49 4 4
73.10 Total new obligations............. 6 15 15
73.20 Total outlays (gross)............. -51 -15 -15
--------- --------- ----------
74.40 Obligated balance, end of year.. 4 4 4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 51 15 15
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -1,515 -1,200 -1,200
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -1,464 -1,185 -1,185
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4115-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 6,502 5,520 4,720
1231 Disbursements: Direct loan
disbursements...................
1251 Repayments: Repayments and
prepayments..................... -984 -800 -750
1264 Write-offs for default: Other
adjustments, net................ 2
--------- --------- ----------
1290 Outstanding, end of year........ 5,520 4,720 3,970
---------------------------------------------------------------------------

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

2005 actual

2006 actual

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

Federal assets: Fund balances with Treasury

1206

Non-Federal assets: Interest Receivable: Public

1601

Direct loans, gross

6,502

5,520

1602

Interest receivable

1603

Allowance for estimated uncollectible loans and interest (-)

-19

-22

1604

Direct loans and interest receivable, net

6,553

5,498

1606

Acquired Real Property

1699

Value of assets related to direct loans

6,560

5,499

[[Page 541]]

1999

Total assets

6,611

5,637

LIABILITIES:
Federal liabilities:

2102

Interest payable

2103

Debt

239

2207

Non-Federal liabilities: Other

2999

Total liabilities

304

NET POSITION:
3100

Unexpended Appropriations

3300

Revolving Fund: Cumulative results of operations

6,289

5,592

3999

Total net position

6,307

5,609

4999

Total liabilities and net position

6,611

5,637

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

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4115-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
32.0 Land and structures............... 1 15 15
43.0 Interest and dividends............ 5
--------- --------- ----------
99.9 Total new obligations........... 6 15 15
---------------------------------------------------------------------------

Trust Funds

Manufactured Housing Fees Trust Fund

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-8119-0-7-376 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............
--------- --------- ----------
01.99 Balance, start of year............
Receipts:
02.00 Mobile home inspection and
monitoring fees, Manufactured
housing fee trust fund.......... 9 10 16
--------- --------- ----------
04.00 Total: Balances and collections... 9 10 16
Appropriations:
05.00 Manufactured housing fees trust
fund............................ -9 -10 -16
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-8119-0-7-376 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Transfer to salaries and expenses. 1 2 2
00.02 Other program costs............... 9 11 14
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 10 13 16
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 4 3
22.00 New budget authority (gross)...... 9 10 16
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 13 13 16
23.95 Total new obligations............. -10 -13 -16
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.26 Appropriation (trust fund)...... 9 10 16
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1 2 3
73.10 Total new obligations............. 10 13 16
73.20 Total outlays (gross)............. -9 -12 -16
--------- --------- ----------
74.40 Obligated balance, end of year.. 2 3 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 5 8 13
86.93 Outlays from discretionary
balances........................ 4 4 3
--------- --------- ----------
87.00 Total outlays (gross)........... 9 12 16
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 9 10 16
90.00 Outlays........................... 9 12 16
---------------------------------------------------------------------------

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 to any dispute resolution and
installation program participant. These fees 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.

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.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

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

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.

Federal Funds

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 $100,000,000,000, to remain available until September
30, 2009.
For administrative and contract expenses necessary to carry out the
guaranteed mortgage-backed securities program, $54,000,000, to be
derived from the GNMA guarantees of mortgage-backed securities
guaranteed loan receipt account, of which not to exceed $54,000,000,
shall be transferred to the appropriation for ``Salaries and Expenses'':
Provided, That to the extent new guarantees of mortgage-backed
securities exceed $43,000,000,000 on or before April 1, 2008, an
additional $1,000 for administrative contract expenses shall be
available for each $1,000,000 in additional guaranteed loan commitments
(including a

[[Page 542]]

pro rata amount for any amount below $1,000,000), but in no case shall
funds made available by this proviso exceed $14,000,000.

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0186-0-1-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............ 2,685 2,851 3,021
--------- --------- ----------
01.99 Balance, start of year............ 2,685 2,851 3,021
Receipts:
02.20 GNMA-guarantees of mortgage backed
securities guarantee loans,
Negative subsidies.............. 177 181 163
02.21 GNMA-guarantees of mortgage backed
securities guarantee loans,
Negative subsidies--legislative
proposal subject to PAYGO....... 46
--------- --------- ----------
02.99 Total receipts and collections.. 177 181 209
--------- --------- ----------
04.00 Total: Balances and collections... 2,862 3,032 3,230
Appropriations:
05.00 Guarantees of mortgage-backed
securities loan guarantee
program account................. -11 -11 -11
05.01 Guarantees of mortgage-backed
securities loan guarantee
program account--legislative
proposal not subject to PAYGO... -43
--------- --------- ----------
05.99 Total appropriations............ -11 -11 -54
--------- --------- ----------
07.99 Balance, end of year.............. 2,851 3,021 3,176
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0186-0-1-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.09 Administrative expenses, salaries
and expenses.................... 11 11 11
--------- --------- ----------
10.00 Total new obligations (object
class 25.3)................... 11 11 11
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Discretionary:

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

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

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

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

Summary of Budget Authority and Outlays

(in millions of dollars)

2006 actual 2007 est. 2008 est.
Enacted/requested:
Budget Authority............ 11 11 11
Outlays..................... 11 11 11
Legislative proposal, not subject to
PAYGO:
Budget Authority............ 43
Outlays..................... 43

Total:
Budget Authority............ 11 11 54
Outlays..................... 11 11 54

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

----------------------------------------------------------------------------
Identification code 86-0186-0-1-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Ginne Mae mortgage-backed
securities...................... 81,739 86,000 77,400
--------- --------- ----------
215999Total loan guarantee levels....... 81,739 86,000 77,400
Guaranteed loan subsidy (in percent):
232001Ginne Mae mortgage-backed
securities...................... -0.23 -0.21 -0.21
--------- --------- ----------
232999Weighted average subsidy rate..... -0.23 -0.21 -0.21
Guaranteed loan subsidy budget authority:
233001Ginne Mae mortgage-backed
securities...................... -188 -181 -163
--------- --------- ----------
233999Total subsidy budget authority.... -188 -181 -163
Guaranteed loan subsidy outlays:
234001Ginne Mae mortgage-backed
securities...................... -188 -181 -163
--------- --------- ----------
234999Total subsidy outlays............. -188 -181 -163
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority.................. 11 11 11
3590 Outlays 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 Loan Guarantee Program Account

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0186-2-1-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.09 Administrative expenses, salaries
and expenses.................... 43
--------- --------- ----------
10.00 Total new obligations (object
class 25.3)................... 43
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 43
23.95 Total new obligations............. -43
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (special fund).... 43
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 43
73.20 Total outlays (gross)............. -43
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 43
----------------------------------------------------------------------------

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

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

----------------------------------------------------------------------------
Identification code 86-0186-2-1-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Administrative expense data:
3510 Budget authority.................. 43
3590 Outlays from new authority........ 43
---------------------------------------------------------------------------

The Budget proposes to consolidate all administrative spending of
the Government National Mortgage Association (GNMA) under this account.
This will result in better oversight of spending, allow for more
transparent analysis of spending and differentiate between
administrative and credit transactions. As a result, spending will
increase in this account and decrease in the GNMA Liquidating Account
with no net effect on discretionary spending.

[[Page 543]]

Guarantees of mortgage-backed securities loan guarantee program account

(Legislative proposal, subject to PAYGO)

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

----------------------------------------------------------------------------
Identification code 86-0186-4-1-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Guaranteed loan subsidy (in percent):
232001Ginne Mae mortgage-backed
securities...................... -0.06
--------- --------- ----------
232999Weighted average subsidy rate..... -0.06
Guaranteed loan subsidy budget authority:
233001Ginne Mae mortgage-backed
securities...................... -46
--------- --------- ----------
233999Total subsidy budget authority.... -46
Guaranteed loan subsidy outlays:
234001Ginne Mae mortgage-backed
securities...................... -46
--------- --------- ----------
234999Total subsidy outlays............. -46
---------------------------------------------------------------------------

The Budget proposes to charge a six basis point upfront premium to
cover the total cost of administrating GNMA. Legislation to authorize
the premium will be transmitted early in 2007.

Guarantees of Mortgage-Backed Securities Financing Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4240-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.03 Advances and other................ 29 37 45
00.04 Operating expenses................ 14 15 15
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 43 52 60
08.01 Payment to receipt account for
negative subsidy................ 177 181 163
--------- --------- ----------
10.00 Total new obligations........... 220 233 223
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 965 1,142 1,302
22.00 New financing authority (gross)... 397 393 396
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,362 1,535 1,698
23.95 Total new obligations............. -220 -233 -223
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1,142 1,302 1,475
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 397 393 396
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 51 53 60
73.10 Total new obligations............. 220 233 223
73.20 Total financing disbursements
(gross)......................... -218 -226 -211
--------- --------- ----------
74.40 Obligated balance, end of year.. 53 60 72
----------------------------------------------------------------------------

Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... 218 226 211
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.25 Interest on uninvested funds.. -60 -63 -65
88.40 Guarantee Fees................ -269 -256 -254
88.40 Commitment and other fees..... -23 -17 -18
88.40 Multiclass fees............... -13 -16 -17
88.40 Repayment of advances......... -25 -33 -34
88.40 Servicing Fees................ -2 -2 -2
88.40 Repayment on Mortgages........ -5 -6 -6
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -397 -393 -396
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -178 -167 -185
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4240-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 200,000 100,000 100,000
2121 Limitation available from carry-
forward......................... 178,467 200,000 100,000
2142 Uncommitted loan guarantee
limitation...................... -96,773 -114,000 -22,600
2143 Uncommitted limitation carried
forward......................... -200,000 -100,000 -100,000
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 81,694 86,000 77,400
2199 Guaranteed amount of guaranteed
loan commitments................ 81,694 86,000 77,400
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 412,304 409,908 414,312
2231 Disbursements of new guaranteed
loans........................... 81,694 86,000 73,882
2251 Repayments and prepayments........ -84,090 -81,596 -77,349
--------- --------- ----------
2290 Outstanding, end of year........ 409,908 414,312 410,845
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 409,908 414,312 410,845
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

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

2005 actual

2006 actual

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

Federal assets: Fund balances with Treasury

1,016

1,195

1206

Non-Federal assets: Receivables, net

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

1401

Direct loans receivable, gross

1405

Allowance for subsidy cost (-)

-12

1499

Net present value of assets related to direct loans

1803

Other Federal assets: Property, plant and equipment, net

382

363

1999

Total assets

1,427

1,606

LIABILITIES:
Non-Federal liabilities:

2201

Accounts payable

2207

Other

353

393

2999

Total liabilities

445

470

NET POSITION:
3300

Cumulative results of operations

982

1,136

3999

Total net position

982

1,136

4999

Total liabilities and net position

1,427

1,606

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

Guarantees of Mortgage-Backed Securities Financing Account

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4240-4-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
08.01 Payment to receipt account for
negative subsidy................ 46
--------- --------- ----------
10.00 Total new obligations........... 46
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New financing authority (gross)... 46
23.95 Total new obligations............. -46
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 46
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 46
73.20 Total financing disbursements
(gross)......................... -46
--------- --------- ----------

[[Page 544]]

74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

Outlays (gross), detail:
87.00 Total financing disbursements
(gross)......................... 46
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

88.40 Offsetting collections (cash)
from: Guarantee Fees.......... -46
----------------------------------------------------------------------------

Guarantees of Mortgage-Backed Securities Liquidating Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4238-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Administrative contract expenses.. 41 43 43
Operating expenses

00.03 Servicing expenses.............. 2 3 3
--------- --------- ----------
00.91 Total operating expenses...... 43 46 46
Capital investment

01.01 Advances of guaranty payments... 3 30 30
--------- --------- ----------
10.00 Total new obligations........... 46 76 76
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 7,919 8,365 8,833
22.00 New budget authority (gross)...... 492 544 549
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 8,411 8,909 9,382
23.95 Total new obligations............. -46 -76 -76
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 8,365 8,833 9,306
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 43 43
69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 492 501 506
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 492 544 549
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -8 -21 -111
73.10 Total new obligations............. 46 76 76
73.20 Total outlays (gross)............. -59 -166 -129
--------- --------- ----------
74.40 Obligated balance, end of year.. -21 -111 -164
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 46 86 86
86.98 Outlays from mandatory balances... 13 80 43
--------- --------- ----------
87.00 Total outlays (gross)........... 59 166 129
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.20 Interest on Federal securities -488 -493 -498
88.40 Repayments of guaranteed
payments.................... -6 -6 -6
88.40 Servicing income..............
88.40 Repayments on mortgages....... 2 -2 -2
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -492 -501 -506
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 43 43
90.00 Outlays........................... -433 -335 -377
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 7,949 8,386 8,721
92.02 Total investments, end of year:
Federal securities: Par value... 8,386 8,721 9,070
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2006 actual 2007 est. 2008 est.
Enacted/requested:
Budget Authority............ 43 43
Outlays..................... -433 -335 -377
Legislative proposal, not subject to
PAYGO:
Budget Authority............ -43
Outlays..................... -43

Total:
Budget Authority............ 43
Outlays..................... -433 -335 -420

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4238-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 10 7 7
1232 Disbursements: Purchase of loans
assets from the public.......... 3 30 30
1252 Repayments: Proceeds from loan
asset sales to the public or
discounted...................... -2 -6 -6
1263 Write-offs for default: Direct
loans........................... -4 -24 -20
--------- --------- ----------
1290 Outstanding, end of year........ 7 7 11
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4238-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 82 67 53
2251 Repayments and prepayments........ -15 -14 -14
--------- --------- ----------
2290 Outstanding, end of year........ 67 53 39
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 67 53 39
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

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

2005 actual

2006 actual

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

Investments in US securities:
1102

Treasury securities, par

7,921

8,358

1106

Receivables, net

1206

Non-Federal assets: Receivables, net

1601

Direct loans, gross

1603

Allowance for estimated uncollectible loans and interest (-)

-9

-7

1699

Value of assets related to direct loans

1999

Total assets

7,983

8,425

LIABILITIES:
Non-Federal liabilities:

2201

Accounts payable

2207

Other

509

2999

Total liabilities

551

544

NET POSITION:
3300

Cumulative results of operations

7,432

7,881

3999

Total net position

7,432

7,881

4999

Total liabilities and net position

7,983

8,425

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

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4238-0-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
25.2 Other services.................... 43 46 46
33.0 Investments and loans............. 3 30 30
--------- --------- ----------

[[Page 545]]

99.9 Total new obligations........... 46 76 76
---------------------------------------------------------------------------

Guarantees of Mortgage-Backed Securities Liquidating Account

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4238-2-3-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Administrative contract expenses.. -43
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... -43
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -43
23.95 Total new obligations............. 43
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... -43
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. -43
73.20 Total outlays (gross)............. 43
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -43
----------------------------------------------------------------------------

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

POLICY DEVELOPMENT AND RESEARCH

Federal 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, $65,040,000, to remain
available until September 30, 2009: Provided, That of the funds made
available under this heading, $25,340,000 is for grants pursuant to
section 107 of the Housing and Community Development Act of 1974 (the
``1974 Act''), as amended, as follows: $2,825,000 to support Alaska
Native serving institutions and Native Hawaiian serving institutions as
defined under the Higher Education Act (the ``HEA''), as amended (20
U.S.C. 1059(d)), of which up to $100,000 may be used for technical
assistance; $2,449,000 for tribal colleges and universities as defined
under the HEA (20 U.S.C. 1059(c)), 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, of which up
to $100,000 may be used for technical assistance; $8,476,000 for the
Historically Black Colleges and Universities program as authorized in
section 107(b)(3) of the 1974 Act, of which up to $990,000 may be used
for technical assistance; $5,650,000 for Hispanic serving institutions
as defined under the HEA (20 U.S.C. 1101(a)), of which up to $100,000
may be used for technical assistance; and $5,940,000 for the Community
Outreach Partnership Center Program as authorized in section
107(a)(1)(I) of the 1974 Act, of which up to $500,000 may be used for
technical assistance, training, and a program information clearinghouse:
Provided further, That activities for the Partnership for Advancing
Technology in Housing Initiative shall be administered by the Office of
Policy Development and Research.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0108-0-1-451 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Housing Research.................. 29 22 40
00.02 PATH.............................. 3 6
00.03 National Research Council......... 1
00.04 University Programs............... 31 25
--------- --------- ----------
10.00 Total new obligations........... 33 59 65
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 4 26
22.00 New budget authority (gross)...... 55 33 65
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 59 59 65
23.95 Total new obligations............. -33 -59 -65
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 26
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 56 33 65
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 55 33 65
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 34 25 41
73.10 Total new obligations............. 33 59 65
73.20 Total outlays (gross)............. -41 -43 -52
73.40 Adjustments in expired accounts
(net)........................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 25 41 54
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 20 13 26
86.93 Outlays from discretionary
balances........................ 21 30 26
--------- --------- ----------
87.00 Total outlays (gross)........... 41 43 52
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 55 33 65
90.00 Outlays........................... 41 43 52
---------------------------------------------------------------------------

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 contracts with industry, nonprofit research organizations,
and educational institutions, and through agreements with State and
local governments and other Federal agencies.

In 2008, the research program includes funds for program evaluations
and for work related to the removal of barriers to affordable housing.
National housing surveys will continue in 2008. Set-aside funds are not
requested for the Partnership for Advancing Technology (PATH) program in
2008, but PATH will remain an eligible activity under the Research and
Technology account and will be administered by the Office of Policy
Development and Research. Research and evaluation activities will
support the Department in carrying out its responsibilities under the
Government Performance and Results Act.

As in 2006 and 2007, the University Partnership Programs will be
funded from the Research and Technology account. These grants, pursuant
to Section 107 of the Housing and Community Development Act of 1974,
were funded prior to 2006 under the Community Development Block Grant
account. These programs were and will continue to be administered by the
Office of Policy Development and Research. The University Partnership
Programs provide grants to colleges and universities to help form
partnerships with the communities in which they are located, with
resources used for various development and revitalization activities.
The University Partnership Programs include the following: Alaska Native
and Native Hawaiian Serving Institutions program, Tribal Colleges and
University program, Historically Black Colleges

[[Page 546]]

and Universities program, Community Outreach Partnerships program, and
the Hispanic Serving Institutions program.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0108-0-1-451 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
25.2 Other services.................... 31 32 36
41.0 Grants, subsidies, and
contributions................... 2 27 29
--------- --------- ----------
99.9 Total new obligations........... 33 59 65
---------------------------------------------------------------------------

FAIR HOUSING AND EQUAL OPPORTUNITY

Federal 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,
$45,000,000, to remain available until September 30, 2009, of which
$20,180,000 shall be to carry out activities pursuant to such section
561: Provided, That notwithstanding 31 U.S.C. 3302, the Secretary may
assess and collect fees to cover the costs of the Fair Housing Training
Academy, and may use such funds to provide such training: Provided
further, 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.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0144-0-1-751 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Fair housing assistance........... 30 26 26
00.02 Fair housing initiatives.......... 20 21 20
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 50 47 46
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 10 7 5
22.00 New budget authority (gross)...... 46 45 45
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 57 52 50
23.95 Total new obligations............. -50 -47 -46
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 7 5 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 46 45 45
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 61 62 63
73.10 Total new obligations............. 50 47 46
73.20 Total outlays (gross)............. -47 -46 -45
73.40 Adjustments in expired accounts
(net)........................... -1
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 62 63 64
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 4 3 3
86.93 Outlays from discretionary
balances........................ 43 43 42
--------- --------- ----------
87.00 Total outlays (gross)........... 47 46 45
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 46 45 45
90.00 Outlays........................... 47 46 45
---------------------------------------------------------------------------

The Budget proposes $45 million for fair housing activities to
support efforts to end housing discrimination. Of the amount requested,
$24.8 million is for the Fair Housing Assistance Program (FHAP) and
$20.2 million is for the Fair Housing Initiatives Program (FHIP).

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 funding 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 HUD's 2000 Housing
Discrimination Study. It is estimated that in 2008 there will be two new
State and local agencies with laws equivalent to the Fair Housing Act,
increasing the total number to 111 agencies.

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 funding to States and
local governments, and public and private non-profit organizations that
carry out programs to prevent or eliminate discriminatory housing
practices. FHIP also provides funding to programs or activities designed
to enforce the rights granted by title VIII of the Civil Rights Act of
1968, or substantially equivalent State and local fair housing laws. In
addition, FHIP supports funding for education and outreach programs
designed to inform the public concerning rights and obligations under
these laws.

OFFICE OF LEAD HAZARD CONTROL AND HEALTHY HOMES

Federal 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,
$116,000,000, to remain available until September 30, 2009, of which no
less than $8,800,000 shall be for the Healthy Homes Initiative, pursuant
to sections 501 and 502 of the Housing and Urban Development Act of 1970
that shall include research, studies, testing, and demonstration
efforts, including education and outreach concerning lead-based paint
poisoning and other housing-related diseases and hazards: Provided, That
of the unobligated balances remaining under this heading due to
undersubscription under competitive Notices of Funding Availability, not
to exceed $10,000,000 may be used for Operation Lead Elimination Action
Program (LEAP) and the Lead Hazard Demonstration Program, combined:
Provided further, That any remaining unobligated balances may be used
under this heading. Provided further, 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, 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.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0174-0-1-451 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Lead abatement.................... 155 175 175
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 155 175 175
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 159 150 125

[[Page 547]]

22.00 New budget authority (gross)...... 150 150 116
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 311 300 241
23.95 Total new obligations............. -155 -175 -175
23.98 Unobligated balance expiring or
withdrawn....................... -6
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 150 125 66
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 152 150 116
40.35 Appropriation permanently
reduced....................... -2
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 150 150 116
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 313 342 376
73.10 Total new obligations............. 155 175 175
73.20 Total outlays (gross)............. -120 -141 -154
73.40 Adjustments in expired accounts
(net)........................... -4
73.45 Recoveries of prior year
obligations..................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 342 376 397
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3 2
86.93 Outlays from discretionary
balances........................ 120 138 152
--------- --------- ----------
87.00 Total outlays (gross)........... 120 141 154
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 150 150 116
90.00 Outlays........................... 120 141 154
---------------------------------------------------------------------------

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 and other
environmental hazards in their homes.

The program is a major part of a 10-year strategy to eliminate lead
poisoning in children. The 2008 Budget includes $92.6 million for HUD's
Lead Hazard Control Program competitive grants and $2.8 million for
operation LEAP. The Technical Support Program is funded at $8.8 million
and the Healthy Homes Initiative is funded at $11.8 million. Operation
LEAP funds will be used to leverage other private and public sector
resources for the lead hazard control program. The budget includes a
provision that would allow the transfer of unobligated balances from
undersubscribed competitive programs to other competitive programs
experiencing oversubscription.

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 low-income rental and owner-
occupied 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. Newly-established programmatic efficiency measures, such as
mitigation cost estimates, will help HUD determine best practices and
maximize resources.

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 designed to
enable the public to prevent children's exposure to hazards will also be
conducted through a competitive grant process.

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

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 therefore, 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, $1,222,000,000, of which
$556,776,000 shall be provided from the various funds of the Federal
Housing Administration, $10,700,000 shall be provided from funds of the
Government National Mortgage Association, $148,500 shall be provided by
transfer from the ``Native American housing block grants'' account,
$247,500 shall be provided by transfer from the ``Indian housing loan
guarantee fund program'' account, and $34,650 shall be transferred from
the ``Native Hawaiian housing loan guarantee fund'' account: Provided,
That up to $15,000,000 may be transferred to the Working Capital Fund:
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.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0143-0-1-999 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct program:
00.01 Housing, mortgage credit,
regulatory and energy
conservation.................... 255 225 278
00.02 Community planning and development
programs........................ 46 46 53
00.03 Equal opportunity and research
programs........................ 46 48 56
00.04 Departmental management, legal and
audit services.................. 51 64 64
00.05 Field direction and administration 172 120 203
09.01 Reimbursable program.............. 568 568 568
--------- --------- ----------
09.99 Total reimbursable program........ 568 568 568
--------- --------- ----------
10.00 Total new obligations............. 1,138 1,071 1,222
----------------------------------------------------------------------------

[[Page 548]]

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 10
22.00 New budget authority (gross)...... 1,158 1,061 1,222
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,158 1,071 1,222
23.95 Total new obligations............. -1,138 -1,071 -1,222
23.98 Unobligated balance expiring or
withdrawn....................... -10
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 10
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 579 493 654
40.35 Appropriation permanently
reduced....................... -6
42.00 Transferred from other accounts. 12
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 585 493 654
58.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 573 568 568
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,158 1,061 1,222
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 116 138 120
73.10 Total new obligations............. 1,138 1,071 1,222
73.20 Total outlays (gross)............. -1,108 -1,089 -1,190
73.40 Adjustments in expired accounts
(net)........................... -8
--------- --------- ----------
74.40 Obligated balance, end of year.. 138 120 152
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 992 948 1,072
86.93 Outlays from discretionary
balances........................ 116 141 118
--------- --------- ----------
87.00 Total outlays (gross)........... 1,108 1,089 1,190
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -573 -568 -568
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 585 493 654
90.00 Outlays........................... 535 521 622
---------------------------------------------------------------------------

This appropriation finances 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, overhead and
other non-personnel expenses; legal services; and, field direction and
administration.

Object Classification (in millions of dollars)

Personnel compensation:
11.1 Full-time permanent........... 356 338 392
11.3 Other than full-time permanent 4 4 6
11.5 Other personnel compensation.. 7 8 9
--------- --------- ----------
11.9 Total personnel compensation.. 367 350 407
12.1 Civilian personnel benefits..... 92 80 122
21.0 Travel and transportation of
persons....................... 8 6 10
23.1 Rental payments to GSA.......... 52 40 55
23.3 Communications, utilities, and
miscellaneous charges......... 14 8 13
24.0 Printing and reproduction....... 2 2 2
25.1 Advisory and assistance services 25 8 31
25.2 Other services.................. 1 1 3
25.4 Operation and maintenance of
facilities.................... 4 3 3
25.7 Operation and maintenance of
equipment..................... 1 2
26.0 Supplies and materials.......... 2 2 2
31.0 Equipment....................... 2 1 3
42.0 Insurance claims and indemnities 1 1
--------- --------- ----------
99.0 Direct obligations............ 569 503 654
99.0 Reimbursable obligations.......... 569 568 568
--------- --------- ----------
99.9 Total new obligations........... 1,138 1,071 1,222
---------------------------------------------------------------------------

Employment Summary

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,
$112,000,000, of which $23,760,000 shall be provided by transfer from
the various funds of the Federal Housing Administration.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0189-0-1-451 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program.................... 82 83 90
09.01 Reimbursable program.............. 24 24 24
--------- --------- ----------
10.00 Total new obligations........... 106 107 114
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 8 6
22.00 New budget authority (gross)...... 114 105 112
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 114 113 118
23.95 Total new obligations............. -106 -107 -114
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 8 6 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 82 81 88
40.35 Appropriation permanently
reduced....................... -1
42.00 Transferred from other accounts. 9
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 90 81 88
58.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 24 24 24
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 114 105 112
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 16 15 19
73.10 Total new obligations............. 106 107 114
73.20 Total outlays (gross)............. -107 -103 -113
--------- --------- ----------
74.40 Obligated balance, end of year.. 15 19 20
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 95 86 92
86.93 Outlays from discretionary
balances........................ 12 17 21
--------- --------- ----------
87.00 Total outlays (gross)........... 107 103 113
----------------------------------------------------------------------------

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.................. 90 81 88
90.00 Outlays........................... 83 79 89
---------------------------------------------------------------------------

This appropriation provides agency wide audit and investigative
functions to identify and correct management and

[[Page 549]]

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)

Personnel compensation:
11.1 Full-time permanent........... 45 45 49
11.5 Other personnel compensation.. 4 4 4
--------- --------- ----------
11.9 Total personnel compensation.. 49 49 53
12.1 Civilian personnel benefits..... 11 11 11
21.0 Travel and transportation of
persons....................... 3 4 5
23.1 Rental payments to GSA.......... 6 6 6
25.1 Advisory and assistance services 12 12 14
25.2 Other services.................. 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 82 83 90
99.0 Reimbursable obligations.......... 24 24 24
--------- --------- ----------
99.9 Total new obligations........... 106 107 114
---------------------------------------------------------------------------

Employment Summary

----------------------------------------------------------------------------
Identification code 86-0189-0-1-451 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 498 488 508
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 148 145 142
---------------------------------------------------------------------------

GSE Regulation

(Legislative proposal, subject to PAYGO)

Government-sponsored enterprise (GSE) regulation. Upon enactment of
the Budget proposal for a strengthened regulator for GSEs, the cost of
HUD's responsibilities under the Federal Housing Enterprise Safety and
Soundness Act of 1992, and amendments as proposed, would be assessed on
Fannie Mae and Freddie Mac. These responsibilities include the
establishment and enforcement of affordable housing goals for the GSEs,
ensuring GSE compliance with fair housing laws, and providing
consultation to the safety and soundness regulator on the GSEs' new
activities.

Office of Federal Housing Enterprise Oversight

salaries and expenses

(including transfer of funds)

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5272-0-2-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............
--------- --------- ----------
01.99 Balance, start of year............
Receipts:
02.00 Office of Federal Housing
Enterprise Oversight............ 60 60 66
02.01 Office of Federal Housing
Enterprise Oversight--
legislative proposal not subject
to PAYGO........................ -66
--------- --------- ----------
02.99 Total receipts and collections.. 60 60
--------- --------- ----------
04.00 Total: Balances and collections... 60 60
Appropriations:
05.00 Office of Federal Housing
Enterprise Oversight............ -60 -60 -66
05.01 Office of Federal Housing
Enterprise Oversight--
legislative proposal not subject
to PAYGO........................ 66
--------- --------- ----------
05.99 Total appropriations............ -60 -60
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5272-0-2-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program.................... 61 60 66
--------- --------- ----------
10.00 Total new obligations........... 61 60 66
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 60 60 66
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 61 60 66
23.95 Total new obligations............. -61 -60 -66
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (special fund).... 60 60 66
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 24 22 22
73.10 Total new obligations............. 61 60 66
73.20 Total outlays (gross)............. -62 -60 -64
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 22 22 24
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 44 52 56
86.93 Outlays from discretionary
balances........................ 18 8 8
--------- --------- ----------
87.00 Total outlays (gross)........... 62 60 64
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 60 60 66
90.00 Outlays........................... 62 60 64
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2006 actual 2007 est. 2008 est.
Enacted/requested:
Budget Authority............ 60 60 66
Outlays..................... 62 60 64
Legislative proposal, not subject to
PAYGO:
Budget Authority............ -66
Outlays..................... -56

Total:
Budget Authority............ 60 60
Outlays..................... 62 60 8

The Office of Federal Housing Enterprise Oversight (OFHEO) was
authorized in the Federal Housing Enterprise Safety and Soundness Act of
1992. 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 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.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5272-0-2-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
11.1 Personnel compensation: Personnel
Compensation.................... 28 31 36
12.1 Civilian personnel benefits....... 7 9 10
21.0 Travel and transportation of
persons......................... 1 1
23.2 Rental payments to others......... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1
25.2 Other services.................... 17 12 13
31.0 Equipment......................... 5 4 3
--------- --------- ----------
99.0 Direct obligations.............. 59 59 65
99.5 Below reporting threshold......... 2 1 1
--------- --------- ----------
99.9 Total new obligations........... 61 60 66
---------------------------------------------------------------------------

[[Page 550]]

Employment Summary

----------------------------------------------------------------------------
Identification code 86-5272-0-2-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 225 229 259
---------------------------------------------------------------------------

Office of Federal Housing Enterprise Oversight

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -66
23.95 Total new obligations............. 66
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (special fund).... -66
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. -66
73.20 Total outlays (gross)............. 56
--------- --------- ----------
74.40 Obligated balance, end of year.. -10
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -56
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -66
90.00 Outlays........................... -56
---------------------------------------------------------------------------

The Budget proposes a new strengthened housing GSE regulator as an
independent agency. All OFHEO resources would be transferred to it. The
Administration continues to support direct funding of these activities
with mandatory assessments on Fannie Mae and Freddie Mac.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-5272-2-2-371 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct obligations:
11.1 Personnel compensation: Personnel
Compensation.................... -36
12.1 Civilian personnel benefits....... -10
21.0 Travel and transportation of
persons......................... -1
23.2 Rental payments to others......... -1
23.3 Communications, utilities, and
miscellaneous charges........... -1
25.2 Other services.................... -13
31.0 Equipment......................... -3
--------- --------- ----------
99.0 Direct obligations.............. -65
99.5 Below reporting threshold......... -1
--------- --------- ----------
99.9 Total new obligations........... -66
---------------------------------------------------------------------------

Employment Summary

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 and maintenance of both Department-wide and program-specific
information systems, and for program-related development activities,
$220,000,000, to remain available until September 30, 2009: 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.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4586-0-4-451 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program activity........... 199 185 220
09.01 Reimbursable program.............. 58 65 80
--------- --------- ----------
10.00 Total new obligations........... 257 250 300
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 21 41 53
22.00 New budget authority (gross)...... 259 250 300
22.10 Resources available from
recoveries of prior year
obligations..................... 19 12 12
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 299 303 365
23.95 Total new obligations............. -257 -250 -300
23.98 Unobligated balance expiring or
withdrawn....................... -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 41 53 65
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 197 181 220
40.35 Appropriation permanently
reduced....................... -2
42.00 Transferred from other accounts. 6
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 201 181 220
Spending authority from
offsetting collections:
58.00 Offsetting collections (cash). 51 69 80
58.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 7
--------- --------- ----------
58.90 Spending authority from
offsetting collections
(total discretionary)....... 58 69 80
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 259 250 300
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 257 191 119
73.10 Total new obligations............. 257 250 300
73.20 Total outlays (gross)............. -297 -310 -342
73.45 Recoveries of prior year
obligations..................... -19 -12 -12
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -7
--------- --------- ----------
74.40 Obligated balance, end of year.. 191 119 65
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 118 174 209
86.93 Outlays from discretionary
balances........................ 179 136 133
--------- --------- ----------
87.00 Total outlays (gross)........... 297 310 342
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -51 -69 -80
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -7
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 201 181 220
90.00 Outlays........................... 246 241 262
---------------------------------------------------------------------------

The Working Capital Fund (WCF), authorized by the Department of
Housing and Urban Development Act of 1965, finances the core business
functions of the Department. The WCF provides funding for the operation,
maintenance, and modernization of IT systems in support of disaster
relief, FHA Mortgage Insurance, housing assistance, Departmental grants

[[Page 551]]

programs, and key financial and general operations. The Budget requests
a direct appropriation of $220 million for IT business operations,
infrastructure, and 280 personnel. An additional $80 million in program
transfers are also requested to develop, modify, and enhance systems
that benefit specific programs.

Object Classification (in millions of dollars)

11.1 Personnel compensation: Full-
time permanent................ 30 33 33
12.1 Civilian personnel benefits..... 8 9 9
21.0 Travel and transportation of
persons....................... 1 2 2
23.3 Communications, utilities, and
miscellaneous charges......... 1 5 5
25.1 Advisory and assistance services 152 125 160
26.0 Supplies and materials.......... 5 1 1
31.0 Equipment....................... 2 10 10
--------- --------- ----------
99.0 Direct obligations............ 199 185 220
Reimbursable obligations:

25.1 Advisory and assistance services 58 65 80
--------- --------- ----------
99.0 Reimbursable obligations.......... 58 65 80
--------- --------- ----------
99.9 Total new obligations........... 257 250 300
---------------------------------------------------------------------------

Employment Summary

----------------------------------------------------------------------------
Identification code 86-4586-0-4-451 2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 307 314 280
---------------------------------------------------------------------------

GENERAL FUND RECEIPT ACCOUNTS

(in millions of dollars)

----------------------------------------------------------------------------
2006 actual 2007 est. 2008 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
86-143500 General fund proprietary
interest receipts, not otherwise
classified.......................... 2 2
86-246900 Government-sponsored
enterprises oversight fee........... 6
86-271910 FHA-general and special
risk, Negative subsidies............ 497 483 354
Legislative proposal, not subject to
PAYGO.................................. -21
86-271930 FHA-general and special
risk, Downward reestimates of
subsidies........................... 180 1,746
86-274330 Indian housing loan
guarantees, Downward reestimates of
subsidies........................... 1 1
86-276230 Title VI indian loan
guarantee downward reestimate....... 2 7
86-277330 Community development loan
guarantees, Downward reestimates.... 6 5
86-322000 All other general fund
proprietary receipts including
budget cleating accounts............ 1 18 18
General Fund Offsetting receipts from
the public............................. 687 2,262 359
----------------------------------------------------------------------------

Intragovernmental payments:.............
86-388510 Undistributed
intragovernmental payments.......... 9 7 7
--------- --------- ----------
General Fund Intragovernmental payments. 9 7 7
---------------------------------------------------------------------------

Administrative Provisions

Sec. 301. 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 cancelled, or in the case of cash,
shall be remitted to the Treasury, and such amounts of budget authority
or cash recaptured and not cancelled 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 cancelled or remitted to the Treasury to provide
project owners with incentives to refinance their project at a lower
interest rate.
Sec. 302. None of the amounts made available under this Act may be
used during fiscal year 2008 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. 303. (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 2008 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
2008 under such clause (ii) because the areas in the State outside
of the metropolitan statistical areas that qualify under clause (i)
in fiscal year 2008 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 2008, 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 2008 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 2008 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. 304. (a) During fiscal year 2008, 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 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.
Sec. 305. Except as explicitly provided in law, any grant,
cooperative agreement or other assistance made pursuant to title III of
this Act shall be made on a competitive basis and in accordance with

[[Page 552]]

section 102 of the Department of Housing and Urban Development Reform
Act of 1989.
Sec. 306. 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 2008 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. 307. (a) Notwithstanding any other provision of law, the amount
allocated for fiscal year 2008 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
2008 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 2007 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. 308. 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. 309. 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. 310. Incremental vouchers previously made available under the
heading, ``Housing Certificate Fund'' or renewed under the heading,
``Tenant-Based Rental Assistance'', for family unification shall, to the
extent practicable, continue to be provided for family unification.
Sec. 311. (a) No assistance shall be provided under section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f) to any individual
who--
(1) is enrolled as a student at an institution of higher
education (as defined under section 102 of the Higher Education Act
of 1965 (20 U.S.C. 1002));
(2) is under 24 years of age;
(3) is not a veteran;
(4) is unmarried;
(5) does not have a dependent child;
(6) is not a person with disabilities, as such term is defined
in section 3(b)(3)(E) of the United States Housing Act of 1937(42
U.S.C. 1437a(b)(3)(E)) and was not receiving assistanceunder such
section 8 as of November 30, 2005; and
(7) is not otherwise individually eligible, or has parents who,
individually or jointly, are not eligible, to receive assistance
under section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f).
(b) For purposes of determining the eligibility of a person to
receive assistance under section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f), any financial assistance (in excess of amounts
received for tuition) that an individual receives under the Higher
Education Act of 1965 (20 U.S.C. 1001 et seq.), from private sources, or
an institution of higher education (as defined under the Higher
Education Act of 1965 (20 U.S.C. 1002)), shall be considered income to
that individual, except for a person over the age of 23 with dependent
children.
Sec. 312. Section 1 of the National Housing Act (12 U.S.C. 1702) is
amended in the fifth sentence by striking ``Except with respect to
titleIII`` and inserting ``Except with respect to the Federal National
Mortgage Association''.
Sec. 313. Activities authorized under subtites A and D of title V of
the Departments of Veterans Affairs and Housing and Urban Development,
and Independent Agencies Appropriations Act, 1998, may continue through
the end of the fiscal year 2011.