[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.

    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 86-0319-0-1-604      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]]


    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 86-0303-0-1-604      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.

    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 86-0304-0-1-604      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.

    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 86-0163-0-1-604      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.

    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 86-0218-0-1-604      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.''

    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 86-0313-0-1-604      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.

    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 86-0235-0-1-604      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)

----------------------------------------------------------------------------
Identification code 86-4098-0-3-604      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:

[[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

59

54





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.''

    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 86-0223-0-1-371      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)

----------------------------------------------------------------------------
Identification code 86-4104-0-3-604      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Default Claims....................           1           1           1
08.02 Downward Re-estimate..............           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........           2           2           1
----------------------------------------------------------------------------

    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

7

13





1999

Total assets

7

13

    LIABILITIES:
      Non-Federal liabilities:

2204

Liabilities for loan guarantees

7

10

2207

Unearned revenues and advances



3





2999

Total liabilities

7

13





4999

Total liabilities and net position

7

13

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

                                

       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.''

    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 86-0233-0-1-371      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

15

17





1999

Total assets

15

17

    LIABILITIES:
2204

Non-Federal liabilities: Liabilities for loan guarantees

15

17





2999

Total liabilities

15

17





4999

Total liabilities and net position

15

17

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

                                


 
                   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.

    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 86-0308-0-1-604      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.

    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 86-0162-0-1-451      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.

    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 86-0205-0-1-604      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.

    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 86-0176-0-1-604      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.

    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 86-0192-0-1-604      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

3

3

1601

Direct loans, gross

6

6

1603

Allowance for estimated uncollectible loans and interest (-)

-6

-6





1604

Direct loans and interest receivable, net





1606

Foreclosed property

2

2





1699

Value of assets related to direct loans

2

2





1999

Total assets

5

5

    LIABILITIES:
2207

Non-Federal liabilities: Other

1

1





2999

Total liabilities

1

1

    NET POSITION:
3100

Appropriated capital

4

4





3999

Total net position

4

4





4999

Total liabilities and net position

5

5

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

                                

          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.

    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 86-4096-0-
3-451

2005 actual

2006 actual

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

Federal assets: Fund balances with Treasury

70

77





1999

Total assets

70

77

    LIABILITIES:
2204

Non-Federal liabilities: Liabilities for loan guarantees

70

77





2999

Total liabilities

70

77





4999

Total liabilities and net position

70

77

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

                                

        Community Development Loan Guarantees Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4097-0-3-451      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    New budget authority (gross), detail:
      Mandatory:

        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

-4

        Investments in US securities:
1106

Receivables, net

4

4





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.

    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 86-0320-0-1-604      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.

    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 86-0237-0-1-604      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.

    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 86-0156-0-1-604      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.

    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 86-0206-0-1-999      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.

    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 86-0234-0-1-376      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

44

43

1601

Direct loans, gross

707

670

1602

Interest receivable

87

95

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

3

4





2999

Total liabilities

3

4

    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.

    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 86-0183-0-1-371      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

5

5

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

1401

Direct loans receivable, gross

1

1

1405

Allowance for subsidy cost (-)

-3

-3





1499

Net present value of assets related to direct loans

-2

-2





1999

Total assets

3

3

    LIABILITIES:
2103

Federal liabilities: Federal Liabilities--Debt

3

3





2999

Total liabilities

3

3





4999

Total liabilities and net position

3

3

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

                                

     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

93

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

1

1

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

90

        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

24

21

1601

Direct loans, gross



3

1701

Defaulted guaranteed loans, gross

8

7

1703

Allowance for estimated uncollectible loans and interest (-)

-3

-3





1704

Defaulted guaranteed loans and interest receivable, net

5

4

1706

Foreclosed property

16

6





1799

Value of assets related to loan guarantees

21

10

1901

Other Federal assets: Other assets

4

6





1999

Total assets

353

319

    LIABILITIES:
      Non-Federal liabilities:

2201

Accounts payable

227

196

2204

Liabilities for loan guarantees

53

51

2207

Unearned revenue and advances, and other

113

35





2999

Total liabilities

393

282

    NET POSITION:
3300

Cumulative results of operations

-40

37





3999

Total net position

-40

37





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.

    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 86-0200-0-1-371      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)

----------------------------------------------------------------------------
Identification code 86-0200-0-1-371      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct obligations:
25.1  Advisory and assistance services..          64          60          60
25.2  Other services....................          11          11          11
25.3  Other purchases of goods and 
        services from Government 
        accounts........................         229         229         229
41.0  Grants, subsidies, and 
        contributions...................         364         114          14
                                           ---------   ---------  ----------
99.9    Total new obligations...........         668         414         314
---------------------------------------------------------------------------

              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

6

2

1206

Receivables, net

13

10

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

1501

Defaulted guaranteed loans receivable, gross

655

576

1502

Interest receivable

60

48

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

92

23





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



8

      Non-Federal liabilities:

2201

Accounts payable

49

21

2202

Interest payable

15

12

2203

Non Federal Debt

48

33

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

    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:

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

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

             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

3

3





1999

Total assets

3

3

    LIABILITIES:
2204

Non-Federal liabilities: Liabilities for loan guarantees

3

3





2999

Total liabilities

3

3





4999

Total liabilities and net position

3

3

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

[[Page 539]]



                                

    FHA--General and Special Risk Insurance Funds Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-4072-0-3-371      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
      Operating expenses

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

4

5

      Non-Federal assets:

1201

Investments in non-Federal securities, net

3

3

1206

Receivables, net

59

95

1601

Direct loans, gross

15







1699

Value of assets related to direct loans

15



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

8

8





1799

Value of assets related to loan guarantees

2,283

2,311

1901

Other Federal assets: Other assets

-12

2





1999

Total assets

2,990

3,128

    LIABILITIES:
2105

Federal liabilities: Other Liabilities

47



      Non-Federal liabilities:

2201

Accounts payable

26

15

2202

Interest payable

14

12

2203

Debt

82

62

2204

Liabilities for loan guarantees

1,164

447

2207

Unearned revenue and advances

21

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

51

76

1206

Non-Federal assets: Interest Receivable: Public



62

1601

Direct loans, gross

6,502

5,520

1602

Interest receivable

70



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

7

1





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

46



2103

Debt

239



2207

Non-Federal liabilities: Other

19

28





2999

Total liabilities

304

28

    NET POSITION:
3100

Unexpended Appropriations

18

17

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.

    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.

          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

29

26

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

1401

Direct loans receivable, gross



34

1405

Allowance for subsidy cost (-)



-12





1499

Net present value of assets related to direct loans



22

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

92

77

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

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


                                

       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

50

56

1206

Non-Federal assets: Receivables, net

11

10

1601

Direct loans, gross

10

8

1603

Allowance for estimated uncollectible loans and interest (-)

-9

-7





1699

Value of assets related to direct loans

1

1





1999

Total assets

7,983

8,425

    LIABILITIES:
      Non-Federal liabilities:

2201

Accounts payable

42

35

2207

Other

509

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.

    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 86-0108-0-1-451      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.

    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 86-0144-0-1-751      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.

    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 86-0174-0-1-451      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.

    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 86-0143-0-1-999      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)

----------------------------------------------------------------------------
Identification code 86-0143-0-1-999      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

        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

----------------------------------------------------------------------------
Identification code 86-0143-0-1-999      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................       4,247       4,027       4,281
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................       4,207       3,991       4,319
---------------------------------------------------------------------------

                                

                       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.

    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 86-0189-0-1-451      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)

----------------------------------------------------------------------------
Identification code 86-0189-0-1-451      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

        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)

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

    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

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

                                

                           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.

    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 86-4586-0-4-451      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)

----------------------------------------------------------------------------
Identification code 86-4586-0-4-451      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

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.

                                
