DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Public and Indian Housing Programs

Federal Funds

Transforming Rental Assistance

For assistance to convert properties with contracts for project-based assistance under section 8 of the U. S. Housing Act of 1937, the rent supplement program under section 101 of the Housing and Urban Development Act of 1965, the rental assistance program under section 236 of the National Housing Act, or for assistance under section 9 of the U.S. Housing Act of 1937, to properties with assistance under section 8(o)(13) of the U.S. Housing Act of 1937, as amended, and for fees to cover the costs of administration of such new assistance contracts, services to promote resident mobility, and for one-time expenses of combining administrative components of local programs under section 8(o) of the U.S. Housing Act of 1937, $350,000,000, to be available until September 30, 2015: Provided, That of the amounts made available under this heading, up to 3 percent shall be available to the Secretary for the costs of, including the contracting for, rent comparability studies, evaluation, and technical assistance: Provided further, That up to $50,000,000 shall be available for services to promote resident mobility and up-front expenses of public housing agencies related to the transformation of rental assistance under this heading: Provided further, That the Secretary shall select properties and award funds for services and upfront expenses through a competitive process, except that for conversion of public housing and other multifamily properties owned by public housing agencies that do not administer a program under section 8(o) or of properties assisted under section 8(e)(2), the rent supplement program under section 101 of the Housing and Urban Development Act of 1965, or the rental assistance program under section 236 of the National Housing Act, the Secretary may award funds for assistance, services, and upfront expenses through such other procedure as the Secretary may establish: Provided further, That the Secretary shall contract for administration of the rental assistance for any property converted under this heading with a public housing agency that does not own or control the property, directly or indirectly: Provided further, That the conversion of contracts under this heading shall not be grounds to evict tenants or terminate families' rental assistance: Provided further, That the Secretary may waive, or specify alternative requirements for, any provision of section 8(o)(13) (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment) or any provision that governs the use of funds made available under the headings of "Public Housing Capital Fund," "Public Housing Operating Fund," and "Project-Based Rental Assistance," under this Act or any prior Act for properties converted under this heading, upon a finding by the Secretary that any such waivers or alternative requirements are necessary for the effective conversion of the contracts provided for under this heading: Provided further, That the Secretary shall publish in the Federal Register any waiver pursuant to the preceding proviso no later than 10 days before the effective date of such waiver.

Program and Financing (in millions of dollars)


Identification code 86-0406-0-1-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Rental Assistance 290
00.02 Resident Mobility 50
00.03 Technical Assistance 10



10.00 Total new obligations (object class 41.0) 350

Budgetary resources available for obligation:
22.00 New budget authority (gross) 350
23.95 Total new obligations -350



24.40 Unobligated balance carried forward, end of year

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 350

Change in obligated balances:
73.10 Total new obligations 350
73.20 Total outlays (gross) -53



74.40 Obligated balance, end of year 297

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 53

Net budget authority and outlays:
89.00 Budget authority 350
90.00 Outlays 53

The Department of Housing and Urban Development (HUD) currently provides deep rental assistance to more than 4.6 million households through at least 13 different programs (each with its own rules) administered by three operating divisions with separate field staff. These programs, with income-based rents, are implemented through an infrastructure of some 4,200 Public Housing Agencies (PHAs), 17,000 private owners with individual federal contracts, and hundreds of non-profit rental program administrators. This structure increases transaction costs for developers and communities and makes it more difficult for families in need to access HUD programs, while at the same time worst case housing needs and homelessness are increasing significantly.

The numerous programs and administrative entities present many barriers to eligible low-income families seeking an effective and accessible rental assistance program. For example, an eligible low-income family seeking HUD rental assistance cannot apply at one location for all programs; instead, the family must apply on separate waiting lists at various locations. Depending on the type of assistance received, the family may be required to reside in a specific location and may lose its subsidy upon relocation to another dwelling.

The sheer number of entities that administer HUD rental assistance, combined with the geographical limits under which most operate, impede fair access to scarce resources, resulting in waiting times that vary substantially and other adverse impacts. In addition, this balkanized administrative geography limits the use of Federal rental assistance to decrease concentrations of poor and minority families or to expand opportunities to live in mixed-income sustainable neighborhoods.

Another challenge is the capital needs of the aging public and assisted housing stock, which hinders Federal efforts to provide safe, high-quality affordable housing. The Public Housing program in particular has long wrestled with an old physical stock with a backlog of unmet capital needs. Moreover, highly prescriptive government regulations and the isolation of the program from market forces undermine effective and efficient property management.

To address these issues, HUD proposes to initiate a multi-year effort called the Transforming Rental Assistance (TRA) initiative. In 2011, the first phase of this initiative will provide $350 million to preserve approximately 300,000 units of public and assisted housing, increase administrative efficiency at all levels of program operations, and enhance housing choice for residents. When fully implemented, TRA will also improve families' access to HUD rental assistance.

PHAs and private owners will be offered the option of converting to long-term property-based rental assistance contracts that include a resident mobility feature. Some $290 million will be used to fill the gap between the funds otherwise available for the selected properties and the first-year costs of the new contracts. These funds will place participating properties on a sustainable footing from both a physical and financial standpoint, and enable owners to leverage private financing to address immediate and long-term capital needs and implement energy-efficiency improvements.

Up to $50 million will be available to PHAs for three purposes: 1) to offset the one-time costs of combining Housing Choice Voucher (HCV) program administrative functions in approximately 50 regions or areas where PHAs submit locally-designed plans to increase efficiency and effectiveness; 2) for outreach to encourage landlords in a broad range of communities to participate in the program; and 3) to provide additional services to expand families' housing choices. Together with other policy changes HUD plans for 2011, these funds and the administrative changes they support will streamline and improve the delivery and oversight of rental assistance and increase the share of housing choice vouchers used in lower poverty communities.

Under this voluntary initiative, HUD will prioritize for conversion public housing owned by agencies that do not operate HCV programs and public housing or assisted multifamily properties owned by PHAs that also administer HCV programs and agree to combine HCV administration with PHAs serving adjacent communities. In addition to achieving economies of scale, this effort will enable residents, if they choose, to move with a portable voucher that becomes available. This resident mobility feature will not reduce the number of units with property-based assistance. Three types of privately-owned HUD-assisted properties will also be eligible for conversion to the proposed new form of rental assistance: Section 8 Moderate Rehabilitation contracts administered by PHAs, and properties assisted under the Rent Supplement or Rental Assistance Programs.

By the spring of 2010, the Administration will transmit to the Congress proposed legislation to amend the project-based voucher program under section 8(o)(13) of the U.S. Housing Act and authorize the long-term property-based rental assistance contracts (with a resident mobility feature) that would be funded by the Budget request. Enactment of a number of the provisions in the Section 8 Voucher Reform Act is also an integral part of the Transforming Rental Assistance initiative. The Administration will work with the Congress to finalize this vital legislation.

Prevention of Resident Displacement

Program and Financing (in millions of dollars)


Identification code 86-0311-0-1-604 2009 actual 2010 est. 2011 est.

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



23.90 Total budgetary resources available for obligation



24.40 Unobligated balance carried forward, end of year

New budget authority (gross), detail:
Discretionary:
58.00 Spending authority from offsetting collections: Offsetting collections (cash) -1

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

Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash) from: Federal sources 1

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

Following Hurricane Katrina, approximately 36,799 displaced families were assisted through this account. HUD received $79 million in 2005 from a FEMA mission assignment to provide housing assistance to these families who were previously HUD-assisted or who were homeless. An additional supplemental appropriation of $390 million pursuant to P.L. 109-148 continues to provide assistance to these families. Over the past three-and-a-half years, most of these families have transitioned to other HUD-funded permanent supportive housing programs. As of December 2009, only 685 families remained in this program. HUD expects these families to transition to the Tenant-Based Rental Assistance (Housing Choice Voucher) program.

tenant-based rental assistance

[(including transfer of funds)]

For activities and assistance for the provision of tenant-based rental assistance authorized under the United States Housing Act of 1937, as amended (42 U.S.C. 1437 et seq.) ("the Act'' herein), not otherwise provided for, [$14,184,200,000] $15,550,663,183, to remain available until [expended] September 30, 2013, shall be available on October 1, [2009] 2010 (in addition to the $4,000,000,000 previously appropriated under this heading that will become available on October 1, [2009] 2010), and $4,000,000,000, to remain available until [expended] September 30, 2014, shall be available on October 1, [2010] 2011: Provided, That of the amounts made available under this heading are provided as follows:

(1) [$16,339,200,000] $17,310,000,000 shall be available 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) and including renewal of other special purpose vouchers initially funded in fiscal years [2008 and] 2009 and 2010 (such as Family Unification, Veterans Affairs Supportive Housing Vouchers and Non-elderly Disabled Vouchers): Provided, That notwithstanding any other provision of law, from amounts provided under this paragraph and any carryover, the Secretary for the calendar year [2010] 2011 funding cycle shall provide renewal funding for each public housing agency based on validated voucher management system (VMS) leasing and cost data for [the most recent Federal fiscal year] calendar year 2010 and by applying the most recent 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 [renewals] renewal of vouchers under this paragraph including tenant protection, and[or] HOPE VI vouchers: [Provided further, That none of the funds provided under this paragraph may be used to fund a total number of unit months under lease which exceeds a public housing agency's authorized level of units under contract, except for public housing agencies participating in the Moving to Work demonstration, which are instead governed by the terms and conditions of their MTW agreements:] Provided further, That the Secretary may offset public housing agencies' calendar year 2011 allocations by the excess amount of agencies' net restricted assets accounts: Provided further, That the Secretary shall determine the excess amount of net restricted assets in accordance with authorizing law or by notice in the Federal Register, but in no instance shall the definition of "excess" be greater than the amount above 6 percent of the renewal funding an agency is eligible to receive, prior to proration, in calendar year 2011: Provided further, That the Secretary shall use any such offset to avoid or reduce the proration of renewal funding allocations: Provided further, That if funds remain after providing public housing agencies with 100 percent of the allocation due under the first proviso, the Secretary may reallocate reserves for purposes otherwise authorized by law or as otherwise provided in a Federal Register notice: Provided further, That the Secretary shall, to the extent necessary to stay within the amount specified under this paragraph [(except as otherwise modified under this Act)], pro rate each public housing agency's allocation otherwise established pursuant to this paragraph: Provided further, That except as provided in the [last two] following provisos, the entire amount specified under this paragraph [(except as otherwise modified under this Act)] shall be obligated to the public housing agencies based on the allocation and pro rata method described above, and the Secretary shall notify public housing agencies of their annual budget not later than 60 days after enactment of this Act: Provided further, That the Secretary may extend the 60-day notification period with [the] prior written [approval of] notice to the House and Senate Committees on Appropriations: 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 provisos: Provided further, That up to $150,000,000 shall be available only: (1) to adjust the allocations for public housing agencies, after application for an adjustment by a public housing agency that experienced a significant increase, as determined by the Secretary, in renewal costs of tenant-based rental assistance resulting from unforeseen circumstances or from portability under section 8(r) of the Act; (2) [for adjustments for public housing agencies with voucher leasing rates at the end of the calendar year that exceed the average leasing for the 12-month period used to establish the allocation; (3) for adjustments for the costs associated with VASH vouchers; or (4)] for vouchers that were not in use during the 12-month period in order to be available to meet a commitment pursuant to section 8(o)(13) of the Act; (3) for any increase in the costs associated with deposits to family self-sufficiency program escrow accounts; (4) for onetime adjustments of renewal funding for Public Housing Agencies in receivership with approved fungibility plans for calendar year 2009 as authorized in Section 11003 of the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act, 2009 (Public Law 110-329); or (5) to adjust allocations for public housing agencies to prevent termination of assistance to families receiving assistance under the disaster voucher program, as authorized by Public Law 109-148 under the heading "Tenant-Based Rental Assistance": Provided further, That the Secretary shall allocate amounts under the previous proviso based on need as determined by the Secretary[: Provided further, That of the amounts made available under this paragraph, up to $100,000,000 may be transferred to and merged with the appropriation for "Transformation Initiative''];

(2) [$120,000,000] $125,000,000 shall be for section 8 rental assistance for relocation and replacement of housing units that are demolished or disposed of pursuant to the Omnibus Consolidated Rescissions and Appropriations Act of 1996 (Public Law 104-134), conversion of section 23 projects to assistance under section 8, the family unification program under section 8(x) of the Act, relocation of witnesses in connection with efforts to combat crime in public and assisted housing pursuant to a request from a law enforcement or prosecution agency, enhanced vouchers under any provision of law authorizing such assistance under section 8(t) of the Act, HOPE VI vouchers, mandatory and voluntary conversions, and tenant protection assistance including replacement and relocation assistance or for project based assistance to prevent the displacement of unassisted elderly tenants currently residing in section 202 properties financed between 1959 and 1974 that are refinanced pursuant to Public Law 106-569, as amended, or under the authority as provided under this Act[: Provided, That the Secretary shall provide replacement vouchers for all units that were occupied within the previous 24 months that cease to be available as assisted housing, subject only to the availability of funds];

(3) [$1,575,000,000] $1,791,000,000 shall be for administrative and other expenses of public housing agencies in administering the section 8 tenant-based rental assistance program, of which up to $50,000,000 shall be available to the Secretary to allocate to public housing agencies that need additional funds to administer their section 8 programs, including fees associated with section 8 tenant protection rental assistance, the administration of disaster related vouchers, Veterans Affairs Supportive Housing vouchers, and other incremental vouchers: Provided, That no less than [$1,525,000,000] $1,741,000,000 of the amount provided in this paragraph shall be allocated to public housing agencies for the calendar year [2010] 2011 funding cycle based on section 8(q) of the Act (and related Appropriation Act provisions) as in effect immediately before the enactment of the Quality Housing and Work Responsibility Act of 1998 (Public Law 105-276): Provided further, That if the amounts made available under this paragraph are insufficient to pay the amounts determined under the previous proviso, the Secretary may decrease the amounts allocated to agencies by a uniform percentage applicable to all agencies receiving funding under this paragraph or may, to the extent necessary to provide full payment of amounts determined under the previous proviso, utilize unobligated balances, including recaptures and carryovers, remaining from funds appropriated to the Department of Housing and Urban Development under this heading, for fiscal year [2009] 2010 and prior fiscal years, notwithstanding the purposes for which such amounts were appropriated: Provided further, That 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;

(4) $60,000,000 shall be available for family self-sufficiency coordinators under section 23 of the Act;

(5) [$15,000,000 for incremental voucher assistance through the Family Unification Program: Provided, That the assistance made available under this paragraph shall continue to remain available for family unification upon turnover: Provided further, That the Secretary of Housing and Urban Development shall make such funding available, notwithstanding section 204 (competition provision) of this title, to entities with demonstrated experience and resources for supportive services] $113,663,183 for renewal of tenant-based assistance contracts under section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013) entered into prior to fiscal year 2007;

(6) [$75,000,000 for incremental rental voucher assistance for use through a supported housing program administered in conjunction with the Department of Veterans Affairs as authorized under section 8(o)(19) of the United States Housing Act of 1937: Provided, That the Secretary of Housing and Urban Development shall make such funding available, notwithstanding section 204 (competition provision) of this title, to public housing agencies that partner with eligible VA Medical Centers or other entities as designated by the Secretary of the Department of Veterans Affairs, based on geographical need for such assistance as identified by the Secretary of the Department of Veterans Affairs, public housing agency administrative performance, and other factors as specified by the Secretary of Housing and Urban Development in consultation with the Secretary of the Department of Veterans Affairs: Provided further, That the Secretary of Housing and Urban Development may waive, or specify alternative requirements for (in consultation with the Secretary of the Department of Veterans Affairs), any provision of any statute or regulation that the Secretary of Housing and Urban Development administers in connection with the use of funds made available under this paragraph (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment), upon a finding by the Secretary that any such waivers or alternative requirements are necessary for the effective delivery and administration of such voucher assistance: Provided further, That assistance made available under this paragraph shall continue to remain available for homeless veterans upon turn-over] Up to $66,000,000 for incremental tenant-based assistance for eligible families assisted under the Disaster Housing Assistance Program for Hurricanes Ike and Gustav: Provided, That these vouchers will not be re-issued when families leave the program;

(7) $85,000,000 for incremental voucher assistance under section 8(o) of the United States Housing Act of 1937, including related administrative expenses, for two competitive demonstration programs to address the needs of families and individuals who are homeless or at risk of homelessness, as defined by the Secretary of Housing and Urban Development, to be administered by the Department of Housing and Urban Development in conjunction with the Department of Health and Human Services and the Department of Education: Provided, That one demonstration program shall make funding available to public housing agencies that: (1) partner with eligible state or local entities responsible for distributing Temporary Assistance for Needy Families (TANF) and other health and human services as designated by the Secretary of the Department of Health and Human Services, and (2) partner with school homelessness liaisons funded through the Department of Education's Education for Homeless Children and Youths program: Provided further, That the other demonstration program shall make funding available to public housing agencies that partner with eligible state Medicaid agencies and state behavioral health entities as designated by the Secretary of the Department of Health and Human Services to provide housing in conjunction with Medicaid case management, substance abuse treatment, and mental health services: Provided further, That the Secretary of Housing and Urban Development shall make the funding specified in this subsection available through such allocation procedures as the Secretary determines to be appropriate, notwithstanding section 213 of the Housing and Community Development Act of 1974 (42 U.S.C. 1439) and section 204 (competition provision) of this title, to entities with demonstrated experience and that meet such other requirements as determined by the Secretary: Provided further, That the Secretary of Housing and Urban Development may waive, or specify alternative requirements for any provision of any statute or regulation that the Secretary of Housing and Urban Development administers in connection with the use of funds made available under this paragraph (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment), upon a finding by the Secretary that any such waivers or alternative requirements are necessary for the effective delivery and administration of such voucher assistance: Provided further, That the Secretary shall publish in the Federal Register any waiver of any statute or regulation that the Secretary administers pursuant to this subsection no later than 10 days before the effective date of such waiver: Provided further, That assistance made available under this subsection shall continue to remain available for these purposes upon turn-over.

(Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0302-0-1-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Tenant Protection 168 203 125
00.02 Administrative Fees 1,480 1,585 1,791
00.03 Family Self Sufficiency Coordinators 49 110 60
00.06 Contract Renewals 14,390 16,328 17,114
00.08 Veterans Affairs Supportive Housing Vouchers 76 76
00.09 Family Unification Program Vouchers 24 31
00.10 Nonelderly Disabled Vouchers 20 40
00.11 Disaster Displacement Assistance 82 3
00.12 Disaster Housing Assistance Program 66
00.13 Section 811 Mainstream Vouchers 114
00.14 Homeless Special Needs Vouchers 85



10.00 Total new obligations (object class 41.0) 16,289 18,376 19,355

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 356 290
22.00 New budget authority (gross) 16,217 18,084 19,355
22.10 Resources available from recoveries of prior year obligations 6 2



23.90 Total budgetary resources available for obligation 16,579 18,376 19,355
23.95 Total new obligations -16,289 -18,376 -19,355



24.40 Unobligated balance carried forward, end of year 290

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 12,817 14,184 15,551
40.35 Appropriation permanently reduced -750
41.00 Transferred to other accounts -8 -100 -196



43.00 Appropriation (total discretionary) 12,059 14,084 15,355
55.00 Advance appropriation 4,158 4,000 4,000



70.00 Total new budget authority (gross) 16,217 18,084 19,355

Change in obligated balances:
72.40 Obligated balance, start of year 1,371 1,673 2,308
73.10 Total new obligations 16,289 18,376 19,355
73.20 Total outlays (gross) -15,981 -17,739 -19,076
73.45 Recoveries of prior year obligations -6 -2



74.40 Obligated balance, end of year 1,673 2,308 2,587

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 14,434 16,103 17,332
86.93 Outlays from discretionary balances 1,547 1,636 1,744



87.00 Total outlays (gross) 15,981 17,739 19,076

Net budget authority and outlays:
89.00 Budget authority 16,217 18,084 19,355
90.00 Outlays 15,981 17,739 19,076

The Tenant-Based Rental Assistance Program (also known as the Housing Choice Voucher program) provides housing assistance to approximately two million extremely low- to low-income families to rent in the neighborhoods of their choice. This is the Federal government's largest and most income-targeted program for assisting low-income families to rent decent, safe and sanitary housing in the private market. The program includes a set-aside for tenant-protection vouchers, which are provided when certain actions occur, such as public housing demolition or disposition, or when landlords opt out of Project-Based Section 8 contracts. About 2,400 state and local Public Housing Authorities (PHAs) administer the Housing Choice Voucher program.

With the 2011 Budget, the Department reaffirms its commitment to improving the Housing Choice Voucher program. The level of funding requested in this Budget will allow PHAs to fund vouchers under lease as of the end of 2009, as well as new vouchers awarded in 2010. By the end of 2011, the Department expects to help almost 2.2 million families through this program. This is over 100,000 more families than were assisted at the end of 2009, and represents the largest number of families ever assisted by this program. The 2011 Budget also proposes shifting $113.6 million required to renew nearly 15,000 Section 811 Housing for Disabled Persons Mainstream vouchers from the Section 811 account to this account. This one-time shift will allow the Department to consolidate rental assistance programs, thereby saving a significant amount of administrative resources.

The 2011 Budget also provides $85 million in new special purpose vouchers for homeless and at-risk of homelessness families with children and persons with disabilities.

In addition, the Administration proposes to: 1) Design a comprehensive development strategy to improve HUD IT systems to better manage and administer the Voucher program; 2) Implement an improved Section 8 Management Assessment Program (24 CFR 985) that will ensure strengthened oversight, quality control, and performance metrics for the Housing Choice Voucher program; 3) Continue the study to develop a formula to allocate administrative fees based on the cost of an efficiently managed PHA operating the Housing Choice Voucher program; 4) Develop a study to evaluate current Housing Quality Standards and improve the unit inspection process; and 5) Eliminate the cap restriction imposed by past Appropriations Acts on the number of families that each PHA may serve.

housing certificate fund

(cancellation)

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'' and the heading "Project-Based Rental Assistance'', for fiscal year [2010] 2011 and prior years may be used for renewal of or amendments to section 8 project-based contracts and for performance-based contract administrators, notwithstanding the purposes for which such funds were appropriated: Provided, That any obligated balances of contract authority from fiscal year 1974 and prior that have been terminated [shall be] are hereby permanently cancelled: Provided further, That amounts heretofore recaptured, or recaptured during the current fiscal year, from project-based Section 8 contracts from source years fiscal year 1975 through fiscal year 1987 are hereby [rescinded] permanently cancelled, and an amount of additional new budget authority, equivalent to the amount [rescinded] permanently cancelled is hereby appropriated, to remain available until expended, for the purposes set forth under this heading, in addition to amounts otherwise available. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0319-0-1-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Contract renewals 57 13
00.02 Contract Administrators 85
00.05 Section 8 Amendments 1 123 100
00.11 Administrative Fees 1



10.00 Total new obligations (object class 41.0) 58 222 100

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 37 122
22.10 Resources available from recoveries of prior year obligations 177 100 100
22.75 Balance of contract authority withdrawn -34



23.90 Total budgetary resources available for obligation 180 222 100
23.95 Total new obligations -58 -222 -100



24.40 Unobligated balance carried forward, end of year 122

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 152 50
40.36 Unobligated balance permanently reduced -152 -50



43.00 Appropriation (total discretionary)
Mandatory:
60.00 Appropriation 2,500 413 413
60.49 Portion applied to liquidate contract authority -2,500 -413 -413



62.50 Appropriation (total mandatory)



70.00 Total new budget authority (gross)

Change in obligated balances:
72.40 Obligated balance, start of year 7,292 5,601 4,443
73.10 Total new obligations 58 222 100
73.20 Total outlays (gross) -1,572 -1,280 -1,090
73.45 Recoveries of prior year obligations -177 -100 -100



74.40 Obligated balance, end of year 5,601 4,443 3,353

Outlays (gross), detail:
86.93 Outlays from discretionary balances 1,572 1,280 1,090

Net budget authority and outlays:
89.00 Budget authority
90.00 Outlays 1,572 1,280 1,090

Memorandum (non-add) entries:
93.03 Obligated balance, start of year: Contract authority 3,413 879 466
93.04 Obligated balance, end of year: Contract authority 879 466 53

The Housing Certificate Fund, until 2005, provided funding to both the 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.

project-based rental assistance

For activities and assistance for the provision of project-based subsidy contracts under the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) ("the Act''), not otherwise provided for, [$8,157,853,000] $8,982,328,000, to remain available until expended, shall be available on October 1, [2009] 2010 (in addition to the $393,672,000 previously appropriated under this heading that will become available October 1, 2010), and [$393,672,000] $400,000,000, to remain available until expended, shall be available on October 1, [2010] 2011: Provided, That the amounts made available under this heading [are provided as follows:(1) Up to $8,325,853,000] shall be available 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 (42 U.S.C. 11401), 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) Not less than $232,000,000 but not to exceed $258,000,000]: Provided further, That of the total amounts provided under this heading, not to exceed $322,000,000 shall be available for performance-based contract administrators for section 8 project-based assistance: Provided further, That the Secretary of Housing and Urban Development may also use such amounts in the previous proviso for performance-based contract administrators for the administration of: interest reduction payments pursuant to section 236(a) of the National Housing Act (12 U.S.C. 1715z-1(a)); rent supplement payments pursuant to section 101 of the Housing and Urban Development Act of 1965 (12 U.S.C. 1701s); section 236(f)(2) rental assistance payments (12 U.S.C. 1715z-1(f)(2)); project rental assistance contracts for the elderly under section 202(c)(2) of the Housing Act of 1959 (12 U.S.C. 1701q); project rental assistance contracts for supportive housing for persons with disabilities under section 811(d)(2) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(d)(2)); project assistance contracts pursuant to section 202(h) of the Housing Act of 1959 (Public Law 86-372; 73 Stat. 667); and loans under section 202 of the Housing Act of 1959 (Public Law 86-372; 73 Stat. 667)[.(3) A]: Provided further,That amounts 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. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0303-0-1-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Contract Renewals 6,455 7,827 8,292
00.02 Contract Renewals (Recovery Act) 1,991 9
00.03 Section 8 Amendments 518 644 662
00.04 Contract Administrators 292 232 322
00.05 Vouchers for Disaster Relief 76 4
00.06 Tenant Information and Outreach 10 10



10.00 Total new obligations (object class 41.0) 9,332 8,726 9,286

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 221 168
22.00 New budget authority (gross) 9,120 8,558 9,286
22.10 Resources available from recoveries of prior year obligations 159



23.90 Total budgetary resources available for obligation 9,500 8,726 9,286
23.95 Total new obligations -9,332 -8,726 -9,286



24.40 Unobligated balance carried forward, end of year 168

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 7,130 8,158 8,982
41.00 Transferred to other accounts -10 -90
42.00 Transferred from other accounts 2,000



43.00 Appropriation (total discretionary) 9,120 8,158 8,892
55.00 Advance appropriation 400 394



70.00 Total new budget authority (gross) 9,120 8,558 9,286

Change in obligated balances:
72.40 Obligated balance, start of year 3,000 4,691 5,272
73.10 Total new obligations 9,332 8,726 9,286
73.20 Total outlays (gross) -7,482 -8,145 -8,722
73.45 Recoveries of prior year obligations -159



74.40 Obligated balance, end of year 4,691 5,272 5,836

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 4,886 5,295 5,285
86.93 Outlays from discretionary balances 2,596 2,850 3,437



87.00 Total outlays (gross) 7,482 8,145 8,722

Net budget authority and outlays:
89.00 Budget authority 9,120 8,558 9,286
90.00 Outlays 7,482 8,145 8,722

The Budget requests $9.4 billion for project-based rental assistance, of which $400 million is requested as an advance appropriation to become available in 2012.

The Project-Based Rental Assistance program assists approximately 1.3 million extremely low- and low-income households in obtaining decent, safe, and sanitary housing in private accommodations. Project-based rental assistance serves families, elderly households and disabled households and provides transitional housing for the homeless. Through this funding, HUD supports approximately 18,000 contracts with private owners of multifamily rental housing to provide housing for low- and very low-income families. This funding pays the difference between what a household can afford, generally 30 percent of its eligible income, and the approved market-based rent for a housing unit. Program activities include the following:

Contract Renewals and Amendments.—These activities provide funding for HUD to renew expiring lease contracts. Currently, around 81 percent of the contracts are renewed annually; the other 19 percent are long-term contracts funded with previous appropriations. These funds go directly to the housing costs of low- and very low-income families in the program. Also, funding amendments to a Section 8 contract are required to maintain the project until its contract expiration date if actual costs incurred exceed the amount of budget authority originally obligated for the project. These additional costs are funded in part by utilizing recoveries of excess balances remaining on expired Section 8 contracts that utilized less than anticipated resources to complete the contract.

Contract Administrators.—This activity funds the local level administration of this program through HUD contracts with performance-based contract administrators. These entities, which are typically public housing authorities or state housing finance agencies, are responsible for conducting on-site management reviews of assisted properties; adjusting contract rents; reviewing, processing, and paying monthly vouchers submitted by owners; renewing contracts with property owners; and responding to health and safety issues at properties. For 2011, not to exceed $322 million is requested for this set-aside.

Tenant Resources, Information and Outreach Activities.—The Department may make available up to $10 million of funds available under this heading for tenant resources, information, and outreach grants. These grants will provide financial assistance to tenant groups, nonprofit organizations, and public entities for building the capacity of tenant organizations and furthering the purposes of the Mark-to-Market program, including preservation of low-income housing and tenant services. The authority to make available these funds is provided under Section 514(f) of the Multifamily Assisted Housing Reform and Affordability Act (MAHRA) of 1997 (42 U.S.C. 1437f note).

public housing capital fund

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 (42 U.S.C. 1437g) (the "Act'') [$2,500,000,000] $2,044,200,000, to remain available until September 30, [2013] 2014: Provided, That notwithstanding any other provision of law or regulation, during fiscal year [2010] 2011 the Secretary of Housing and Urban Development 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 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 of the total amount provided under this heading, not to exceed $20,000,000 shall be available for the Secretary to make grants, notwithstanding section 204 of this Act, to public housing agencies for emergency capital needs [including safety and security measures necessary to address crime and drug-related activity as well as needs] resulting from unforeseen or unpreventable emergencies and natural disasters excluding Presidentially declared emergencies and natural disasters under the Robert T. Stafford Disaster Relief and Emergency Act (42 U.S.C. 5121 et seq.) occurring in fiscal year [2010] 2011: [Provided further, That of the amounts provided under this heading up to $40,000,000 may be for grants to be competitively awarded to public housing agencies for the construction, rehabilitation or purchase of facilities to be used to provide early education, adult education, job training or other appropriate services to public housing residents: Provided further, That grantees shall demonstrate an ability to leverage other Federal, State, local or private resources for the construction, rehabilitation or acquisition of such facilities, and that selected grantees shall demonstrate a capacity to pay the long-term costs of operating such facilities: Provided further, That of the total amount provided under this heading, $50,000,000 shall be for supportive services, service coordinators and congregate services as authorized by section 34 of the Act (42 U.S.C. 1437z-6) and the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 et seq.):] Provided further, That of the total amount provided under this heading up to $8,820,000 is to support the costs of administrative and judicial receiverships: Provided further, That from the funds made available under this heading, the Secretary shall provide bonus awards in fiscal year [2010] 2011 to public housing agencies that are designated high performers. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0304-0-1-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Capital Grants 2,332 2,406 1,980
00.02 Modernization Technical Assistance 5 12
00.03 Emergency/Disaster Reserve 15 48 20
00.04 Neighborhood Networks 2
00.06 Resident Opportunities and Supportive Services 41 90
00.07 Administrative Receivership 5 18 9
00.08 Financial and Physical Assessment Support 12 28 15
00.11 Recovery Act 3,977



10.00 Total new obligations (object class 41.0) 6,389 2,602 2,024

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 94 127
22.00 New budget authority (gross) 6,415 2,475 2,024
22.10 Resources available from recoveries of prior year obligations 10
22.75 Balance of contract authority withdrawn -3



23.90 Total budgetary resources available for obligation 6,516 2,602 2,024
23.95 Total new obligations -6,389 -2,602 -2,024



24.40 Unobligated balance carried forward, end of year 127

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 6,450 2,500 2,044
41.00 Transferred to other accounts -36 -25 -20



43.00 Appropriation (total discretionary) 6,414 2,475 2,024
58.00 Spending authority from offsetting collections: Offsetting collections (cash) 1
Mandatory:
60.00 Appropriation 500
60.49 Portion applied to liquidate contract authority -500



62.50 Appropriation (total mandatory)



70.00 Total new budget authority (gross) 6,415 2,475 2,024

Change in obligated balances:
72.40 Obligated balance, start of year 7,468 10,629 9,187
73.10 Total new obligations 6,389 2,602 2,024
73.20 Total outlays (gross) -3,208 -4,044 -4,394
73.40 Adjustments in expired accounts (net) -10
73.45 Recoveries of prior year obligations -10



74.40 Obligated balance, end of year 10,629 9,187 6,817

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 207 63 55
86.93 Outlays from discretionary balances 3,001 3,981 4,339



87.00 Total outlays (gross) 3,208 4,044 4,394

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 6,414 2,475 2,024
90.00 Outlays 3,207 4,044 4,394

Memorandum (non-add) entries:
93.01 Unobligated balance, start of year: Contract authority
93.02 Unobligated balance, end of year: Contract authority
93.03 Obligated balance, start of year: Contract authority 571 68 68
93.04 Obligated balance, end of year: Contract authority 68 68 68

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. The program protects and enhances a valuable affordable housing resource, which serves approximately 1.1 million families with limited income. Of those families, 30 percent are elderly and 33 percent are disabled.

Of the $2.044 billion requested for this program, nearly $2 billion will fund capital grants. Other uses include up to $15 million for public housing financial and physical assessment support, up to $20 million for emergencies and disasters, and up to $9 million for administrative and judicial receiverships.

The American Recovery and Reinvestment Act of 2009 (P.L. 111-5) provided $4 billion for the Public Housing Capital Fund. In 2009, HUD awarded $3 billion by formula and $1 billion through a competition. These funds will reduce the backlog of capital needs and support energy efficient, green communities and other priority investments. The 2011 Budget request recognizes that the program is working to absorb funding appropriated in the Recovery Act and anticipates that funding already in the pipeline will produce a high level of output through 2011.

public housing operating fund

(including transfer of funds)

For [2010] 2011 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 (42 U.S.C. 1437g(e)), [$4,775,000,000] $4,829,000,000[: Provided, That, in fiscal year 2009 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 of the amounts made available under this heading, up to $15,000,000 may be transferred to and merged with the appropriation for "Transformation Initiative'']. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0163-0-1-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Operating Subsidy 4,448 4,760 4,781
00.02 Transition to asset management 3



10.00 Total new obligations (object class 41.0) 4,451 4,760 4,781

Budgetary resources available for obligation:
22.00 New budget authority (gross) 4,455 4,760 4,781
23.95 Total new obligations -4,451 -4,760 -4,781
23.98 Unobligated balance expiring or withdrawn -4



24.40 Unobligated balance carried forward, end of year

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 4,455 4,775 4,829
41.00 Transferred to other accounts -15 -48



43.00 Appropriation (total discretionary) 4,455 4,760 4,781

Change in obligated balances:
72.40 Obligated balance, start of year 1,184 1,185 1,371
73.10 Total new obligations 4,451 4,760 4,781
73.20 Total outlays (gross) -4,449 -4,574 -4,775
73.40 Adjustments in expired accounts (net) -1



74.40 Obligated balance, end of year 1,185 1,371 1,377

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 3,277 3,427 3,442
86.93 Outlays from discretionary balances 1,172 1,147 1,333



87.00 Total outlays (gross) 4,449 4,574 4,775

Net budget authority and outlays:
89.00 Budget authority 4,455 4,760 4,781
90.00 Outlays 4,449 4,574 4,775

The Budget request of $4.829 billion will fund 100 percent of Public Housing Authorities' (PHAs) estimated eligibility for operating subsidies under the Operating Fund formula. Operating subsidies are provided to 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 tables below display the sources of PHAs' revenue and expenditures by category and are based on PHAs' annual financial statements for fiscal years ending June 2009 through March 2009.

Sources of PHAs' Operating Revenue (in millions of dollars)


Category Annual income Percent of total

Operating Subsidies $3,762 57%
Dwelling Rental 2,520 38%
Investment 112 2%
Other Income 219 3%



Total, Operating Revenue $6,613 100%




Operating Subsidies.—Represent HUD's contributions to a PHA's operating budget. After consultation with PHAs, HUD adopted the current formula in 2007 based on the congressionally sanctioned cost study conducted by the Harvard Graduate School of Design. HUD sets a formula-determined project expense level (PEL) for each project and separately computes the project utility expense level (UEL) and audit costs. The subsidy is the projected PEL, UEL, and allowable add-on expenses minus projected dwelling rental income.

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. Excludes Proceeds from Disposition from Assets Held for Sale, Cost of Sale of Assets, and Gain/Loss on Sale of Fixed Assets totaling $54 million.

PHAs' Operating Expenditures (in millions of dollars)


Category Annual expenditures Percent of total

Utilities $1,574 25%
Administration 1,860 29%
General Operating Expenses 596 9%
Maintenance 2,039 32%
Tenant Services 171 3%
Protective Services 158 2%



Total, Operating Expenses $6,398 100%




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, employee 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.

Drug Elimination Grants for Low-income Housing

Program and Financing (in millions of dollars)


Identification code 86-0197-0-1-604 2009 actual 2010 est. 2011 est.

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 1 1
22.10 Resources available from recoveries of prior year obligations 1



23.90 Total budgetary resources available for obligation 1 1 1



24.40 Unobligated balance carried forward, end of year 1 1 1

Change in obligated balances:
72.40 Obligated balance, start of year 1
73.45 Recoveries of prior year obligations -1



74.40 Obligated balance, end of year

Net budget authority and outlays:
89.00 Budget authority
90.00 Outlays

No new appropriations have been provided for the Public Housing Drug Elimination Grants program since 2001.

Choice Neighborhoods

For competitive grants under the Choice Neighborhoods Initiative for transformation, rehabilitation and replacement housing needs of both public and HUD-assisted housing and to transform neighborhoods of extreme poverty into functioning, sustainable mixed income neighborhoods with appropriate services, schools, public assets, transportation and access to jobs, $250,000,000, to remain available until September 30, 2014: Provided, That grant funds may be used for resident and community services, community development and affordable housing needs in the community, and for conversion of vacant or foreclosed properties to affordable housing: Provided further, That grantees shall undertake comprehensive local planning with input from residents and the community, and that grantees shall provide a match in state, local, other Federal or private funds: Provided further, That grantees may include local governments, public housing authorities, non-profits and for-profit developers, and that such grantees shall create partnerships with other local organizations including assisted housing owners, service agencies and resident organizations: Provided further, That the Secretary shall consult with the Secretaries of Education, Labor, Transportation, Health and Human Services, Agriculture, and Commerce and the Administrator of the Environmental Protection Agency to coordinate and leverage other appropriate federal resources: Provided further, That no more than ten percent of funds made available under this heading may be provided for planning grants to assist communities in developing comprehensive strategies for implementing this program in conjunction with community notice and input: Provided further, That the Secretary shall develop and publish guidelines for the use of such competitive funds, including but not limited to eligible activities, program requirements, and performance metrics: Provided further, That all balances of amounts made available for the Choice Neighborhood Initiative under the heading Revitalization of Severely Distressed Public Housing (HOPE VI) in the Department of Housing and Urban Development Appropriations Act, 2010 shall be transferred to and merged with amounts made available under this heading.

Program and Financing (in millions of dollars)


Identification code 86-0349-0-1-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Choice Neighborhoods Grants 65



10.00 Total new obligations (object class 41.0) 65

Budgetary resources available for obligation:
22.00 New budget authority (gross) 313
23.95 Total new obligations -65



24.40 Unobligated balance carried forward, end of year 248

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 250
41.00 Transferred to other accounts -2
42.00 Transferred from other accounts 65



43.00 Appropriation (total discretionary) 313

Change in obligated balances:
73.10 Total new obligations 65
73.20 Total outlays (gross) -8



74.40 Obligated balance, end of year 57

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 8

Net budget authority and outlays:
89.00 Budget authority 313
90.00 Outlays 8

The Choice Neighborhoods Initiative will provide $250 million in competitive grants to transform neighborhoods of extreme poverty into functioning, sustainable mixed-income neighborhoods with appropriate services, schools, public assets, transportation, and access to jobs. The goal of the program, first funded in 2010, is to demonstrate that concentrated and coordinated neighborhood investments from multiple sources can transform a distressed neighborhood and improve the quality of life of current and future residents.

Choice Neighborhoods grants will primarily fund the preservation, rehabilitation, and transformation of public and HUD-assisted housing. The program builds on the successes of public housing transformation under HOPE VI with a broader approach to concentrated poverty. Grantees will include not only public housing authorities but also local governments, non-profits and for-profit developers. Grant funds can be used for resident and community services, community development and affordable housing activities in surrounding communities, and multifamily or single family property disposition, including the conversion of these properties to affordable housing. The program will also implement rent and work incentives to help public and HUD-assisted housing residents access jobs and move to self-sufficiency.

Grantees will undertake comprehensive local planning with input from residents and the community. A strong emphasis will be placed on local community planning for school and educational improvements, including early childhood initiatives. Up to ten percent of the appropriation will be used for planning grants to assist local partnerships to develop strong proposals for future fiscal year grant competitions.

The Department will place a strong emphasis on coordination with other Federal agencies, notably the Departments of Education, Labor, Transportation, Health and Human Services and the Environmental Protection Agency, to leverage additional resources. Where possible, the program will be coordinated with the Department of Education's Promise Neighborhoods proposal. The Administration will propose authorizing legislation to implement this initiative in the spring of 2010.

[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 (42 U.S.C. 1437v), $200,000,000, to remain available until September 30, 2011, of which the Secretary of Housing and Urban Development may use up to $10,000,000 for technical assistance and contract expertise, to be provided directly or indirectly by grants, contracts or cooperative agreements, including training and cost of necessary travel for participants in such training, by or to officials and employees of the department and of public housing agencies and to residents: Provided, That none of such funds shall be used directly or indirectly by granting competitive advantage in awards to settle litigation or pay judgments, unless expressly permitted herein: Provided further, That of the amounts provided under this heading, up to $65,000,000 may be available for a demonstration of the Choice Neighborhoods Initiative (subject to such section 24 except as otherwise specified under the provisos for this demonstration under this heading) for the transformation, rehabilitation and replacement housing needs of both public and HUD-assisted housing and to transform neighborhoods of poverty into functioning, sustainable mixed income neighborhoods with appropriate services, public assets, transportation and access to jobs, and schools, including public schools, community schools, and charter schools: Provided further, That for this demonstration, funding may also be used for the conversion of vacant or foreclosed properties to affordable housing: Provided further, That use of funds made available for this demonstration under this heading shall not be deemed to be public housing notwithstanding section 3(b)(1) of such Act: Provided further, That grantees shall commit to an additional period of affordability determined by the Secretary, but not fewer than 20 years: Provided further, That grantees shall undertake comprehensive local planning with input from residents and the community: Provided further, That for the purposes of this demonstration, applicants may include local governments, public housing authorities, nonprofits, and for-profit developers that apply jointly with a public entity: Provided further, That such grantees shall create partnerships with other local organizations including assisted housing owners, service agencies and resident organizations: Provided further, That the Secretary shall develop and publish a Notice of Funding Availability for the allocation and use of such competitive funds in this demonstration, including but not limited to eligible activities, program requirements, protections and services for affected residents, and performance metrics.] (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0218-0-1-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 HOPE VI Grants 118 123
00.02 HOPE VI Technical Assistance 3 10



10.00 Total new obligations (object class 41.0) 3 128 123

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 1 118 188
22.00 New budget authority (gross) 120 198 -65



23.90 Total budgetary resources available for obligation 121 316 123
23.95 Total new obligations -3 -128 -123



24.40 Unobligated balance carried forward, end of year 118 188

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 120 200
41.00 Transferred to other accounts -2 -65



43.00 Appropriation (total discretionary) 120 198 -65

Change in obligated balances:
72.40 Obligated balance, start of year 952 632 471
73.10 Total new obligations 3 128 123
73.20 Total outlays (gross) -317 -289 -262
73.40 Adjustments in expired accounts (net) -6



74.40 Obligated balance, end of year 632 471 332

Outlays (gross), detail:
86.93 Outlays from discretionary balances 317 289 262

Net budget authority and outlays:
89.00 Budget authority 120 198 -65
90.00 Outlays 317 289 262

The HOPE VI program, in coordination with funding from the Public Housing Capital Fund, has accomplished its goal of contributing to the demolition of 100,000 severely distressed public housing units. The Budget proposes no additional funds. Instead, the Department proposes to build on the success of the HOPE VI program with its Choice Neighborhoods Initiative. First funded in 2010, Choice Neighborhoods will make a broad range of transformative investments in high-poverty neighborhoods where public and assisted housing is concentrated.

The remaining balance of $750 million in HOPE VI funds at the end of 2009 will spend out over several years as redevelopment projects are completed. Cumulative results of the HOPE VI program as of September 30, 2009 are as follows: 72,718 households relocated; 94,367 units demolished; 80,130 units (new and rehabilitated) completed; and 78,347 completed units occupied.

native american housing block grants

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.), [$700,000,000] $580,000,000, 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, $3,500,000 shall be contracted for assistance for a national organization representing Native American housing interests for providing training and technical assistance to Indian housing authorities and tribally designated housing entities as authorized under NAHASDA; and $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, $2,000,000 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 [$18,000,000] $20,000,000. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0313-0-1-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.02 Title VI Loan Guarantee Subsidy 1 2 2
00.10 Indian Housing Block Grants 641 809 568
00.11 Technical Assistance 4 13 4
00.12 NAIHC 3 4
00.14 Recovery Act 500 8



10.00 Total new obligations (object class 41.0) 1,149 836 574

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 126 140 4
22.00 New budget authority (gross) 1,153 700 574
22.10 Resources available from recoveries of prior year obligations 10



23.90 Total budgetary resources available for obligation 1,289 840 578
23.95 Total new obligations -1,149 -836 -574



24.40 Unobligated balance carried forward, end of year 140 4 4

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 1,155 700 580
41.00 Transferred to other accounts -2 -6



43.00 Appropriation (total discretionary) 1,153 700 574

Change in obligated balances:
72.40 Obligated balance, start of year 976 1,472 1,430
73.10 Total new obligations 1,149 836 574
73.20 Total outlays (gross) -643 -878 -721
73.45 Recoveries of prior year obligations -10



74.40 Obligated balance, end of year 1,472 1,430 1,283

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 228 207 169
86.93 Outlays from discretionary balances 415 671 552



87.00 Total outlays (gross) 643 878 721

Net budget authority and outlays:
89.00 Budget authority 1,153 700 574
90.00 Outlays 643 878 721

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


Identification code 86-0313-0-1-604 2009 actual 2010 est. 2011 est.

Guaranteed loan levels supportable by subsidy budget authority:
215001 Title VI Indian Federal Guarantees Program 8 18 20



215999 Total loan guarantee levels 8 18 20
Guaranteed loan subsidy (in percent):
232001 Title VI Indian Federal Guarantees Program 12.34 11.18 10.20



232999 Weighted average subsidy rate 12.34 11.18 10.20
Guaranteed loan subsidy budget authority:
233001 Title VI Indian Federal Guarantees Program 1 2 2



233999 Total subsidy budget authority 1 2 2
Guaranteed loan subsidy outlays:
234001 Title VI Indian Federal Guarantees Program 1 2 2



234999 Total subsidy outlays 1 2 2
Guaranteed loan downward reestimates:
237001 Title VI Indian Federal Guarantees Program -2 -3



237999 Total downward reestimate subsidy budget authority -2 -3

Title I of the Native American Housing Assistance and Self-Determination Act (NAHASDA) of 1996 (P.L. 104-330) authorized the Native American Housing Block Grant program. This program provides an allocation of funds on a formula basis to Indian tribes and their tribally designated housing entities to help them address housing needs within their communities. HUD has determined, using 2000 Census data, that 273,658 American Indian/Alaska Native households, out of 965,684, have "severe housing needs." This is defined as a lack of basic plumbing or kitchen facilities, having more than 1.01 persons per room, or having a cost burden of over 50 percent of income. According to the Senate Committee on Indian Affairs, in 2002, 90,000 Indian families were homeless or underhoused. On tribal lands, 28 percent of Indian households were found to be overcrowded or to lack adequate plumbing and kitchen facilities, compared to 5.4 percent of national households. The Budget supports a program goal to reduce over-crowding on Native lands by 10 percent.

The Budget includes $580 million for the total activities of this program in 2011. Because of the appropriations provided in the Recovery Act, direct program output, as measured by outlays, will be at historically high levels in 2010 and 2011.

The Native American Housing Block Grant program includes a guaranteed loan provision (Title VI). A guarantee level of $20 million is proposed for this loan guarantee program for 2011. 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.), [$13,000,000] $10,000,000, to remain available until expended[: Provided, That of this amount, $300,000 shall be for training and technical assistance activities, including up to $100,000 for related travel by Hawaii-based HUD employees]. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0235-0-1-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Native Hawaiian Housing Block Grant 10 11 10



10.00 Total new obligations (object class 41.0) 10 11 10

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 1 1 3
22.00 New budget authority (gross) 10 13 10



23.90 Total budgetary resources available for obligation 11 14 13
23.95 Total new obligations -10 -11 -10



24.40 Unobligated balance carried forward, end of year 1 3 3

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 10 13 10

Change in obligated balances:
72.40 Obligated balance, start of year 9 15 19
73.10 Total new obligations 10 11 10
73.20 Total outlays (gross) -4 -7 -9



74.40 Obligated balance, end of year 15 19 20

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 1 1
86.93 Outlays from discretionary balances 4 6 8



87.00 Total outlays (gross) 4 7 9

Net budget authority and outlays:
89.00 Budget authority 10 13 10
90.00 Outlays 4 7 9

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. The Budget requests $10 million for this program.

Low-rent Public Housing—loans and Other Expenses

Program and Financing (in millions of dollars)


Identification code 86-4098-0-3-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
09.01 Reimbursable program: Capital investment loans to PHAs 5 1



10.00 Total new obligations (object class 43.0) 5 1

Budgetary resources available for obligation:
22.00 New budget authority (gross) 1 5 1
22.60 Portion applied to repay debt -1



23.90 Total budgetary resources available for obligation 5 1
23.95 Total new obligations -5 -1



24.40 Unobligated balance carried forward, end of year

New budget authority (gross), detail:
Mandatory:
67.10 Authority to borrow 1 5 1
69.00 Offsetting collections (cash) 105 104 97
69.47 Portion applied to repay debt -105 -104 -97



69.90 Spending authority from offsetting collections (total mandatory)



70.00 Total new budget authority (gross) 1 5 1

Change in obligated balances:
72.40 Obligated balance, start of year 194 148 148
73.10 Total new obligations 5 1
73.20 Total outlays (gross) -46 -5 -1



74.40 Obligated balance, end of year 148 148 148

Outlays (gross), detail:
86.97 Outlays from new mandatory authority 5 1
86.98 Outlays from mandatory balances 46



87.00 Total outlays (gross) 46 5 1

Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash) from: Federal sources -105 -104 -97

Net budget authority and outlays:
89.00 Budget authority -104 -99 -96
90.00 Outlays -59 -99 -96

Status of Direct Loans (in millions of dollars)


Identification code 86-4098-0-3-604 2009 actual 2010 est. 2011 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 691 587 483
1251 Repayments: Repayments and prepayments -104 -104 -97



1290 Outstanding, end of year 587 483 386

Status of Guaranteed Loans (in millions of dollars)


Identification code 86-4098-0-3-604 2009 actual 2010 est. 2011 est.

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year 667 456 270
2251 Repayments and prepayments -211 -186 -163



2290 Outstanding, end of year 456 270 107

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding, end of year 456 270 107

The Low-Rent Public Housing Loan Fund provides direct Federal loans to fund remaining Public Housing Agency (PHA) and Indian Housing Authority (IHA) 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 (P.L. 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. Since 1987, new reservations of capital funds for construction, acquisition, and modernization activities have been provided directly from the Public Housing Capital Fund appropriations.

Balance Sheet (in millions of dollars)


Identification code 86-4098-0-3-604 2008 actual 2009 actual

ASSETS:
1101 Federal assets: Fund balances with Treasury 194 148
1601 Direct loans, gross 692 588
1602 Interest receivable 43 36


1604 Direct loans and interest receivable, net 735 624


1699 Value of assets related to direct loans 735 624


1999 Total assets 929 772
LIABILITIES:
Federal liabilities:
2102 Interest payable 84 71
2104 Resources payable to Treasury 691 587


2999 Total liabilities 775 658
NET POSITION:
3100 Appropriated capital 147 121
3300 Cumulative results of operations 7 -7


3999 Total net position 154 114


4999 Total liabilities and net position 929 772

Object Classification (in millions of dollars)


Identification code 86-4098-0-3-604 2009 actual 2010 est. 2011 est.

Reimbursable obligations:
43.0 Loan Buy Downs and Other Expenese 5 1



99.0 Reimbursable obligations 5 1

indian housing loan guarantee fund program account

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), [$7,000,000] $9,000,000, 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: Provided further, That these funds are available to subsidize total loan principal, any part of which is to be guaranteed, up to [$919,000,000] $994,000,000: Provided further, That up to $750,000 shall be for administrative contract expenses including management processes and systems to carry out the loan guarantee program. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0223-0-1-371 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.02 Guaranteed loan subsidy 13 6 8
00.07 Reestimates of loan guarantee subsidy - upward reestimates 1
00.09 Administrative Contract Expenses 1 1



10.00 Total new obligations 13 8 9

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 5 1 1
22.00 New budget authority (gross) 9 8 9



23.90 Total budgetary resources available for obligation 14 9 10
23.95 Total new obligations -13 -8 -9



24.40 Unobligated balance carried forward, end of year 1 1 1

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 9 7 9
Mandatory:
60.00 Appropriation 1



70.00 Total new budget authority (gross) 9 8 9

Change in obligated balances:
72.40 Obligated balance, start of year 3 6 7
73.10 Total new obligations 13 8 9
73.20 Total outlays (gross) -10 -7 -9



74.40 Obligated balance, end of year 6 7 7

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 9 6 8
86.93 Outlays from discretionary balances 1 1 1



87.00 Total outlays (gross) 10 7 9

Net budget authority and outlays:
89.00 Budget authority 9 8 9
90.00 Outlays 10 7 9

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


Identification code 86-0223-0-1-371 2009 actual 2010 est. 2011 est.

Guaranteed loan levels supportable by subsidy budget authority:
215001 Indian Housing Loan Guarantee 501 919 994



215999 Total loan guarantee levels 501 919 994
Guaranteed loan subsidy (in percent):
232001 Indian Housing Loan Guarantee 2.52 0.68 0.83



232999 Weighted average subsidy rate 2.52 0.68 0.83
Guaranteed loan subsidy budget authority:
233001 Indian Housing Loan Guarantee 13 7 8



233999 Total subsidy budget authority 13 7 8
Guaranteed loan subsidy outlays:
234001 Indian Housing Loan Guarantee 10 5 8



234999 Total subsidy outlays 10 5 8
Guaranteed loan upward reestimates:
235001 Indian Housing Loan Guarantee 1



235999 Total upward reestimate budget authority 1
Guaranteed loan downward reestimates:
237001 Indian Housing Loan Guarantee -8 -8



237999 Total downward reestimate subsidy budget authority -8 -8

Administrative expense data:
3510 Budget authority 1 1
3590 Outlays from new 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 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. The Budget proposes funding to support additional loan guarantee activity and to provide managerial and systems support. The program has issued 9,438 loan guarantees totaling $1.4 billion since 1995, with 52 percent of the activity occurring in 2008 and 2009. Program growth for 2011 is expected to increase by 45 percent, representing almost $1 billion in obligated lending authority, comprised of 6,933 loans. Even through the national foreclosure crisis, the program maintains a claims rate of less than one percent.

Object Classification (in millions of dollars)


Identification code 86-0223-0-1-371 2009 actual 2010 est. 2011 est.

Direct obligations:
25.2 Other services 1 1
41.0 Grants, subsidies, and contributions 12 8 8



99.9 Total new obligations 13 8 9

Indian Housing Loan Guarantee Fund Financing Account

Program and Financing (in millions of dollars)


Identification code 86-4104-0-3-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Default Claims 5 7 7
08.02 Downward Re-estimate 7 7
08.04 Payment of Interest on Downward Re-Estimate 1 1



08.91 Subtotal 8 8



10.00 Total new obligations 13 15 7

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 25 38 41
22.00 New financing authority (gross) 26 18 11



23.90 Total budgetary resources available for obligation 51 56 52
23.95 Total new obligations -13 -15 -7



24.40 Unobligated balance carried forward, end of year 38 41 45

New financing authority (gross), detail:
Mandatory:
67.10 Authority to borrow 5 7
69.00 Offsetting collections (cash) 18 11 11
69.10 Change in uncollected customer payments from Federal sources (unexpired) 3



69.90 Spending authority from offsetting collections (total mandatory) 21 11 11



70.00 Total new financing authority (gross) 26 18 11

Change in obligated balances:
72.40 Obligated balance, start of year -3 -7 8
73.10 Total new obligations 13 15 7
73.20 Total financing disbursements (gross) -14
74.00 Change in uncollected customer payments from Federal sources (unexpired) -3



74.40 Obligated balance, end of year -7 8 15

Outlays (gross), detail:
87.00 Total financing disbursements (gross) 14

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00 Federal sources: Payments from program account -10 -7 -8
88.25 Interest on uninvested funds -1 -1
88.40 Non-Federal sources -7 -3 -3



88.90 Total, offsetting collections (cash) -18 -11 -11
Against gross financing authority only:
88.95 Change in receivables from program accounts -3

Net financing authority and financing disbursements:
89.00 Financing authority 5 7
90.00 Financing disbursements -4 -11 -11

Status of Guaranteed Loans (in millions of dollars)


Identification code 86-4104-0-3-604 2009 actual 2010 est. 2011 est.

Position with respect to appropriations act limitation on commitments:
2111 Limitation on guaranteed loans made by private lenders 420 919 994
2121 Limitation available from carry-forward 173 92 92
2143 Uncommitted limitation carried forward -92 -92 -92



2150 Total guaranteed loan commitments 501 919 994
2199 Guaranteed amount of guaranteed loan commitments 501 919 994

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year 813 1,173 2,045
2231 Disbursements of new guaranteed loans 395 919 994
2251 Repayments and prepayments -30 -40 -40
Adjustments:
2262 Terminations for default that result in acquisition of property -2
2263 Terminations for default that result in claim payments -3 -7 -7
2264 Other adjustments, net



2290 Outstanding, end of year 1,173 2,045 2,992

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding, end of year 1,173 2,045 2,992

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 2008 actual 2009 actual

ASSETS:
1101 Federal assets: Fund balances with Treasury 22 32


1999 Total assets 22 32
LIABILITIES:
2103 Federal liabilities: Debt Payable to Treasury 5
Non-Federal liabilities:
2204 Liabilities for loan guarantees 14 13
2207 Unearned revenues and advances 8 14


2999 Total liabilities 22 32


4999 Total liabilities and net position 22 32

native hawaiian housing loan guarantee fund program account

[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), $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: 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.] (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0233-0-1-371 2009 actual 2010 est. 2011 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 3 4 4
22.00 New budget authority (gross) 1 1



23.90 Total budgetary resources available for obligation 4 5 4
23.95 Total new obligations -1 -1



24.40 Unobligated balance carried forward, end of year 4 4 3

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 -1



74.40 Obligated balance, end of year

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 1
86.93 Outlays from discretionary balances 1



87.00 Total outlays (gross) 1 1

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

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


Identification code 86-0233-0-1-371 2009 actual 2010 est. 2011 est.

Guaranteed loan levels supportable by subsidy budget authority:
215001 Native Hawaiian Housing Loan Guarantees 14 42 42



215999 Total loan guarantee levels 14 42 42
Guaranteed loan subsidy (in percent):
232001 Native Hawaiian Housing Loan Guarantees 2.52 2.52 0.83



232999 Weighted average subsidy rate 2.52 2.52 0.83
Guaranteed loan subsidy budget authority:
233001 Native Hawaiian Housing Loan Guarantees 1



233999 Total subsidy budget authority 1
Guaranteed loan subsidy outlays:
234001 Native Hawaiian Housing Loan Guarantees 1 1



234999 Total 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 basis. 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. No funds are requested for 2011 as there are sufficient unobligated balances to meet program demand.

Native Hawaiian Housing Loan Guarantee Fund Financing Account

Program and Financing (in millions of dollars)


Identification code 86-4351-0-3-371 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Default Claims 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



24.40 Unobligated balance carried forward, end of year

New financing authority (gross), detail:
Mandatory:
69.00 Offsetting collections (cash) 1 1

Change in obligated balances:
72.40 Obligated balance, start of year 1
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 2009 actual 2010 est. 2011 est.

Position with respect to appropriations act limitation on commitments:
2111 Limitation on guaranteed loans made by private lenders 42 42 42
2121 Limitation available from carry-forward 184 212 212
2143 Uncommitted limitation carried forward -212 -212 -212



2150 Total guaranteed loan commitments 14 42 42
2199 Guaranteed amount of guaranteed loan commitments 14 42 42

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year 80 80 116
2231 Disbursements of new guaranteed loans 3 41
2251 Repayments and prepayments -2 -4 -4
2263 Adjustments: Terminations for default that result in claim payments -1 -1 -1



2290 Outstanding, end of year 80 116 111

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding, end of year 8 116 111

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 2009 actual 2010 est. 2011 est.

Obligations by program activity:
08.02 Downward Reestimate 2 2
08.04 Interest on reestimate 1



10.00 Total new obligations 2 3

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 13 13 12
22.00 New financing authority (gross) 2 2 2



23.90 Total budgetary resources available for obligation 15 15 14
23.95 Total new obligations -2 -3



24.40 Unobligated balance carried forward, end of year 13 12 14

New financing authority (gross), detail:
Mandatory:
69.00 Offsetting collections (cash) 2 2 2

Change in obligated balances:
72.40 Obligated balance, start of year 3
73.10 Total new obligations 2 3
73.20 Total financing disbursements (gross) -2



74.40 Obligated balance, end of year 3 3

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 -1 -2 -2
88.25 Interest on uninvested funds -1



88.90 Total, offsetting collections (cash) -2 -2 -2

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

Status of Guaranteed Loans (in millions of dollars)


Identification code 86-4244-0-3-604 2009 actual 2010 est. 2011 est.

Position with respect to appropriations act limitation on commitments:
2111 Limitation on guaranteed loans made by private lenders 17 18 20
2121 Limitation available from carry-forward 23 32 32
2143 Uncommitted limitation carried forward -32 -32 -32



2150 Total guaranteed loan commitments 8 18 20
2199 Guaranteed amount of guaranteed loan commitments 8 18 20

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year 99 106 116
2231 Disbursements of new guaranteed loans 14 15 15
2251 Repayments and prepayments -5 -5 -5
2263 Adjustments: Terminations for default that result in claim payments
2264 Other adjustments, net -2



2290 Outstanding, end of year 106 116 126

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding, end of year 101 114 115

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 2008 actual 2009 actual

ASSETS:
1101 Federal assets: Fund balances with Treasury 14 13


1999 Total assets 14 13
LIABILITIES:
2204 Non-Federal liabilities: Liabilities for loan guarantees 14 13


2999 Total liabilities 14 13


4999 Total liabilities and net position 14 13

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.), [$335,000,000] $340,000,000, to remain available until September 30, [2011] 2012, except that amounts allocated pursuant to section 854(c)(3) of such Act shall remain available until September 30, [2012] 2013: 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. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0308-0-1-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 HOPWA Formula Grants 277 294 303
00.02 HOPWA Competitive Grants 40 31 33
00.03 Technical Assistance 1



10.00 Total new obligations (object class 41.0) 318 325 336

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 103 93 100
22.00 New budget authority (gross) 308 332 337



23.90 Total budgetary resources available for obligation 411 425 437
23.95 Total new obligations -318 -325 -336



24.40 Unobligated balance carried forward, end of year 93 100 101

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 310 335 340
41.00 Transferred to other accounts -2 -3 -3



43.00 Appropriation (total discretionary) 308 332 337

Change in obligated balances:
72.40 Obligated balance, start of year 434 434 426
73.10 Total new obligations 318 325 336
73.20 Total outlays (gross) -317 -333 -304
73.40 Adjustments in expired accounts (net) -1



74.40 Obligated balance, end of year 434 426 458

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 2 7 7
86.93 Outlays from discretionary balances 315 326 297



87.00 Total outlays (gross) 317 333 304

Net budget authority and outlays:
89.00 Budget authority 308 332 337
90.00 Outlays 317 333 304

The Housing Opportunities for Persons with AIDS (HOPWA) program is the only Federal program dedicated to address the urgent housing needs of low-income Americans living with HIV and AIDS. HOPWA funding provides States and localities with resources and incentives to devise long-term comprehensive strategies for planning and providing housing and supportive services to meet the complex, multiple needs of persons living with HIV and AIDS and their families. HOPWA funds have been demonstrated to help reduce the risk of homelessness, increase housing stability and improve access to HIV care and health outcomes for program participants.

Ninety percent of HOPWA funds are distributed to States and eligible metropolitan areas according to a formula, which is based on the number of AIDS cases in the jurisdiction. The remaining 10 percent is awarded competitively to States, local governments, and private nonprofit entities, including faith-based organizations, for projects of national significance. Awards are also made to States and local governments for projects in jurisdictions that do not qualify for a formula allocation. HUD provides funding priority to the renewal of expiring competitive projects that provide permanent supportive housing. The $340 million requested for 2011 will support outcome goals in which assisted households will achieve housing stability in permanent housing.

community development fund

For assistance to units of State and local government, and to other entities, for economic and community development activities, and for other purposes, [$4,450,000,000] $4,380,100,000, to remain available until September 30, [2012] 2013, unless otherwise specified: Provided, That of the total amount provided, [$3,990,068,480] $3,990,100,000 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 $65,000,000 shall be for grants to Indian tribes notwithstanding section 106(a)(1) of such Act, of which, notwithstanding any other provision of law (including section 204 of this Act), up to $3,960,000 may be used for emergencies that constitute imminent threats to health and safety.

[Of the amount made available under this heading, $172,843,570 shall be available for grants for the Economic Development Initiative (EDI) to finance a variety of targeted economic investments in accordance with the terms and conditions specified in the explanatory statement accompanying this Act: Provided, That none of the funds provided under this paragraph may be used for program operations: Provided further, That, for fiscal years 2008, 2009 and 2010, no unobligated funds for EDI grants may be used for any purpose except acquisition, planning, design, purchase of equipment, revitalization, redevelopment or construction.]

[Of the amount made available under this heading, $22,087,950 shall be available for neighborhood initiatives that are utilized to improve the conditions of distressed and blighted areas and neighborhoods, to stimulate investment, economic diversification, and community revitalization in areas with population outmigration or a stagnating or declining economic base, or to determine whether housing benefits can be integrated more effectively with welfare reform initiatives: Provided, That amounts made available under this paragraph shall be provided in accordance with the terms and conditions specified in the explanatory statement accompanying this Act.]

[The referenced explanatory statement under this heading in title II of division K of Public Law 110-161 is deemed to be amended by striking "Old Town Boys and Girls Club, Albuquerque, NM, for renovation of the existing Old Town Boys and Girls Club accompanied by construction of new areas for the Club'' and inserting "Old Town Boys and Girls Club, Albuquerque, NM, for renovation of the Heights Boys and Girls Club''.]

[The referenced statement of the managers under this heading "Community Planning and Development'' in title II of division K of Public Law 110-161 is deemed to be amended by striking "Custer County, ID for acquisition of an unused middle school building'' and inserting "Custer County, ID, to construct a community center''.]

[The referenced explanatory statement under this heading in division I of Public Law 111-8 is deemed to be amended with respect to "Hawaii County Office of Housing and Community Development, HI'' by striking "Senior Housing Renovation Project'' and inserting "Transitional Housing Project''.]

[The referenced statement of the managers under this heading "Community Planning and Development'' in title II of division I of Public Law 111-8 is deemed to be amended by striking "Custer County, ID, to purchase a middle school building'' and inserting "Custer County, ID, to construct a community center''.]

[The referenced explanatory statement under the heading "Community Development Fund'' in title II of division K of Public Law 110-161 is deemed to be amended with respect to "Emergency Housing Consortium in San Jose, CA'' by striking "for construction of the Sobrato Transitional Center, a residential facility for homeless individuals and families'' and inserting "for improvements to homeless services and prevention facilities''.]

Of the amounts made available under this heading, $150,000,000 shall be available for the Catalytic Investment Competition Grants program with the purpose of providing economic development gap financing to implement and capitalize innovative and targeted economic investment: Provided, That grant funds shall be targeted to communities or neighborhoods: (1) experiencing demonstrated distress as defined by the Secretary; and (2) that have developed an innovative and robust plan with measurable outcomes to increase jobs and improve economic vitality in a target area: Provided further, That grant funds may be used for, but not limited, to activities that: (1) implement projects designed to reclaim vacant property; (2) remove or ameliorate property-related obstacles to economic recovery; and (3) support economic activities related to transit-oriented development: Provided further, That an eligible applicant shall be a unit of general local government; a non-profit entity; or a consortium that shall include an eligible public entity and a designated lead applicant and may consist of states, local units of governments, community development corporations, and for-profit and non-profit entities: Provided further that an eligible applicant shall exhibit a plan for the funds that includes measurable outcomes for job creation and economic activity and the capacity to implement such a plan: Provided further, That except as otherwise provided by this paragraph, amounts appropriated under this heading for the Catalytic Investment Competition Grants program shall be treated as though such funds were community development block grant funds under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.): Provided further, That in administering any amounts appropriated under this heading for the Catalytic Investment Competition Grants program, the Secretary may waive or specify alternative requirements to any provision under Title I of the Housing and Community Development Act of 1974 (except for those related to fair housing, nondiscrimination, labor standards, and the environment) to achieve the purposes of this proviso: Provided further, That all of the funds appropriated or otherwise made available under this heading for the Catalytic Investment Competition Grants program shall be used with respect to individuals and families whose income does not exceed 120 percent of area median income: Provided further, That for purposes of environmental review, if the applicant is not a unit of general local government, assistance and projects under this heading shall be treated as assistance for special projects that are subject to section 305(c) of the Multifamily Housing Property Disposition Reform Act of 1994, and shall be subject to the regulations issued by the Secretary to implement such section: Provided further, That the Secretary shall develop and publish guidelines for the use of funds made available for the Catalytic Investment Competition Grants program including, but not limited to, eligibility criteria, eligible activities, minimum grant amounts, and performance metrics.

Of the amounts made available under this heading, $150,000,000 shall be made available for a Sustainable Communities Initiative to improve regional planning efforts that integrate housing and transportation decisions, and increase the capacity to improve land use and zoning: Provided, That $100,000,000 shall be for Regional Integrated Planning Grants to support the linking of transportation and land use planning: Provided further, That not less than $25,000,000 of the funding made available for Regional Integrated Planning Grants shall be awarded to metropolitan areas of less than 500,000: Provided further, That $40,000,000 shall be for Community Challenge Planning Grants to foster reform and reduce barriers to achieve affordable, economically vital, and sustainable communities: [Provided further, That before funding is made available for Regional Integrated Planning Grants or Community Challenge Planning Grants, the Secretary, in coordination with the Secretary of Transportation, shall submit a plan to the House and Senate Committees on Appropriations, the Senate Committee on Banking and Urban Affairs, and the House Committee on Financial Services establishing grant criteria as well as performance measures by which the success of grantees will be measured:] Provided further, That the Secretary will consult with the Secretary of Transportation in evaluating grant proposals: Provided further, That up to $10,000,000 shall be for a joint Department of Housing and Urban Development and Department of Transportation research effort that shall include a rigorous evaluation of the Regional Integrated Planning Grants and Community Challenge Planning Grants programs, as well as to provide funding for a clearinghouse and capacity building efforts: [Provided further, That of the amounts made available under this heading, $25,000,000 shall be made available for the Rural Innovation Fund for grants to Indian tribes, State housing finance agencies, State community and/or economic development agencies, local rural nonprofits and community development corporations to address the problems of concentrated rural housing distress and community poverty: Provided further, That of the funding made available under the previous proviso, at least $5,000,000 shall be made available to promote economic development and entrepreneurship for federally recognized Indian Tribes, through activities including the capitalization of revolving loan programs and business planning and development, funding is also made available for technical assistance to increase capacity through training and outreach activities:] Provided further, That of the amounts made available under this heading, $25,000,000 [is for grants pursuant to section 107 of the Housing and Community Development Act of 1974 (42 U.S.C. 5307)] shall be made available for the University Community Fund for grants to assist universities in revitalizing surrounding communities, with special attention to Historically Black Colleges and Universities, Tribal Colleges and Universities, Alaska Native/Native Hawaiian institutions, and Hispanic-Servicing Institutions: Provided further, That the Secretary shall develop and publish guidelines for the use of such competitive funds including, but not limited to, eligibility criteria, minimum grant amounts, and performance metrics. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0162-0-1-451 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Community Development Formula Grants 3,705 3,945 3,946
00.03 Indian Tribes 63 132 65
00.04 Special Purpose Grants 4 4
00.06 Recovery Act, Insular 7
00.07 Economic Development Initiative Grants 118 369
00.08 Neighborhood Initiative Demonstration 16 42
00.09 Recovery Act, Indian Tribes 10
00.10 Disaster Assistance 3,213 5,124
00.11 Recovery Act, CDBG 955
00.12 Recovery Act, NSP Competitive 1,980
00.13 Sustainable Communities 150 150
00.14 Rural Fund 25
00.15 University Fund 25 25
00.16 Administration, Operations, and Management 1
00.17 Catalytic Investments 150



10.00 Total new obligations (object class 41.0) 8,092 11,796 4,336

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 13,115 7,969 578
21.45 Adjustments to unobligated balance carried forward, start of year -3,920
22.00 New budget authority (gross) 6,867 4,405 4,336



23.90 Total budgetary resources available for obligation 16,062 12,374 4,914
23.95 Total new obligations -8,092 -11,796 -4,336
23.98 Unobligated balance expiring or withdrawn -1



24.40 Unobligated balance carried forward, end of year 7,969 578 578

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 6,900 4,450 4,380
41.00 Transferred to other accounts -33 -45 -44



43.00 Appropriation (total discretionary) 6,867 4,405 4,336

Change in obligated balances:
72.40 Obligated balance, start of year 15,671 17,348 21,914
73.10 Total new obligations 8,092 11,796 4,336
73.20 Total outlays (gross) -6,407 -7,230 -8,021
73.40 Adjustments in expired accounts (net) -8



74.40 Obligated balance, end of year 17,348 21,914 18,229

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 24 44 43
86.93 Outlays from discretionary balances 6,383 7,186 7,978



87.00 Total outlays (gross) 6,407 7,230 8,021

Net budget authority and outlays:
89.00 Budget authority 6,867 4,405 4,336
90.00 Outlays 6,407 7,230 8,021

The Community Development Fund account includes the Community Development Block Grant (CDBG) and a number of Administration initiatives administered by the Department of Housing and Urban Development (HUD). The CDBG program provides flexible annual formula grants to the States, Insular Areas, and more than 1,160 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 public infrastructure improvements, housing rehabilitation and construction, job creation and retention, and public services (e.g., child care). Seventy percent of the CDBG formula grants are distributed to mainly urban areas (entitlement communities), and 30 percent to the States (non-entitlement communities).

The 2011 Budget fully funds the CDBG program at $4.4 billion. In addition, the Budget proposes a number of improvements to the CDBG program, including redesigning the state and local government consolidated plans and planning process, increasing accountability, and improving performance metrics in grantee reporting. Further, long-term disaster recovery reforms, including housing-related issues, are being considered as a part of the White House Long-Term Disaster Recovery Working Group and recommendations will be presented to the President this spring.

A new initiative, the Catalytic Investment Competition Grants program will provide $150 million in competitive grants with the purpose of providing economic development and gap financing to implement and capitalize innovative and targeted economic investment for neighborhood and community revitalization for low- to moderate-income families. The outcomes of the grants will be measured improvement in economic activity and job creation in targeted neighborhoods. The program will create a competitive funding stream that is responsive to changes in economic and market conditions. The funds will be targeted towards communities or neighborhoods experiencing demonstrated distress as defined by the Secretary and that have developed an innovative and robust plan with measurable outcomes to improve economic vitality and increase jobs in a target area. The definition of distress may include, but is not limited to, large-scale property vacancy and abandonment due to long-term employment and population loss. The plans to improve economic vitality may vary, including increasing economic development that is centrally located or near public transit.

Grant funds may be used for, but are not limited to, activities that: 1) implement projects designed to reclaim vacant property, for the purposes of creating green infrastructure and other environmentally and economically sustainable uses; 2) remove or ameliorate property-related obstacles to economic recovery; 3) support assistance to small and medium-sized businesses and other redevelopment activities to facilitate economic development, neighborhood viability, high quality infrastructure, and attractive amenities in targeted neighborhoods; 4) support economic activities related to transit-oriented development; and 5) administrative costs, as established by the Secretary.

The Department will consider how much and to what extent the project will complement and leverage other community development and revitalization activities. A project may implement activities to augment the Choice Neighborhoods Initiative, Promise Neighborhoods, HOPE VI, Sustainable Communities, or other place-based strategies to help strengthen existing and planned investments in targeted neighborhoods to improve economic viability, extend neighborhood transformation efforts, and foster viable and sustainable communities. Applicants will be required to leverage other federal resources, such as, concentrating CDBG investments in particular neighborhoods, applying Section 108 Loan Guarantees, and local and state economic development programs.

The 2011 Budget funds the Sustainable Communities Initiative at $150 million, equal to 2010. The Administration believes that affordable housing is best developed "in context" of communities and regions, because proximity to transit, jobs, and retail and other amenities influences the long-term success of both the housing and its occupants. Walkable, transit-oriented, mixed-income and mixed-use communities substantially reduce transportation costs (now a greater part of many family budgets than housing costs), create energy savings (i.e., reducing Vehicle-Miles Traveled), reduce transportation-related emissions, and enhance access to employment and educational opportunities. This initiative has four components.

First, HUD will continue to collaborate with the Department of Transportation (DOT) and the Environmental Protection Agency (EPA) to offer Sustainable Communities Planning Grants with the requested funds. The program will catalyze the next generation of integrated metropolitan transportation, housing, land use, and energy planning using the most sophisticated data, analytics, and geographic information systems. These integrated plans will inform state, metropolitan and local decisions on how and where to allocate Federal, state, and local transportation, infrastructure, and housing investments. Better coordination of transportation, infrastructure and housing investments will result in more sustainable development patterns, more affordable communities, reduced greenhouse gas emissions, and more transit-accessible housing choices for residents and firms.

Second, this initiative will fund challenge grants to help localities implement the Sustainable Communities Plans. These investments will provide a local component to the regional planning initiative, enabling local and multi-jurisdictional partnerships to put in place the policies, codes, tools, and critical capital investments to achieve sustainable development patterns. The funding is intended to incentivize rapid changes in practice by local jurisdictions and to properly scale this transforming initiative to meet the substantial interest by communities in meeting sustainability visions initiated in 2010.

Third, the proposal will support the creation and implementation of a capacity-building program and tools clearinghouse designed to support both Sustainable Communities grantees and other communities interested in becoming more sustainable. As of 2009, the number of mayors that have signed the Climate Protection goals is significantly more than could be supported through the planning and challenge grant program. This clearinghouse and educational program will be designed to assist a wide array of stakeholders and build the capacity of all levels of government to implement sustainable community strategies.

Finally, the Initiative will provide additional funding for a joint HUD-DOT-EPA research effort designed to advance transportation and housing linkages on a number of levels.

For 2011, the Administration will also expand and improve the coordination of Federal efforts to incentivize state and local government to plan for and implement pre-disaster mitigation strategies through the Sustainable Communities Initiative. Through a partnership with the Department of Homeland Security's Federal Emergency Management Agency, the goal is to support strategic local approaches to sustainable development by coupling hazard mitigation with related community development goals and activities that reduce risks while protecting life, property, and the environment.

This account also funds the University Community Fund at $25 million. These funds serve to promote revitalization in communities surrounding the universities, with a renewed emphasis on energy conservation, homeownership training/counseling, and other community and economic development activities.

The Indian Community Development program will continue to be funded in this account at $65 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.

This account also reflects prior year CDBG disaster supplementals spending, the 2009 American Recovery and Reinvestment Act funding of $1 billion in CDBG formula grants, and $2 billion for Neighborhood Stabilization Program (NSP) II competitive grants. The NSP grants are for emergency assistance for the redevelopment of abandoned and foreclosed homes and are in addition to $3.92 billion NSP funding under the Housing and Economic Recovery Act of 2008, which was a mandatory appropriation and is reflected in a separate account.

Empowerment Zones/enterprise Communities/renewal Communities

Program and Financing (in millions of dollars)


Identification code 86-0315-0-1-451 2009 actual 2010 est. 2011 est.

Change in obligated balances:
72.40 Obligated balance, start of year 52 36 19
73.20 Total outlays (gross) -16 -17 -17



74.40 Obligated balance, end of year 36 19 2

Outlays (gross), detail:
86.93 Outlays from discretionary balances 16 17 17

Net budget authority and outlays:
89.00 Budget authority
90.00 Outlays 16 17 17

No new appropriation is requested for the Empowerment Zone (EZ) and Renewal Community (RC) programs in the 2011 Budget. The EZs' and RCs' tax incentives were scheduled to expire on December 31, 2010. The Administration supports extension of the EZs and RCs through December 31, 2011.

Empowerment zones and renewal communities are federally designated economically distressed areas that receive a mix of tax incentives and grants to promote job creation and economic revitalization. Recent research suggests that an area's designation as an EZ can lead to substantial improvements in employment rates for local resident (including among high school dropouts), declines in poverty rates, and increases in property values and rents.

The Administration supports extending the Federal Community Renewal tax incentives so that the EZs' and RCs' ongoing efforts to encourage and support business investment, economic revitalization, and expansion of job opportunities for residents in the designated high poverty, high unemployment census tracts may continue. The initiative complements the President's goals of strengthening communities and focusing Federal resources on areas of greatest need, primarily through the expansion of business opportunities. In addition, as part of the Administration's place-based agenda, the Administration will explore new ways to target economically distressed areas; simplify the mix of tax incentives and grants; strengthen data reporting and evaluation; connect zones to broader regional economies; and increase benefits to small businesses.

An amendment to the Internal Revenue Code enacted in fiscal year 2001 (the Community Renewal Tax Relief Act of 2000) approved major tax incentives to revitalize areas of pervasive poverty, unemployment, and general distress, and HUD designated 40 urban and rural RCs and a third round of eight urban EZs under the 2001 law. This law also allows the earlier 22 urban EZs to receive the same package of tax incentives, all of which expired December 31, 2009.

brownfields redevelopment

[For competitive economic development grants, as authorized by section 108(q) of the Housing and Community Development Act of 1974, as amended, for Brownfields redevelopment projects, $17,500,000, to remain available until September 30, 2011: Provided, That no funds made available under this heading may be used to establish loan loss reserves for the section 108 Community Development Loan Guarantee program.] (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0314-0-1-451 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Cleanup and develop contaminated sites 12 8 10



10.00 Total new obligations (object class 41.0) 12 8 10

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 10 8 18
22.00 New budget authority (gross) 10 18



23.90 Total budgetary resources available for obligation 20 26 18
23.95 Total new obligations -12 -8 -10



24.40 Unobligated balance carried forward, end of year 8 18 8

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 10 18

Change in obligated balances:
72.40 Obligated balance, start of year 92 72 48
73.10 Total new obligations 12 8 10
73.20 Total outlays (gross) -22 -32 -29
73.40 Adjustments in expired accounts (net) -10



74.40 Obligated balance, end of year 72 48 29

Outlays (gross), detail:
86.93 Outlays from discretionary balances 22 32 29

Net budget authority and outlays:
89.00 Budget authority 10 18
90.00 Outlays 22 32 29

The 2011 Budget requests no funding for the Brownfields Economic Development Initiative (BEDI) program. BEDI is a competitive grant program designed to assist cities with the redevelopment of brownfield sites for the purposes of economic development and job creation. Brownfields are abandoned, idled, and underused industrial and commercial facilities and land where expansion and redevelopment is burdened by real or potential environmental contamination. The program is relatively small and local governments have access to other public and private funds, including the larger Community Development Block Grant (CDBG), which can serve similar purposes.

home investment partnerships program

For the HOME investment partnerships program, as authorized under title II of the Cranston-Gonzalez National Affordable Housing Act, as amended, [$1,825,000,000] $1,650,000,000, to remain available until September 30, [2012] 2013: Provided, That, funds provided in prior appropriations Acts for technical assistance, that were made available for Community Housing Development Organizations technical assistance, and that still remain available, may be used for HOME technical assistance notwithstanding the purposes for which such amounts were appropriated. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0205-0-1-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 HOME Investment Program 1,838 1,825 1,641
00.02 Technical Assistance 23
00.03 Housing Counseling Assistance 50
00.04 Tax Credit Assistance Program 2,250
00.05 Transformation Initiative 18 17



10.00 Total new obligations (object class 41.0) 4,161 1,843 1,658

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 376 289 253
22.00 New budget authority (gross) 4,071 1,807 1,633
22.10 Resources available from recoveries of prior year obligations 3



23.90 Total budgetary resources available for obligation 4,450 2,096 1,886
23.95 Total new obligations -4,161 -1,843 -1,658



24.40 Unobligated balance carried forward, end of year 289 253 228

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 4,075 1,825 1,650
41.00 Transferred to other accounts -4 -18 -17



43.00 Appropriation (total discretionary) 4,071 1,807 1,633

Change in obligated balances:
72.40 Obligated balance, start of year 5,048 7,283 6,885
73.10 Total new obligations 4,161 1,843 1,658
73.20 Total outlays (gross) -1,915 -2,241 -4,034
73.40 Adjustments in expired accounts (net) -8
73.45 Recoveries of prior year obligations -3



74.40 Obligated balance, end of year 7,283 6,885 4,509

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 9 36 33
86.93 Outlays from discretionary balances 1,906 2,205 4,001



87.00 Total outlays (gross) 1,915 2,241 4,034

Net budget authority and outlays:
89.00 Budget authority 4,071 1,807 1,633
90.00 Outlays 1,915 2,241 4,034

The HOME Investment Partnerships Program is authorized by the National Affordable Housing Act (P.L. 101-625), as amended. This program provides flexible annual formula grant assistance to States and units of local government to increase the supply of affordable housing and expand homeownership for low- to very-low income persons. Sixty percent of the formula grant funds is awarded to participating local governments and 40 percent is awarded to states. These communities often use the funds in partnership with local non-profit organizations to fund a wide range of activities that build, buy, and/or rehabilitate affordable housing for rent or homeownership or provide direct rental assistance to low-income people. Projects funded by HOME often leverage private dollars and are used in conjunction with the Low-Income Housing Tax Credit, Community Development Block Grant, and local funds.

Over time, the funding provided in the 2011 Budget is estimated to result in the production of almost 69,220 units of affordable housing through new construction, rehabilitation, and/or acquisition. It is also estimated that communities will use a portion of their funding to support tenant-based rental assistance for over 15,929 units.

In addition, the Budget does not include distinct funding for the Self-Help Homeownership Opportunity Program (SHOP) that had been previously funded in the separate SHOP account. However, all eligible activities of the SHOP program are eligible activities under the HOME program.

This account also includes a $2.25 billion special allocation of HOME funds provided under the American Recovery and Reinvestment Act of 2009 (P.L. 111-5) to accelerate the production and preservation of tens of thousands of units of affordable housing that have received an award of Low-Income Housing Tax Credits.

Housing Trust Fund

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)


Identification code 86-5553-4-2-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Housing Trust Fund 1,000



10.00 Total new obligations (object class 41.0) 1,000

Budgetary resources available for obligation:
22.00 New budget authority (gross) 1,000
23.95 Total new obligations -1,000

New budget authority (gross), detail:
Mandatory:
60.00 Appropriation 1,000

Change in obligated balances:
73.10 Total new obligations 1,000
73.20 Total outlays (gross) -20



74.40 Obligated balance, end of year 980

Outlays (gross), detail:
86.97 Outlays from new mandatory authority 20

Net budget authority and outlays:
89.00 Budget authority 1,000
90.00 Outlays 20

The Housing Trust Fund was originally authorized in the Housing and Economic Recovery Act of 2008 (Pub. L. 110-289) under section 1338 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 1301 et seq.) with a dedicated funding stream from assessments on Fannie Mae and Freddie Mac. However, the Federal Housing Finance Agency has indefinitely suspended these assessments. The Budget proposes to fund the Housing Trust Fund through legislation directing $1 billion to finance the fund.

The purpose of the Housing Trust Fund is to provide grants to States to increase and preserve the supply of rental housing for extremely low- and very low-income families, and to increase homeownership for extremely low- and very low-income families. The funding will be distributed by formula to States or State-designated entities that will target resources to areas with substantial needs. The Housing Trust Fund will help address the growing shortage of affordable housing, which is one of the most serious social and economic problems facing the country. The funding will be used for production, preservation, and rehabilitation of affordable rental housing and for production, preservation, and rehabilitation of housing for homeownership (limited to 10 percent of the funding). Of the total amounts made available, not less than 75 percent shall be used to benefit extremely low-income households, for whom the affordable housing shortage problem is most acute. Over time, the funding provided for the Housing Trust Fund in 2011 is expected to produce approximately 29,000 rental units and 7,000 homebuyer units.

Capacity Building

For grant assistance to eligible recipients to develop the capacity and ability of community development corporations, community housing development organizations, and local governments to undertake community development and affordable housing projects and programs that benefit low-income families, $60,000,000, to remain available until September 30, 2013: Provided, That eligible recipients for assistance include national and regional intermediaries with local affiliates, and a partnership or consortia of such intermediaries, skilled in the development of community development and affordable housing capacity, as determined by the Secretary: Provided further, That assistance provided under this heading shall be matched from private sources in an amount equal to three times: Provided further, That assistance under this heading may be used for: (1) training, education, and support to enhance technical and administrative capabilities; (2) loans, grants, or predevelopment assistance; (3) market research and rigorous needs assistance in order to create data resources, and develop assessment measures and assessment tools to determine the need and focus for community development activities; (4) the assessment and determination that organizational mergers may better serve the community; and (5) such other activities as may be determined eligible by the Secretary to further the purposes of this heading: Provided further, That the Secretary shall develop and publish guidelines for the use of such competitive funds including, but not limited to, eligibility criteria, program requirements, eligible administrative costs, and performance metrics.

Program and Financing (in millions of dollars)


Identification code 86-0405-0-1-451 2009 actual 2010 est. 2011 est.

Budgetary resources available for obligation:
22.00 New budget authority (gross) 59



24.40 Unobligated balance carried forward, end of year 59

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 60
41.00 Transferred to other accounts -1



43.00 Appropriation (total discretionary) 59

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

Net budget authority and outlays:
89.00 Budget authority 59
90.00 Outlays

The 2011 Budget provides $60 million for a redesigned Capacity Building program. The Administration proposes a competitive grant program to develop the capacity and ability of community development corporations, community housing development organizations, and local governments to undertake community development and affordable housing projects and programs for low-income families.

Recipients will include national and regional intermediaries with local affiliates and partnerships, and consortia of intermediaries with demonstrated expertise. Eligible recipients will have: (1) demonstrated expertise and experience in housing and community development; (2) demonstrated sound and extensive understanding of the need for capacity building in relation to objective information and data; (3) successful past performance in administering technical assistance and capacity building funding; and (4) demonstrated compliance with any other factors or priorities as the Secretary may prescribe.

The economic downturn and foreclosure crisis have significantly depleted resources in local governments while increasing demand for services. Since states and cities face serious budget constraints, revenue declines often turn quickly into layoffs and cuts in services for the poor. In addition to non-profit intermediaries and other consortia, this program will work with states and cities to help them readily understand how to meet the needs of their communities , leverage private and other kinds of resources, and align existing programs to build resilience in tough economic times.

Assistance to non-profits and local governments will develop core skills of staff and management and enable them to become partners with the Administration to implement key initiatives such as Choice Neighborhoods, Sustainable Communities, and the Catalytic Competition, and to work to restore the economic vitality of their communities. Capacity building activities include the development of core skills to organize, manage, implement and access capital to carry out community development and affordable housing projects .

Grants provided under this program will require a three-to-one match from private sources.

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, $82,000,000, to remain available until September 30, 2012: Provided, That of the total amount provided under this heading, $27,000,000 shall be made available to the Self-Help and Assisted Homeownership Opportunity Program as authorized under section 11 of the Housing Opportunity Program Extension Act of 1996, as amended: Provided further, That $50,000,000 shall be made available for the second, third and fourth capacity building activities authorized under section 4(a) of the HUD Demonstration Act of 1993 (42 U.S.C. 9816 note), of which not less than $5,000,000 may be made available for rural capacity building activities: Provided further, That $5,000,000 shall be made available for capacity building activities as authorized in sections 6301 through 6305 of Public Law 110-246.] (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0176-0-1-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Self Help Housing Opportunity Program 27 26 26
00.02 Capacity Building 34 34 49
00.03 Housing Assistance Council 3 5



10.00 Total new obligations (object class 41.0) 64 65 75

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 60 60 76
22.00 New budget authority (gross) 64 81



23.90 Total budgetary resources available for obligation 124 141 76
23.95 Total new obligations -64 -65 -75



24.40 Unobligated balance carried forward, end of year 60 76 1

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 64 82
41.00 Transferred to other accounts -1



43.00 Appropriation (total discretionary) 64 81

Change in obligated balances:
72.40 Obligated balance, start of year 64 96 101
73.10 Total new obligations 64 65 75
73.20 Total outlays (gross) -32 -60 -76



74.40 Obligated balance, end of year 96 101 100

Outlays (gross), detail:
86.93 Outlays from discretionary balances 32 60 76

Net budget authority and outlays:
89.00 Budget authority 64 81
90.00 Outlays 32 60 76

The 2011 Budget requests no appropriations for the Self-Help Homeownership Opportunity Program. Activities under the Capacity Building for Community Development and Affordable Housing Program (formerly called Section 4) are requested separately under a new Capacity Building account.

The Self-Help Homeownership Opportunity Program (SHOP) is authorized by Section 11 of the Housing Opportunity Program Extension Act of 1996, and provides funds to increase the ability of non-profit organizations to leverage funds from other sources to assist low-income homebuyers willing to contribute "sweat equity" toward the construction of their houses. The Administration plans to encourage state and local government grantees of the larger HOME Investment Partnerships Program to fund SHOP projects, as the HOME statute includes the same eligible activities.

The Capacity Building for Community Development and Affordable Housing Program is authorized by Section 4 of the HUD Demonstration Act of 1993 to develop the capacity and ability of community development corporations and community development organizations to undertake community development and affordable housing projects and programs. The Administration proposes a redesigned Capacity Building program, which will expand eligible grantees for funding, and deepen the capacity of community-based organizations to more effectively assist low-income families.

Neighborhood Stabilization Program

Program and Financing (in millions of dollars)


Identification code 86-0344-0-1-451 2009 actual 2010 est. 2011 est.

Obligations by program activity:
09.01 Obligations 3,920



10.00 Total new obligations (object class 41.0) 3,920

Budgetary resources available for obligation:
21.45 Adjustments to unobligated balance carried forward, start of year 3,920
23.95 Total new obligations -3,920



24.40 Unobligated balance carried forward, end of year

Change in obligated balances:
72.40 Obligated balance, start of year 3,804 2,544
73.10 Total new obligations 3,920
73.20 Total outlays (gross) -116 -1,260 -1,107



74.40 Obligated balance, end of year 3,804 2,544 1,437

Outlays (gross), detail:
86.98 Outlays from mandatory balances 116 1,260 1,107

Net budget authority and outlays:
89.00 Budget authority
90.00 Outlays 116 1,260 1,107

The Neighborhood Stabilization Program (NSP) was authorized by the Housing and Economic Recovery Act of 2008 (HERA) and funded at $3.92 billion. In response to the foreclosure crisis, HERA directed HUD to develop a formula to distribute the funds to states and local governments with the greatest need. To determine the areas with the greatest need, the allocation formula had to be based on home foreclosures, subprime loans, and mortgage defaults or delinquencies. Grantees may use NSP funds for a number of eligible activities, including establish financing mechanisms; purchase and rehabilitate abandoned or foreclosed properties; establish land banks; demolish blighted structures; and redevelop vacant or demolished property. NSP grantees must use at least 25 percent of the funds appropriated for the purchase and redevelopment of abandoned or foreclosed residential properties that will be used to house individuals or families whose incomes do not exceed 50 percent of the area median income. In addition, all activities funded by NSP must benefit low- and moderate-income persons whose income does not exceed 120 percent of area median income.

In late September 2008, HUD announced direct NSP allocations to 309 jurisdictions, including all 50 states, Puerto Rico and the Insular Areas. Pursuant to HERA, grantees have 18 months from the date funds are made available to obligate the funds, meaning that all obligations and substantial disbursements are expected by the end of 2010.

The American Recovery and Reinvestment Act of 2009 (ARRA) made several changes to the NSP program as enacted by HERA and appropriated an additional $2 billion in funding for the NSP program. The ARRA funding for NSP is reflected within the Community Development Fund account .

homeless assistance grants

(including transfer of funds)

For the emergency [shelter] solutions grants program as authorized under subtitle B of title IV of the McKinney-Vento Homeless Assistance Act, as amended; the [supportive housing] continuum of care 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] rural housing stability assistance program as authorized under subtitle [F] D of title IV of such Act, [$1,865,000,000] $2,055,000,000, of which [$1,860,000,000] $2,050,000,000 shall remain available until September 30, [2012] 2013, and of which $5,000,000 shall remain available until expended for project-based rental assistance rehabilitation [projects] with 10-year grant terms and any rental assistance amounts that are recaptured under such continuum of care program 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 and emergency shelter grants, shall be used for permanent housing for individuals and families: Provided further, That all funds awarded for services shall be matched by not less than 25 percent in funding by each grantee] That up to $200,000,000 of the funds appropriated under this heading shall be available for such emergency solutions grants program: Provided further, That no less than $1,844,000,000 of the funds appropriated under this heading shall be available for such continuum of care and rural housing stability assistance programs: Provided further, That up to $6,000,000 of the funds appropriated under this heading shall be available for the national homeless data analysis project: Provided further, That for all match requirements applicable to funds made available under this heading for this fiscal year and prior years, a grantee may use (or could have used) as a source of match funds other funds administered by the Secretary and other Federal agencies unless there is (or was) a specific statutory prohibition on any such use of any such funds: Provided further, That the Secretary shall renew on an annual basis expiring contracts or amendments to contracts funded under the [shelter plus] continuum of care program if the program is determined to be needed under the applicable continuum of care and meets appropriate program requirements and financial standards, as determined by the Secretary: Provided further, That all awards of assistance under this heading shall be required to coordinate and integrate homeless programs with other mainstream health, social services, and employment programs for which homeless populations may be eligible, including Medicaid, State Children's Health Insurance Program, Temporary Assistance for Needy Families, Food Stamps, and services funding through the Mental Health and Substance Abuse Block Grant, Workforce Investment Act, and the Welfare-to-Work grant program: [Provided further, That up to $6,000,000 of the funds appropriated under this heading shall be available for the national homeless data analysis project: Provided further, That up to $12,650,000 of the funds made available under this heading may be transferred to and merged with the appropriation for "Transformation Initiative'':] 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] continuum of care renewals in fiscal year [2010] 2011. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0192-0-1-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Homeless Assistance Grants 1,348
00.02 National Homeless Data Analysis Project 3 2 6
00.03 Technical Assistance 7 4 2
00.05 Section 8 Moderate Rehabilitation SRO 17
00.06 Demonstration 1 10
00.07 Recovery Act - HPRP 1,485 7
00.08 Competitive Grant Renewals SPC&SHP 1,329 1,476
00.09 Competitive Grants - New Projects 87 53
00.10 Emergency Solutions Grants - Formula 150 200



10.00 Total new obligations (object class 41.0) 2,861 1,589 1,737

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 1,694 2,086 2,399
22.00 New budget authority (gross) 3,167 1,852 2,034
22.10 Resources available from recoveries of prior year obligations 95 50 50



23.90 Total budgetary resources available for obligation 4,956 3,988 4,483
23.95 Total new obligations -2,861 -1,589 -1,737
23.98 Unobligated balance expiring or withdrawn -9



24.40 Unobligated balance carried forward, end of year 2,086 2,399 2,746

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 3,177 1,865 2,055
41.00 Transferred to other accounts -10 -13 -21



43.00 Appropriation (total discretionary) 3,167 1,852 2,034

Change in obligated balances:
72.40 Obligated balance, start of year 2,375 3,536 3,203
73.10 Total new obligations 2,861 1,589 1,737
73.20 Total outlays (gross) -1,483 -1,872 -2,173
73.40 Adjustments in expired accounts (net) -122
73.45 Recoveries of prior year obligations -95 -50 -50



74.40 Obligated balance, end of year 3,536 3,203 2,717

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 5 19 20
86.93 Outlays from discretionary balances 1,478 1,853 2,153



87.00 Total outlays (gross) 1,483 1,872 2,173

Net budget authority and outlays:
89.00 Budget authority 3,167 1,852 2,034
90.00 Outlays 1,483 1,872 2,173

In 2011, the Administration will be implementing the HEARTH Act, legislation that combined HUD's three competitive grant programs—Shelter Plus Care, Supportive Housing, and Section 8 Moderate Rehabilitation Single Room Occupancy—into a single Continuum of Care program with flexibility to better meet community needs. Additionally, the HEARTH Act renames the Emergency Shelter Grants program as the Emergency Solutions Grant program and amends the program to place a larger focus on homelessness prevention. Finally, the legislation created the Rural Housing Stability Assistance program, which dedicates resources to preventing and ending homelessness in rural areas nationwide.

The Homeless Assistance Grants account provides funds for the Emergency Solutions Grant (ESG), Continuum of Care (CoC), and the Rural Housing Stability Assistance programs. These programs, which award funds through formula (ESG) and competitive (CoC and Rural Housing Stability Assistance) processes, 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 local plans.

The Budget requests $2.1 billion for a wide range of activities to assist homeless persons and prevent future homelessness. HUD estimates it will use $1.7 billion for competitive renewals in the CoC program, about $160 million for new competitive projects in the CoC and Rural Housing Stability Assistance program, and $200 million for the Emergency Solutions Grant Program. The HEARTH Act places a major emphasis on permanent housing for homeless individuals and families by requiring 30 percent of competitive funds to be used for this purpose.

Permanent Supportive Housing

Program and Financing (in millions of dollars)


Identification code 86-0342-0-1-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Homeless Grants 50
00.02 Project-Based Vouchers 7 16



10.00 Total new obligations (object class 41.0) 57 16

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 73 16
23.95 Total new obligations -57 -16



24.40 Unobligated balance carried forward, end of year 16

Change in obligated balances:
72.40 Obligated balance, start of year 54 60
73.10 Total new obligations 57 16
73.20 Total outlays (gross) -3 -10 -15



74.40 Obligated balance, end of year 54 60 45

Outlays (gross), detail:
86.93 Outlays from discretionary balances 3 10 15

Net budget authority and outlays:
89.00 Budget authority
90.00 Outlays 3 10 15

The Supplemental Appropriations Act, 2008 (P.L. 110-252) created this new account and provided $73 million for permanent supportive housing assistance as referenced in the Road Home Program of the Louisiana Recovery Authority (LRA). Of the total amount appropriated, $50 million is for permanent supportive housing, which serves approximately 1,000 homeless individuals and families living with disabilities. These grants are administered under the Shelter Plus Care program, as authorized under subtitle F of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11403 et seq.). The LRA would be eligible to apply for Homeless Assistance Grants to renew this assistance. Additionally, this account provides $23 million in project-based rental assistance vouchers to LRA to support an estimated 2,000 elderly and disabled disaster victims, as authorized, under section 8(o)(13) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)). Beginning in 2010, these vouchers are funded within the Tenant-Based Rental Assistance account.

Rural Housing and Economic Development

Program and Financing (in millions of dollars)


Identification code 86-0324-0-1-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Rural Housing and Economic Development 17 28



10.00 Total new obligations (object class 41.0) 17 28

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 18 28
22.00 New budget authority (gross) 26
22.10 Resources available from recoveries of prior year obligations 1



23.90 Total budgetary resources available for obligation 45 28
23.95 Total new obligations -17 -28



24.40 Unobligated balance carried forward, end of year 28

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 26

Change in obligated balances:
72.40 Obligated balance, start of year 37 38 40
73.10 Total new obligations 17 28
73.20 Total outlays (gross) -15 -26 -18
73.45 Recoveries of prior year obligations -1



74.40 Obligated balance, end of year 38 40 22

Outlays (gross), detail:
86.93 Outlays from discretionary balances 15 26 18

Net budget authority and outlays:
89.00 Budget authority 26
90.00 Outlays 15 26 18

The 2011 Budget does not provide any funding for the Rural Housing and Economic Development (RHED) program. The RHED program was created to encourage innovative approaches to serve the housing and economic development needs of the nation's rural communities.

Revolving Fund (liquidating Programs)

Program and Financing (in millions of dollars)


Identification code 86-4015-0-3-451 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Section 312 expenses 1 1 1



10.00 Total new obligations 1 1 1

Budgetary resources available for obligation:
22.00 New budget authority (gross) 1 2 2
22.40 Capital transfer to general fund -1 -1



23.90 Total budgetary resources available for obligation 1 1 1
23.95 Total new obligations -1 -1 -1



24.40 Unobligated balance carried forward, end of year

New budget authority (gross), detail:
Mandatory:
60.00 Appropriation 1 1 1
69.00 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 4 5 2
73.10 Total new obligations 1 1 1
73.20 Total outlays (gross) -4 -2



74.40 Obligated balance, end of year 5 2 1

Outlays (gross), detail:
86.97 Outlays from new mandatory authority 2 2
86.98 Outlays from mandatory balances 2



87.00 Total outlays (gross) 4 2

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 3 1

Status of Direct Loans (in millions of dollars)


Identification code 86-4015-0-3-451 2009 actual 2010 est. 2011 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, all of which are no longer active. The operational expenses are financed from a permanent, indefinite appropriation to administer the remaining repayments of loans and recaptures in the portfolio. Annually, any amounts in the account are returned as a dividend to the Treasury.

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 10 years ago. Since the sale of the Section 312 loan portfolio to the private sector in 2001, activity in this account has been minimal.

Balance Sheet (in millions of dollars)


Identification code 86-4015-0-3-451 2008 actual 2009 actual

ASSETS:
1101 Federal assets: Fund balances with Treasury 5 5
1601 Direct loans, gross 4 5
1603 Allowance for estimated uncollectible loans and interest (-) -5 -5


1604 Direct loans and interest receivable, net -1
1606 Foreclosed property 1 2


1699 Value of assets related to direct loans 2


1999 Total assets 5 7
LIABILITIES:
2207 Non-Federal liabilities: Other 1 1


2999 Total liabilities 1 1
NET POSITION:
3100 Appropriated capital 4 8
3300 Cumulative results of operations -2


3999 Total net position 4 6


4999 Total liabilities and net position 5 7

Object Classification (in millions of dollars)


Identification code 86-4015-0-3-451 2009 actual 2010 est. 2011 est.

Direct obligations:
25.2 Other services 1
32.0 Land and structures 1 1



99.9 Total new obligations 1 1 1

community development loan guarantees program account

[For the cost of guaranteed loans, $6,000,000, to remain available until September 30, 2011, as authorized by section 108 of the Housing and Community Development Act of 1974 (42 U.S.C. 5308): Provided, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974: Provided further, That these funds are available to subsidize total loan principal, any part of which is to be guaranteed, not to exceed $275,000,000, notwithstanding any aggregate limitation on outstanding obligations guaranteed in section 108(k) of the Housing and Community Development Act of 1974, as amended.] Subject to section 502 of the Congressional Budget Act of 1974, during fiscal year 2011, commitments to guarantee loans under section 108 of the Housing and Community Development Act of 1974, any part of which is guaranteed, shall not exceed a total principal amount of $500,000,000, notwithstanding any aggregate limitation on outstanding obligations guaranteed in subsection (k) of such section 108: Provided, That the Secretary shall collect fees from borrowers, notwithstanding subsection (m) of such section 108, to result in a credit subsidy cost of zero, and such fees such be collected in accordance with section 502(7) of the Congressional Budget Act of 1974. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0198-0-1-451 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.02 Community development loan guarantee credit subsidy 5 6
00.07 Upward Reestimate of Loan Guarantee 3 3



10.00 Total new obligations (object class 33.0) 8 9

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 1 2 2
22.00 New budget authority (gross) 9 9



23.90 Total budgetary resources available for obligation 10 11 2
23.95 Total new obligations -8 -9



24.40 Unobligated balance carried forward, end of year 2 2 2

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 6 6
Mandatory:
60.00 Appropriation 3 3



70.00 Total new budget authority (gross) 9 9

Change in obligated balances:
72.40 Obligated balance, start of year 13 13 11
73.10 Total new obligations 8 9
73.20 Total outlays (gross) -8 -11 -2



74.40 Obligated balance, end of year 13 11 9

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 1 1
86.93 Outlays from discretionary balances 4 7 2
86.97 Outlays from new mandatory authority 3 3



87.00 Total outlays (gross) 8 11 2

Net budget authority and outlays:
89.00 Budget authority 9 9
90.00 Outlays 8 11 2

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


Identification code 86-0198-0-1-451 2009 actual 2010 est. 2011 est.

Guaranteed loan levels supportable by subsidy budget authority:
215001 Community development loan guarantee levels 236 250 500



215999 Total loan guarantee levels 236 250 500
Guaranteed loan subsidy (in percent):
232001 Community development loan guarantee levels 2.26 2.40 0.00



232999 Weighted average subsidy rate 2.26 2.40 0.00
Guaranteed loan subsidy budget authority:
233001 Community development loan guarantee levels 5 6



233999 Total subsidy budget authority 5 6
Guaranteed loan subsidy outlays:
234001 Community development loan guarantee levels 4 2 2



234999 Total subsidy outlays 4 2 2
Guaranteed loan upward reestimates:
235001 Community development loan guarantee levels 3 3



235999 Total upward reestimate budget authority 3 3
Guaranteed loan downward reestimates:
237001 Community development loan guarantee levels -7 -17



237999 Total downward reestimate subsidy budget authority -7 -17

The 2011 Budget increases the guaranteed loan limit to $500 million, but does not request appropriations for the Community Development Loan Guarantee program (Section 108). Carry over Section 108 Loan Guarantee credit subsidy in this account will continue to be used until exhausted. Appropriations language requires zero credit subsidy cost and provides for the collection of fees to fund program costs. Program activities include economic development projects, housing rehabilitation, public facilities rehab, construction or installation for the benefit of low- to moderate-income persons, or to aid in the prevention of slums.

As required by the Federal Credit Reform Act of 1990, this account records the subsidy costs associated with the loan guarantees committed since 1992 (including modifications of direct loans or loan guarantees that resulted from obligations or commitments in any year), as well as administrative expenses for this program. The subsidy amounts are estimated on a present value basis; the administrative expenses are estimated on a cash basis.

Community Development Loan Guarantees Financing Account

Program and Financing (in millions of dollars)


Identification code 86-4096-0-3-451 2009 actual 2010 est. 2011 est.

Obligations by program activity:
08.02 Payment of Downward Reestimate to Receipt Account 4 11
08.04 Payment of Downward Reestimate to Receipt Account (Interest) 3 6



10.00 Total new obligations 7 17

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 109 115 107
22.00 New financing authority (gross) 13 9 6



23.90 Total budgetary resources available for obligation 122 124 113
23.95 Total new obligations -7 -17



24.40 Unobligated balance carried forward, end of year 115 107 113

New financing authority (gross), detail:
Mandatory:
69.00 Offsetting collections (cash) 13 9 6

Change in obligated balances:
72.40 Obligated balance, start of year -11 -12 17
73.10 Total new obligations 7 17
73.20 Total financing disbursements (gross) -8 12



74.40 Obligated balance, end of year -12 17 17

Outlays (gross), detail:
87.00 Total financing disbursements (gross) 8 -12

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00 Federal Sources: Payments from Program Account -8 -5 -2
88.25 Interest on uninvested funds -5 -4 -4



88.90 Total, offsetting collections (cash) -13 -9 -6

Net financing authority and financing disbursements:
89.00 Financing authority
90.00 Financing disbursements -5 -21 -6

Status of Guaranteed Loans (in millions of dollars)


Identification code 86-4096-0-3-451 2009 actual 2010 est. 2011 est.

Position with respect to appropriations act limitation on commitments:
2111 Limitation on guaranteed loans made by private lenders 265 275 500
2121 Limitation available from carry-forward 42
2142 Uncommitted loan guarantee limitation -71 -25
2143 Uncommitted limitation carried forward



2150 Total guaranteed loan commitments 236 250 500
2199 Guaranteed amount of guaranteed loan commitments 236 250 500

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year 2,189 2,219 2,119
2231 Disbursements of new guaranteed loans 195 150 210
2251 Repayments and prepayments -165 -250 -250



2290 Outstanding, end of year 2,219 2,119 2,079

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding, end of year 2,219 2,119 2,079

Guaranteed loans.—The 2011 Budget does not request appropriated funding for the Section 108 Loan Guarantees program. The Administration requests legislation to allow HUD to collect fees to offset credit subsidy costs. The financing account shows the status of privately financed guaranteed loan commitments made in and after 1992. 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 2008 actual 2009 actual

ASSETS:
1101 Federal assets: Fund balances with Treasury 96 102


1999 Total assets 96 102
LIABILITIES:
2204 Non-Federal liabilities: Liabilities for loan guarantees 96 102


2999 Total liabilities 96 102


4999 Total liabilities and net position 96 102

Community Development Loan Guarantees Liquidating Account

Program and Financing (in millions of dollars)


Identification code 86-4097-0-3-451 2009 actual 2010 est. 2011 est.

New budget authority (gross), detail:
Mandatory:
69.00 Offsetting collections (cash) 3
69.10 Change in uncollected customer payments from Federal sources (unexpired) -3



69.90 Spending authority from offsetting collections (total mandatory)

Change in obligated balances:
72.40 Obligated balance, start of year -3 -3
74.00 Change in uncollected customer payments from Federal sources (unexpired) 3



74.40 Obligated balance, end of year -3

Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash) from: Federal sources -3
Against gross budget authority only:
88.95 Change in uncollected customer payments from Federal sources (unexpired) 3

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

Status of Guaranteed Loans (in millions of dollars)


Identification code 86-4097-0-3-451 2009 actual 2010 est. 2011 est.

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year 23 19 14
2251 Repayments and prepayments -4 -5 -5



2290 Outstanding, end of year 19 14 9

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding, end of year 19 14 9

Guaranteed loans.—Guaranteed loan assistance under the Community Development Loan Guarantee (Section 108) program is provided to eligible communities to finance economic development activities, such as housing rehabilitation, development or expansion of public facilities, acquisition of real property, and rehabilitation of publicly owned real property. 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, but 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 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 2008 actual 2009 actual

ASSETS:
Federal assets:
1101 Fund balances with Treasury -3 -3
Investments in US securities:
1106 Receivables, net 3 3


1999 Total assets

Housing Programs

Federal Funds

housing for the elderly

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, [$825,000,000] $273,700,000, to remain available until September 30, [2013] 2014[, of which up to $582,000,000 shall be for capital advance and project-based rental assistance awards]: Provided, That amounts for project rental assistance contracts are to remain available for the liquidation of valid obligations for 10 years following the date of such obligation: Provided further, That of the amount provided under this heading, up to $90,000,000 shall be for service coordinators and the continuation of existing congregate service grants for residents of assisted housing projects[, and of which up to $40,000,000 shall be for grants under section 202b of the Housing Act of 1959 (12 U.S.C. 1701q-2) for conversion of eligible projects under such section to assisted living or related use and for substantial and emergency capital repairs as determined by the Secretary: Provided further, That of the amount made available under this heading, $20,000,000 shall be available to the Secretary of Housing and Urban Development only for making competitive grants to private nonprofit organizations and consumer cooperatives for covering costs of architectural and engineering work, site control, and other planning relating to the development of supportive housing for the elderly that is eligible for assistance under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q)]: 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: 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. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0320-0-1-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Expansion 649 625 572
00.02 Rental assistance renewal and operating expenses 151 146 134



10.00 Total new obligations (object class 41.0) 800 771 706

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 773 734 780
22.00 New budget authority (gross) 763 817 271
22.10 Resources available from recoveries of prior year obligations 4



23.90 Total budgetary resources available for obligation 1,540 1,551 1,051
23.95 Total new obligations -800 -771 -706
23.98 Unobligated balance expiring or withdrawn -6



24.40 Unobligated balance carried forward, end of year 734 780 345

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 765 825 274
41.00 Transferred to other accounts -2 -8 -3



43.00 Appropriation (total discretionary) 763 817 271

Change in obligated balances:
72.40 Obligated balance, start of year 3,728 3,474 3,324
73.10 Total new obligations 800 771 706
73.20 Total outlays (gross) -979 -921 -949
73.40 Adjustments in expired accounts (net) -71
73.45 Recoveries of prior year obligations -4



74.40 Obligated balance, end of year 3,474 3,324 3,081

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 49 108
86.93 Outlays from discretionary balances 930 921 841



87.00 Total outlays (gross) 979 921 949

Net budget authority and outlays:
89.00 Budget authority 763 817 271
90.00 Outlays 979 921 949

The Housing for the Elderly (Section 202) program provides capital advance grants and operating subsidies to nonprofit sponsors to construct multifamily housing for very low-income elderly people. The 2011 Budget proposes to eliminate construction funding for new projects in order to redesign the program and institute reforms that will ensure that future projects are more cost effective and well-targeted. The Budget provides $183.7 million to fully fund anticipated renewals and amendments of existing project rental assistance contracts and $90 million for grants to support service coordinators and congregate housing services. Current residents of Section 202 projects and projects in the construction pipeline will not be affected by the elimination of new construction funds in 2011.

Past studies of the Section 202 program have highlighted construction delays, cost overruns, and lengthy development times. The average size of new Section 202 projects has also decreased, and some new projects lack the economies of scale needed to cost effectively provide community spaces and supportive services. To address these concerns, the Administration will redesign the Section 202 program by (1) allowing project sponsors to build larger projects with greater economies of scale, (2) reducing regulatory barriers to allow sponsors to leverage other sources of funding, (3) improving service provision by encouraging partnerships with programs of the Department of Health and Human Services, and (4) changing application requirements to provide more preferences for the extremely frail elderly, who are in the greatest need of supportive housing.

HOUSING FOR THE ELDERLY


2009 actual 2010 est. 2011 est.

Units eligible for payment 106,663 114,086 122,028

housing for persons with disabilities

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, $300,000,000] $90,036,817, [of which up to $186,000,000 shall be for capital advances and project-based rental assistance contracts,] to remain available until September 30, [2013] 2014: Provided, That amounts for project rental assistance contracts are to remain available for the liquidation of valid obligations for 10 years following the date of such obligation: [Provided further, That, of the amount provided under this heading, $87,100,000 shall be for amendments or renewal of tenant-based assistance contracts entered into prior to fiscal year 2005 (only one amendment authorized for any such contract): 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. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0237-0-1-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Expansion 159 141 115
00.02 Rental assistance renewal and operating expenses 125 112 91



10.00 Total new obligations (object class 41.0) 284 253 206

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 204 169 213
22.00 New budget authority (gross) 248 297 89
22.10 Resources available from recoveries of prior year obligations 5



23.90 Total budgetary resources available for obligation 457 466 302
23.95 Total new obligations -284 -253 -206
23.98 Unobligated balance expiring or withdrawn -4



24.40 Unobligated balance carried forward, end of year 169 213 96

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 250 300 90
41.00 Transferred to other accounts -2 -3 -1



43.00 Appropriation (total discretionary) 248 297 89

Change in obligated balances:
72.40 Obligated balance, start of year 1,027 953 915
73.10 Total new obligations 284 253 206
73.20 Total outlays (gross) -337 -291 -295
73.40 Adjustments in expired accounts (net) -16
73.45 Recoveries of prior year obligations -5



74.40 Obligated balance, end of year 953 915 826

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 39 36
86.93 Outlays from discretionary balances 298 291 259



87.00 Total outlays (gross) 337 291 295

Net budget authority and outlays:
89.00 Budget authority 248 297 89
90.00 Outlays 337 291 295

The Housing for Persons with Disabilities (Section 811) program provides capital advance grants and operating subsidies to nonprofit sponsors to construct multifamily housing for very low-income people with disabilities. The Budget provides $90 million to fully fund anticipated contract renewal and amendment costs and fund construction amendments and awards.

The Budget also proposes to shift fiscal responsibility of the Section 811 Mainstream Vouchers program to the Tenant-Based Rental Assistance program. The Mainstream Vouchers Program under Section 811 provides tenant-based rental assistance for people with disabilities. The Budget proposes shifting the $113.6 million required to renew nearly 15,000 Mainstream Vouchers from the Section 811 account to the Tenant-Based Rental Assistance account. This one-time shift will allow the Department to consolidate its voucher programs and achieve administrative savings.

The Administration continues to seek reforms to make this program more efficient and effective, such as legislative reforms which encourage project sponsors to leverage other sources of funding, provide supportive housing in community-based settings in keeping with the Olmstead decision, and lead to more efficient use of capital advance awards.

HOUSING FOR PERSONS WITH DISABILITIES


2009 actual 2010 est. 2011 est.

Units eligible for payment 30,221 32,323 34,573

Housing Counseling Assistance

For contracts, grants, and other assistance excluding loans, as authorized under section 106 of the Housing and Urban Development Act of 1968, as amended, [$87,500,000] $88,000,000, including up to $2,500,000 for administrative contract services, to remain available until September 30, [2011] 2012: 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/literacy, and such other matters as may be appropriate to assist them in improving their housing conditions, meeting their financial needs, and fulfilling the responsibilities of tenancy or homeownership; for program administration; and for housing counselor training[: Provided further, That of the amounts made available under this heading, not less than $13,500,000 shall be awarded to HUD-certified housing counseling agencies located in the 100 metropolitan statistical areas with the highest rate of home foreclosures for the purpose of assisting homeowners with inquiries regarding mortgage-modification assistance and mortgage scams]. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0156-0-1-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Housing Assistance 64 87



10.00 Total new obligations (object class 41.0) 64 87

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 65 88
22.00 New budget authority (gross) 65 87 87



23.90 Total budgetary resources available for obligation 65 152 175
23.95 Total new obligations -64 -87



24.40 Unobligated balance carried forward, end of year 65 88 88

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 65 88 88
41.00 Transferred to other accounts -1 -1



43.00 Appropriation (total discretionary) 65 87 87

Change in obligated balances:
72.40 Obligated balance, start of year 6
73.10 Total new obligations 64 87
73.20 Total outlays (gross) -58 -83



74.40 Obligated balance, end of year 6 10

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 9 9
86.93 Outlays from discretionary balances 49 74



87.00 Total outlays (gross) 58 83

Net budget authority and outlays:
89.00 Budget authority 65 87 87
90.00 Outlays 58 83

The Housing Counseling Assistance Program provides comprehensive housing counseling services to eligible homeowners and tenants through grants to non-profit intermediaries, state governmental entities, and other agencies with local to national presences. Eligible counseling activities include pre- and post-purchase education, personal financial management, reverse mortgage product education, foreclosure prevention/mitigation, and rental counseling. 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 elderly citizens including the Administration's current foreclosure mitigation efforts. The primary objectives of the Housing Counseling program are to expand homeownership opportunities, improve access to affordable housing, prevent foreclosure, increase financial literacy, and aid in HUD's commitment to bridging the minority homeownership gap. Additionally, the program supports a significant number of individuals with FHA-insured loans, which helps maintain the financial soundness of the FHA insurance funds.

The 2011 Budget includes $88 million for this program, continuing the increase appropriated in 2010.

Green Retrofit Program for Multifamily Housing, Recovery Act

Program and Financing (in millions of dollars)


Identification code 86-0306-0-1-604 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Direct Loan Subsidy 118
00.03 Green Retrofit Grants 117
00.04 Retrofit Advisor Contracts 12 1



10.00 Total new obligations (object class 41.0) 12 236

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 236
22.00 New budget authority (gross) 248



23.90 Total budgetary resources available for obligation 248 236
23.95 Total new obligations -12 -236



24.40 Unobligated balance carried forward, end of year 236

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 2,250
41.00 Transferred to other accounts -2,002



43.00 Appropriation (total discretionary) 248

Change in obligated balances:
72.40 Obligated balance, start of year 12 58
73.10 Total new obligations 12 236
73.20 Total outlays (gross) -190 -58



74.40 Obligated balance, end of year 12 58

Outlays (gross), detail:
86.93 Outlays from discretionary balances 190 58

Net budget authority and outlays:
89.00 Budget authority 248
90.00 Outlays 190 58

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


Identification code 86-0306-0-1-604 2009 actual 2010 est. 2011 est.

Direct loan levels supportable by subsidy budget authority:
115001 Energy Retrofit Loans 143



115999 Total direct loan levels 143
Direct loan subsidy (in percent):
132001 Energy Retrofit Loans 0.00 82.30 0.00



132999 Weighted average subsidy rate 0.00 82.30 0.00
Direct loan subsidy budget authority:
133001 Energy Retrofit Loans 118



133999 Total subsidy budget authority 118
Direct loan subsidy outlays:
134001 Energy Retrofit Loans 118



134999 Total subsidy outlays 118

The Green Retrofit Program (GRP) offers grants and loans to owners of eligible HUD-assisted multifamily housing properties to fund Green Retrofits, which are intended to reduce ongoing utility consumption, benefit resident health, and/or benefit the environment. This program is funded under Title XII of the American Recovery and Reinvestment Act of 2009, P.L. 111-5 (the Recovery Act). This account includes funds for grants, direct loan credit subsidy, and administrative expenses. All loan cash flows are recorded in the corresponding financing account (86-4589).

[energy innovation fund]

[For an Energy Innovation Fund to enable the Federal Housing Administration and the new Office of Sustainability to catalyze innovations in the residential energy efficiency sector that have promise of replicability and help create a standardized home energy efficient retrofit market, $50,000,000, to remain available until September 30, 2013: Provided, That $25,000,000 shall be for the Energy Efficient Mortgage Innovation pilot program, directed at the single family housing market: Provided further, That $25,000,000 shall be for the Multifamily Energy Pilot, directed at the multifamily housing market.] (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0401-0-1-272 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Energy Efficient Mortgage Innovation Pilot 25
00.02 Multifamily energy Pilot 24



10.00 Total new obligations (object class 41.0) 49

Budgetary resources available for obligation:
22.00 New budget authority (gross) 49
23.95 Total new obligations -49



24.40 Unobligated balance carried forward, end of year

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 50
41.00 Transferred to other accounts -1



43.00 Appropriation (total discretionary) 49

Change in obligated balances:
72.40 Obligated balance, start of year 20
73.10 Total new obligations 49
73.20 Total outlays (gross) -29 -20



74.40 Obligated balance, end of year 20

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 29
86.93 Outlays from discretionary balances 20



87.00 Total outlays (gross) 29 20

Net budget authority and outlays:
89.00 Budget authority 49
90.00 Outlays 29 20

The objective of the Energy Innovation Fund is to provide support for promising local initiatives that can be replicated across the nation and to stimulate and enhance private investment in cost-saving energy efficiency retrofits of existing housing, through improved use of FHA single family and multifamily mortgage products.

In the single-family housing sector, FHA's Energy Efficient Mortgage (EEM) in its current form has had little traction in the marketplace, with no more than 1,000 such mortgages insured each year. The Energy Innovation Fund is being used to develop an EEM Innovation pilot program which will extend the benefits of the existing FHA EEM and Title I Energy Efficient Property Improvement loan programs to more homeowners. In developing the EEM Innovation HUD is considering several options for financial incentives. HUD also may use a portion of the Energy Innovation Fund to finance the cost of energy audits, to the extent that this expense may be a barrier to some borrowers securing an EEM. HUD is also exploring a federal partnership with national home energy rating organizations to streamline energy audit procedures, and with an emerging home performance remodeling industry to ensure quality installation of recommended energy conservation measures.

HUD is developing a Multifamily Energy Pilot (MEP), which may include financial incentives for borrowers in the following FHA Multifamily programs: Mortgage Insurance for Supplemental Loans for Multifamily Projects, Section 241(a); Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Rental Housing, Section 223(f); and Mortgage Insurance for Rental and Cooperative Housing, Sections 221(d)(3) and 221(d)(4). The MEP program will target property owners and developers seeking energy efficiency improvements in multifamily rehabilitation projects.

No new funds are requested for 2011 as it is anticipated that the 2010 appropriations of $50 million will fund significant pilot program activity through 2011.

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, [$40,000,000] $40,600,000, to remain available until expended.

rent supplement

([rescission] cancellation)

Of the amounts recaptured from terminated contracts under section 101 of the Housing and Urban Development Act of 1965 (12 U.S.C. 1701s) and section 236 of the National Housing Act (12 U.S.C. 1715z-1) [$72,036,000] $40,600,000 are [rescinded] hereby permanently cancelled: Provided, That no amounts may be [rescinded] cancelled from amounts that were designated by the Congress as an emergency requirement pursuant to the Concurrent Resolution on the Budget or the Balanced Budget and Emergency Deficit Control Act of 1985, as amended. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0206-0-1-999 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Rent supplement 8 9 12
00.02 Homeownership and rental housing assistance (Sections 235 and 236) 20 31 29



10.00 Total new obligations 28 40 41

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 786 893 923
22.00 New budget authority (gross) -9 -32
22.10 Resources available from recoveries of prior year obligations 199 104 70
22.75 Balance of contract authority withdrawn -55 -2



23.90 Total budgetary resources available for obligation 921 963 993
23.95 Total new obligations -28 -40 -41



24.40 Unobligated balance carried forward, end of year 893 923 952

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 28 40 41
40.36 Unobligated balance permanently reduced -38 -72 -41



43.00 Appropriation (total discretionary) -10 -32
58.00 Spending authority from offsetting collections: Offsetting collections (cash) 1
Mandatory:
60.00 Appropriation 690 690 690
60.49 Portion applied to liquidate contract authority -690 -690 -690



62.50 Appropriation (total mandatory)



70.00 Total new budget authority (gross) -9 -32

Change in obligated balances:
72.40 Obligated balance, start of year 4,315 3,584 2,986
73.10 Total new obligations 28 40 41
73.20 Total outlays (gross) -560 -534 -508
73.45 Recoveries of prior year obligations -199 -104 -70



74.40 Obligated balance, end of year 3,584 2,986 2,449

Outlays (gross), detail:
86.93 Outlays from discretionary balances 560 534 508

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.40 Non-Federal sources -1
88.40 Non-Federal sources



88.90 Total, offsetting collections (cash) -1

Net budget authority and outlays:
89.00 Budget authority -10 -32
90.00 Outlays 559 534 508

Memorandum (non-add) entries:
93.03 Obligated balance, start of year: Contract authority 4,099 3,354 2,662
93.04 Obligated balance, end of year: Contract authority 3,354 2,662 1,972

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 13,368 units as of September 30, 2009 that have not converted to Section 8.

Section 235.—The Housing and Urban-Rural Recovery Act of 1983 (P.L. 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 necessary 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)


2009 actual 2010 est. 2011 est.

Total 560 534 509
Rent supplement 47 43 39
Homeownership assistance (Section 235) 4 4 4
Rental housing assistance (Section 236) 505 483 462
College housing grants 4 4 4

Object Classification (in millions of dollars)


Identification code 86-0206-0-1-999 2009 actual 2010 est. 2011 est.

41.0 Direct obligations: Grants, subsidies, and contributions 27 40 41



99.0 Reimbursable obligations: reimbursable obligations 1



99.9 Total new obligations 28 40 41

Homeownership and Opportunity for People Everywhere Grants (HOPE Grants)

Program and Financing (in millions of dollars)


Identification code 86-0196-0-1-604 2009 actual 2010 est. 2011 est.

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 1 1
22.10 Resources available from recoveries of prior year obligations 1



23.90 Total budgetary resources available for obligation 1 1 1



24.40 Unobligated balance carried forward, end of year 1 1 1

Change in obligated balances:
72.40 Obligated balance, start of year 5
73.20 Total outlays (gross) -4
73.45 Recoveries of prior year obligations -1



74.40 Obligated balance, end of year

Outlays (gross), detail:
86.93 Outlays from discretionary balances 4

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

The Homeownership and Opportunity for People Everywhere Program, funded from 1992-1995, 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.

payment to manufactured housing fees trust fund

For necessary expenses as authorized by the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C. 5401 et seq.), up to [$16,000,000] $14,000,000, to remain available until expended, of which $7,000,000 is 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 [2010] 2011 so as to result in a final fiscal year [2010] 2011 appropriation from the general fund estimated at not more than [$9,000,000] $7,000,000 and fees pursuant to such section 620 shall be modified as necessary to ensure such a final fiscal year [2010] 2011 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. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0234-0-1-376 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Payment to Trust Fund 5 9 7



10.00 Total new obligations (object class 94.0) 5 9 7

Budgetary resources available for obligation:
22.00 New budget authority (gross) 5 9 7
23.95 Total new obligations -5 -9 -7



24.40 Unobligated balance carried forward, end of year

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation 5 9 7

Change in obligated balances:
73.10 Total new obligations 5 9 7
73.20 Total outlays (gross) -5 -9 -7



74.40 Obligated balance, end of year

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 5 9 7

Net budget authority and outlays:
89.00 Budget authority 5 9 7
90.00 Outlays 5 9 7

The Budget provdes a total of $14 million to support activities authorized by the National Manufactured Housing Construction and Safety Standards Act of 1974, as amended. The Budget proposes an appropriation of $7 million to support program activities and offset the effect of declining fee revenue caused by a substantial reduction in manufactured housing production rates. Approximately $7 million shall be collected in fees and deposited into the Manufactured Housing Fees Trust Fund.

Interstate Land Sales

Special and Trust Fund Receipts (in millions of dollars)


Identification code 86-5270-0-2-376 2009 actual 2010 est. 2011 est.

01.00 Balance, start of year



01.99 Balance, start of year
Receipts:
02.00 Interstate Land Sales Fund 1 1



02.99 Total receipts and collections 1 1



04.00 Total: Balances and collections 1 1
Appropriations:
05.00 Interstate Land Sales -1 -1



05.99 Total appropriations -1 -1



07.99 Balance, end of year

Program and Financing (in millions of dollars)


Identification code 86-5270-0-2-376 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Transfer to salaries and expenses 1 1



10.00 Total new obligations (object class 25.2) 1 1

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

New budget authority (gross), detail:
Mandatory:
60.20 Appropriation (special fund) 1 1

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

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

Net budget authority and outlays:
89.00 Budget authority 1 1
90.00 Outlays 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 2009 actual 2010 est. 2011 est.

Obligations by program activity:
09.01 Transfer to HUD's Flexible Subsidy Fund 4 3



10.00 Total new obligations (object class 94.0) 4 3

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 4 3 3
22.00 New budget authority (gross) 3 3 3



23.90 Total budgetary resources available for obligation 7 6 6
23.95 Total new obligations -4 -3



24.40 Unobligated balance carried forward, end of year 3 3 6

New budget authority (gross), detail:
Mandatory:
69.00 Offsetting collections (cash) 3 3 3

Change in obligated balances:
73.10 Total new obligations 4 3
73.20 Total outlays (gross) -4 -3

Outlays (gross), detail:
86.93 Outlays from discretionary balances -3
86.97 Outlays from new mandatory authority 3 3
86.98 Outlays from mandatory balances 4



87.00 Total outlays (gross) 4 3

Offsets:
Against gross budget authority and outlays:
88.40 Offsetting collections (cash) from: Non-Federal sources -3 -3 -3

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

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. The Budget proposes appropriation language in the general provisions at the end of this budget chapter to eliminate the mandatory transfer of excess resources from the Rental Housing Assistance Fund to the Flexible Subsidy Fund. These excess resources cannot be spent under existing law in either account, making the transfer unnecessary.

Flexible Subsidy Fund

Program and Financing (in millions of dollars)


Identification code 86-4044-0-3-604 2009 actual 2010 est. 2011 est.

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 102 129 155
22.00 New budget authority (gross) 26 26 23
22.10 Resources available from recoveries of prior year obligations 1



23.90 Total budgetary resources available for obligation 129 155 178
23.98 Unobligated balance expiring or withdrawn -156



24.40 Unobligated balance carried forward, end of year 129 155 22

New budget authority (gross), detail:
Discretionary:
58.00 Spending authority from offsetting collections: Offsetting collections (cash) 26 26 23

Change in obligated balances:
72.40 Obligated balance, start of year 1
73.45 Recoveries of prior year obligations -1



74.40 Obligated balance, end of year

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00 Federal sources -4 -3
88.40 Non-Federal sources -22 -23 -23



88.90 Total, offsetting collections (cash) -26 -26 -23

Net budget authority and outlays:
89.00 Budget authority
90.00 Outlays -26 -26 -23

Status of Direct Loans (in millions of dollars)


Identification code 86-4044-0-3-604 2009 actual 2010 est. 2011 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 626 609 589
1251 Repayments: Repayments and prepayments -17 -20 -20



1290 Outstanding, end of year 609 589 569

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. The budget proposes appropriation language in the general provisions at the end of this budget chapter to eliminate the transfer of excess rental income from the Rental Housing Assistance Fund to the Flexible Subsidy Fund. These excess funds cannot be spent under law in either account, making the transfer unnecessary. The excess funds will be withdrawn.

Balance Sheet (in millions of dollars)


Identification code 86-4044-0-3-604 2008 actual 2009 actual

ASSETS:
1101 Federal assets: Fund balances with Treasury 103 128
1601 Direct loans, gross 626 609
1602 Interest receivable 103 106
1603 Allowance for estimated uncollectible loans and interest (-) -652 -639


1699 Value of assets related to direct loans 77 76


1999 Total assets 180 204
LIABILITIES:
2207 Non-Federal liabilities: Other 1


2999 Total liabilities 1
NET POSITION:
3100 Appropriated capital -376 -376
3300 Cumulative results of operations 555 580


3999 Total net position 179 204


4999 Total liabilities and net position 180 204

Home Ownership Preservation Entity Fund Financing Account

Program and Financing (in millions of dollars)


Identification code 86-4353-0-3-371 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Default Claim Payments 30 543
00.03 Other capital investment and operating expenses 212 268



10.00 Total new obligations 242 811

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 1 2,457
22.00 New financing authority (gross) 1 2,698 2,150



23.90 Total budgetary resources available for obligation 1 2,699 4,607
23.95 Total new obligations -242 -811



24.40 Unobligated balance carried forward, end of year 1 2,457 3,796

New financing authority (gross), detail:
Mandatory:
69.00 Offsetting collections (cash) 1 2,698 2,150

Change in obligated balances:
72.40 Obligated balance, start of year 5
73.10 Total new obligations 242 811
73.20 Total financing disbursements (gross) -237 -800



74.40 Obligated balance, end of year 5 16

Outlays (gross), detail:
87.00 Total financing disbursements (gross) 237 800

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00 Positive subsidy from HOPE Bonds -1 -2,363 -1,523
88.40 Premiums -325 -424
88.40 Recoveries on defaults -10 -203



88.90 Total, offsetting collections (cash) -1 -2,698 -2,150

Net financing authority and financing disbursements:
89.00 Financing authority
90.00 Financing disbursements -1 -2,461 -1,350

Status of Guaranteed Loans (in millions of dollars)


Identification code 86-4353-0-3-371 2009 actual 2010 est. 2011 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 299,996 286,024
2131 Guaranteed loan commitments exempt from limitation 300,000
2142 Uncommitted loan guarantee limitation
2143 Uncommitted limitation carried forward -299,996 -286,024 -272,052



2150 Total guaranteed loan commitments 4 13,972 13,972
2199 Guaranteed amount of guaranteed loan commitments 4 13,972 13,972

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year 4 13,946
2231 Disbursements of new guaranteed loans 4 13,972 13,972
2251 Repayments and prepayments
Adjustments:
2261 Terminations for default that result in loans receivable -1 -12
2262 Terminations for default that result in acquisition of property -29 -522
2263 Terminations for default that result in claim payments -9



2290 Outstanding, end of year 4 13,946 27,375

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding, end of year 4 13,946 27,375

Addendum:
Cumulative balance of defaulted guaranteed loans that result in loans receivable:
2310 Outstanding, start of year 1
2331 Disbursements for guaranteed loan claims 1 12
2351 Repayments of loans receivable -6



2390 Outstanding, end of year 1 7

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 86-4353-0-3-371 2008 actual 2009 actual

ASSETS:
1101 Federal assets: Fund balances with Treasury 1
LIABILITIES:
2204 Non-Federal liabilities: Liabilities for loan guarantees 1

Home Ownership Preservation Equity Fund Program Account

Program and Financing (in millions of dollars)


Identification code 86-0343-0-1-371 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.02 Credit Subsidy from HOPE Bonds 1 2,363 1,523
00.09 Administrative Expenses 3 8 5



10.00 Total new obligations 4 2,371 1,528

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 9 464 1,093
21.45 Adjustments to unobligated balance carried forward, start of year -2
22.00 New budget authority (gross) 461 3,000 500



23.90 Total budgetary resources available for obligation 468 3,464 1,593
23.95 Total new obligations -4 -2,371 -1,528



24.40 Unobligated balance carried forward, end of year 464 1,093 65

New budget authority (gross), detail:
Mandatory:
60.00 Appropriation 461 3,000 500

Change in obligated balances:
72.40 Obligated balance, start of year 1 5
72.45 Adjustment to obligated balance, start of year 2
73.10 Total new obligations 4 2,371 1,528
73.20 Total outlays (gross) -5 -2,367 -1,529



74.40 Obligated balance, end of year 1 5 4

Outlays (gross), detail:
86.97 Outlays from new mandatory authority 1 1,903 425
86.98 Outlays from mandatory balances 4 464 1,104



87.00 Total outlays (gross) 5 2,367 1,529

Net budget authority and outlays:
89.00 Budget authority 461 3,000 500
90.00 Outlays 5 2,367 1,529

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


Identification code 86-0343-0-1-371 2009 actual 2010 est. 2011 est.

Guaranteed loan levels supportable by subsidy budget authority:
215001 HOPE for Homeowners Loan Guarantees 4 13,972 13,972



215999 Total loan guarantee levels 4 13,972 13,972
Guaranteed loan subsidy (in percent):
232001 HOPE for Homeowners Loan Guarantees 23.27 16.91 10.90



232999 Weighted average subsidy rate 23.27 16.91 10.90
Guaranteed loan subsidy budget authority:
233001 HOPE for Homeowners Loan Guarantees 1 2,363 1,523



233999 Total subsidy budget authority 1 2,363 1,523
Guaranteed loan subsidy outlays:
234001 HOPE for Homeowners Loan Guarantees 1 2,363 1,523



234999 Total subsidy outlays 1 2,363 1,523

Administrative expense data:
3510 Budget authority 8 5
3590 Outlays from new authority 4 6

The HOPE for Homeowners (H4H) program was created by the Housing and Economic Recovery Act of 2008 (Act) to help those at risk of default and foreclosure refinance into more affordable, sustainable loans. The principal obligation of all mortgages insured under the H4H program may not exceed $300 billion. Under the H4H Program, eligible homeowners may refinance their current mortgage loans into a new mortgage insured by FHA.

The Helping Families Save Their Homes Act of 2009 amends the National Housing Act, providing for key changes in the H4H program. These changes are effective for endorsements on or after January 1, 2010. These amendments include more underwriting flexibility and lower premia and appreciation sharing assessments. As a result of these changes, H4H will experience a higher level of program volume with $14 billlion in loans projected for both 2010 and 2011.

The program is effective from October 1, 2008 to September 30, 2011.

As required by the Federal Credit Reform Act of 1990, this account records the administrative expenses for this program, as well as the subsidy costs, associated with the loan guarantees committed. The subsidy amounts are estimated on a present value basis; the administrative expenses are estimated on a cash basis. Under the Act, the Department of the Treasury is authorized to issue HOPE Bonds, up to the aggregate insurance amount, to finance the subsidy amounts necessary for loan guarantees, as well as for the net costs to the Federal Government of the program, including administrative costs.

Object Classification (in millions of dollars)


Identification code 86-0343-0-1-371 2009 actual 2010 est. 2011 est.

Direct obligations:
25.2 Other services 3 8 5
41.0 Grants, subsidies, and contributions 1 2,363 1,523



99.9 Total new obligations 4 2,371 1,528

Nehemiah Housing Opportunity Fund

Program and Financing (in millions of dollars)


Identification code 86-4071-0-3-604 2009 actual 2010 est. 2011 est.

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 9 9
23.98 Unobligated balance expiring or withdrawn -9



24.40 Unobligated balance carried forward, end of year 9

Change in obligated balances:
72.40 Obligated balance, start of year 4 4 4



74.40 Obligated balance, end of year 4 4 4

Net budget authority and outlays:
89.00 Budget authority
90.00 Outlays

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. The remaining unobligated balances, which cannot be spent under existing law, will be withdrawn.

Federal Housing Administration

mutual mortgage insurance program account

(including transfer of funds)

[During fiscal year 2010,] New commitments to guarantee single family loans insured under the Mutual Mortgage Insurance Fund shall not exceed [a loan principal of] $400,000,000,000, to remain available until September 30, 2012: Provided, That [for new loans guaranteed pursuant to section 255 of the National Housing Act (12 U.S.C. 1715z-20), the Secretary shall adjust the factors used to calculate the principal limit (as such term is defined in HUD Handbook 4235.1) that were assumed in the President's Budget Request for 2010 for such loans, as necessary to ensure that the program operates at a net zero subsidy rate] for the cost of new guaranteed loans, as authorized by section 255 of the National Housing Act (12 U.S.C. 1715z-20), $250,000,000; and, in addition, to the extent that new guaranteed loan commitments under section 255 will and do exceed $30,000,000,000 during fiscal year 2011, an additional $8,300 shall be available for each $1,000,000 in such additional commitments (including a pro rata amount for any new guaranteed loan commitment amount below $1,000,000): Provided further, That during fiscal year [2010] 2011, 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 further, That the foregoing amount in the previous proviso 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 contract expenses of the Federal Housing Administration, [$188,900,000] $207,000,000, to remain available until September 30, 2012, of which up to [$70,794,000] $71,500,000 may be transferred to the Working Capital Fund[, and of which up to $7,500,000 shall be for education and outreach of FHA single family loan products]: Provided further, That to the extent guaranteed loan commitments exceed $200,000,000,000 on or before April 1, [2010] 2011, 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. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)


Identification code 86-0183-0-1-371 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.02 Guaranteed Loan Subsidy 249
00.07 Reestimates of loan guarantee subsidy - upward re-estimate 9,370 8,442
00.08 Interest on reestimates of loan guarantee subsidy 1,014 1,426
00.09 Administrative Expenses 72 118 135



10.00 Total new obligations 10,456 9,986 384

Budgetary resources available for obligation:
22.00 New budget authority (gross) 88 117 384
22.22 Unobligated balance transferred from other accounts 10,384 9,868



23.90 Total budgetary resources available for obligation 10,472 9,985 384
23.95 Total new obligations -10,456 -9,986 -384
23.98 Unobligated balance expiring or withdrawn -15

New budget authority (gross), detail:
Discretionary:
40.00 Appropriation - Administrative Expenses 146 189 207
40.00 Appropriation - Loan Guarantee Subsidy 249
41.00 Transferred to other accounts -58 -72 -72



43.00 Appropriation (total discretionary) 88 117 384

Change in obligated balances:
72.40 Obligated balance, start of year 66 87 91
73.10 Total new obligations 10,456 9,986 384
73.20 Total outlays (gross) -10,426 -9,982 -381
73.40 Adjustments in expired accounts (net) -9



74.40 Obligated balance, end of year 87 91 94

Outlays (gross), detail:
86.90 Outlays from new discretionary authority 6 98 362
86.93 Outlays from discretionary balances 36 15 19
86.98 Outlays from mandatory balances 10,384 9,869



87.00 Total outlays (gross) 10,426 9,982 381

Net budget authority and outlays:
89.00 Budget authority 88 117 384
90.00 Outlays 10,426 9,982 381

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


Identification code 86-0183-0-1-371 2009 actual 2010 est. 2011 est.

Direct loan levels supportable by subsidy budget authority:
115001 MMI Fund, Direct loans 50 50



115999 Total direct loan levels 50 50

Guaranteed loan levels supportable by subsidy budget authority:
215002 MMI Fund 330,459 299,954 245,996
215004 MMI HECM 30,189 30,800 30,000



215999 Total loan guarantee levels 360,648 330,754 275,996
Guaranteed loan subsidy (in percent):
232002 MMI Fund -0.05 -0.62 -0.68
232004 MMI HECM -1.37 -0.50 0.83
232007 MMI Seller Financed Down Payment Assistance 6.35 0.00 0.00



232999 Weighted average subsidy rate -0.16 -0.61 -0.52
Guaranteed loan subsidy budget authority:
233002 MMI Fund -151 -1,860 -1,673
233004 MMI HECM -414 -154 249



233999 Total subsidy budget authority -565 -2,014 -1,424
Guaranteed loan subsidy outlays:
234002 MMI Fund -151 -1,860 -1,673
234004 MMI HECM -414 -154 249



234999 Total subsidy outlays -565 -2,014 -1,424
Guaranteed loan upward reestimates:
235002 MMI Fund 10,384 7,630
235004 MMI HECM 2,239



235999 Total upward reestimate budget authority 10,384 9,869
Guaranteed loan downward reestimates:
237002 MMI Fund -108 -26



237999 Total downward reestimate subsidy budget authority -108 -26

Administrative expense data:
3510 Budget authority 88 118 135
3580 Outlays from balances 36 15 19
3590 Outlays from new authority 6 98 113

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

In 2011, FHA is requesting an aggregate limitation of $400 billion on loan guarantees for the Mutual Mortgage Insurance (MMI) Fund.

The Budget includes several policy changes to focus FHA's credit enhancement on prudent risks and improve the financial health of the MMI Fund with premia increases. The Budget proposes a statutory revision to allow FHA more flexibility in setting annual premia subject to a specific cap. The Budget also incoporates changes to underwriting criteria that will improve risk management, including raising the minimum credit score required for borrower approval. Including the effects of these changes, the Budget projects a total of $5.8 billion of negative subsidy receipts in 2011.

The Budget requests $250 million in credit subsidy for the Home Equity Conversion Program (HECM) along with a contingency appropriation to meet all program demand, even if demand exceeds projections. The Budget projects insurance of $223 billion in single family forward mortgages and $30 billion in HECMs with an additional $148 billion in commitment limitation available in case these amounts are exceeded during execution.

The Budget requests a total of $207 million for administrative expenses. This increase of $18 million will allow FHA to implement improved risk management systems.

As of 2009, new loans for the Condominium, the Section 203(k) rehabilitation, and Home Equity Conversion programs are in the MMI Fund in order to consolidate single family programs in one fund; previously these loans were made under the General and Special Risk Insurance Funds. Those single family loans made prior to 2009 will remain under the General and Special Risk Insurance Funds.

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

Object Classification (in millions of dollars)


Identification code 86-0183-0-1-371 2009 actual 2010 est. 2011 est.

Direct obligations:
25.2 Other services 72 118 135
41.0 Grants, subsidies, and contributions 9,370 8,442 249
43.0 Interest and dividends 1,014 1,426



99.9 Total new obligations 10,456 9,986 384

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 2009 actual 2010 est. 2011 est.

Guaranteed loan levels supportable by subsidy budget authority:
215002 MMI Fund -23,128



215999 Total loan guarantee levels -23,128
Guaranteed loan subsidy (in percent):
232002 MMI Fund -1.91



232999 Weighted average subsidy rate -1.66
Guaranteed loan subsidy budget authority:
233002 MMI Fund -4,099



233999 Total subsidy budget authority -4,099
Guaranteed loan subsidy outlays:
234002 MMI Fund -4,099



234999 Total subsidy outlays -4,099

FHA-mutual Mortgage Insurance Direct Loan Financing Account

Program and Financing (in millions of dollars)


Identification code 86-4242-0-3-371 2009 actual 2010 est. 2011 est.

Obligations by program activity:
00.01 Direct loans 50 50
00.02 Interest paid to Treasury 2 2
00.03 Claims & other 1 4 4



10.00 Total new obligations 1 56 56

Budgetary resources available for obligation:
21.40 Unobligated balance carried forward, start of year 6 4 4
22.00 New financing authority (gross) 1 105 105
22.60 Portion applied to repay debt -2 -49 -49



23.90 Total budgetary resources available for obligation 5 60 60
23.95 Total new obligations -1 -56 -56



24.40 Unobligated balance carried forward, end of year 4 4 4

New financing authority (gross), detail:
Mandatory:
67.10 Authority to borrow 50 50
69.00 Offsetting collections (cash) 1 55 55



70.00 Total new financing authority (gross) 1 105 105

Change in obligated balances:
73.10 Total new obligations 1 56 56
73.20 Total financing disbursements (gross) -1 -56 -56



74.40 Obligated balance, end of year

Outlays (gross), detail:
87.00 Total financing disbursements (gross) 1 56 56

Offsets:
Against gross financing authority and financing disbursements:
Offsetting col