    [Public Papers of the Presidents of the United States: WILLIAM J. CLINTON (2000, Book I)]
    [March 7, 2000]
    [Page 401]
    [From the U.S. Government Publishing Office www.gpo.gov]

    [[Page 401]]

    Memorandum on Dedicating Federal Housing Administration Revenues for
    Affordable Housing
    March 7, 2000

    Memorandum for the Secretary of Housing and Urban Development, Director,
    Office of Management and Budget, Director, Domestic Policy Council

    Subject: Dedicating Federal Housing Administration (FHA) Revenues for
    Affordable Housing

        One of the fundamental goals of my Administration has been to
    reinvent government, to make it serve the public better and restore
    public confidence in the institutions of government. The Department of
    Housing and Urban Development (HUD) has met these goals well. HUD's 2020
    Management Reform Plan has transformed HUD from top to bottom, and
    helped HUD improve performance even as it has reduced the number of its
    employees. The Department has twice been recognized by the Kennedy
    School of Government for innovation in government.
        Nowhere is the turnaround at HUD more evident than in FHA. In the
    early 1990s, FHA was in near-bankruptcy. Today, FHA and its Mutual
    Mortgage Insurance (MMI) Fund are financially healthier than they have
    been in decades. On March 6, HUD released the results of an actuarial
    review showing that the total value of the Fund in Fiscal Year 1999 was
    more than $5 billion above the total value reported for Fiscal Year
    1998. These improvements in the Fund are due not just to recent economic
    prosperity, but also to fundamental changes in FHA. The Office of
    Management and Budget will assess the actuarial review to determine its
    accuracy, its implications for the overall status of FHA finances, and
    its consistency with my Administration's economic assumptions.
        As you know, my Budget for Fiscal Year 2001 substantially expands
    our efforts to provide affordable housing. The Budget provides a total
    of $32 billion--$6 billion more than last year--with increases for all
    of HUD's core programs. And as the improved administration of HUD and
    the FHA make available additional resources, we will have the
    opportunity to do even more to ensure that all Americans have access to
    affordable housing.
        Therefore, I direct you to report to me within 160 days your
    recommendations on how newly available funds can be used to further
    strengthen Federal housing programs and develop a plan to enhance
    comprehensive affordable housing opportunities.

                                                          William J. Clinton

    Note: This memorandum was released by the Office of the Press Secretary
    on March 8.