department of housing and urban … the department of housing and urban development appropriations...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

PUBLIC AND INDIAN HOUSING PROGRAMSFederal Funds

RENTAL ASSISTANCE DEMONSTRATION

For continuing activities under the heading "Rental Assistance Demonstration"in the Department of Housing and Urban Development Appropriations Act, 2012(Public Law 112–55), $100,000,000, to remain available through September 30,2023, for targeted supplemental subsidy to properties seeking to convert from assist-ance under section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437g)where the section 9 assistance is insufficient to support conversion of the propertyunder the demonstration, in accordance with procedures established by the Secretary.

Program and Financing (in millions of dollars)

2019 est.2018 est.2017 actualIdentification code 086–0406–0–1–604

Obligations by program activity:100..................................RAD Incremental Conversion Cost .............................................0001

100..................................Direct program activities, subtotal ................................................0100

100..................................Total new obligations (object class 41.0) ......................................0900

Budgetary resources:Budget authority:

Appropriations, discretionary:100..................................Appropriation ....................................................................1100100..................................Total budgetary resources available ..............................................1930

Change in obligated balance:Unpaid obligations:

100..................................New obligations, unexpired accounts ....................................3010–100..................................Outlays (gross) ......................................................................3020

Budget authority and outlays, net:Discretionary:

100..................................Budget authority, gross .........................................................4000Outlays, gross:

100..................................Outlays from new discretionary authority ..........................4010100..................................Budget authority, net (total) ..........................................................4180100..................................Outlays, net (total) ........................................................................4190

The Budget provides $100 million for the Rental Assistance Demonstra-tion (RAD) program and expands its authority to convert additional prop-erties to long-term, project-based Section 8 contracts that can leverageprivate financing for capital improvements. Under existing authorities,Public Housing Authorities (PHAs) and other owners of rental propertiesassisted under the Public Housing, Moderate Rehabilitation (Mod Rehab),Moderate Rehabilitation Single-Room Occupancy (Mod Rehab SRO), RentSupplement (Rent Supp) and Rental Assistance Payment (RAP) programsare offered the option to convert their properties to long-term Section 8contracts. The Budget expands this authority to enable Section 202 Housingfor the Elderly Project Rental Assistance Contracts (PRACs) the option toalso convert to Section 8 contracts.

Distinct from no-cost conversions, the requested $100 million would beawarded to PHAs to cover the incremental subsidy necessary for PublicHousing properties that could not otherwise convert in the absence of suchfunds.

The Budget also includes the following proposals to facilitate additionalconversions of HUD-assisted properties: 1) eliminates the 225,000 unitcap on Public Housing conversions; 2) eliminates the deadline of September30, 2020, for submission of RAD applications; 3) standardizes ownershipand control requirements for converted Public Housing properties in situ-ations where low-income housing tax credits are used or where foreclosure,bankruptcy, or default occurs; and 4) protects tenants' right to continueoccupancy under second component conversions.

✦

TENANT-BASED RENTAL ASSISTANCE

For activities and assistance for the provision of tenant-based rental assistanceauthorized under the United States Housing Act of 1937, as amended (42 U.S.C.1437 et seq.) ("the Act" herein), not otherwise provided for, $15,314,749,000, toremain available until September 30, 2021, shall be available on October 1, 2018(in addition to the $4,000,000,000 previously appropriated under this heading thatshall be available on October 1, 2018), and $4,000,000,000, to remain availableuntil September 30, 2022, shall be available on October 1, 2019: Provided, Thatthe amounts made available under this heading are provided as follows:

(1) $17,513,749,000 shall be available for renewals of expiring section 8 tenant-based annual contributions contracts (including renewals of enhanced vouchersunder any provision of law authorizing such assistance under section 8(t) of theAct) and including renewal of other special purpose incremental vouchers:Provided, That notwithstanding any other provision of law, from amounts providedunder this paragraph and any carryover, the Secretary for the calendar year 2019funding cycle shall provide renewal funding for each public housing agency basedon validated voucher management system (VMS) leasing and cost data for theprior calendar year and by applying an inflation factor as established by theSecretary, by notice published in the Federal Register, and by making any neces-sary adjustments for the costs associated with the first-time renewal of vouchersunder this paragraph including tenant protection and Choice Neighborhoodsvouchers: Provided further, That the Secretary shall, to the extent necessary tostay within the amount specified under this paragraph (except as otherwise modifiedunder this paragraph), prorate each public housing agency's allocation otherwiseestablished pursuant to this paragraph: Provided further, That except as providedin the following provisos, the entire amount specified under this paragraph (exceptas otherwise modified under this paragraph) shall be obligated to the publichousing agencies based on the allocation and pro rata method described above,and the Secretary shall notify public housing agencies of their annual budget bythe latter of 60 days after enactment of this Act or March 1, 2019: Provided further,That the Secretary may extend the notification period with notification to the Houseand Senate Committees on Appropriations: Provided further, That public housingagencies participating in the MTW demonstration shall be funded pursuant totheir MTW agreements and in accordance with the requirements of the MTWprogram and shall be subject to the same pro rata adjustments under the previousprovisos: Provided further, That the Secretary may offset public housing agencies'calendar year 2019 allocations based on the excess amounts of public housingagencies' net restricted assets accounts, including HUD held programmatic re-serves (in accordance with VMS data in calendar year 2018 that is verifiable andcomplete), as determined by the Secretary: Provided further, That public housingagencies participating in the MTW demonstration shall also be subject to the offset,as determined by the Secretary, from the agencies' calendar year 2019 MTWfunding allocation: Provided further, That the Secretary shall use any offset re-ferred to in the previous two provisos throughout the calendar year to prevent thetermination of rental assistance for families as the result of insufficient funding,as determined by the Secretary, and to avoid or reduce the proration of renewalfunding allocations: Provided further, That the Secretary may utilize unobligatedbalances, including recaptures and carryover, remaining from funds appropriatedunder this heading from prior year appropriations (excluding special purposevouchers), notwithstanding the purposes for which such amounts were appropri-ated, to avoid or reduce such prorations: Provided further, That the Secretarymay make temporary adjustments to the allocations for public housing agenciesin an area for which the President declared a disaster under title IV of the RobertT. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170 et seq.),to avoid significant funding reductions that would otherwise result from the dis-aster, upon request by a public housing agency and supported by documentationas required by the Secretary that demonstrates that the need for the adjustment isdue to the disaster: Provided further, That up to $100,000,000 shall be availableonly: (1) for adjustments in the allocations for public housing agencies, after ap-plication for an adjustment by a public housing agency that experienced a signi-ficant increase, as determined by the Secretary, in renewal costs of vouchers res-ulting from unforeseen circumstances or from portability under section 8(r) of theAct; (2) for vouchers that were not in use during the previous 12-month period inorder to be available to meet a commitment pursuant to section 8(o)(13) of theAct; (3) for adjustments for costs associated with HUD-Veterans Affairs SupportiveHousing (HUD-VASH) vouchers; (4) for public housing agencies that despitetaking reasonable cost savings measures, as determined by the Secretary, wouldotherwise be required to terminate rental assistance for families as a result of in-sufficient funding; and (5) for public housing agencies that have experienced in-

549

TENANT-BASED RENTAL ASSISTANCE—Continued

creased costs or loss of units as a result of a Presidentially-declared disaster:Provided further, That the Secretary shall allocate amounts under the previousproviso based on need, as determined by the Secretary;

(2) $140,000,000 shall be for section 8 rental assistance for relocation and re-placement of housing units that are demolished or disposed of pursuant to section18 of the Act, conversion of section 23 projects to assistance under section 8, thefamily unification program under section 8(x) of the Act, relocation of witnessesin connection with efforts to combat crime in public and assisted housing pursuantto a request from a law enforcement or prosecution agency, enhanced vouchersunder any provision of law authorizing such assistance under section 8(t) of theAct, HOPE VI and Choice Neighborhood vouchers, mandatory and voluntaryconversions, tenant protection assistance in connection with the release of theDeclaration of Trust from a public housing property, and tenant protection assist-ance including replacement and relocation assistance or for project-based assist-ance to prevent the displacement of unassisted elderly tenants currently residingin section 202 properties financed between 1959 and 1974 that are refinancedpursuant to Public Law 106–569, as amended, or under the authority as providedunder this Act: Provided, That when a public housing development is submittedfor demolition or disposition under section 18 of the Act, the Secretary may providesection 8 rental assistance when the units pose an imminent health and safety riskto residents: Provided further, That the Secretary may only provide replacementvouchers for units that were occupied within the previous 24 months that ceaseto be available as assisted housing, subject only to the availability of funds:Provided further, That any tenant protection voucher made available from amountsunder this paragraph shall not be reissued by any public housing agency, exceptthe replacement vouchers as defined by the Secretary by notice, when the initialfamily that received any such voucher no longer receives such voucher, and theauthority for any public housing agency to issue any such voucher shall cease toexist;

(3) $1,550,000,000 shall be for administrative and other expenses of publichousing agencies in administering the section 8 tenant-based rental assistanceprogram, of which up to $20,000,000 shall be available to the Secretary to allocateto public housing agencies that need additional funds to administer their section8 programs, including fees associated with section 8 tenant protection rental as-sistance, the administration of disaster related vouchers, HUD-VASH vouchers,and other special purpose incremental vouchers: Provided, That no less than$1,530,000,000 of the amount provided in this paragraph shall be allocated topublic housing agencies for the calendar year 2019 funding cycle based on section8(q) of the Act (and related Appropriation Act provisions) as in effect immediatelybefore the enactment of the Quality Housing and Work Responsibility Act of 1998(Public Law 105–276): Provided further, That if the amounts made available underthis paragraph are insufficient to pay the amounts determined under the previousproviso, the Secretary may decrease the amounts allocated to agencies by a uniformpercentage applicable to all agencies receiving funding under this paragraph ormay, to the extent necessary to provide full payment of amounts determined underthe previous proviso, utilize unobligated balances, including recaptures andcarryovers, remaining from funds appropriated to the Department of Housing andUrban Development under this heading in this Act and prior year Acts (excludingspecial purpose vouchers), notwithstanding the purposes for which such amountswere appropriated: Provided further, That public housing agencies participatingin the MTW demonstration shall be funded pursuant to their MTW agreementsand in accordance with the requirements of the MTW program, and shall be subjectto the same uniform percentage decrease as under the previous proviso: Providedfurther, That the Secretary may make temporary adjustments to the administrativefee eligibility determinations for public housing agencies in an area for which thePresident declared a disaster under title IV of the Robert T. Stafford DisasterRelief and Emergency Assistance Act (42 U.S.C. 5170 et seq.), to avoid significantfunding reductions that would otherwise result from the disaster, upon request bya public housing agency and supported by documentation as required by theSecretary that demonstrates that the need for the adjustment is due to the disaster;Provided further, That amounts provided under this paragraph shall be only foractivities related to the provision of tenant-based rental assistance authorizedunder section 8, including related development activities;

(4) $107,000,000 for the renewal of tenant-based assistance contracts undersection 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.8013), including necessary administrative expenses: Provided, That administrativeand other expenses of public housing agencies in administering the special purposevouchers in this paragraph shall be funded under the same terms and be subjectto the same pro rata reduction as the percent decrease for administrative andother expenses to public housing agencies under paragraph (3) of this heading;

(5) $4,000,000 shall be for rental assistance and associated administrative feesfor Tribal HUD-VA Supportive Housing (Tribal HUD-VASH) to serve NativeAmerican veterans that are homeless or at-risk of homelessness living on or neara reservation or other Indian areas: Provided, That such amount shall be madeavailable for renewal grants to the recipients that received assistance under therental assistance and supportive housing demonstration program for NativeAmerican veterans authorized under the heading "TENANT-BASED RENTALASSISTANCE" in prior acts: Provided further, That the Secretary shall be author-ized to specify criteria for renewal grants, including data on the utilization of as-sistance reported by grant recipients under the demonstration program: Providedfurther, That any amounts remaining after such renewal assistance is awardedmay be available for new grants to recipients eligible to receive block grants underthe Native American Housing Assistance and Self-Determination Act of 1996 (25U.S.C. 4101 et seq.) for rental assistance and associated administrative fees forTribal HUD-VASH to serve Native American veterans that are homeless or at-risk of homelessness living on or near a reservation or other Indian areas: Providedfurther, That funds shall be awarded based on need, and administrative capacity,as established by the Secretary in a Notice published in the Federal Register aftercoordination with the Secretary of Veterans Affairs: Provided further, That renewalgrants and new grants under this paragraph shall be administered by block grantrecipients in accordance with program requirements under the Native AmericanHousing Assistance and Self-Determination Act of 1996: Provided further, Thatassistance under this paragraph shall be modeled after, with necessary and appro-priate adjustments for Native American grant recipients and veterans, the rentalassistance and supportive housing program known as HUD-VASH, including ad-ministration in conjunction with the Department of Veterans Affairs and overallimplementation of section 8(o)(19) of the United States Housing Act of 1937:Provided further, That the Secretary of Housing and Urban Development maywaive or specify alternative requirements for any provision of any statute or reg-ulation that the Secretary administers in connection with the use of funds madeavailable under this paragraph (except requirements related to fair housing,nondiscrimination, labor standards, and the environment), upon a finding by theSecretary that any such waiver or alternative requirement is necessary for the ef-fective delivery and administration of such assistance: Provided further, Thatgrant recipients shall report to the Secretary on utilization of such rental assistanceand other program data, as prescribed by the Secretary;

(6) the Secretary shall separately track all special purpose vouchers fundedunder this heading; and

(7) All unobligated balances from funds appropriated under the heading "De-partment of Housing and Urban Development—Public and Indian Housing—TenantBased Rental Assistance" in the Consolidated Security, Disaster Assistance, andContinuing Appropriations Act, 2009 (Public Law 110–329) are hereby perman-ently cancelled.Note.—A full-year 2018 appropriation for this account was not enacted at the time the budget

was prepared; therefore, the budget assumes this account is operating under the ContinuingAppropriations Act, 2018 (Division D of P.L. 115–56, as amended). The amounts included for2018 reflect the annualized level provided by the continuing resolution.



Obligations by program activity:14024194Tenant Protection ......................................................................0001

1,5501,7431,691Administrative Fees ...................................................................000217,51418,27618,315Contract Renewals ....................................................................0006

8310782Rental Assistance Demonstration .............................................0007.................8320Veterans Affairs Supportive Housing Vouchers ..........................0008

107138111Section 811 Mainstream Vouchers ............................................0013.................20.................Family Unification Program .......................................................0014

414.................Tribal HUD VASH ........................................................................0015

19,39820,62220,313Total new obligations (object class 41.0) ......................................0900

Budgetary resources:Unobligated balance:

5369297Unobligated balance brought forward, Oct 1 .........................1000..................................10Recoveries of prior year unpaid obligations ...........................1021

5369307Unobligated balance (total) ......................................................1050Budget authority:

Appropriations, discretionary:15,31516,18116,292Appropriation ....................................................................1100

.................2221Appropriations transferred from other acct [086–0304] ....1121838262Appropriations transferred from other acct [086–0163] ....1121

–5..................................Unobligated balance of appropriations permanently

reduced .........................................................................1131

15,39316,28516,375Appropriation, discretionary (total) .......................................1160

THE BUDGET FOR FISCAL YEAR 2019550 Public and Indian Housing Programs—ContinuedFederal Funds—Continued

Advance appropriations, discretionary:4,0003,9734,000Advance appropriation ..................................................1170

19,39320,25820,375Budget authority (total) .............................................................190019,39820,62720,682Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:.................5369Unexpired unobligated balance, end of year ..........................1941


3,4363,5623,843Unpaid obligations, brought forward, Oct 1 ..........................300019,39820,62220,313New obligations, unexpired accounts ....................................3010

–19,902–20,748–20,584Outlays (gross) ......................................................................3020..................................–10Recoveries of prior year unpaid obligations, unexpired .........3040

2,9323,4363,562Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

3,4363,5623,843Obligated balance, start of year ............................................31002,9323,4363,562Obligated balance, end of year ..............................................3200


19,39320,25820,375Budget authority, gross .........................................................4000Outlays, gross:

17,05817,78317,543Outlays from new discretionary authority ..........................40102,8442,9653,041Outlays from discretionary balances .................................4011

19,90220,74820,584Outlays, gross (total) .............................................................402019,39320,25820,375Budget authority, net (total) ..........................................................418019,90220,74820,584Outlays, net (total) ........................................................................4190

The Budget provides $19.3 billion for the Tenant-Based Rental Assistanceprogram (also known as the Housing Choice Voucher program), which isthe Federal government's largest income-targeted rental assistance program.With this funding, the Housing Choice Voucher program will providehousing assistance to over 2.2 million extremely low- to very low-incomefamilies to rent decent, safe, and sanitary housing in the private market.About 2,200 state and local Public Housing Authorities (PHAs) administerthe Housing Choice Voucher program.

The Budget provides $17.5 billion in contract renewals to continue assist-ance for families anticipated to be under lease at the end of 2018. TheBudget also includes $107 million for the renewal of 14,000 housingvouchers for persons with disabilities, and associated administrative fees,originally funded under the Section 811 tenant-based program.

The Budget requests $1.6 billion in PHA administrative fees to supportfundamental functions such as admitting households, conducting housingquality inspections, and completing tenant income certifications.

The Budget requests $140 million for tenant protection vouchers, whichare provided to families who may have to relocate due to actions beyondtheir control, such as public housing demolition or redevelopment, andwhen private owners of multi-family developments choose to leave theproject-based program or convert to long-term Section 8 contracts as a partof the Rental Assistance Demonstration program.

The Budget provides $4 million for the renewal or issuance of vouchersby tribes under the Tribal HUD-VA Supportive Housing (HUD-VASH)program, to serve Native American veterans that are homeless or at riskof homelessness and living in and around designated tribal areas.

Further, the Budget supports a package of comprehensive rental reformsthat will promote work, simplify program administration, reduce Federalcosts, and increase local choice while continuing to support current residentsacross the rental assistance programs. The reforms include increased tenantrent contributions; reduced frequency of income recertifications; and addi-tional flexibilities for PHAs and property owners to develop alternativerent structures. In addition to the rent reforms, the Budget facilitates astrategic reduction of the Public Housing portfolio and promotes cost-sharing with state and local governments to provide affordable housing.

✦

HOUSING CERTIFICATE FUND

(INCLUDING CANCELLATIONS)

Unobligated balances, including recaptures and carryover, remaining from fundsappropriated to the Department of Housing and Urban Development under thisheading, the heading "Annual Contributions for Assisted Housing", and the heading

"Project-Based Rental Assistance", for fiscal year 2019 and prior years may beused for renewal of or amendments to section 8 project-based contracts and forperformance-based contract administrators or contractors, notwithstanding thepurposes for which such funds were appropriated: Provided, That any obligatedbalances of contract authority from fiscal year 1974 and prior that have been ter-minated are hereby permanently cancelled: Provided further, That amounts hereto-fore recaptured, or recaptured during the current fiscal year, from section 8 project-based contracts from source years fiscal year 1975 through fiscal year 1987 arehereby permanently cancelled, and an amount of additional new budget authority,equivalent to the amount permanently cancelled is hereby appropriated, to remainavailable until expended, for the purposes set forth under this heading, in additionto amounts otherwise available.

Note.—A full-year 2018 appropriation for this account was not enacted at the time the budgetwas prepared; therefore, the budget assumes this account is operating under the ContinuingAppropriations Act, 2018 (Division D of P.L. 115–56, as amended). The amounts included for2018 reflect the annualized level provided by the continuing resolution.



Obligations by program activity:.................19565Contract Administrators ............................................................0002

.................19565Total new obligations (object class 41.0) ......................................0900


10189220Unobligated balance brought forward, Oct 1 .........................1000104663Recoveries of prior year unpaid obligations ...........................1021

–10–30–29Other balances withdrawn to Treasury ..................................1029


Appropriations, discretionary:103030Appropriation ....................................................................1100

–10–30–30Unobligated balance of appropriations permanently reduced

(HCF funds) ..................................................................1131

10205254Total budgetary resources available ..............................................1930Memorandum (non-add) entries:

1010189Unexpired unobligated balance, end of year ..........................1941


406419630Unpaid obligations, brought forward, Oct 1 ..........................3000.................19565New obligations, unexpired accounts ....................................3010

–120–162–213Outlays (gross) ......................................................................3020–10–46–63Recoveries of prior year unpaid obligations, unexpired .........3040

276406419Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

406419630Obligated balance, start of year ............................................3100276406419Obligated balance, end of year ..............................................3200


Outlays, gross:120162213Outlays from discretionary balances .................................4011

...................................................Budget authority, net (total) ..........................................................4180120162213Outlays, net (total) ........................................................................4190

Until 2005, the Housing Certificate Fund provided funding to both theproject-based and tenant-based components of the Section 8 program.Project-Based Rental Assistance (PBRA) and Tenant-Based Rental Assist-ance are now funded in separate accounts. The Housing Certificate Fundretains and recovers balances from previous years' appropriations, and usesthose balances to support PBRA contract renewals, amendments, and ad-ministration.

✦

PUBLIC HOUSING CAPITAL FUND

(INCLUDING TRANSFER OF FUNDS)

Unobligated balances, including recaptures and carryover, remaining from fundsappropriated under this heading in prior fiscal years, excluding set asides, shall betransferred to the heading "Public Housing Operating Fund" for distribution topublic housing agencies pursuant to the Operating Fund formula at part 990 of title24, Code of Federal Regulations.

551DEPARTMENT OF HOUSING AND URBAN DEVELOPMENTPublic and Indian Housing Programs—Continued

Federal Funds—Continued

PUBLIC HOUSING CAPITAL FUND—Continued




Obligations by program activity:.................1,9221,786Capital Grants (Modernization) .................................................0001.................1615Emergency/Disaster Reserve .....................................................0003.................3535Resident Opportunities and Supportive Services .......................0006.................1.................Administrative Receivership ......................................................0007.................1012Financial and Physical Assessment Support .............................0008.................15.................Jobs-Plus Pilot ...........................................................................0010.................55Safety and Security ...................................................................0011.................25.................Lead-Based Paint Reduction .....................................................0012

.................2,0291,853Total new obligations (object class 41.0) ......................................0900


.................13476Unobligated balance brought forward, Oct 1 .........................1000

..................................6Recoveries of prior year unpaid obligations ...........................1021

.................13482Unobligated balance (total) ......................................................1050Budget authority:

Appropriations, discretionary:.................1,9281,942Appropriation ....................................................................1100.................–22–21Appropriations transferred to other accts [086–0302] .......1120.................–11–15Appropriations transferred to other accts [086–0303] .......1120

.................1,8951,906Appropriation, discretionary (total) .......................................1160

.................1,8951,906Budget authority (total) .............................................................1900

.................2,0291,988Total budgetary resources available ..............................................1930Memorandum (non-add) entries:

..................................–1Unobligated balance expiring ................................................1940

..................................134Unexpired unobligated balance, end of year ..........................1941


3,8953,7583,670Unpaid obligations, brought forward, Oct 1 ..........................3000.................2,0291,853New obligations, unexpired accounts ....................................3010

–1,822–1,892–1,755Outlays (gross) ......................................................................3020..................................–6Recoveries of prior year unpaid obligations, unexpired .........3040..................................–4Recoveries of prior year unpaid obligations, expired .............3041




.................1,8951,906Budget authority, gross .........................................................4000Outlays, gross:

.................5924Outlays from new discretionary authority ..........................40101,8221,8331,731Outlays from discretionary balances .................................4011

1,8221,8921,755Outlays, gross (total) .............................................................4020.................1,8951,906Budget authority, net (total) ..........................................................4180

1,8221,8921,755Outlays, net (total) ........................................................................4190

The 2019 President's Budget requests no funding for the Public HousingCapital Fund. The Budget proposes that all unobligated balances from theCapital Fund, excluding set-asides, be directed to the Public Housing Op-erating Fund and distributed to Public Housing Authorities (PHAs) throughthe Operating Fund formula. Given fiscal constraints, the Budget recognizesa greater role for State and local governments to address capital repairneeds and more fully share in the provision of affordable housing.

Further, the Budget supports a package of comprehensive rental reformsthat will promote work, simplify program administration, reduce Federalcosts, and increase local choice while continuing to support current residentsacross the rental assistance programs. The reforms include increased tenantrent contributions; reduced frequency of income recertifications; and addi-tional flexibilities for PHAs and property owners to develop alternativerent structures. In addition to the rent reforms, the Budget facilitates a

strategic reduction of the Public Housing portfolio and promotes cost-sharing with state and local governments to provide affordable housing.

✦

PUBLIC HOUSING OPERATING FUND

For 2019 payments to public housing agencies (PHAs) for the operation andmanagement of public housing, as authorized by section 9(e) of the United StatesHousing Act of 1937 (42 U.S.C. 1437g(e)), and for other purposes as specified underthis heading, $2,841,000,000, to remain available until September 30, 2020 (exceptas otherwise specified under this heading): Provided, That notwithstanding anyother provision of law or regulation, of the total amount available under this heading,$300,000,000 shall be available to the Secretary to allocate pursuant to a need-based application process not subject to the Operating Fund formula at part 990of title 24, Code of Federal Regulations to PHAs that experience financial insolvency,as determined by the Secretary: Provided further, That after all such insolvencyneeds are met, the Secretary may distribute any remaining funds to all PHAs on apro-rata basis pursuant to the Operating Fund formula at part 990 of title 24, Codeof Federal Regulations: Provided further, That of the total amount made availableunder this heading, no less than $30,000,000 shall be available until September 30,2022 for competitive grants to PHAs for demolition, and the associated relocationand administrative costs, of the most distressed public housing units: Provided fur-ther, That of the total amount made available under this heading, up to $14,000,000shall be available until September 30, 2022 to support ongoing Public HousingFinancial and Physical Assessment activities: Provided further, That of the totalamount made available under this heading, up to $1,000,000 shall be availableuntil September 30, 2022 to support the costs of administrative and judicial receiv-erships: Provided further, That of the total amount made available under thisheading, not to exceed $10,000,000 shall be available until September 30, 2022 forthe Secretary to make grants, notwithstanding section 203 of this Act, to PHAs foremergency capital needs resulting from unforeseen or unpreventable emergenciesand natural disasters excluding Presidentially-declared emergencies and naturaldisasters under the Robert T. Stafford Disaster Relief and Emergency Act (42 U.S.C.5121 et seq.) occurring in fiscal year 2019: Provided further, That of the total amountmade available under this heading, up to $10,000,000 shall be available untilSeptember 30, 2022 for a Jobs-Plus initiative modeled after the Jobs-Plus demon-stration: Provided further, That funding under the previous proviso shall be availablefor competitive grants to partnership between PHAs, local workforce investmentboards established under section 107 of the Workforce Innovation and OpportunityAct of 2014 (29 U.S.C. 3122), and other agencies and organizations that providesupport to help public housing residents obtain employment and increase earnings:Provided further, That applicants must demonstrate the ability to provide servicesto residents, partner with workforce investment boards, and leverage service dollars:Provided further, That the Secretary may allow PHAs to request exemptions fromrent and income limitation requirements under sections 3 and 6 of the United StatesHousing Act of 1937 (42 U.S.C. 1437a and 1437d) as necessary to implement theJobs-Plus program, including earned income disregards, on such terms and condi-tions as the Secretary may approve upon a finding by the Secretary that any suchor alternative requirements are necessary for the effective implementation of theJobs-Plus initiative as a voluntary program for residents: Provided further, Thatthe Secretary shall publish by notice in the Federal Register any waivers or altern-ative requirements pursuant to the preceding two provisos no later than 10 daysbefore the effective date of such notice: Provided further, That the amount of anyreduced tenant rent payments due to the implementation of rent incentives as author-ized pursuant to such waivers or alternative requirements shall be factored into thePHA's general operating fund eligibility pursuant to part 990 of title 24, Code ofFederal Regulations, and shall not be charged against the competitive grant amounts.




Obligations by program activity:2,6004,9983,944Operating Subsidy .....................................................................0001

10..................................Emergency/Disaster Reserve .....................................................00031..................................Administrative Receivership ......................................................0007

14..................................Financial and Physical Assessment Support .............................000810..................................Jobs-Plus Pilot ...........................................................................001030..................................Demolition Grants .....................................................................0013





..................................2Recoveries of prior year paid obligations ...............................1033


Appropriations, discretionary:2,8414,3704,400Appropriation ....................................................................1100–83–82–62Appropriations transferred to other accts [086–0302] .......1120–83–43–48Appropriations transferred to other accts [086–0303] .......1120

2,6754,2454,290Appropriation, discretionary (total) .......................................11602,6754,9984,697Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:10.................753Unexpired unobligated balance, end of year ..........................1941


1,146394774Unpaid obligations, brought forward, Oct 1 ..........................30002,6654,9983,944New obligations, unexpired accounts ....................................3010

–3,099–4,246–4,320Outlays (gross) ......................................................................3020..................................–4Recoveries of prior year unpaid obligations, expired .............3041

7121,146394Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

1,146394774Obligated balance, start of year ............................................31007121,146394Obligated balance, end of year ..............................................3200



1,9533,0993,158Outlays from new discretionary authority ..........................40101,1461,1471,162Outlays from discretionary balances .................................4011

3,0994,2464,320Outlays, gross (total) .............................................................4020Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:..................................–4Non-Federal sources .........................................................4033

Additional offsets against gross budget authority only:..................................2Offsetting collections credited to expired accounts ...........4052

..................................2Recoveries of prior year paid obligations, unexpired

accounts .......................................................................4053

..................................4Additional offsets against budget authority only (total) ........4060

2,6754,2454,290Budget authority, net (discretionary) .........................................40703,0994,2464,316Outlays, net (discretionary) .......................................................40802,6754,2454,290Budget authority, net (total) ..........................................................41803,0994,2464,316Outlays, net (total) ........................................................................4190

The Budget requests $2.8 billion for the Public Housing Operating Fund.Of this amount, $2.5 billion is provided for operating subsidies, formulagrants awarded to Public Housing Authorities (PHAs) to support the oper-ation and maintenance of approximately 1 million public housing units.This funding helps to address the growing need for quality affordablehousing for some of the nation's most vulnerable families by providingsupport to over 2 million low-income residents.

The 2019 Budget eliminates the Public Housing Capital Fund and movesthe set-asides previously provided within the Capital Fund to the OperatingFund. These set-asides include up to $10 million for Jobs-Plus, an evidence-based program to increase the employment and earnings of Public Housingresidents; up to $10 million for a Emergency and Natural Disaster Reserve,which provides grants to PHAs for capital needs arising from emergencysituations or non-Presidentially declared natural disasters; up to $14 millionfor financial and physical assessments of Public Housing and other HUD-assisted properties; and up to $1 million for PHAs in administrative andjudicial receiverships.

In addition there are two new set-asides to address emerging issues inthe Public Housing portfolio. The Budget requests $300 million in set-asidefunds to support PHAs that may become financially insolvent based onprojected funding and PHA-held operating reserves. There is also $30million set aside for competitive grants to facilitate the demolition ofphysically obsolete public housing properties.

Further, the Budget supports a package of comprehensive rental reformsthat will promote work, simplify program administration, reduce Federal

costs, and increase local choice while continuing to support current residentsacross the rental assistance programs. The reforms include increased tenantrent contributions; reduced frequency of income recertifications; and addi-tional flexibilities for Public Housing Authorities and property owners todevelop alternative rent structures. In addition to the rent reforms, theBudget facilitates a strategic reduction of the Public Housing portfolio andpromotes cost-sharing with state and local governments to provide afford-able housing.

✦

CHOICE NEIGHBORHOODS INITIATIVE




Obligations by program activity:..................................133Choice Neighborhoods Grants ...................................................0001

..................................133Total new obligations (object class 41.0) ......................................0900


274137132Unobligated balance brought forward, Oct 1 .........................1000Budget authority:

Appropriations, discretionary:.................137138Appropriation ....................................................................1100


reduced .........................................................................1131

–137137138Appropriation, discretionary (total) .......................................1160137274270Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:137274137Unexpired unobligated balance, end of year ..........................1941


264414317Unpaid obligations, brought forward, Oct 1 ..........................3000..................................133New obligations, unexpired accounts ....................................3010

–12–150–36Outlays (gross) ......................................................................3020




–137137138Budget authority, gross .........................................................4000Outlays, gross:

–137..................................Outlays from new discretionary authority ..........................401014915036Outlays from discretionary balances .................................4011

1215036Outlays, gross (total) .............................................................4020–137137138Budget authority, net (total) ..........................................................4180

1215036Outlays, net (total) ........................................................................4190

The Choice Neighborhoods Initiative provides competitive planning andimplementation grants to improve neighborhoods with distressed publicand/or HUD-assisted housing. The 2019 Budget does not request fundingfor Choice Neighborhoods, and proposes to cancel the remaining unoblig-ated balances in the Choice Neighborhoods account as well as its prede-cessor, HOPE VI. The Budget recognizes a greater role for State and localgovernments and the private sector to address community revitalizationneeds, and redirects constrained Federal resources to higher priority activ-ities. The Department will continue to monitor and provide assistance forexisting HOPE VI and Choice Neighborhood projects.

✦



REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING (HOPE VI)




11.................Unobligated balance brought forward, Oct 1 .........................1000..................................1Recoveries of prior year paid obligations ...............................1033


Appropriations, discretionary:


reduced .........................................................................1131

.................11Total budgetary resources available ..............................................1930Memorandum (non-add) entries:

.................11Unexpired unobligated balance, end of year ..........................1941


449106Unpaid obligations, brought forward, Oct 1 ..........................3000–4–45–57Outlays (gross) ......................................................................3020

.................449Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

449106Obligated balance, start of year ............................................3100.................449Obligated balance, end of year ..............................................3200


–1..................................Budget authority, gross .........................................................4000Outlays, gross:

–1..................................Outlays from new discretionary authority ..........................401054557Outlays from discretionary balances .................................4011

44557Outlays, gross (total) .............................................................4020Offsets against gross budget authority and outlays:


Additional offsets against gross budget authority only:


accounts .......................................................................4053


–1..................................Budget authority, net (discretionary) .........................................407044556Outlays, net (discretionary) .......................................................4080

–1..................................Budget authority, net (total) ..........................................................418044556Outlays, net (total) ........................................................................4190

The HOPE VI program has accomplished its goal of contributing to thedemolition of approximately 100,000 severely distressed Public Housingunits. The Budget proposes to cancel all remaining HOPE VI unobligatedbalances.

✦

FAMILY SELF-SUFFICIENCY

For the Family Self-Sufficiency program to support family self-sufficiency coordin-ators under section 23 of the United States Housing Act of 1937, to promote thedevelopment of local strategies to coordinate the use of assistance under sections8(o) and 9 of such Act with public and private resources, and enable eligible familiesto achieve economic independence and self-sufficiency, $75,000,000, to remainavailable until September 30, 2020: Provided, That the Secretary may, by FederalRegister notice, waive or specify alternative requirements under subsections b(3),b(4), b(5), or c(1) of section 23 of such Act in order to facilitate the operation of aunified self-sufficiency program for individuals receiving assistance under differentprovisions of the Act, as determined by the Secretary: Provided further, That ownersof a privately owned multifamily property with a section 8 contract may voluntarilymake a Family Self-Sufficiency program available to the assisted tenants of suchproperty in accordance with procedures established by the Secretary: Providedfurther, That such procedures established pursuant to the previous proviso shallpermit participating tenants to accrue escrow funds in accordance with section23(d)(2) and shall allow owners to use funding from residual receipt accounts tohire coordinators for their own Family Self-Sufficiency program.




Obligations by program activity:75149.................Family Self-Sufficiency ..............................................................0001

75149.................Total new obligations (object class 41.0) ......................................0900


.................75.................Unobligated balance brought forward, Oct 1 .........................1000Budget authority:

Appropriations, discretionary:757475Appropriation ....................................................................11007514975Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:..................................75Unexpired unobligated balance, end of year ..........................1941


11527102Unpaid obligations, brought forward, Oct 1 ..........................300075149.................New obligations, unexpired accounts ....................................3010

–85–61–73Outlays (gross) ......................................................................3020..................................–2Recoveries of prior year unpaid obligations, expired .............3041




757475Budget authority, gross .........................................................4000Outlays, gross:

856173Outlays from discretionary balances .................................4011757475Budget authority, net (total) ..........................................................4180856173Outlays, net (total) ........................................................................4190

The Budget requests $75 million for the Family Self-Sufficiency (FSS)program to help Housing Choice Voucher, Public Housing, and Project-Based Rental Assistance (PBRA) residents achieve self-sufficiency andeconomic independence. FSS provides service coordination through com-munity partnerships that link assisted residents with employment assistance,job training, child care, transportation, financial literacy, and other support-ive services. Residents participating in FSS are provided an interest bearingescrow account; any rent increase resulting from increased earned incomeduring their participation in the program is credited to the escrow account.

The Budget supports FSS through competitive funding for public housingagencies and authority for PBRA owners to use funds from their residualreceipt accounts or other sources to hire service coordinators.

✦

NATIVE AMERICAN HOUSING BLOCK GRANTS

For the Native American Housing Block Grants program, as authorized undertitle I of the Native American Housing Assistance and Self-Determination Act of1996 (NAHASDA) (25 U.S.C. 4111 et seq.), $600,000,000, to remain available untilSeptember 30, 2023: Provided, That, notwithstanding NAHASDA, to determine theamount of the allocation under title I of such Act for each Indian tribe, the Secretaryshall apply the formula under section 302 of such Act with the need componentbased on single-race census data and with the need component based on multi-racecensus data, and the amount of the allocation for each Indian tribe shall be thegreater of the two resulting allocation amounts: Provided further, That of the amountprovided under this heading, $2,000,000 shall be made available for the cost ofguaranteed notes and other obligations, as authorized by title VI of NAHASDA:Provided further, That such costs, including the costs of modifying such notes andother obligations, shall be as defined in section 502 of the Congressional BudgetAct of 1974, as amended: Provided further, That these funds are available to subsid-ize the total principal amount of any notes and other obligations, any part of whichis to be guaranteed, not to exceed $17,761,989.





Obligations by program activity:598640646Indian Housing Block Grants .....................................................0010

33.................Technical Assistance .................................................................0011331National and Regional Organizations ........................................0015

604646647Direct program activities, subtotal ................................................0091Credit program obligations:

221Loan guarantee subsidy ........................................................0702.................21Reestimates of loan guarantee subsidy ................................0707..................................3Interest on reestimates of loan guarantee subsidy ................0708

245Direct program activities, subtotal ................................................0791

606650652Total new obligations (object class 41.0) ......................................0900


535118Unobligated balance brought forward, Oct 1 .........................1000.................5118Discretionary unobligated balance brought fwd, Oct 1 ......1001..................................27Recoveries of prior year unpaid obligations ...........................1021..................................1Recoveries of prior year paid obligations ...............................1033



Appropriations, mandatory:.................23Appropriation ....................................................................1200

600652657Budget authority (total) .............................................................1900653703703Total budgetary resources available ..............................................1930



765744743Unpaid obligations, brought forward, Oct 1 ..........................3000606650652New obligations, unexpired accounts ....................................3010

–533–629–624Outlays (gross) ......................................................................3020..................................–27Recoveries of prior year unpaid obligations, unexpired .........3040





177192248Outlays from new discretionary authority ..........................4010356435373Outlays from discretionary balances .................................4011



Additional offsets against gross budget authority only:


accounts .......................................................................4053

600650654Budget authority, net (discretionary) .........................................4070533627620Outlays, net (discretionary) .......................................................4080

Mandatory:.................23Budget authority, gross .........................................................4090

Outlays, gross:.................23Outlays from new mandatory authority .............................4100

600652657Budget authority, net (total) ..........................................................4180533629623Outlays, net (total) ........................................................................4190

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


Guaranteed loan levels supportable by subsidy budget authority:171710Title VI Indian Federal Guarantees Program ..............................215001

Guaranteed loan subsidy (in percent):11.2611.5011.20Title VI Indian Federal Guarantees Program ..............................232001

11.2611.5011.20Weighted average subsidy rate ..................................................232999Guaranteed loan subsidy budget authority:

221Title VI Indian Federal Guarantees Program ..............................233001Guaranteed loan subsidy outlays:

222Title VI Indian Federal Guarantees Program ..............................234001

Guaranteed loan reestimates:.................–4.................Title VI Indian Federal Guarantees Program ..............................235001

The Budget proposes $600 million for the Native American HousingBlock Grant (NAHBG) program. This program allocates funds on a formulabasis to approximately 364 recipients representing more than 567 IndianTribes nationwide to help them address housing and other needs withintheir communities.

Within the total amount requested, $2 million is for the Title VI loanguarantee program. The Title VI program provides a Federal guarantee ofnotes or other obligations issued by Indian Tribes or tribally-designatedhousing entities for the purpose of financing affordable housing activities.The amount requested is sufficient to guarantee $17 million in new loans.

✦

TITLE VI INDIAN FEDERAL GUARANTEES FINANCING ACCOUNT



Obligations by program activity:Credit program obligations:

.................43Downward reestimates paid to receipt accounts ...................0742

.................21Interest on downward reestimates ........................................0743

.................64Total new obligations, unexpired accounts ....................................0900


172018Unobligated balance brought forward, Oct 1 .........................1000Financing authority:

Spending authority from offsetting collections, mandatory:336Collected ...........................................................................1800




51.................Unpaid obligations, brought forward, Oct 1 ..........................3000.................64New obligations, unexpired accounts ....................................3010

–2–2–3Outlays (gross) ......................................................................3020

351Unpaid obligations, end of year .................................................3050Uncollected payments:

–2–2–2Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060

–2–2–2Uncollected pymts, Fed sources, end of year .............................3090Memorandum (non-add) entries:

3–1–2Obligated balance, start of year ............................................310013–1Obligated balance, end of year ..............................................3200

Financing authority and disbursements, net:Mandatory:

336Budget authority, gross .........................................................4090Financing disbursements:

223Outlays, gross (total) .............................................................4110Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:–3–3–5Federal sources .................................................................4120

..................................–1Interest on uninvested funds ............................................4122

–3–3–6Offsets against gross budget authority and outlays (total) ....4130–1–1–3Outlays, net (mandatory) ...........................................................4170

...................................................Budget authority, net (total) ..........................................................4180–1–1–3Outlays, net (total) ........................................................................4190

Status of Guaranteed Loans (in millions of dollars)


Position with respect to appropriations act limitation oncommitments:

171718Guaranteed loan commitments from current-year authority .......211116168Limitation available from carry-forward ....................................2121

–16–16–16Uncommitted limitation carried forward ...................................2143

171710Total guaranteed loan commitments .....................................2150171710Guaranteed amount of guaranteed loan commitments .................2199

Cumulative balance of guaranteed loans outstanding:9580113Outstanding, start of year .........................................................2210



TITLE VI INDIAN FEDERAL GUARANTEES FINANCING ACCOUNT—Continued

Status of Guaranteed Loans—Continued


202010Disbursements of new guaranteed loans ..................................2231–5–5–43Repayments and prepayments ..................................................2251

...................................................Adjustments: Terminations for default that result in claim

payments ..............................................................................2263

1109580Outstanding, end of year .......................................................2290

Memorandum:

1109579Guaranteed amount of guaranteed loans outstanding, end of

year .......................................................................................2299

Balance Sheet (in millions of dollars)

2017 actual2016 actualIdentification code 086–4244–0–3–604

ASSETS:1717Federal assets: Fund balances with Treasury .................................1101

1717Total assets ...............................................................................1999LIABILITIES:

1717Non-Federal liabilities: Liabilities for loan guarantees ..................2204

1717Total liabilities and net position .....................................................4999

✦

NATIVE HAWAIIAN HOUSING BLOCK GRANT



Obligations by program activity:.................2.................Native Hawaiian Housing Block Grant .......................................0001

.................2.................Total new obligations (object class 41.0) ......................................0900


22.................Unobligated balance brought forward, Oct 1 .........................1000Budget authority:





101420Unpaid obligations, brought forward, Oct 1 ..........................3000.................2.................New obligations, unexpired accounts ....................................3010

–6–6–6Outlays (gross) ......................................................................3020




.................22Budget authority, gross .........................................................4000Outlays, gross:

666Outlays from discretionary balances .................................4011.................22Budget authority, net (total) ..........................................................4180


The Native Hawaiian Housing Block Grant program provides funds todevelop, maintain and operate affordable housing for eligible low-incomeNative Hawaiian families. It provides annual grants to the Department ofHawaiian Home Lands (DHHL) for housing and housing-related assistance,pursuant to an annual housing plan, within the area in which DHHL is au-thorized to provide that assistance. In 2019, the program's balances of prioryears' budget authority are sufficient to support these goals; therefore, theBudget does not request funds for this program.

✦

INDIAN HOUSING LOAN GUARANTEE FUND PROGRAM ACCOUNT





234Loan guarantee subsidy ........................................................0702.................107Reestimates of loan guarantee subsidy ................................0707.................4.................Interest on reestimates of loan guarantee subsidy ................0708

111Administrative expenses .......................................................0709



1297Unobligated balance brought forward, Oct 1 .........................1000.................97Discretionary unobligated balance brought fwd, Oct 1 ......1001

Budget authority:Appropriations, discretionary:

.................77Appropriation ....................................................................1100Appropriations, mandatory:

.................147Appropriation ....................................................................1200

.................2114Budget authority (total) .............................................................1900123021Total budgetary resources available ..............................................1930



1.................1Unpaid obligations, brought forward, Oct 1 ..........................300031812New obligations, unexpired accounts ....................................3010

–4–17–13Outlays (gross) ......................................................................3020

.................1.................Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

1.................1Obligated balance, start of year ............................................3100.................1.................Obligated balance, end of year ..............................................3200



.................14Outlays from new discretionary authority ..........................4010422Outlays from discretionary balances .................................4011

436Outlays, gross (total) .............................................................4020Mandatory:


.................147Outlays from new mandatory authority .............................4100

.................2114Budget authority, net (total) ..........................................................418041713Outlays, net (total) ........................................................................4190



Guaranteed loan levels supportable by subsidy budget authority:880880674Indian Housing Loan Guarantee ................................................215001

Guaranteed loan subsidy (in percent):0.260.370.55Indian Housing Loan Guarantee ................................................232001

0.260.370.55Weighted average subsidy rate ..................................................232999Guaranteed loan subsidy budget authority:

334Indian Housing Loan Guarantee ................................................233001Guaranteed loan subsidy outlays:

324Indian Housing Loan Guarantee ................................................234001Guaranteed loan reestimates:

.................2–14Indian Housing Loan Guarantee ................................................235001

Administrative expense data:.................11Budget authority .......................................................................3510.................11Outlays from new authority .......................................................3590

The Indian Housing Loan Guarantee program (also known as the Section184 program) provides access to private mortgage financing for Indianfamilies, Indian Tribes and their tribally-designated housing entities whomay face barriers to acquiring such financing because of the unique legal


status of Indian trust land. The Budget does not request funds for this pro-gram, because the Department will carry forward sufficient balances ofprior-year subsidy budget authority to support the estimated $880 millionin new loan guarantees in 2019.

✦

INDIAN HOUSING LOAN GUARANTEE FUND FINANCING ACCOUNT




222235Default claim payments on principal ....................................0711666Payment of interest to Treasury .............................................0713



284062Total new obligations, unexpired accounts ....................................0900



307306320Unobligated balance (total) ......................................................1050Financing authority:






–25–25–62Outlays (gross) ......................................................................3020..................................–3Recoveries of prior year unpaid obligations, unexpired .........3040




14–12Obligated balance, start of year ............................................31001714–1Obligated balance, end of year ..............................................3200




Offsetting collections (collected) from:–3–17–11Federal sources: Payments from program account ............4120

–12–12–10Interest on uninvested funds ............................................4122–12–12–27Non-Federal sources .........................................................4123

–27–41–48Offsets against gross budget authority and outlays (total) ....4130–2–1614Outlays, net (mandatory) ...........................................................4170

...................................................Budget authority, net (total) ..........................................................4180–2–1614Outlays, net (total) ........................................................................4190




.................1,7631,580Guaranteed loan commitments from current-year authority .......21112,6471,764858Limitation available from carry-forward ....................................2121

–1,767–2,647–1,764Uncommitted limitation carried forward ...................................2143


Cumulative balance of guaranteed loans outstanding:7,5056,6535,908Outstanding, start of year .........................................................2210880880786Disbursements of new guaranteed loans ..................................2231–6–6–6Repayments and prepayments ..................................................2251

Adjustments:–22–22–35Terminations for default that result in claim payments ........2263

...................................................Other adjustments, net .........................................................2264

8,3577,5056,653Outstanding, end of year .......................................................2290

Memorandum:

7,5327,5056,653Guaranteed amount of guaranteed loans outstanding, end of

year .......................................................................................2299



ASSETS:Federal assets:

307307Fund balances with Treasury .....................................................1101Investments in US securities:

......................................................Receivables, net ....................................................................1106

3737Net value of assets related to post–1991 acquired defaultedguaranteed loans receivable: Foreclosed property .....................

1504


116116Federal liabilities: Debt Payable to Treasury ..................................2103Non-Federal liabilities:

33Accounts payable .......................................................................2201225225Liabilities for loan guarantees ...................................................2204

......................................................Unearned revenues and advances .............................................2207

344344Total liabilities ...........................................................................2999


✦

NATIVE HAWAIIAN HOUSING LOAN GUARANTEE FUND PROGRAM ACCOUNT




.................1.................Reestimates of loan guarantee subsidy ................................0707

.................1.................Total new obligations, unexpired accounts (object class 41.0) .......0900



Appropriations, discretionary:


reduced .........................................................................1131

Appropriations, mandatory:.................1.................Appropriation ....................................................................1200

–51.................Budget authority (total) .............................................................1900176Total budgetary resources available ..............................................1930



.................1.................New obligations, unexpired accounts ....................................3010

.................–1.................Outlays (gross) ......................................................................3020



–5..................................Outlays from new discretionary authority ..........................40105..................................Outlays from discretionary balances .................................4011

Mandatory:.................1.................Budget authority, gross .........................................................4090

Outlays, gross:.................1.................Outlays from new mandatory authority .............................4100

–51.................Budget authority, net (total) ..........................................................4180.................1.................Outlays, net (total) ........................................................................4190



Guaranteed loan levels supportable by subsidy budget authority:232315Native Hawaiian Housing Loan Guarantees ...............................215001



NATIVE HAWAIIAN HOUSING LOAN GUARANTEE FUND PROGRAM ACCOUNT—Continued

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program—Continued


Guaranteed loan subsidy (in percent):-.32-.28-.27Native Hawaiian Housing Loan Guarantees ...............................232001

-.32-.28-.27Weighted average subsidy rate ..................................................232999

The Native Hawaiian Housing Loan Guarantee program (also known asthe Section 184A program) provides access to private mortgage financingto Native Hawaiian families who are eligible to reside on Hawaiian homelands and would otherwise face barriers to acquiring such financing becauseof the unique legal status of the Hawaiian home lands. The Budget doesnot request any new credit subsidy budget authority for this program, andrescinds $5 million in previously appropriated credit subsidy budget author-ity that is no longer needed. Since 2017, this program has operated on anegative subsidy basis, and the program has sufficient balances of prior-year loan guarantee limitation to maintain program operations. The Budgetestimates $23 million in new loan guarantees in 2019.

✦

NATIVE HAWAIIAN HOUSING LOAN GUARANTEE FUND FINANCING ACCOUNT




111Default claim payments on principal ....................................0711




Spending authority from offsetting collections, mandatory:111Collected ...........................................................................1800555Total budgetary resources available ..............................................1930



111New obligations, unexpired accounts ....................................3010–1–1–1Outlays (gross) ......................................................................3020




Offsetting collections (collected) from:..................................–1Federal sources .................................................................4120

–1–1.................Interest on uninvested funds ............................................4122

–1–1–1Offsets against gross budget authority and outlays (total) ....4130...................................................Budget authority, net (total) ..........................................................4180...................................................Outlays, net (total) ........................................................................4190




...................................................Guaranteed loan commitments from current-year authority .......2111302325340Limitation available from carry-forward ....................................2121

–279–302–325Uncommitted limitation carried forward ...................................2143


Cumulative balance of guaranteed loans outstanding:10785126Outstanding, start of year .........................................................221023233Disbursements of new guaranteed loans ..................................2231

..................................–43Repayments and prepayments ..................................................2251

–1–1–1Adjustments: Terminations for default that result in claim

payments ..............................................................................2263


Memorandum:


year .......................................................................................2299




......................................................Net value of assets related to post–1991 acquired defaultedguaranteed loans receivable: Foreclosed property .....................

1504


33Federal liabilities: Debt payable to Treasury ..................................2103......................................................Non-Federal liabilities: Liabilities for loan guarantees ..................2204



✦

COMMUNITY PLANNING AND DEVELOPMENTFederal Funds

HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS

For carrying out the Housing Opportunities for Persons with AIDS program, asauthorized by the AIDS Housing Opportunity Act (42 U.S.C. 12901 et seq.),$330,000,000, to remain available until September 30, 2020, except that amountsallocated pursuant to section 854(c)(5) of such Act shall remain available untilSeptember 30, 2021: Provided, That the Secretary shall renew all expiring contractsfor permanent supportive housing that initially were funded under section 854(c)(3)of such Act (paragraph (3) was redesignated as paragraph (5) by section 701(a)(1)of the Housing Opportunity Through Modernization Act of 2016 (Public Law114–201)) from funds made available under this heading in fiscal year 2010 andprior fiscal years that meet all program requirements before awarding funds fornew contracts under section 854(c)(5) of such Act.




Obligations by program activity:305460155HOPWA Formula Grants .............................................................000131668HOPWA Competitive Grants .......................................................0002

336526163Total direct obligations ..................................................................0799





Appropriations, discretionary:330354356Appropriation ....................................................................1100330354356Budget authority (total) .............................................................1900451647456Total budgetary resources available ..............................................1930




–353–311–306Outlays (gross) ......................................................................3020..................................–1Recoveries of prior year unpaid obligations, unexpired .........3040..................................–1Recoveries of prior year unpaid obligations, expired .............3041

559576361Unpaid obligations, end of year .................................................3050


Memorandum (non-add) entries:576361506Obligated balance, start of year ............................................3100559576361Obligated balance, end of year ..............................................3200



34.................Outlays from new discretionary authority ..........................4010350307306Outlays from discretionary balances .................................4011

353311306Outlays, gross (total) .............................................................4020330354356Budget authority, net (total) ..........................................................4180353311306Outlays, net (total) ........................................................................4190

The 2019 Budget provides $330 million for the Housing Opportunitiesfor Persons with AIDS (HOPWA) program, the only Federal programdedicated to addressing the housing needs of low-income Americans livingwith HIV/AIDS. HOPWA funding provides States and localities with re-sources to devise long-term comprehensive strategies for providing housingand supportive services to meet the housing needs of persons living withHIV/AIDS and their families. HOPWA funds have been demonstrated toreduce the risk of homelessness, increase housing stability, improve accessto HIV care and health outcomes for program participants, and reduce therisk of HIV transmission to others. The 2019 Budget requests legislativeauthority that would expand the provision of short-term housing from 21weeks to a maximum of 24 months, with a requirement for ongoing needsassessment. This language would provide communities with greater latitudein addressing the housing needs of those living with HIV/AIDS who areat severe risk of homelessness.

Ninety percent of HOPWA funds are distributed to States and eligiblemetropolitan areas according to a formula, and the remaining ten percentare awarded competitively to States, local governments, and private non-profit entities for projects with long-term comprehensive strategies in non-formula areas. The HOPWA formula, which was updated in 2016, requiresformula funds to be allocated based on cases of persons living with HIVor AIDS, and ensures that funding to jurisdictions reflects the currentdemographics of the HIV/AIDS epidemic. In addition, the modernizedHOPWA formula is adjusted for an area's fair market rent and povertyrates to further ensure HOPWA funds are focused on areas that have themost need. The 2016 law also includes several changes that allows forbetter targeting of HOPWA resources and more flexibility for grantees toprovide the most cost-effective and timely interventions. The updated for-mula became effective in 2017, and HUD continues to work closely withformula grantees through a comprehensive Technical Assistance initiativeto develop community-wide strategies for managing the changes.

✦

COMMUNITY DEVELOPMENT FUND




Obligations by program activity:1,8602,9801,928Community Development Formula Grants .................................0001

35962Indian Tribes .............................................................................0002..................................5,050Hurricane Sandy ........................................................................0004..................................1582011 and 2012 Disasters ..........................................................0005..................................2162013 Disasters ..........................................................................0006..................................925National Disaster Resilience Competition .................................0007..................................72Other Disaster Assistance .........................................................0010

5,5432,4702,3832015, 2016, and 2017 Disasters ...............................................0011



7,4149,8948,015Unobligated balance brought forward, Oct 1 .........................1000.................–10–2Unobligated balance transfer to other accts [086–0338] ......1010


7,4149,8848,022Unobligated balance (total) ......................................................1050Budget authority:

Appropriations, discretionary:.................3,03912,669Appropriation ....................................................................1100..................................–3Appropriations transferred to other acct [086–0338] ........1120

.................3,03912,666Appropriation, discretionary (total) .......................................11607,41412,92320,688Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:87,4149,894Unexpired unobligated balance, end of year ..........................1941



–8,004–7,094–5,617Outlays (gross) ......................................................................3020..................................–9Recoveries of prior year unpaid obligations, unexpired .........3040..................................–10Recoveries of prior year unpaid obligations, expired .............3041





.................303Outlays from new discretionary authority ..........................40108,0047,0645,614Outlays from discretionary balances .................................4011




.................3,03912,666Budget authority, net (discretionary) .........................................40708,0047,0945,616Outlays, net (discretionary) .......................................................4080

.................3,03912,666Budget authority, net (total) ..........................................................41808,0047,0945,616Outlays, net (total) ........................................................................4190

The Community Development Fund account contains the following pro-grams:

Community Development Block Grant (CDBG).—The CDBG programprovides formula grants to States, local governments, and Insular Areas tobenefit mainly low- to moderate-income persons, and support a wide rangeof community and economic development activities, such as public infra-structure improvements (which account for approximately 33 percent ofall CDBG funds), housing rehabilitation and construction (approximately25 percent of funds), job creation and retention, and public services. Seventypercent of CDBG formula grants are distributed to mainly urban areas(entitlement communities), and 30 percent are distributed to States (non-entitlement communities). The 2019 Budget does not request funding forCDBG, devolves community and economic development to the State andlocal level, and redirects Federal resources to other priorities.

Indian Community Development Block Grant (ICDBG).—The ICDBGprovides grants to help develop viable American Indian and Alaska NativeCommunities with decent housing, a suitable living environment, andeconomic opportunities, primarily for low- and moderate-income persons.The 2019 Budget does not request funding for ICDBG, which duplicatesHUD's larger Native American Housing Block Grant program and otherFederal programs, and redirects the savings to higher priority areas.

CDBG Disaster Recovery (CDBG-DR).—This account also contains ap-propriated CDBG-DR funding provided to communities impacted by majordisasters Hurricanes Harvey, Irma, and Maria that occurred in 2017, aswell as prior disasters such as Hurricanes Sandy and Matthew, and floodsin Louisiana, Texas, and West Virginia.

✦

559DEPARTMENT OF HOUSING AND URBAN DEVELOPMENTCommunity Planning and Development—Continued


BROWNFIELDS REDEVELOPMENT




477Unpaid obligations, brought forward, Oct 1 ..........................3000–3–3.................Outlays (gross) ......................................................................3020




Outlays, gross:33.................Outlays from discretionary balances .................................4011

...................................................Budget authority, net (total) ..........................................................418033.................Outlays, net (total) ........................................................................4190

The Budget requests no funding for the Brownfields Economic Develop-ment Initiative (BEDI), which was a competitive grant program designedto assist cities with the redevelopment of brownfield sites for the purposesof economic development and job creation. Local governments have accessto other public and private funds for similar purposes. The Consolidatedand Further Continuing Appropriations Act, 2015 (Public Law 113–235)permanently rescinded all unobligated balances of BEDI funds, includingcarryover and recaptures.

✦

HOME INVESTMENT PARTNERSHIPS PROGRAM




Obligations by program activity:1511,406572HOME Investment Program ........................................................0001

1511,406572Total new obligations (object class 41.0) ......................................0900





1521,5581,186Total budgetary resources available ..............................................1930Memorandum (non-add) entries:



2,8832,4152,965Unpaid obligations, brought forward, Oct 1 ..........................30001511,406572New obligations, unexpired accounts ....................................3010

..................................2Obligations ("upward adjustments"), expired accounts ........3011–937–938–1,104Outlays (gross) ......................................................................3020

..................................–4Recoveries of prior year unpaid obligations, unexpired .........3040

..................................–16Recoveries of prior year unpaid obligations, expired .............3041





.................9.................Outlays from new discretionary authority ..........................40109379291,104Outlays from discretionary balances .................................4011

9379381,104Outlays, gross (total) .............................................................4020.................944950Budget authority, net (total) ..........................................................4180

9379381,104Outlays, net (total) ........................................................................4190

The HOME Investment Partnerships Program (HOME) provides annualformula grant assistance to States and units of local government to increasethe supply of affordable housing and expand homeownership for low- tovery-low income persons through a wide range of activities that build, buy,and/or rehabilitate affordable housing.

The Budget does not request funding for HOME, and recognizes agreater role for State and local governments and the private sector in ad-dressing community development and affordable housing needs. The De-partment will continue to administer the program until all existing grantfunds are disbursed and closed. As of December 2017, there were $2.8billion of undisbursed HOME funds from 2017 and earlier grants. HUDwill also oversee projects assisted with HOME grants until the end of theiraffordability periods (projects are required to remain affordable for as longas 20 years from the date of completion). There are approximately 9,650rental projects containing 200,466 units, and 24,505 homebuyer projectscontaining 114,458 units that are under regulatory compliance, and addi-tionally, new projects that are currently underway will be placed in serviceover the next several years.

✦

SELF-HELP AND ASSISTED HOMEOWNERSHIP OPPORTUNITY PROGRAM




Obligations by program activity:101010Self Help Housing Opportunity Program ....................................0001353535Capacity Building ......................................................................0002555Rural Capacity Building ............................................................000344.................Veteran Home Rehab and Mod Pilot ...........................................0007









–53–47–44Outlays (gross) ......................................................................3020





534744Outlays from discretionary balances .................................4011.................5454Budget authority, net (total) ..........................................................4180


The Self-Help and Assisted Homeownership Opportunity Program(SHOP) account includes funding for the SHOP program, CapacityBuilding for Community Development and Affordable Housing (Section4), rural capacity building, and a pilot home modification and rehabilitationprogram for disabled and low-income veterans.

THE BUDGET FOR FISCAL YEAR 2019560 Community Planning and Development—ContinuedFederal Funds—Continued

The 2019 Budget does not request funding for these programs. The Budgetrecognizes a greater role for State and local governments and the privatesector in addressing community development and affordable housing needs.These programs are also duplicative of or overlap with other Federal, State,and local efforts.

✦

NEIGHBORHOOD STABILIZATION PROGRAM



Obligations by program activity:..................................13Disaster Assistance ...................................................................0003



..................................20Unobligated balance brought forward, Oct 1 .........................1000

..................................–7Adjustment of unobligated bal brought forward, Oct 1 .........1020

..................................13Unobligated balance (total) ......................................................1050

..................................13Total budgetary resources available ..............................................1930


150208218Unpaid obligations, brought forward, Oct 1 ..........................3000

..................................7Adjustments to unpaid obligations, brought forward, Oct

1 .......................................................................................3001

..................................13New obligations, unexpired accounts ....................................3010–58–58–30Outlays (gross) ......................................................................3020



Budget authority and outlays, net:Mandatory:

Outlays, gross:585830Outlays from mandatory balances ....................................4101


The Neighborhood Stabilization Program (NSP) was first authorized bythe Housing and Economic Recovery Act of 2008 (HERA), and funded at$3.92 billion. In response to the foreclosure crisis, HERA directed HUDto develop a formula to distribute the funds to State and local governmentswith the greatest need. Grantees were allowed to use NSP funds for anumber of eligible activities, including establishing financing mechanisms;purchasing and rehabilitating abandoned or foreclosed properties; establish-ing land banks; demolishing blighted structures; and redeveloping vacantor demolished property. In 2009, the American Recovery and ReinvestmentAct (ARRA) made several changes to the NSP program as enacted byHERA and appropriated an additional $2 billion in funding for NSP2; theseamounts are reflected within the Community Development Fund account.The Dodd-Frank Financial Reform and Consumer Protection Act of 2010(Dodd-Frank Act) appropriated an additional $1 billion for a third iterationof NSP (NSP3) in July 2010.

As of December 2017, NSP grantees had expended (including programincome) an amount equivalent to 120 percent of the total program fundsallocated for all iterations of NSP. Grantees have approximately $223million in NSP-generated program income that must be expended prior todrawing down the remaining grant funds that are reflected in this account.HUD is closely monitoring efforts to expend these funds consistent withNSP requirements and the Department is providing technical assistance tofield offices and grantees to expedite closing out all grants.

✦

HOMELESS ASSISTANCE GRANTS

For the Emergency Solutions Grants program as authorized under subtitle B oftitle IV of the McKinney-Vento Homeless Assistance Act, as amended; the Continuum

of Care program as authorized under subtitle C of title IV of such Act; and theRural Housing Stability Assistance program as authorized under subtitle D of titleIV of such Act, $2,383,000,000, to remain available until September 30, 2021:Provided, That any rental assistance amounts that are recaptured under such Con-tinuum of Care program shall remain available until expended: Provided further,That not less than $255,000,000 of the funds appropriated under this heading shallbe available for such Emergency Solutions Grants program: Provided further, Thatnot less than $2,081,000,000 of the funds appropriated under this heading shall beavailable for such Continuum of Care and Rural Housing Stability Assistance pro-grams: Provided further, That up to $7,000,000 of the funds appropriated underthis heading shall be available for the national homeless data analysis project:Provided further, That of the amounts made available under this heading, up to$40,000,000 may be made available for grants for rapid re-housing projects targetedto reducing unsheltered homelessness in areas with high rates of unshelteredhomelessness: Provided further, That for all match requirements applicable to fundsmade available under this heading for this fiscal year and prior years, a granteemay use (or could have used) as a source of match funds other funds administeredby the Secretary and other Federal agencies unless there is (or was) a specificstatutory prohibition on any such use of any such funds: Provided further, That noneof the funds provided under this heading shall be available to provide funding fornew projects, except for projects created through reallocation, unless the Secretarydetermines that the continuum of care has demonstrated that projects are evaluatedand ranked based on the degree to which they improve the continuum of care's systemperformance: Provided further, That the Secretary shall prioritize funding underthe Continuum of Care program to continuums of care that have demonstrated acapacity to reallocate funding from lower performing projects to higher performingprojects: Provided further, That any unobligated amounts remaining from fundsappropriated under this heading in fiscal year 2012 and prior years for project-based rental assistance for rehabilitation projects with 10-year grant terms may beused for purposes under this heading, notwithstanding the purposes for which suchfunds were appropriated: Provided further, That all balances for Shelter Plus Carerenewals previously funded from the Shelter Plus Care Renewal account andtransferred to this account shall be available, if recaptured, for Continuum of Carerenewals in fiscal year 2019: Provided further, That youth aged 24 and underseeking assistance under this heading shall not be required to provide third partydocumentation to establish their eligibility under 42 U.S.C. 11302(a) or (b) to receiveservices: Provided further, That unaccompanied youth aged 24 and under or familiesheaded by youth aged 24 and under who are living in unsafe situations may beserved by youth-serving providers funded under this heading: Provided further,That the Secretary may use amounts made available under this heading for theContinuum of Care program to renew a grant originally awarded pursuant to thematter under the heading "Department of Housing and Urban Development—Per-manent Supportive Housing" in chapter 6 of title III of the Supplemental Appropri-ations Act, 2008 (Public Law 110–252; 122 Stat. 2351) for assistance under subtitleF of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11403 etseq.): Provided further, That such renewal grant shall be awarded to the samegrantee and be subject to the provisions of such Continuum of Care program exceptthat the funds may be used outside the geographic area of the continuum of care.




Obligations by program activity:2,1212,1052,065Continuum of Care ....................................................................0001255255153Emergency Solutions Grants—Formula ....................................0002

77.................National Homeless Data Analysis Project ..................................0003

2,3832,3672,218Total direct obligations ..................................................................0799

2,3832,3672,218Total new obligations, unexpired accounts (object class 41.0) .......0900


2,4352,4222,237Unobligated balance brought forward, Oct 1 .........................1000131326Recoveries of prior year unpaid obligations ...........................1021


Appropriations, discretionary:2,3832,3672,383Appropriation ....................................................................11002,3832,3672,383Budget authority (total) .............................................................19004,8314,8024,646Total budgetary resources available ..............................................1930



HOMELESS ASSISTANCE GRANTS—Continued

Program and Financing—Continued


Memorandum (non-add) entries:..................................–6Unobligated balance expiring ................................................1940

2,4482,4352,422Unexpired unobligated balance, end of year ..........................1941



..................................182Obligations ("upward adjustments"), expired accounts ........3011–2,349–2,293–1,993Outlays (gross) ......................................................................3020

–13–13–26Recoveries of prior year unpaid obligations, unexpired .........3040..................................–234Recoveries of prior year unpaid obligations, expired .............3041





1212.................Outlays from new discretionary authority ..........................40102,3372,2811,993Outlays from discretionary balances .................................4011



..................................–1Offsets against gross budget authority and outlays (total) ....4040Additional offsets against gross budget authority only:

..................................1Offsetting collections credited to expired accounts ...........4052

2,3832,3672,383Budget authority, net (discretionary) .........................................40702,3492,2931,992Outlays, net (discretionary) .......................................................40802,3832,3672,383Budget authority, net (total) ..........................................................41802,3492,2931,992Outlays, net (total) ........................................................................4190

The Homeless Assistance Grants account provides funds for the Emer-gency Solutions Grant (ESG) and Continuum of Care (CoC) programs.These programs, which award funds through formula and competitiveprocesses, enable localities to shape and implement comprehensive, flexible,coordinated approaches to address the multiple issues of homelessness,including chronic homelessness, veteran homelessness, and homelessnessamong families and youth.

The 2019 Budget provides a total of $2.4 billion for a wide range ofactivities to assist homeless persons and prevent future occurrences ofhomelessness. The Budget supports $2.1 billion for the CoC program, in-cluding funding for competitive renewals and a new $40 million effort toreduce unsheltered homelessness using rapid re-housing; $255 million forESG formula funding for communities to address emergency needs suchas emergency shelter, street outreach, essential services, homelessnessprevention, and rapid rehousing; and $7 million for the National HomelessData Analysis Project.

The 2019 Budget also proposes four legislative changes to: 1) allow CoCgrantees to receive one-year transition grants, which will better allow pro-jects to maintain service to program participants as those projects transitionfrom one CoC program component to another (e.g., from transitionalhousing to permanent supportive housing); 2) allow CoC grant recipientsto count program income toward meeting matching requirements; 3) allowrecipients greater flexibility when estimating costs for rental assistanceprojects; and (4) expand the eligible costs under the CoC program to betterserve persons experiencing homelessness in rural communities.

✦

PERMANENT SUPPORTIVE HOUSING




.................55Unpaid obligations, brought forward, Oct 1 ..........................3000

.................–5.................Outlays (gross) ......................................................................3020

..................................5Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

.................55Obligated balance, start of year ............................................3100

..................................5Obligated balance, end of year ..............................................3200


Outlays, gross:.................5.................Outlays from discretionary balances .................................4011...................................................Budget authority, net (total) ..........................................................4180.................5.................Outlays, net (total) ........................................................................4190

The Supplemental Appropriations Act, 2008 (Public Law 110–252)provided $73 million for permanent supportive housing assistance as refer-enced in the Road Home Program of the Louisiana Recovery Authority(LRA). Of the total amount appropriated, $50 million was for permanentsupportive housing, serving approximately 1,000 homeless individuals andfamilies living with disabilities. The LRA is eligible to apply for HomelessAssistance Grants to renew this assistance. Additionally, this accountprovided $23 million in project-based rental assistance vouchers to LRAto support an estimated 2,000 elderly and disabled disaster victims, as au-thorized. Beginning in 2010, these vouchers have been renewed within theTenant-Based Rental Assistance account upon the termination of the ori-ginal subsidy.

✦

RURAL HOUSING AND ECONOMIC DEVELOPMENT




11.................Unobligated balance brought forward, Oct 1 .........................1000..................................1Recoveries of prior year unpaid obligations ...........................1021

111Unobligated balance (total) ......................................................1050111Total budgetary resources available ..............................................1930



.................25Unpaid obligations, brought forward, Oct 1 ..........................3000

.................–2–2Outlays (gross) ......................................................................3020


..................................2Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

.................25Obligated balance, start of year ............................................3100

..................................2Obligated balance, end of year ..............................................3200


Outlays, gross:.................22Outlays from discretionary balances .................................4011...................................................Budget authority, net (total) ..........................................................4180.................22Outlays, net (total) ........................................................................4190

The Budget does not provide funding for the Rural Housing and EconomicDevelopment (RHED) program. RHED was created to support housingand economic development activities in rural communities. The Consolid-ated Appropriations Act, 2016 (Public Law 114–113) permanently rescinded


all unobligated balances of RHED funds, including carryover and recap-tures.

✦

REVOLVING FUND (LIQUIDATING PROGRAMS)




91010Unpaid obligations, brought forward, Oct 1 ..........................3000–1–1.................Outlays (gross) ......................................................................3020




Outlays, gross:11.................Outlays from mandatory balances ....................................4101

...................................................Budget authority, net (total) ..........................................................418011.................Outlays, net (total) ........................................................................4190

Status of Direct Loans (in millions of dollars)


Cumulative balance of direct loans outstanding:555Outstanding, start of year .........................................................1210


The Revolving Fund (liquidating programs) was established by the Inde-pendent Offices Appropriations Act of 1955 for the efficient liquidationof assets acquired under a number of housing and urban developmentprograms, all of which are no longer active. For example, the Section 312loan program portfolio, which provided first and junior lien financing atbelow market interest rates for the rehabilitation of homes in low-incomeneighborhoods, constituted a large portion of the account activities but hasnot originated new loans for over 20 years. The operational expenses arefinanced from a permanent, indefinite appropriation to administer the re-maining repayments of loans, recaptures, and lien releases in the portfolio.Any remaining unobligated balances in the account are returned to theTreasury annually.



ASSETS:99Federal assets: Fund balances with Treasury .................................110155Direct loans, gross .........................................................................1601

–5–5Allowance for estimated uncollectible loans and interest (-) .........1603

......................................................Direct loans and interest receivable, net ...................................160422Foreclosed property ........................................................................1606

22Value of assets related to direct loans .......................................1699


11Non-Federal liabilities: Other .........................................................2207NET POSITION:

1010Unexpended appropriations ...........................................................3100


✦

COMMUNITY DEVELOPMENT LOAN GUARANTEES PROGRAM ACCOUNT




..................................1Reestimates of loan guarantee subsidy ................................0707



Appropriations, mandatory:..................................1Appropriation ....................................................................1200..................................1Budget authority (total) .............................................................1900..................................1Total budgetary resources available ..............................................1930


31011Unpaid obligations, brought forward, Oct 1 ..........................3000..................................1New obligations, unexpired accounts ....................................3010..................................1Obligations ("upward adjustments"), expired accounts ........3011


.................310Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

31011Obligated balance, start of year ............................................3100.................310Obligated balance, end of year ..............................................3200



Mandatory:..................................1Budget authority, gross .........................................................4090

Outlays, gross:..................................1Outlays from new mandatory authority .............................4100.................4.................Outlays from mandatory balances ....................................4101

.................41Outlays, gross (total) .............................................................4110

..................................1Budget authority, net (total) ..........................................................4180372Outlays, net (total) ........................................................................4190



Guaranteed loan levels supportable by subsidy budget authority:.................15039Community Development Loan Guarantee (Fee) ........................215003

.................15039Total loan guarantee levels .......................................................215999Guaranteed loan subsidy (in percent):

.................0.000.00Community Development Loan Guarantee (Fee) ........................232003

.................0.000.00Weighted average subsidy rate ..................................................232999Guaranteed loan subsidy outlays:

331Community development loan guarantee levels ........................234001

331Total subsidy outlays .................................................................234999Guaranteed loan reestimates:

.................–43–9Community development loan guarantee levels ........................235001

.................–43–9Total guaranteed loan reestimates ............................................235999

The Community Development Loan Guarantee program (Section 108)supports economic development projects, housing rehabilitation, and therehabilitation, construction, or installation of public facilities for the benefitof low- to moderate-income persons or to aid in the prevention of slums.

The Budget devolves responsibility for funding community and economicdevelopment activities to the State and local level and does not request anynew loan guarantee authority for Section 108 for 2019.

✦



COMMUNITY DEVELOPMENT LOAN GUARANTEES FINANCING ACCOUNT






.................4310Total new obligations, unexpired accounts ....................................0900


316880Unobligated balance brought forward, Oct 1 .........................1000..................................–4Adjustment of unobligated bal brought forward, Oct 1 .........1020



–3–3–3Change in uncollected payments, Federal sources ............1801

662Spending auth from offsetting collections, mand (total) .......1850377478Total budgetary resources available ..............................................1930



43..................................Unpaid obligations, brought forward, Oct 1 ..........................3000.................4310New obligations, unexpired accounts ....................................3010..................................–10Outlays (gross) ......................................................................3020

4343.................Unpaid obligations, end of year .................................................3050Uncollected payments:


..................................4Adjustments to uncollected pymts, Fed sources, brought

forward, Oct 1 ...................................................................3061

333Change in uncollected pymts, Fed sources, unexpired ..........3070


36–10–13Obligated balance, start of year ............................................31003936–10Obligated balance, end of year ..............................................3200



..................................10Outlays, gross (total) .............................................................4110Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:–3–3–2Federal Sources: Payments from Program Account ...........4120–6–6–3Interest on uninvested funds ............................................4122

–9–9–5Offsets against gross budget authority and outlays (total) ....4130Additional offsets against financing authority only (total):

333Change in uncollected pymts, Fed sources, unexpired .......4140–9–95Outlays, net (mandatory) ...........................................................4170

...................................................Budget authority, net (total) ..........................................................4180–9–95Outlays, net (total) ........................................................................4190




.................15039Guaranteed loan commitments from current-year authority .......2111

...................................................Limitation available from carry-forward ....................................2121

...................................................Uncommitted loan guarantee limitation ....................................2142

...................................................Uncommitted limitation carried forward ...................................2143

.................15039Total guaranteed loan commitments .....................................2150

.................15039Guaranteed amount of guaranteed loan commitments .................2199

Cumulative balance of guaranteed loans outstanding:1,6291,5731,707Outstanding, start of year .........................................................221023323372Disbursements of new guaranteed loans ..................................2231

–177–177–206Repayments and prepayments ..................................................2251


Memorandum:


year .......................................................................................2299







✦

COMMUNITY DEVELOPMENT LOAN GUARANTEES LIQUIDATING ACCOUNT



Change in obligated balance:Uncollected payments:



–3–3–3Obligated balance, start of year ............................................3100–3–3–3Obligated balance, end of year ..............................................3200

...................................................Budget authority, net (total) ..........................................................4180

...................................................Outlays, net (total) ........................................................................4190




...................................................Repayments and prepayments ..................................................2251


Memorandum:

...................................................Guaranteed amount of guaranteed loans outstanding, end of

year .......................................................................................2299




–3–3Fund balances with Treasury .....................................................1101Investments in US securities:

33Receivables, net ....................................................................1106

......................................................Total assets ...............................................................................1999

✦

Trust Funds

HOUSING TRUST FUND

Special and Trust Fund Receipts (in millions of dollars)


.................1512Balance, start of year ....................................................................0100Receipts:

Current law:240.................222Affordable Housing Allocation, Housing Trust Fund ...............1130

Proposed:–240..................................Affordable Housing Allocation, Housing Trust Fund ...............1230

..................................222Total receipts .............................................................................1999

.................15234Total: Balances and receipts .....................................................2000Appropriations:

Current law:–240.................–221Housing Trust Fund ...............................................................2101

.................–15–13Housing Trust Fund ...............................................................2103


..................................15Housing Trust Fund ...............................................................2132

–240–15–219Total current law appropriations .......................................2199Proposed:

240..................................Housing Trust Fund ...............................................................2201

.................–15–219Total appropriations ..................................................................2999

..................................15Balance, end of year ..................................................................5099



Obligations by program activity:240188217Grants .......................................................................................0001



.................173171Unobligated balance brought forward, Oct 1 .........................1000Budget authority:

Appropriations, mandatory:240.................221Appropriation (special or trust fund) .................................1201

.................1513Appropriation (previously unavailable) .............................1203

..................................–15Appropriations and/or unobligated balance of

appropriations temporarily reduced ..............................1232

24015219Appropriations, mandatory (total) .........................................1260240188390Total budgetary resources available ..............................................1930




–114–65–2Outlays (gross) ......................................................................3020





2..................................Outlays from new mandatory authority .............................4100112652Outlays from mandatory balances ....................................4101


Summary of Budget Authority and Outlays (in millions of dollars)

2019 est.2018 est.2017 actual

Enacted/requested:24015219Budget Authority .......................................................................114652Outlays ......................................................................................

Legislative proposal, subject to PAYGO:–240..................................Budget Authority .......................................................................

–2..................................Outlays ......................................................................................Total:

.................15219Budget Authority .......................................................................112652Outlays ......................................................................................

The Housing Trust Fund provides grants to States to increase and preservethe supply of affordable rental housing and homeownership opportunitiesfor extremely low-income families. The Housing Trust Fund was authorizedby section 1131 of the Housing and Economic Recovery Act of 2008(Public Law 110–289), which directed the account to be funded from as-sessments on Fannie Mae and Freddie Mac (the GSEs). The 2019 Budgetincludes a legislative proposal to eliminate the assessment and discontinuefunding for the Housing Trust Fund. The Budget also assumes no fundswill be provided to the Housing Trust Fund in 2018 in accordance with theFederal Housing Finance Agency's 2014 stated policy that funds will notbe transferred if the transfer would cause the GSEs to draw on the Treasuryfunding commitment under the Preferred Stock Purchase Agreements

(PSPAs). The Budget anticipates that such a draw will occur in 2018 as aresult of the enactment of tax reform legislation.

HOUSING TRUST FUND

(Legislative proposal, subject to PAYGO)



Obligations by program activity:–240..................................Grants .......................................................................................0001

–240..................................Total new obligations (object class 41.0) ......................................0900


Appropriations, mandatory:–240..................................Appropriation (special or trust fund) .................................1201–240..................................Total budgetary resources available ..............................................1930


–240..................................New obligations, unexpired accounts ....................................30102..................................Outlays (gross) ......................................................................3020

–238..................................Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

–238..................................Obligated balance, end of year ..............................................3200



–2..................................Outlays from new mandatory authority .............................4100–240..................................Budget authority, net (total) ..........................................................4180

–2..................................Outlays, net (total) ........................................................................4190

✦

HOUSING PROGRAMSFederal Funds

PROJECT-BASED RENTAL ASSISTANCE

(INCLUDING CANCELLATION)

For activities and assistance for the provision of project-based subsidy contractsunder the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) ("the Act"),not otherwise provided for, $10,466,000,000, to remain available until September30, 2021, shall be available on October 1, 2018 (in addition to the $400,000,000previously appropriated under this heading that became available October 1, 2018),and $400,000,000, to remain available until September 30, 2022, shall be availableon October 1, 2019: Provided, That the amounts made available under this headingshall be available for expiring or terminating section 8 project-based subsidy con-tracts (including section 8 moderate rehabilitation contracts), for amendments tosection 8 project-based subsidy contracts (including section 8 moderate rehabilitationcontracts), for contracts entered into pursuant to section 441 of the McKinney-VentoHomeless Assistance Act (42 U.S.C. 11401), for renewal of section 8 contracts forunits in projects that are subject to approved plans of action under the EmergencyLow Income Housing Preservation Act of 1987 or the Low-Income Housing Preser-vation and Resident Homeownership Act of 1990, and for administrative and otherexpenses associated with project-based activities and assistance funded under thisparagraph: Provided further, That of the total amounts provided under this heading,not to exceed $285,000,000 shall be available for performance-based contract ad-ministrators or contractors for section 8 project-based assistance, for carrying out42 U.S.C. 1437(f): Provided further, That the Secretary may also use such amountsin the previous proviso for performance-based contract administrators or contractorsfor the administration of: interest reduction payments pursuant to section 236(a) ofthe National Housing Act (12 U.S.C. 1715z–1(a)); rent supplement payments pursuantto 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)); projectrental assistance contracts for the elderly under section 202(c)(2) of the HousingAct of 1959 (12 U.S.C. 1701q); project rental assistance contracts for supportivehousing 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 assistancecontracts 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

565DEPARTMENT OF HOUSING AND URBAN DEVELOPMENTHousing Programs

Federal Funds

PROJECT-BASED RENTAL ASSISTANCE—Continued

86–372; 73 Stat. 667): Provided further, That amounts recaptured under thisheading, the heading "Annual Contributions for Assisted Housing", or the heading"Housing Certificate Fund", may be used for renewals of or amendments to section8 project-based contracts or for performance-based contract administrators orcontractors, notwithstanding the purposes for which such amounts were appropri-ated: Provided further, That, notwithstanding any other provision of law, upon therequest of the Secretary, project funds that are held in residual receipts accountsfor any project subject to a section 8 project-based Housing Assistance Paymentscontract that authorizes HUD or a Housing Finance Agency to require that surplusproject funds be deposited in an interest-bearing residual receipts account and thatare in excess of an amount to be determined by the Secretary, shall be remitted tothe Department and deposited in this account, to be available until expended:Provided further, That amounts deposited pursuant to the previous proviso shall beavailable in addition to the amount otherwise provided by this heading for usesauthorized under this heading: Provided further, That any unobligated balancesmade available for obligation under the heading "Department of Housing andUrban Development — Public and Indian Housing — Project-Based Rental Assist-ance" in chapter 10 of title I of division B of the Consolidated Security, DisasterAssistance, and Continuing Appropriations Act, 2009 (Public Law 110–329; 122Stat. 324) (as amended by section 1203 of Public Law 111–32; 123 Stat. 1859) arehereby permanently cancelled.




Obligations by program activity:10,1439,86610,086Contract Renewals ....................................................................0001

877084RAD Contract Renewals .............................................................0002280430450Section 8 Amendments ..............................................................0003245235241Contract Administrators ............................................................0004

3.................3Tenant Information and Outreach ..............................................0006195230244Mod Rehab and SRO Renewals ..................................................0008



250269411Unobligated balance brought forward, Oct 1 .........................1000.................16.................Unobligated balance transfer from other acct [086–0206] ....1011..................................51Recoveries of prior year unpaid obligations ...........................1021


Appropriations, discretionary:10,46610,34510,416Appropriation ....................................................................1100

.................1115Appropriations transferred from other acct [086–0304] ....11214.................36Appropriations transferred from other acct [086–0206] ....1121

834348Appropriations transferred from other acct [086–0163] ....1121

–1..................................Unobligated balance of appropriations permanently reduced

(emergency) ..................................................................1131

10,55210,39910,515Appropriation, discretionary (total) .......................................1160Advance appropriations, discretionary:

400397400Advance appropriation ..................................................117010,95210,79610,915Budget authority (total) .............................................................190011,20211,08111,377Total budgetary resources available ..............................................1930




–10,887–11,560–11,194Outlays (gross) ......................................................................3020..................................–51Recoveries of prior year unpaid obligations, unexpired .........3040





7,2587,1566,706Outlays from new discretionary authority ..........................4010

3,6294,4044,488Outlays from discretionary balances .................................4011

10,88711,56011,194Outlays, gross (total) .............................................................402010,95210,79610,915Budget authority, net (total) ..........................................................418010,88711,56011,194Outlays, net (total) ........................................................................4190

The Budget requests $10.9 billion for Project-Based Rental Assistance(PBRA), of which $400 million is requested as an advance appropriationto become available in 2020. The PBRA program assists approximately1.2 million extremely low- to low-income households in obtaining decent,safe, and sanitary housing in private accommodations. PBRA serves fam-ilies, elderly, and disabled households and provides transitional housingfor the homeless. Through this funding, HUD supports approximately16,500 contracts with private owners of multifamily housing by payingthe difference between a portion of a household's income and the approvedmarket-based rent for a housing unit. The Budget continues to support theprogram's calendar year funding cycle and provides 12 months of fundingfor all contracts. Further, the Budget supports a package of comprehensiverental reforms that will promote work, simplify program administration,reduce Federal costs, and increase local choice while continuing to supportcurrent residents across the rental assistance programs. The reforms includeincreased tenant rent contributions; reduced frequency of income recerti-fications; and additional flexibilities for Public Housing Authorities andproperty owners to develop alternative rent structures. In addition to therent reforms, the Budget facilitates a strategic reduction of the PublicHousing portfolio and promotes cost-sharing with state and local govern-ments to provide affordable housing.

Program activities include the following:Contract Renewals and Amendments.—These activities provide funding

for HUD to renew expiring contracts and amend contracts that have notexpired but require additional funding for HUD to meet remaining paymentobligations. Appropriations for these activities are supplemented with re-coveries of excess balances remaining on expired contracts that utilizedless than anticipated resources during their initial terms.

Contract Administrators.—This activity funds the local level administra-tion of the program through HUD agreements with performance-basedcontract administrators (PBCAs) or other supportive services contractors.These entities are typically responsible for conducting on-site managementreviews of assisted properties; adjusting contract rents; reviewing, pro-cessing, and paying monthly vouchers submitted by owners; renewingcontracts with property owners; and responding to health and safety issuesat properties. HUD is currently in the process of re-bidding these contracts.In 2019, the Budget requests $245 million for contract administration fromthe PBRA account, with flexibility to repurpose up to $40 million in otherPBRA funds (in addition to recaptures in the Housing Certificate Fund, asnecessary) to ensure uninterrupted services in the event of delays in theprocurement process.

Tenant Resource Network.—The Budget provides up to $3 million in2019 for technical assistance to tenant groups, nonprofit groups, and publicentities to support tenants of troubled properties, and improve tenant accessto community services in order to support self-sufficiency.

✦

HOUSING FOR THE ELDERLY

For amendments to capital advance contracts for housing for the elderly, as au-thorized by section 202 of the Housing Act of 1959, as amended, and for projectrental assistance for the elderly under section 202(c)(2) of such Act, includingamendments to contracts for such assistance and renewal of expiring contracts forsuch assistance for up to a 1-year term, and for senior preservation rental assistancecontracts, including renewals, as authorized by section 811(e) of the AmericanHousing and Economic Opportunity Act of 2000, as amended, and for supportiveservices associated with the housing, $563,000,000 to remain available untilSeptember 30, 2022: Provided, That of the amount provided under this heading, upto $90,000,000 shall be for service coordinators and the continuation of existingcongregate service grants for residents of assisted housing projects: Provided further,That amounts under this heading shall be available for Real Estate AssessmentCenter inspections and inspection-related activities associated with section 202

THE BUDGET FOR FISCAL YEAR 2019566 Housing Programs—ContinuedFederal Funds—Continued

projects: Provided further, That the Secretary may waive the provisions of section202 governing the terms and conditions of project rental assistance, except that theinitial contract term for such assistance shall not exceed 5 years in duration:Provided further, That upon request of the Secretary, project funds that are held inresidual receipts accounts for any project subject to a section 202 project rentalassistance contract, and that upon termination of such contract are in excess of anamount to be determined by the Secretary, shall be remitted to the Department anddeposited in this account, to be available until September 30, 2022: Provided further,That amounts deposited in this account pursuant to the previous proviso shall beavailable, in addition to the amounts otherwise provided by this heading, for thepurposes authorized under this heading: Provided further, That unobligated balances,including recaptures and carryover, remaining from funds transferred to or appro-priated under this heading may be used for the current purposes authorized underthis heading notwithstanding the purposes for which such funds originally wereappropriated.




Obligations by program activity:10106Capital Advance Amendments and Expenses ............................0001

466415410PRAC Renewal/Amendment .......................................................0002909090Service Coordinators/Congregate Services ................................0003

..................................20PRAD .........................................................................................0007

566515526Total direct obligations ..................................................................07991099Housing for the Elderly (Reimbursable) .....................................0801






Spending authority from offsetting collections, discretionary:171717Collected ...........................................................................1700




8109091,102Unpaid obligations, brought forward, Oct 1 ..........................3000576524535New obligations, unexpired accounts ....................................3010






8099081,101Obligated balance, start of year ............................................3100746809908Obligated balance, end of year ..............................................3200





Offsetting collections (collected) from:–17–17–17Non-Federal sources .........................................................4033

–17–17–17Offsets against gross budget authority and outlays (total) ....4040563499502Budget authority, net (total) ..........................................................4180621605703Outlays, net (total) ........................................................................4190

Since 1959, the Housing for the Elderly program (Section 202) has sup-ported the construction and operation of supportive housing for very low-income elderly households, including the frail elderly. The Budget provides$563 million for this program, including $470 million to renew and amendoperating subsidy contracts for existing Section 202 housing includingSenior Preservation Rental Assistance Contracts (SPRACs), $90 millionto support service coordinators who work on-site to help residents obtaincritical services, and $3 million for property inspections and related ex-penses.

The Budget supports preservation of Section 202 properties through theexpansion of the Rental Assistance Demonstration program to includeelderly properties developed through the Capital Advance program. TheBudget also seeks renewed authority to make better use of existing re-sources. HUD will identify residual receipts collections, recaptures, andother unobligated balances to redirect as additional investments in SPRACs,Service Coordinators, or other authorized purposes.

Further, the Budget supports a package of comprehensive rental reformsthat will promote work, simplify program administration, reduce Federalcosts, and increase local choice while continuing to support current residentsacross the rental assistance programs. The reforms include increased tenantrent contributions; reduced frequency of income recertifications; and addi-tional flexibilities for Public Housing Authorities and property owners todevelop alternative rent structures. In addition to the rent reforms, theBudget facilitates a strategic reduction of the Public Housing portfolio andpromotes cost-sharing with state and local governments to provide afford-able housing.

Object Classification (in millions of dollars)


566515526Direct obligations: Grants, subsidies, and contributions ...............41.01099Reimbursable obligations .....................................................99.0

576524535Total new obligations, unexpired accounts ............................99.9

✦

HOUSING FOR PERSONS WITH DISABILITIES

For amendments to capital advance contracts for supportive housing for personswith disabilities, as authorized by section 811 of the Cranston-Gonzalez NationalAffordable Housing Act (42 U.S.C. 8013), as amended, and for project rental assist-ance for supportive housing for persons with disabilities under section 811(d)(2) ofsuch Act and for project assistance contracts pursuant to section 202(h) of theHousing Act of 1959 (Public Law 86–372; 73 Stat. 667), including amendments tocontracts for such assistance and renewal of expiring contracts for such assistancefor up to a 1-year term, for project rental assistance to State housing finance agenciesand other appropriate entities as authorized under section 811(b)(3) of the Cranston-Gonzalez National Housing Act, and for supportive services associated with thehousing for persons with disabilities as authorized by section 811(b)(1) of such Act,$132,000,000, to remain available until September 30, 2022: Provided, That amountsmade available under this heading shall be available for Real Estate AssessmentCenter inspections and inspection-related activities associated with section 811projects: Provided further, That, upon the request of the Secretary, project fundsthat are held in residual receipts accounts for any project subject to a section 811project rental assistance contract and that upon termination of such contract arein excess of an amount to be determined by the Secretary shall be remitted to theDepartment and deposited in this account, to be available until September 30, 2022:Provided further, That amounts deposited in this account pursuant to the previousproviso shall be available in addition to the amounts otherwise provided by thisheading for the purposes authorized under this heading: Provided further, Thatunobligated balances, including recaptures and carryover, remaining from fundstransferred to or appropriated under this heading may be used for the current pur-poses authorized under this heading notwithstanding the purposes for which suchfunds originally were appropriated.


567DEPARTMENT OF HOUSING AND URBAN DEVELOPMENTHousing Programs—Continued


HOUSING FOR PERSONS WITH DISABILITIES—Continued



Obligations by program activity:111Capital Advance Amendments and Expenses ............................0001

146155141PRAC/PAC Renewals and Amendments .....................................0002

147156142Total direct obligations ..................................................................0799787Housing for Persons with Disabilities (Reimbursable) ...............0801








Memorandum (non-add) entries:–4–4–2Unobligated balance expiring ................................................1940486477Unexpired unobligated balance, end of year ..........................1941











Offsetting collections (collected) from:–9–9–9Non-Federal sources .........................................................4033132145146Budget authority, net (total) ..........................................................4180180185170Outlays, net (total) ........................................................................4190

Since 1992, the Housing for Persons with Disabilities program (Section811) has supported the development of supportive housing for very low-income people with disabilities. The Budget provides $132 million for thisprogram, including $130 million to renew and amend operating subsidycontracts for existing Section 811 housing, and up to $2 million for propertyinspections and related expenses. The Budget continues authorities to makebetter use of existing resources, which allows HUD to identify residualreceipts collections, recaptures, and other unobligated balances to redirectas additional investments for purposes authorized under the heading.

Further, the Budget supports a package of comprehensive rental reformsthat will promote work, simplify program administration, reduce Federalcosts, and increase local choice while continuing to support current residentsacross the rental assistance programs. The reforms include increased tenantrent contributions; reduced frequency of income recertifications; and addi-tional flexibilities for Public Housing Authorities and property owners todevelop alternative rent structures. In addition to the rent reforms, theBudget facilitates a strategic reduction of the Public Housing portfolio andpromotes cost-sharing with state and local governments to provide afford-able housing.



147156142Direct obligations: Grants, subsidies, and contributions ...............41.0787Reimbursable obligations .....................................................99.0


✦

HOUSING COUNSELING ASSISTANCE

For contracts, grants, and other assistance excluding loans, as authorized undersection 106 of the Housing and Urban Development Act of 1968, as amended,$45,000,000 to remain available until September 30, 2020, including up to$4,500,000 for administrative contract services: Provided, That funds shall be usedfor providing counseling and advice to tenants and homeowners, both current andprospective, with respect to property maintenance, financial management/literacy,and such other matters as may be appropriate to assist them in improving theirhousing conditions, meeting their financial needs, and fulfilling the responsibilitiesof tenancy or homeownership; for program administration; and for housing counselortraining: Provided further, That for purposes of providing such grants from amountsprovided under this heading, the Secretary may enter into multiyear agreements asappropriate, subject to the availability of annual appropriations.




Obligations by program activity:435351Housing Counseling Assistance ................................................0001232Administrative Contract Services ..............................................0002








–52–52–43Outlays (gross) ......................................................................3020







The Housing Counseling Assistance Program provides: 1) comprehensivehousing counseling services to eligible homeowners and tenants throughgrants, oversight, and technical assistance; and 2) training to housingcounselors and staff of government or non-profit entities that participatein HUD's Housing Counseling Program. Eligible Housing CounselingProgram services include group education and individualized housingcounseling on pre-and post-purchase homeownership budgeting and finan-cial management, reverse mortgage counseling, homelessness prevention,


rental counseling, and avoiding discrimination, foreclosure, and eviction.The objectives of the Housing Counseling program include overcomingbarriers to stable and affordable housing; expanding sustainablehomeownership and rental opportunities; preventing foreclosure and evic-tion; and deterring discrimination, scams, and fraud.

The 2019 Budget includes $45 million for this program, the bulk of whichfunds grants to HUD-approved Housing Counseling agencies for directservices. To strengthen housing counselor training, the Office of HousingCounseling plans to implement individual testing and certification forhousing counselors. As the economy improves and the number of first-timehomebuyers increases, the need and demand for housing counseling willincrease as well.



Direct obligations:232Other services from non-Federal sources ..................................25.2

435351Grants, subsidies, and contributions ........................................41.0


✦

EMERGENCY HOMEOWNERS' RELIEF FUND





329329329Unobligated balance (total) ......................................................1050329329329Total budgetary resources available ..............................................1930



112Unpaid obligations, brought forward, Oct 1 ..........................3000..................................–1Recoveries of prior year unpaid obligations, unexpired .........3040





The Emergency Homeowners' Loan Program (EHLP) provided emergencymortgage assistance to homeowners who were unemployed or underem-ployed due to economic or medical conditions. The program became effect-ive October 1, 2010 and, per statute, stopped accepting applications onSeptember 30, 2011. This account reflects no new obligations but displaysthe liquidation of prior year obligations.

✦

EMERGENCY HOMEOWNERS' RELIEF FINANCING ACCOUNT







..................................–1Spending authority from offsetting collections applied to

repay debt .....................................................................1825

11.................Spending auth from offsetting collections, mand (total) .......1850




..................................1Unpaid obligations, brought forward, Oct 1 ..........................3000

..................................–1Recoveries of prior year unpaid obligations, unexpired .........3040Uncollected payments:





11.................Budget authority, gross .........................................................4090Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:–1–1–1Repayments of principal, net ............................................4123

..................................–1Budget authority, net (total) ..........................................................4180–1–1–1Outlays, net (total) ........................................................................4190



Cumulative balance of direct loans outstanding:.................1935Outstanding, start of year .........................................................1210.................–1–1Repayments: Repayments and prepayments .............................1251.................–18–15Write-offs for default: Direct loans ............................................1263

..................................19Outstanding, end of year .......................................................1290




Net value of assets related to post–1991 direct loans receivable:1935Direct loans receivable, gross ....................................................1401

–19–35Allowance for subsidy cost (-) ....................................................1405

......................................................Net present value of assets related to direct loans ................1499


11Federal liabilities: Debt payable to Treasury ..................................2103

11Total upward reestimate subsidy BA [86–0407] ............................4999

✦

OTHER ASSISTED HOUSING PROGRAMS

RENTAL HOUSING ASSISTANCE

For amendments to contracts under section 101 of the Housing and Urban Devel-opment Act of 1965 (12 U.S.C. 1701s) and section 236(f)(2) of the National HousingAct (12 U.S.C. 1715z–1) in State-aided, noninsured rental housing projects,$5,000,000, to remain available until expended: Provided, That such amount, togeth-er with unobligated balances from recaptured amounts appropriated prior to fiscalyear 2006 from terminated contracts under such sections of law, and any unobligatedbalances, including recaptures and carryover, remaining from funds appropriatedunder this heading after fiscal year 2005, shall also be available for extensions ofup to one year for expiring contracts under such sections of law.




Obligations by program activity:..................................4Rent supplement .......................................................................0001

3818Homeownership and rental housing assistance (Sections 235

and 236) ...............................................................................0002



OTHER ASSISTED HOUSING PROGRAMS—Continued





313150Unobligated balance brought forward, Oct 1 .........................1000.................–16.................Unobligated balance transfer to other accts [086–0303] ......1010

2418Recoveries of prior year unpaid obligations ...........................1021..................................1Recoveries of prior year paid obligations ...............................1033


Appropriations, discretionary:52020Appropriation of New BA ...................................................1100

..................................32Appropriations from Recaptured/Cancelled Funds ............1100–4.................–36Appropriations transferred to other acct [086–0303] ........1120

..................................–32Unobligated balance of appropriations permanently

reduced .........................................................................1131

120–16Appropriation, discretionary (total) .......................................1160120–16Budget authority (total) .............................................................1900









120–16Budget authority, gross .........................................................4000Outlays, gross:

.................89Outlays from new discretionary authority ..........................4010118133145Outlays from discretionary balances .................................4011





accounts .......................................................................4053

120–16Budget authority, net (discretionary) .........................................4070118141153Outlays, net (discretionary) .......................................................4080

120–16Budget authority, net (total) ..........................................................4180118141153Outlays, net (total) ........................................................................4190

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 assisted units.Section 235.—The Housing and Urban-Rural Recovery Act of 1983

(Public Law 98–181) authorized a restructured Section 235 (Homeowner-ship Assistance) program that provided homeowners a ten-year interestreduction subsidy on their mortgages.

Section 236.—The Housing and Urban Development Act of 1968, asamended, authorized the Section 236 Rental Housing Assistance Program,which subsidizes the monthly mortgage payment that an owner of a rentalor cooperative project is required to make. This interest subsidy reducesrents for lower income tenants. Some Section 236 properties also haverental assistance contracts with HUD through the Rental Assistance Payment(RAP) program.

As an increasing number of Rent Supplement and RAP rental assistancecontracts reach the ends of their terms, HUD is taking steps to preservethis affordable housing stock. The Rental Assistance Demonstration (RAD)enables owners of properties with expiring Rent Supplement or RAP con-

tracts to convert their assistance to long-term, project-based Section 8contracts. HUD projects that virtually all of the remaining Rent Supplementand RAP contracts will convert via RAD by the end of 2019.

✦

GREEN RETROFIT PROGRAM FOR MULTIFAMILY HOUSING, RECOVERY ACT



Direct loan reestimates:.................–11.................Energy Retrofit Loans ................................................................135001

The Green Retrofit Program (GRP) offered grants and loans to ownersof eligible HUD-assisted multifamily housing properties to fund greenretrofits, which are intended to reduce ongoing utility consumption, benefitresident health, and benefit the environment. This program was fundedunder Title XII of the American Recovery and Reinvestment Act of 2009(Public Law 111–5), and the authority to make new awards has expired.All loan cash flows are recorded in the corresponding financing account(86–4589).

✦

RENTAL HOUSING ASSISTANCE FUND









221Budget authority, gross .........................................................4090Offsets against gross budget authority and outlays:



As authorized by the Housing and Urban Development Act of 1968, theRental Housing Assistance Fund collects funds which are in excess of theestablished basic rents for units in Section 236 subsidized projects. Fundsin this account remain available to pay refunds of excess rental charges.

✦

FLEXIBLE SUBSIDY FUND









494848Budget authority, gross .........................................................4000Offsets against gross budget authority and outlays:


–49–48–48Offsets against gross budget authority and outlays (total) ....4040



Memorandum (non-add) entries:222Unexpired unavailable balance, SOY: Offsetting collections .......5090222Unexpired unavailable balance, EOY: Offsetting collections .......5092



Cumulative balance of direct loans outstanding:333368405Outstanding, start of year .........................................................1210–35–35–39Repayments: Repayments and prepayments .............................1251

..................................2Write-offs for default: Other adjustments: to reflect actual

outstanding balance of loans, net (+ or -) ............................1264


The Flexible Subsidy Fund assisted financially troubled subsidized pro-jects under certain Federal Housing Administration (FHA) authorities. Thesubsidies were intended to prevent potential losses to the FHA fund result-ing from project insolvency and to preserve these projects as a viable sourceof housing for low- and moderate-income tenants. Priority was given toprojects with Federal insurance-in-force and then to those with mortgagesthat had been assigned to the Department.



ASSETS:481433Federal assets: Fund balances with Treasury .................................1101368405Direct loans, gross .........................................................................16016064Interest receivable .........................................................................1602


379417Value of assets related to direct loans .......................................1699

860850Total assets ...............................................................................1999NET POSITION:

376376Unexpended appropriations ...........................................................3100484474Cumulative results of operations ...................................................3300

860850Total net position .......................................................................3999


✦

HOME OWNERSHIP PRESERVATION EQUITY FUND PROGRAM ACCOUNT




777Unobligated balance brought forward, Oct 1 .........................1000777Total budgetary resources available ..............................................1930




The HOPE for Homeowners program was created by the Housing andEconomic Recovery Act of 2008 to help homeowners at risk of default andforeclosure refinance into affordable, sustainable loans. Under the Program,eligible homeowners refinanced their current mortgage loans into a newmortgage insured by FHA. The program ended on September 30, 2011. In2016, excess HOPE Bond proceeds in the amount of $455 million weretransferred to the HOPE Reserve Fund, and used to retire the HOPE Bonds.Remaining HOPE Bond activity is shown in the HOPE Reserve Fund.

✦

HOME OWNERSHIP PRESERVATION ENTITY FUND FINANCING ACCOUNT




111Default claim payments on principal ....................................0711111Default claim payments on interest ......................................0712









–1–1–1Outlays (gross) ......................................................................3020






Offsetting collections (collected) from:–2–2–1Premiums ..........................................................................4123–1–1–1Recoveries on defaults ......................................................4123

–3–3–2Offsets against gross budget authority and outlays (total) ....4130–2–2–1Outlays, net (mandatory) ...........................................................4170





...................................................Uncommitted limitation carried forward ...................................2143

...................................................Total guaranteed loan commitments .....................................2150

Cumulative balance of guaranteed loans outstanding:657498Outstanding, start of year .........................................................2210–8–8–23Repayments and prepayments ..................................................2251

Adjustments:...................................................Terminations for default that result in loans receivable ........2261

...................................................Terminations for default that result in acquisition of

property .............................................................................2262

–1–1–1Terminations for default that result in claim payments ........2263


Memorandum:


year .......................................................................................2299

Addendum:Cumulative balance of defaulted guaranteed loans that result

in loans receivable:555Outstanding, start of year .....................................................2310

...................................................Disbursements for guaranteed loan claims ...........................2331

555Outstanding, end of year ...................................................2390



HOME OWNERSHIP PRESERVATION ENTITY FUND FINANCING ACCOUNT—Continued




Net value of assets related to post–1991 acquired defaultedguaranteed loans receivable:

55Defaulted guaranteed loans receivable, gross ...........................150111Foreclosed property ....................................................................1504


11Net present value of assets related to defaulted guaranteedloans .................................................................................

1599




✦

FHA-MUTUAL MORTGAGE INSURANCE PROGRAM ACCOUNT

New commitments to guarantee single family loans insured under the MutualMortgage Insurance Fund shall not exceed $400,000,000,000, to remain availableuntil September 30, 2020: Provided, That during fiscal year 2019, obligations tomake direct loans to carry out the purposes of section 204(g) of the NationalHousing Act, as amended, shall not exceed $1,000,000: Provided further, Thatthe foregoing amount in the previous proviso shall be for loans to nonprofit andgovernmental entities in connection with sales of single family real propertiesowned by the Secretary and formerly insured under the Mutual Mortgage InsuranceFund: Provided further, That for administrative contract expenses of the FederalHousing Administration, $150,000,000, to remain available until September 30,2020, of which up to $20,000,000 may be used for necessary single family inform-ation technology systems of the Federal Housing Administration, and shall be inaddition to amounts otherwise provided under this title for such purposes: Providedfurther, That any amounts to be used for single family information technologypurposes pursuant to the previous proviso shall be transferred to the "InformationTechnology Fund" account under this title for such purposes: Provided further,That receipts from administrative support fees collected pursuant to section 222of this title shall be credited as offsetting collections to this account.Note.—A full-year 2018 appropriation for this account was not enacted at the time the budget





.................10,46414,669Reestimates of loan guarantee subsidy ................................0707

.................2,1744,022Interest on reestimates of loan guarantee subsidy ................0708140127133Administrative expenses .......................................................0709

14012,76518,824Total new obligations, unexpired accounts ....................................0900


413648Unobligated balance brought forward, Oct 1 .........................1000..................................48Discretionary unobligated balance brought fwd, Oct 1 ......1001.................12,63818,691Unobligated balance transfer from other acct [086–0236] ....1011

331Recoveries of prior year unpaid obligations ...........................1021

4412,67718,740Unobligated balance (total) ......................................................1050Budget authority:

Appropriations, discretionary:150129130Appropriation - Administrative Expenses ..........................1100

Spending authority from offsetting collections, discretionary:20..................................Collected ...........................................................................1700

–20..................................Spending authority from offsetting collections precluded

from obligation (limitation on obligations) ...................1725

150129130Budget authority (total) .............................................................190019412,80618,870Total budgetary resources available ..............................................1930




171157138Unpaid obligations, brought forward, Oct 1 ..........................300014012,76518,824New obligations, unexpired accounts ....................................3010

–112–12,748–18,797Outlays (gross) ......................................................................3020–3–3–1Recoveries of prior year unpaid obligations, unexpired .........3040








Offsetting collections (collected) from:–20..................................Non-Federal sources .........................................................4033

Mandatory:Outlays, gross:

.................12,63818,691Outlays from mandatory balances ....................................4101130129130Budget authority, net (total) ..........................................................41809212,74818,797Outlays, net (total) ........................................................................4190

Memorandum (non-add) entries:20..................................Unexpired unavailable balance, EOY: Offsetting collections .......5092



Direct loan levels supportable by subsidy budget authority:55.................MMI Fund, Direct loans ..............................................................115001

Direct loan subsidy (in percent):0.000.00.................MMI Fund, Direct loans ..............................................................132001

Direct loan reestimates:..................................–6MMI Fund, Direct loans ..............................................................135001

Guaranteed loan levels supportable by subsidy budget authority:230,000238,000250,955MMI Fund ..................................................................................21500212,11014,80017,701MMI HECM .................................................................................215004

..................................8MMI Refi ....................................................................................215005

242,110252,800268,664Total loan guarantee levels .......................................................215999Guaranteed loan subsidy (in percent):

–3.20–3.18–4.42MMI Fund ..................................................................................2320020.00-.49-.33MMI HECM .................................................................................232004

..................................0.00MMI Refi ....................................................................................232005

–3.04–3.02–4.15Weighted average subsidy rate ..................................................232999Guaranteed loan subsidy budget authority:

–7,360–7,568–11,092MMI Fund ..................................................................................233002.................–73–58MMI HECM .................................................................................233004

–7,360–7,641–11,150Total subsidy budget authority ..................................................233999Guaranteed loan subsidy outlays:

–7,360–7,568–11,092MMI Fund ..................................................................................234002.................–73–58MMI HECM .................................................................................234004

–7,360–7,641–11,150Total subsidy outlays .................................................................234999Guaranteed loan reestimates:

.................9,1395,762MMI Fund ..................................................................................235002

.................2,48711,257MMI HECM .................................................................................235004

.................11,62617,019Total guaranteed loan reestimates ............................................235999

Administrative expense data:150130130Budget authority .......................................................................3510979791Outlays from balances ..............................................................3580131313Outlays from new authority .......................................................3590

The Federal Housing Administration (FHA) provides mortgage insuranceto encourage lenders to make credit available to borrowers for whom theconventional market does not adequately serve. These include first-timehomebuyers, minorities, lower-income families, and residents of under-served areas (central cities and rural areas). Historically, FHA has alsoprovided countercyclical support in times of economic crisis.

In 2019, the Budget requests a limitation of $400 billion on loan guaran-tees for the Mutual Mortgage Insurance (MMI) Fund. The Budget projects


insurance of $230 billion in single-family forward mortgages and $12 billionin Home Equity Conversion Mortgages (HECMs), with additional commit-ment authority available in case these amounts are exceeded during execu-tion. FHA recently took steps, including adjusting premiums and the shareof home equity a homeowner can borrow against (the "principal limitfactors"), to mitigate the risk of losses on HECMs and operate the programat a negative subsidy rate in 2018. FHA is planning to implement additionalprogram changes to maintain a negative subsidy rate for 2019.

The Budget requests $150 million in administrative expenses to supporta range of FHA functions, including loan underwriting, claims processingand risk monitoring. The requested funding increase will support themodernization of single-family information technology (IT) systems. Thisinvestment will enable FHA to address operational and financial risks posedby aging systems, become a more reliable partner for lenders and, by ex-tension, better serve borrowers. The Budget allows for a transfer of up to$20 million from this account to the IT Fund to be used for this purpose.

To fully offset the increased appropriations, the Budget also requestsauthority to charge lenders a Single-Family Housing IT Fee (Section 222of the General Provisions). This modest fee of no more than $25 per loanwould apply on a prospective basis and expire after four years.




.................10,46414,669Grants, subsidies, and contributions ........................................41.0

.................2,1744,022Interest and dividends ..............................................................43.0

14012,76518,824Total new obligations, unexpired accounts ............................99.9

✦

FHA-MUTUAL MORTGAGE INSURANCE DIRECT LOAN FINANCING ACCOUNT



Obligations by program activity:11.................Claims & other ..........................................................................0003

Credit program obligations:55.................Direct loan obligations ..........................................................071011.................Payment of interest to Treasury .............................................0713

..................................3Downward reestimates paid to receipt accounts ...................0742

..................................3Interest on downward reestimates ........................................0743

666Direct program activities, subtotal ................................................0791



..................................6Unobligated balance brought forward, Oct 1 .........................1000Financing authority:

Borrowing authority, mandatory:55.................Borrowing authority ...........................................................1400

Spending authority from offsetting collections, mandatory:22.................Collected ...........................................................................180077.................Budget authority (total) .............................................................1900776Total budgetary resources available ..............................................1930


1..................................Unpaid obligations, brought forward, Oct 1 ..........................3000776New obligations, unexpired accounts ....................................3010

–6–6–6Outlays (gross) ......................................................................3020

21.................Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

1..................................Obligated balance, start of year ............................................310021.................Obligated balance, end of year ..............................................3200


77.................Budget authority, gross .........................................................4090Financing disbursements:

666Outlays, gross (total) .............................................................4110

Offsets against gross financing authority and disbursements:Offsetting collections (collected) from:

–1–1.................Repayment of Principal .....................................................4123–1–1.................Repayment of interest .......................................................4123

–2–2.................Offsets against gross budget authority and outlays (total) ....4130

55.................Budget authority, net (mandatory) ............................................4160446Outlays, net (mandatory) ...........................................................417055.................Budget authority, net (total) ..........................................................4180446Outlays, net (total) ........................................................................4190



Position with respect to appropriations act limitation on obligations:555Direct loan obligations from current-year authority ...................1111

..................................–5Unobligated direct loan limitation (-) ........................................1142

55.................Total direct loan obligations ..................................................1150




–3–3Net value of assets related to post–1991 direct loans receivable:Allowance for subsidy cost (-) ....................................................

1405


......................................................Federal liabilities: Federal Liabilities - Debt ..................................210333Non-Federal liabilities: Liabilities for loan guarantees ..................2204



✦

FHA-MUTUAL MORTGAGE INSURANCE GUARANTEED LOAN FINANCING ACCOUNT



Obligations by program activity:3,5912,346569Other capital investment & operating expenses ........................0003

Credit program obligations:15,77018,36915,462Default claim payments on principal ....................................0711

272317267Default claim payments on interest ......................................0712917922898Payment of interest to Treasury .............................................0713

7,3607,64111,150Negative subsidy obligations ................................................0740.................9211,611Downward reestimates paid to receipt accounts ...................0742.................9261Interest on downward reestimates ........................................0743

24,31928,26229,449Direct program activities, subtotal ................................................0791

27,91030,60830,018Total new obligations, unexpired accounts ....................................0900



23,96416,41810,674Unobligated balance (total) ......................................................1050Financing authority:

Borrowing authority, mandatory:8,6008,6006,500Borrowing authority ...........................................................1400

Spending authority from offsetting collections, mandatory:25,20931,37737,943Offsetting collections ........................................................1800

–2,100–2,100–8,972Spending authority from offsetting collections applied to

repay debt .....................................................................1825

23,10929,27728,971Spending auth from offsetting collections, mand (total) .......185031,70937,87735,471Budget authority (total) .............................................................190055,67354,29546,145Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:27,76323,68716,127Unexpired unobligated balance, end of year ..........................1941



–27,649–29,390–29,597Outlays (gross) ......................................................................3020–277–291–65Recoveries of prior year unpaid obligations, unexpired .........3040



FHA-MUTUAL MORTGAGE INSURANCE GUARANTEED LOAN FINANCING

ACCOUNT—Continued






31,70937,87735,471Budget authority, gross .........................................................4090Financing disbursements:

27,64929,39029,597Outlays, gross (total) .............................................................4110Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:.................–12,638–18,691Transfer of Reestimates from Capital Reserve account ......4120

–840–973–923Interest on uninvested funds ............................................4122–14,548–13,545–13,430Fees and premiums ...........................................................4123–9,821–4,221–4,899Recoveries on defaults ......................................................4123

–25,209–31,377–37,943Offsets against gross budget authority and outlays (total) ....4130

6,5006,500–2,472Budget authority, net (mandatory) ............................................41602,440–1,987–8,346Outlays, net (mandatory) ...........................................................41706,5006,500–2,472Budget authority, net (total) ..........................................................41802,440–1,987–8,346Outlays, net (total) ........................................................................4190




400,000400,000400,000Guaranteed loan commitments from current-year authority .......2111400,000400,000400,000Limitation available from carry-forward ....................................2121

–157,890–147,200–131,336Uncommitted loan guarantee limitation ....................................2142–400,000–400,000–400,000Uncommitted limitation carried forward ...................................2143

242,110252,800268,664Total guaranteed loan commitments .....................................2150242,110252,800268,664Guaranteed amount of guaranteed loan commitments .................2199

Cumulative balance of guaranteed loans outstanding:1,283,6971,227,3671,151,934Outstanding, start of year .........................................................2210246,029228,700268,664Disbursements of new guaranteed loans ..................................2231

–142,715–153,146–177,769Repayments and prepayments ..................................................2251Adjustments:

–9,376–11,451–9,897Terminations for default that result in loans receivable ........2261

–2,768–3,106–4,970Terminations for default that result in acquisition of

property .............................................................................2262

–3,209–4,667–595Terminations for default that result in claim payments ........2263...................................................Other adjustments, net .........................................................2264

1,371,6581,283,6971,227,367Outstanding, end of year .......................................................2290

Memorandum:

1,371,6581,283,6971,227,367Guaranteed amount of guaranteed loans outstanding, end of

year .......................................................................................2299


in loans receivable:22,12318,15214,793Outstanding, start of year .....................................................23108,6248,2349,897Disbursements for guaranteed loan claims ...........................2331

–3,339–3,047–5,392Repayments of loans receivable ............................................2351–1,571–1,216–1,146Write-offs of loans receivable ................................................2361

...................................................Other adjustments, net .........................................................2364

25,83722,12318,152Outstanding, end of year ...................................................2390




18,46912,594Fund balances with Treasury .....................................................1101Investments in US securities:

7,2518,522Receivables, net ....................................................................1106126203Non-Federal assets: Receivables, net ............................................1206


18,15214,793Defaulted guaranteed loans receivable, gross ...........................15014,1762,356Interest receivable .....................................................................15021,4732,853Foreclosed property ....................................................................1504

–11,185–8,906Allowance for subsidy cost (-) ....................................................1505

12,61611,096Net value of assets related to defaulted guaranteed loan ......15992021Other Federal assets: Other assets ................................................1901

38,48232,436Total assets ...............................................................................1999LIABILITIES:

Federal liabilities:27Accounts payable .......................................................................2101

22,58325,054Federal liabilities, Debt ..............................................................21032,32310,877Other ..........................................................................................2105

Non-Federal liabilities:241196Accounts payable .......................................................................2201

13,027–4,249Liabilities for loan guarantees ...................................................2204306551Other ..........................................................................................2207

38,48232,436Total liabilities ...........................................................................2999

38,48232,436Total liabilities and net position .....................................................4999

✦

FHA-MUTUAL MORTGAGE INSURANCE CAPITAL RESERVE ACCOUNT




27,76131,63437,220Unobligated balance brought forward, Oct 1 .........................1000.................–12,638–18,691Unobligated balance transfer to other accts [086–0183] ......1010

–10–10–7Unobligated balance transfer to other accts [086–4070] ......1010


Spending authority from offsetting collections, mandatory:7,3607,64111,150Offsetting collections (negative subsidy) ..........................1800166122270Offsetting collections (interest on investments) ...............1800

.................1,0121,678Offsetting collections (downward reestimate) ...................1800

..................................14Change in uncollected payments, Federal sources ............1801

7,5268,77513,112Spending auth from offsetting collections, mand (total) .......185035,27727,76131,634Total budgetary resources available ..............................................1930


Change in obligated balance:Uncollected payments:

–48–48–34Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060..................................–14Change in uncollected pymts, Fed sources, unexpired ..........3070




Offsets against gross budget authority and outlays:Offsetting collections (collected) from:

–7,360–7,641–11,150Federal sources .................................................................4030Mandatory:

7,5268,77513,112Budget authority, gross .........................................................4090Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:.................–1,012–1,678Federal Sources: Downward Reestimate ............................4120

–166–122–270Interest on Federal securities ............................................4121

–166–1,134–1,948Offsets against gross budget authority and outlays (total) ....4130Additional offsets against gross budget authority only:

..................................–14Change in uncollected pymts, Fed sources, unexpired .......4140

7,3607,64111,150Budget authority, net (mandatory) ............................................4160–166–1,134–1,948Outlays, net (mandatory) ...........................................................4170

...................................................Budget authority, net (total) ..........................................................4180–7,526–8,775–13,098Outlays, net (total) ........................................................................4190

Memorandum (non-add) entries:25,91930,87936,441Total investments, SOY: Federal securities: Par value ...............500033,26525,91930,879Total investments, EOY: Federal securities: Par value ...............5001

The Capital Reserve account is the ultimate depository for all netbudgetary resources collected by the Mutual Mortgage Insurance (MMI)Fund programs. Negative credit subsidy receipts from new loan guaranteesand downward reestimates, as well as interest earnings on Treasury invest-


ments, are recorded in this account. This account has no authority to obligatefunds, but transfers balances of budget authority as necessary for the costof upward credit subsidy reestimates to the MMI Program Account.





36,39836,398Treasury securities, net ..........................................................110210,87810,878Receivables, net ....................................................................1106


8,5238,523Federal liabilities: Accounts payable ..............................................2101NET POSITION:

39,62939,629Cumulative results of operations ...................................................3300


✦

FHA-MUTUAL MORTGAGE AND COOPERATIVE HOUSING INSURANCE FUNDS LIQUIDATING

ACCOUNT



Obligations by program activity:141411Acquisition of real properties ....................................................0103338Capitalized Expenses ................................................................010733.................Loss mitigation activities ..........................................................0108

202019Total capital investment ................................................................0191121Other Operation expenses ..........................................................0202



136Unobligated balance brought forward, Oct 1 .........................100010107Unobligated balance transfer from other acct [086–0236] ....1011111Recoveries of prior year unpaid obligations ...........................1021




.................13Unexpired unobligated balance, end of year ..........................1941








887Outlays from new mandatory authority .............................41001098Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:–9–9–9Non-Federal sources - Fees & Premiums ...........................4123





–14–14–11Adjustments: Terminations for default that result in acquisition

of property .............................................................................2262


Memorandum:


year .......................................................................................2299


in loans receivable:191921Outstanding, start of year .....................................................2310

...................................................Disbursements for guaranteed loan claims ...........................2331

..................................–1Repayments of loans receivable ............................................2351

..................................–1Write-offs of loans receivable ................................................2361

191919Outstanding, end of year ...................................................2390

Financial condition.—The following tables reflect assets, liabilities, andequity of MMI/CMHI liquidating funds as of September 30, 2017.




15Non-Federal assets: Receivables, net ............................................12061921Defaulted guaranteed loans, gross ................................................1701–2–3Allowance for estimated uncollectible loans and interest (-) .........1703

1718Defaulted guaranteed loans and interest receivable, net ..........170435Foreclosed property ........................................................................1706

2023Value of assets related to loan guarantees ................................1799......................................................Other Federal assets: Other assets ................................................1901



91Liabilities for loan guarantees ...................................................22041718Unearned revenue and advances, and other ..............................2207

171164Total liabilities ...........................................................................2999NET POSITION:

215Cumulative results of operations ...................................................3300





141411Land and structures ..................................................................32.0668Insurance claims and indemnities ............................................42.0


✦

FHA-GENERAL AND SPECIAL RISK PROGRAM ACCOUNT

New commitments to guarantee loans insured under the General and Special RiskInsurance Funds, as authorized by sections 238 and 519 of the National HousingAct (12 U.S.C. 1715z–3 and 1735c), shall not exceed $30,000,000,000 in total loanprincipal, any part of which is to be guaranteed, to remain available until September30, 2020: Provided, That during fiscal year 2019, gross obligations for the principalamount of direct loans, as authorized by sections 204(g), 207(l), 238, and 519(a)of the National Housing Act, shall not exceed $1,000,000, which shall be for loansto nonprofit and governmental entities in connection with the sale of single familyreal properties owned by the Secretary and formerly insured under such Act.

Note.—A full-year 2018 appropriation for this account was not enacted at the time the budgetwas prepared; therefore, the budget assumes this account is operating under the Continuing



FHA-GENERAL AND SPECIAL RISK PROGRAM ACCOUNT—Continued

Appropriations Act, 2018 (Division D of P.L. 115–56, as amended). The amounts included for2018 reflect the annualized level provided by the continuing resolution.




.................873Reestimates of direct loan subsidy .......................................0705

.................232Interest on reestimates of direct loan subsidy .......................0706

.................1,2082,730Reestimates of loan guarantee subsidy ................................0707

.................6051,583Interest on reestimates of loan guarantee subsidy ................0708

.................1,9234,318Total new obligations (object class 41.0) ......................................0900



Appropriations, mandatory:.................1,9234,318Appropriation ....................................................................1200.................1,9234,318Budget authority (total) .............................................................1900

11,9244,319Total budgetary resources available ..............................................1930Memorandum (non-add) entries:



111Unpaid obligations, brought forward, Oct 1 ..........................3000.................1,9234,318New obligations, unexpired accounts ....................................3010.................–1,923–4,318Outlays (gross) ......................................................................3020





.................1,9234,318Outlays from new mandatory authority .............................4100

.................1,9234,318Budget authority, net (total) ..........................................................4180

.................1,9234,318Outlays, net (total) ........................................................................4190



Direct loan levels supportable by subsidy budget authority:.................1,308922FFB Risk Sharing .......................................................................115002

.................1,308922Total direct loan levels ..............................................................115999Direct loan subsidy (in percent):

.................–8.18–11.19FFB Risk Sharing .......................................................................132002

.................–8.18–11.19Weighted average subsidy rate ..................................................132999Direct loan subsidy budget authority:

.................–107–104FFB Risk Sharing .......................................................................133002

.................–107–104Total subsidy budget authority ..................................................133999Direct loan subsidy outlays:

–12–133–59FFB Risk Sharing .......................................................................134002

–12–133–59Total subsidy outlays .................................................................134999Direct loan reestimates:

.................1105FFB Risk Sharing .......................................................................135002

.................1105Total direct loan reestimates .....................................................135999

Guaranteed loan levels supportable by subsidy budget authority:3,6703,6663,852Apartment New Construction / Substantial Rehab ....................2150013,1403,1203,110Tax Credits ................................................................................2150038,1528,2308,755Apartment Refinances ...............................................................215005370363346Housing Finance Agency Risk Sharing .......................................215008320318345Residential Care Facilities ........................................................215010

4,3504,3473,349Residential Care Facility Refinances .........................................215011809785283Hospitals ...................................................................................215012150150297Other Rental ..............................................................................215013404960Title 1 Property Improvement .....................................................215017595143Title 1 Manufactured Housing ...................................................215018


-.20–1.61–2.76Apartment New Construction / Substantial Rehab ....................232001–2.49–1.63–1.14Tax Credits ................................................................................232003

–3.27–3.92–3.76Apartment Refinances ...............................................................232005-.23-.27–1.05Housing Finance Agency Risk Sharing .......................................2320080.000.00-.31Qualified Participating Entity Risk Sharing ...............................232009

–5.81–7.04–5.85Residential Care Facilities ........................................................232010–5.23–5.94–5.14Residential Care Facility Refinances .........................................232011–5.59–5.23–5.52Hospitals ...................................................................................232012-.89–3.68–3.45Other Rental ..............................................................................232013

–1.00–1.47–1.07Title 1 Property Improvement .....................................................232017–3.87–4.36–3.78Title 1 Manufactured Housing ...................................................232018

–3.08–3.62–3.40Weighted average subsidy rate ..................................................232999Guaranteed loan subsidy budget authority:

–7–59–107Apartment New Construction / Substantial Rehab ....................233001–78–51–35Tax Credits ................................................................................233003

–267–322–329Apartment Refinances ...............................................................233005–1–1–4Housing Finance Agency Risk Sharing .......................................233008

–19–22–20Residential Care Facilities ........................................................233010–228–258–172Residential Care Facility Refinances .........................................233011–45–41–16Hospitals ...................................................................................233012–1–6–10Other Rental ..............................................................................233013

.................–1–1Title 1 Property Improvement .....................................................233017–2–2–2Title 1 Manufactured Housing ...................................................233018

–648–763–696Total subsidy budget authority ..................................................233999Guaranteed loan subsidy outlays:

–18–82–77Apartment New Construction / Substantial Rehab ....................234001–65–48–34Tax Credits ................................................................................234003

–256–308–307Apartment Refinances ...............................................................234005–1–4.................Housing Finance Agency Risk Sharing .......................................234008

–18–25–14Residential Care Facilities ........................................................234010–215–236–138Residential Care Facility Refinances .........................................234011–40–29–35Hospitals ...................................................................................234012–2–4–9Other Rental ..............................................................................234013

.................–1–1Title 1 Property Improvement .....................................................234017–2–2–2Title 1 Manufactured Housing ...................................................234018

–617–739–617Total subsidy outlays .................................................................234999Guaranteed loan reestimates:

.................1,3803,911GI/SRI Reestimates ...................................................................235023

.................1,3803,911Total guaranteed loan reestimates ............................................235999

FHA's General Insurance and Special Risk Insurance (GI/SRI) programsprovide mortgage insurance for a variety of purposes, including financingfor the development and rehabilitation of multifamily housing, residentialcare facilities, and hospitals. The Budget requests a limitation of $30 billionon loan guarantees for the GI/SRI Fund. It does not request an appropriationof new credit subsidy funds.

✦

FHA-GENERAL AND SPECIAL RISK GUARANTEED LOAN FINANCING ACCOUNT



Obligations by program activity:373737Other capital investments and operating expenses ...................0003333333Contract Costs ..........................................................................0014

707070Direct program activities, subtotal ................................................0091Credit program obligations:

5,2867,5332,238Default claim payments on principal ....................................0711203290262Default claim payments on interest ......................................0712220220220Payment of interest to Treasury .............................................0713648763695Negative subsidy obligations ................................................0740








Borrowing authority, mandatory:2,5001,174812Borrowing authority ...........................................................1400

Spending authority from offsetting collections, mandatory:1,9953,2886,485Collected ...........................................................................1800

–825–825–825Spending authority from offsetting collections applied to

repay debt .....................................................................1825


1,1702,4635,660Spending auth from offsetting collections, mand (total) .......18503,6703,6376,472Budget authority (total) .............................................................19006,68012,28412,499Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:2532,9758,612Unexpired unobligated balance, end of year ..........................1941


962465422Unpaid obligations, brought forward, Oct 1 ..........................30006,4279,3093,887New obligations, unexpired accounts ....................................3010

–6,606–8,777–3,829Outlays (gross) ......................................................................3020–35–35–15Recoveries of prior year unpaid obligations, unexpired .........3040






Offsetting collections (collected) from:.................–1,813–4,313Subsidy reestimate from program account .......................4120

–429–429–469Interest on uninvested funds ............................................4122–846–933–1,703Fees and premiums ...........................................................4123–426–12.................Recoveries on HUD-Held Notes ..........................................4123

–2–2.................Title I recoveries ................................................................4123–93–39.................Single family property recoveries ......................................4123

–199–60.................Gross Proceeds from Mortgage Note Sales ........................4123

–1,995–3,288–6,485Offsets against gross budget authority and outlays (total) ....4130

1,675349–13Budget authority, net (mandatory) ............................................41604,6115,489–2,656Outlays, net (mandatory) ...........................................................41701,675349–13Budget authority, net (total) ..........................................................41804,6115,489–2,656Outlays, net (total) ........................................................................4190




30,00030,00030,000Guaranteed loan commitments from current-year authority .......211130,00030,00030,000Limitation available from carry-forward ....................................2121–8,940–8,921–9,560Uncommitted loan guarantee limitation ....................................2142



Cumulative balance of guaranteed loans outstanding:153,784155,378147,982Outstanding, start of year .........................................................221019,20119,07018,356Disbursements of new guaranteed loans ..................................2231

–11,899–13,131–8,722Repayments and prepayments ..................................................2251Adjustments:

–4,256–4,400–1,474Terminations for default that result in loans receivable ........2261

–25–29–103Terminations for default that result in acquisition of

property .............................................................................2262

–1,005–3,104–661Terminations for default that result in claim payments ........2263


Memorandum:


year .......................................................................................2299


in loans receivable:6,7044,7624,678Outstanding, start of year .....................................................23104,2564,4001,474Disbursements for guaranteed loan claims ...........................2331–841–1,343–295Repayments of loans receivable ............................................2351

–1,569–1,115–1,095Write-offs of loans receivable ................................................2361





9,0786,434Fund balances with Treasury .....................................................1101

Investments in US securities:1,634234Receivables, net ....................................................................1106

Non-Federal assets:3131Investments in non-Federal securities, net ................................12012134Receivables, net ........................................................................1206


4,7624,678Defaulted guaranteed loans receivable, gross ...........................15012,0371,886Interest receivable .....................................................................1502

58151Foreclosed property ....................................................................1504–3,095–1,886Allowance for subsidy cost (-) ....................................................1505

3,7624,829Net value of assets related to defaulted guaranteed loan ......159972Other Federal assets: Other assets ................................................1901


Federal liabilities:5,1675,179Debt ...........................................................................................21031,5842,765Other ..........................................................................................2105


7,5633,424Liabilities for loan guarantees ...................................................220411664Other ..........................................................................................2207

14,53311,564Total liabilities ...........................................................................2999


✦

FHA-GENERAL AND SPECIAL RISK DIRECT LOAN FINANCING ACCOUNT




.................1,308922Direct loan obligations ..........................................................0710226Payment of interest to Treasury .............................................0713

696529Payment of Interest to FFB ....................................................0715.................107104Negative subsidy obligations ................................................0740

711,4821,061Total new obligations, unexpired accounts ....................................0900




Borrowing authority, mandatory:691,3001,063Borrowing authority ...........................................................1400


–55–33–8Spending authority from offsetting collections applied to

repay debt .....................................................................1825

7019531Spending auth from offsetting collections, mand (total) .......18501391,4951,094Budget authority (total) .............................................................19001891,5321,098Total budgetary resources available ..............................................1930



567553242Unpaid obligations, brought forward, Oct 1 ..........................3000711,4821,061New obligations, unexpired accounts ....................................3010

–271–1,468–748Outlays (gross) ......................................................................3020..................................–2Recoveries of prior year unpaid obligations, unexpired .........3040




1391,4951,094Budget authority, gross .........................................................4090Financing disbursements:

2711,468748Outlays, gross (total) .............................................................4110Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:.................–110–5Federal sources .................................................................4120.................–19–2Interest on uninvested funds ............................................4122

–52–29–8Repayment of Principal .....................................................4123



FHA-GENERAL AND SPECIAL RISK DIRECT LOAN FINANCING ACCOUNT—Continued



–69–65–22DL Interest Payments ........................................................4123–4–5–2Loan Guarantee Fees .........................................................4123

–125–228–39Offsets against gross budget authority and outlays (total) ....4130

141,2671,055Budget authority, net (mandatory) ............................................41601461,240709Outlays, net (mandatory) ...........................................................4170141,2671,055Budget authority, net (total) ..........................................................4180

1461,240709Outlays, net (total) ........................................................................4190



Position with respect to appropriations act limitation on obligations:.................1,308922Direct loan obligations from current-year authority ...................1111

.................1,308922Total direct loan obligations ..................................................1150

Cumulative balance of direct loans outstanding:2,3271,192554Outstanding, start of year .........................................................12101531,164646Disbursements: Direct loan disbursements ...............................1231–52–29–8Repayments: Repayments and prepayments .............................1251






13048Receivables, net ....................................................................1106Net value of assets related to post–1991 direct loans receivable:

1,192554Direct loans receivable, gross ....................................................140131Interest receivable .....................................................................1402

3727Allowance for subsidy cost (-) ....................................................1405

1,232582Net present value of assets related to direct loans ................1499

1,422640Total assets ...............................................................................1999LIABILITIES:

Federal liabilities:1,392640Debt ...........................................................................................2103

17...........................Other ..........................................................................................2105Non-Federal liabilities:

......................................................Liabilities for loan guarantees ...................................................220413...........................Other ..........................................................................................2207

1,422640Total liabilities ...........................................................................2999NET POSITION:

......................................................Cumulative results of operations ...................................................3300

1,422640Total liabilities and net position .....................................................4999

✦

FHA-LOAN GUARANTEE RECOVERY FUND FINANCING ACCOUNT




666Unobligated balance brought forward, Oct 1 .........................1000666Total budgetary resources available ..............................................1930







–1–1–1Repayments and prepayments ..................................................2251


Memorandum:


year .......................................................................................2299

Section 4 of the Church Arson Prevention Act of 1996 (Public Law104–155), entitled "Loan Guarantee Recovery Fund,'' authorizes the Sec-retary of Housing and Urban Development to guarantee loans made byfinancial institutions to assist certain non-profit organizations that weredamaged as a result of acts of arson or terrorism.







✦

FHA-GENERAL AND SPECIAL RISK INSURANCE FUNDS LIQUIDATING ACCOUNT



Obligations by program activity:1127Assignment and Property Acquisition Claims ............................010251313Capitalized Expenses ................................................................0110

252515HUD Held Notes Escrow Activity .................................................01111210.................Other .........................................................................................0113




–77–138–425Capital transfer of unobligated balances to general fund ......1022


Appropriations, mandatory:252525Appropriation ....................................................................1200

Spending authority from offsetting collections, mandatory:100100167Collected ...........................................................................1800125125192Budget authority (total) .............................................................1900126126193Total budgetary resources available ..............................................1930











272721Outlays from new mandatory authority .............................410055518Outlays from mandatory balances ....................................4101

827829Outlays, gross (total) .............................................................4110



–100–100–167Non-Federal sources - Other .............................................4123252525Budget authority, net (total) ..........................................................4180

–18–22–138Outlays, net (total) ........................................................................4190




Adjustments:–1–1.................Terminations for default that result in loans receivable ........2261

...................................................Terminations for default that result in acquisition of

property .............................................................................2262


Memorandum:


year .......................................................................................2299


in loans receivable:1,5941,6251,792Outstanding, start of year .....................................................2310

...................................................Disbursements for guaranteed loan claims ...........................2331–30–31–167Repayments of loans receivable ............................................2351






......................................................Treasury securities, par .........................................................110211Non-Federal assets: Receivables, net ............................................1206

1,6251,792Defaulted guaranteed loans, gross ................................................1701245245Interest receivable .........................................................................1702


1,1841,212Defaulted guaranteed loans and interest receivable, net ..........170434Foreclosed property ........................................................................1706

1,1871,216Value of assets related to loan guarantees ................................1799......................................................Other Federal assets: Other assets ................................................1901



......................................................Liabilities for loan guarantees ...................................................2204157190Other ..........................................................................................2207


204182Unexpended appropriations ...........................................................31001,0421,321Cumulative results of operations ...................................................3300

1,2461,503Total net position .......................................................................3999




Direct obligations:51313Land and structures ..................................................................32.0

383642Investments and loans ..............................................................33.0


✦

HOUSING FOR THE ELDERLY OR HANDICAPPED FUND LIQUIDATING ACCOUNT



Obligations by program activity:442Loan Management, Liquidations and Property Dispositions .......0102




.................–305–348Capital transfer of unobligated balances to general fund ......1022

..................................4Unobligated balance (total) ......................................................1050Budget authority:


–224–259.................Capital transfer of spending authority from offsetting

collections to general fund ...........................................1820

44303Spending auth from offsetting collections, mand (total) .......185044307Total budgetary resources available ..............................................1930




–6–6–1Outlays (gross) ......................................................................3020





44.................Outlays from new mandatory authority .............................4100221Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:–228–263–303Non-Federal sources .........................................................4123–224–259.................Budget authority, net (total) ..........................................................4180–222–257–302Outlays, net (total) ........................................................................4190



Cumulative balance of direct loans outstanding:7679541,167Outstanding, start of year .........................................................1210

–161–186–212Repayments: Repayments and prepayments .............................1251

–1–1–1Write-offs for default: Adjustments: Reclassify to Foreclosed

Property Acquired ..................................................................1264




ASSETS:313359Federal assets: Fund balances with Treasury .................................11011315Non-Federal assets: Interest Receivable: Public ............................1206

9541,167Direct loans, gross .........................................................................1601–8–11Allowance for estimated uncollectible loans and interest (-) .........1603

9461,156Value of assets related to direct loans .......................................1699


11Non-Federal liabilities: Other .........................................................2207NET POSITION:

......................................................Unexpended Appropriations ...........................................................31001,2711,529Revolving Fund: Cumulative results of operations .........................3300

1,2711,529Total net position .......................................................................3999



HOUSING FOR THE ELDERLY OR HANDICAPPED FUND LIQUIDATING

ACCOUNT—Continued

Balance Sheet—Continued



✦

Trust Funds

MANUFACTURED HOUSING FEES TRUST FUND

For necessary expenses as authorized by the National Manufactured HousingConstruction and Safety Standards Act of 1974 (42 U.S.C. 5401 et seq.), up to$12,000,000, to remain available until expended, of which $12,000,000 is to be de-rived from the Manufactured Housing Fees Trust Fund: Provided, That not to exceedthe total amount appropriated under this heading shall be available from the generalfund of the Treasury to the extent necessary to incur obligations and make expendit-ures pending the receipt of collections to the Fund pursuant to section 620 of suchAct: Provided further, That the amount made available under this heading from thegeneral fund shall be reduced as such collections are received during fiscal year2019 so as to result in a final fiscal year 2019 appropriation from the general fundestimated at zero, and fees pursuant to such section 620 shall be modified as neces-sary to ensure such a final fiscal year 2019 appropriation: Provided further, Thatfor the dispute resolution and installation programs, the Secretary may assess andcollect fees from any program participant: Provided further, That such collectionsshall be deposited into the Fund, and the Secretary, as provided herein, may usesuch collections, as well as fees collected under section 620, for necessary expensesof such Act: Provided further, That, notwithstanding the requirements of section620 of such Act, the Secretary may carry out responsibilities of the Secretary undersuch Act through the use of approved service providers that are paid directly by therecipients of their services.


Special and Trust Fund Receipts (in millions of dollars)


1163Balance, start of year ....................................................................0100Receipts:

Current law:

161514Mobile Home Inspection and Monitoring Fees, Manufactured

Housing Fee Trust Fund .....................................................1120

272117Total: Balances and receipts .....................................................2000Appropriations:

Current law:–12–10–11Manufactured Housing Fees Trust Fund ................................2101

15116Balance, end of year ..................................................................5099



Obligations by program activity:121211Manufactured Housing Program Costs ......................................0002



Appropriations, discretionary:121011Appropriation (special or trust fund) .................................1101131314Total budgetary resources available ..............................................1930




–11–10–9Outlays (gross) ......................................................................3020







The National Manufactured Housing Construction and Safety StandardsAct of 1974, as amended, authorizes the development and enforcement ofappropriate standards for the construction, design, installation, and perform-ance of manufactured homes to assure their quality, durability, affordability,and safety. All manufactured homes produced since the standards took effectin 1976 must comply with Federal construction and safety standards. Thirty-six States participate in the program under HUD-approved State complianceplans and are reimbursed by HUD for their activities. HUD administers acompliance program for the remaining 14 States.

HUD coordinates the Manufactured Housing Consensus Committee torecommend revisions to and interpretations of the manufactured housingstandards and regulations. HUD also develops and implements modelstandards for installation of manufactured housing, as well as an installationenforcement program. HUD administers installation enforcement programsin 14 States and oversees HUD-approved programs in 36 States. Finally,HUD administers a dispute resolution program for manufactured housinghomeowners, retailers, installers, and manufacturers in 25 States andoversees HUD-approved dispute resolution programs in 25 States.

Fees are charged to the manufacturers for each transportable sectionproduced to offset the expenses incurred by the Department in carryingout the responsibilities under the authorizing legislation. The Budget pro-poses to fund the costs of authorized activities with an estimated $12 millionin fees.



Direct obligations:777Advisory and assistance services ..............................................25.111.................Other goods and services from Federal sources ........................25.3444Grants, subsidies, and contributions ........................................41.0


✦

GREEN RETROFIT PROGRAM FOR MULTIFAMILY HOUSING FINANCING ACCOUNT


2019 est.2018 est.2017 actualIdentification code 086–4589–0- -604


.................7.................Downward reestimates paid to receipt accounts ...................0742

.................4.................Interest on downward reestimates ........................................0743

.................11.................Total new obligations, unexpired accounts ....................................0900


147.................Unobligated balance brought forward, Oct 1 .........................1000Financing authority:

Borrowing authority, mandatory:.................122Borrowing authority ...........................................................1400

Spending authority from offsetting collections, mandatory:665Collected ...........................................................................18006187Budget authority (total) .............................................................1900





.................11.................New obligations, unexpired accounts ....................................3010

.................–11.................Outlays (gross) ......................................................................3020



.................11.................Outlays, gross (total) .............................................................4110Offsets against gross financing authority and disbursements:


.................122Budget authority, net (total) ..........................................................4180–65–5Outlays, net (total) ........................................................................4190


2019 est.2018 est.2017 actualIdentification code 086–4589–0- -604

Cumulative balance of direct loans outstanding:485357Outstanding, start of year .........................................................1210–5–5–4Repayments: Repayments and prepayments .............................1251



2017 actual2016 actualIdentification code 086–4589–0- -604

ASSETS:5...........................Federal assets: Fund balances with Treasury .................................1101

Net value of assets related to post–1991 direct loans receivable:5357Direct loans receivable, gross ....................................................140111Interest receivable .....................................................................1402


...........................5Net present value of assets related to direct loans ................1499


55Federal liabilities: Debt ..................................................................2103


✦

GOVERNMENT NATIONAL MORTGAGE ASSOCIATIONThe Government National Mortgage Association (GNMA) was established

by Federal charter in 1968. It is a wholly-owned Government corporationwithin the U.S. Department of Housing and Urban Development (HUD).It was established to support Federal housing initiatives by providing liquid-ity to the secondary mortgage market and to attract capital from the globalcapital markets for the Nation's mortgage markets. Its primary function isto guarantee the timely payment of principal and interest on Mortgage-Backed Securities (MBS) that are backed by loans insured or guaranteedby the Federal Housing Administration (FHA), the Department of VeteransAffairs (VA), Rural Development in the U.S. Department of Agriculture,and HUD's Office of Public and Indian Housing.

✦

Federal Funds

GUARANTEES OF MORTGAGE-BACKED SECURITIES CAPITAL RESERVE ACCOUNT




18,41417,12415,803Unobligated balance brought forward, Oct 1 .........................1000–450–450–450Unobligated balance transfer to other accts [086–0186] ......1010

–1,320–950–2,076Unobligated balance transfer to other accts [086–4240] ......101011011080Unobligated balance transfer from other acct [086–4240] ....1011

.................28.................Unobligated balance transfer from other acct [086–4238] ....1011

.................–149.................Adjustment of unobligated bal brought forward, Oct 1 .........1020

16,75415,71313,357Unobligated balance (total) ......................................................1050

Budget authority:Spending authority from offsetting collections, mandatory:

1,9141,6962,016Offsetting collections (negative subsidy) ..........................180041617493Offsetting collections (interest on investments) ...............1800

.................7311,378Offsetting collections (downward reestimate) ...................1800100100280Offsetting collections (interest on loans) ..........................1800

2,4302,7013,767Spending auth from offsetting collections, mand (total) .......185019,18418,41417,124Total budgetary resources available ..............................................1930




–1,914–1,696–2,016Federal sources .................................................................4030

–1,914–1,696–2,016Offsets against gross budget authority and outlays (total) ....4040Mandatory:

2,4302,7013,767Budget authority, gross .........................................................4090Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–100–831–1,658Federal sources .................................................................4120–416–174–93Interest on Federal securities ............................................4121

–516–1,005–1,751Offsets against gross budget authority and outlays (total) ....4130

1,9141,6962,016Budget authority, net (mandatory) ............................................4160–516–1,005–1,751Outlays, net (mandatory) ...........................................................4170

...................................................Budget authority, net (total) ..........................................................4180–2,430–2,701–3,767Outlays, net (total) ........................................................................4190

Memorandum (non-add) entries:18,18117,12415,802Total investments, SOY: Federal securities: Par value ...............500019,16318,18117,124Total investments, EOY: Federal securities: Par value ...............5001

In 2013, a Capital Reserve Account was established for the GovernmentNational Mortgage Association (GNMA). Financial reserves of GNMAwere transferred from the Reserve Receipt and Liquidating Accounts tothe Capital Reserve Account. This mandatory account earns interest onTreasury investments and is the eventual depository for all budgetary re-sources collected by GNMA including negative subsidy receipts from newsecurity guarantees, downward reestimates, and loan repayments from theFinancing Account. This account has no authority to obligate funds buttransfers resources to the GNMA Program Account as necessary for man-datory spending authorized in that account.

✦

GUARANTEES OF MORTGAGE-BACKED SECURITIES LOAN GUARANTEE PROGRAM

ACCOUNT

New commitments to issue guarantees to carry out the purposes of section 306 ofthe National Housing Act, as amended (12 U.S.C. 1721(g)), shall not exceed$550,000,000,000, to remain available until September 30, 2020: Provided, That$24,400,000 shall be available for necessary salaries and expenses of the Office ofGovernment National Mortgage Association: Provided further, That receipts fromCommitment and Multiclass fees collected pursuant to title III of the NationalHousing Act, as amended, shall be credited as offsetting collections to this account.





382354262Administrative expenses .......................................................070920010037Servicing Expenses ....................................................................0801



386329130Unobligated balance brought forward, Oct 1 .........................1000.................810Discretionary unobligated balance brought fwd, Oct 1 ......1001

450450450Unobligated balance transfer from other acct [086–0238] ....1011..................................–7Adjustment of unobligated bal brought forward, Oct 1 .........1020

581DEPARTMENT OF HOUSING AND URBAN DEVELOPMENTGovernment National Mortgage Association

Federal Funds

GUARANTEES OF MORTGAGE-BACKED SECURITIES LOAN GUARANTEE PROGRAM

ACCOUNT—Continued






–104–93–112Spending authority from offsetting collections precluded

from obligation (limitation on obligations) ...................1725

242626Spending auth from offsetting collections, disc (total) .........1750Spending authority from offsetting collections, mandatory:

3938.................Collected ...........................................................................1800636426Budget authority (total) .............................................................1900


–3–3.................Unobligated balance expiring ................................................1940314386329Unexpired unobligated balance, end of year ..........................1941


581362311Unpaid obligations, brought forward, Oct 1 ..........................3000

..................................7Adjustments to unpaid obligations, brought forward, Oct

1 .......................................................................................3001

582454299New obligations, unexpired accounts ....................................3010..................................2Obligations ("upward adjustments"), expired accounts ........3011









Mandatory:3938.................Budget authority, gross .........................................................4090

Outlays, gross:3938.................Outlays from new mandatory authority .............................4100

168169200Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:–39–38.................Non-Federal sources .........................................................4123

–104–93–112Budget authority, net (total) ..........................................................4180687889Outlays, net (total) ........................................................................4190

Memorandum (non-add) entries:728635523Unexpired unavailable balance, SOY: Offsetting collections .......5090832728635Unexpired unavailable balance, EOY: Offsetting collections .......5092

111Expired unavailable balance, SOY: Offsetting collections ..........5093111Expired unavailable balance, EOY: Offsetting collections ..........5095



Guaranteed loan levels supportable by subsidy budget authority:435,000424,000504,574Guarantees of Mortgage-Backed Securities ..............................215001


-.44-.40-.37Guarantees of Mortgage-Backed Securities ..............................232001

-.44-.40-.37Weighted average subsidy rate ..................................................232999Guaranteed loan subsidy budget authority:

–1,914–1,696–2,016Guarantees of Mortgage-Backed Securities ..............................233001

–1,914–1,696–2,016Total subsidy budget authority ..................................................233999

Guaranteed loan subsidy outlays:–1,914–1,696–2,016Guarantees of Mortgage-Backed Securities ..............................234001

–1,914–1,696–2,016Total subsidy outlays .................................................................234999Guaranteed loan reestimates:

.................–732–1,378Guarantees of Mortgage-Backed Securities ..............................235001

.................–732–1,378Total guaranteed loan reestimates ............................................235999

Administrative expense data:242626Budget authority .......................................................................3510242626Outlays from new authority .......................................................3590

The Budget requests commitment authority for GNMA to guarantee $550billion in new mortgage-backed securities (MBS). The Budget also requests$24.4 million for the personnel costs of GNMA, to be offset by Commit-ment and Multiclass fees. This funding will enable GMNA to provideproper oversight of its growing MBS portfolio.



Direct obligations:Personnel compensation:

201918Full-time permanent .............................................................11.1111Other than full-time permanent ............................................11.3

212019Total personnel compensation ...........................................11.9776Civilian personnel benefits ........................................................12.1111Travel and transportation of persons .........................................21.0

352325236Other services from non-Federal sources ..................................25.211.................Other goods and services from Federal sources ........................25.3

382354262Direct obligations ..................................................................99.020010037Reimbursable obligations .....................................................99.0


Employment Summary


160158145Direct civilian full-time equivalent employment ............................1001

✦

GUARANTEES OF MORTGAGE-BACKED SECURITIES FINANCING ACCOUNT



Obligations by program activity:13013079Advances and other ...................................................................0003504416279Preservation of collateral ..........................................................0004100100280Payment of Interest on Borrowings ............................................0005

734646638Subtota—Advances and Operating Expenses ...............................0091Credit program obligations:

1,9141,6962,016Negative subsidy obligations ................................................0740.................7101,337Downward reestimates paid to receipt accounts ...................0742.................2142Interest on downward reestimates ........................................0743




.................646183Unobligated balance brought forward, Oct 1 .........................1000–110–110–80Unobligated balance transfer to other accts [086–0238] ......10101,3209502,076Unobligated balance transfer from other acct [086–0238] ....1011

.................14927Adjustment of unobligated bal brought forward, Oct 1 .........1020



Spending authority from offsetting collections, mandatory:1,4381,4382,472Collected ...........................................................................18002,6483,0734,679Total budgetary resources available ..............................................1930


THE BUDGET FOR FISCAL YEAR 2019582 Government National Mortgage Association—ContinuedFederal Funds—Continued


1,146358227Unpaid obligations, brought forward, Oct 1 ..........................3000

..................................–27Adjustments to unpaid obligations, brought forward, Oct

1 .......................................................................................3001

2,6483,0734,033New obligations, unexpired accounts ....................................3010–2,285–2,285–3,874Outlays (gross) ......................................................................3020


1,5091,146358Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

1,146358200Obligated balance, start of year ............................................31001,5091,146358Obligated balance, end of year ..............................................3200




Offsetting collections (collected) from:–59–59–70Interest on uninvested funds ............................................4122

–885–885–1,137Guarantee Fees .................................................................4123–494–494–1,265Repayment of advances ....................................................4123

–1,438–1,438–2,472Offsets against gross budget authority and outlays (total) ....41308478471,402Outlays, net (mandatory) ...........................................................4170

...................................................Budget authority, net (total) ..........................................................41808478471,402Outlays, net (total) ........................................................................4190




550,000500,000500,000Guaranteed loan commitments from current-year authority .......2111500,000495,425500,000Limitation available from carry-forward ....................................2121–65,000–71,425.................Uncommitted loan guarantee limitation ....................................2142



Cumulative balance of guaranteed loans outstanding:2,062,4661,884,1651,728,092Outstanding, start of year .........................................................2210435,000424,000504,575Disbursements of new guaranteed loans ..................................2231

–283,714–245,699–348,502Repayments and prepayments ..................................................2251

2,213,7522,062,4661,884,165Outstanding, end of year .......................................................2290

Memorandum:

2,213,7522,062,4661,884,165Guaranteed amount of guaranteed loans outstanding, end of

year .......................................................................................2299



ASSETS:1,0311,031Federal assets: Fund balances with Treasury .................................1101442442Non-Federal assets: Receivables, net ............................................1206

6,1156,115Net value of assets related to post–1991 direct loans receivable:

Direct loans receivable, gross ....................................................1401

–789–789Net value of assets related to post–1991 acquired defaultedguaranteed loans receivable: Allowance for subsidy cost (-) ......

1505



......................................................Other ..........................................................................................2207


6,7106,710Cumulative results of operations ...................................................3300


✦

GUARANTEES OF MORTGAGE-BACKED SECURITIES LIQUIDATING ACCOUNT



Obligations by program activity:..................................1Administrative contract expenses .............................................0001...................................................Operating expenses ...................................................................0002

11.................Operating expenses ...................................................................0002

111Total new obligations, unexpired accounts (object class 43.0) .......0900


100128128Unobligated balance brought forward, Oct 1 .........................1000.................–28.................Unobligated balance transfer to other accts [086–0238] ......1010







–2–2.................Outlays (gross) ......................................................................3020





22.................Outlays from mandatory balances ....................................4101Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–1–1–1Interest on Federal securities ............................................4121

...................................................Budget authority, net (total) ..........................................................418011–1Outlays, net (total) ........................................................................4190

Memorandum (non-add) entries:153152151Total investments, SOY: Federal securities: Par value ...............5000154153152Total investments, EOY: Federal securities: Par value ...............5001




Investments in US securities:151151Treasury securities, par .........................................................1102

......................................................Receivables, net ....................................................................1106

......................................................Direct loans, gross .........................................................................1601

......................................................Allowance for estimated uncollectible loans and interest (-) .........1603

......................................................Value of assets related to direct loans .......................................1699

......................................................Other Federal assets: Other assets ................................................1901


Non-Federal liabilities:......................................................Accounts payable .......................................................................2201

2323Other ..........................................................................................2207


128128Cumulative results of operations ...................................................3300


✦

583DEPARTMENT OF HOUSING AND URBAN DEVELOPMENTGovernment National Mortgage Association—Continued


POLICY DEVELOPMENT AND RESEARCHFederal Funds

RESEARCH AND TECHNOLOGY

For contracts, grants, and necessary expenses of programs of research and studiesrelating to housing and urban problems, not otherwise provided for, as authorizedby title V of the Housing and Urban Development Act of 1970 (12 U.S.C. 1701z–1et seq.), including carrying out the functions of the Secretary of Housing and UrbanDevelopment under section 1(a)(1)(i) of Reorganization Plan No. 2 of 1968, andfor technical assistance, $85,000,000, to remain available until September 30, 2020:Provided, That with respect to amounts made available under this heading, notwith-standing section 204 of this title, the Secretary may enter into cooperative agreementswith philanthropic entities, other Federal agencies, State or local governments andtheir agencies, or colleges or universities for research projects: Provided further,That with respect to the previous proviso, not more than 50 percent of the cost ofsuch projects may come from amounts made available under this heading.




Obligations by program activity:505150Contracts, Grants and Cooperative Agreements ........................0001102313Research and Demonstrations ..................................................000225502Technical Assistance .................................................................0003

8512465Total direct obligations ..................................................................0799.................2.................BJA Pay for Success Evaluation .................................................0801






Spending authority from offsetting collections, discretionary:..................................2Collected ...........................................................................1700





..................................1Obligations ("upward adjustments"), expired accounts ........3011–69–68–63Outlays (gross) ......................................................................3020










858889Budget authority, net (total) ..........................................................4180696861Outlays, net (total) ........................................................................4190

The Housing and Urban Development Act of 1970 directs the Secretaryto undertake programs of research, studies, testing, and demonstrationsrelated to HUD's mission. These functions are carried out by HUD's Office

of Policy Development and Research (PD&R) through in-house analysisby staff; contracts with industry, nonprofit research organizations, andeducational institutions; and cooperative agreements with educational,governmental, and philanthropic entities.

The 2019 Budget requests $85 million for HUD's Research and Techno-logy (R&T) program. R&T investments support HUD's enterprise-widecommitment to integrate evidence and cross-disciplinary intelligencethroughout program policy, management, and operations. The requestconsists of $50 million for core research support, surveys, data infrastruc-ture, and knowledge management (i.e., research dissemination); $10 millionfor research, evaluations, and demonstrations; and $25 million for technicalassistance.

The Budget funds several national housing surveys that are rich sourcesof data on the Nation's housing stock, including the American HousingSurvey, the Survey of New Home Sales and Completions, the Survey ofMarket Absorption of Multifamily Units, the Survey of New ManufacturedHousing Placements, and the Rental Housing Finance Survey. Also includedin the request is funding for research priorities established in the 2017 up-date of HUD's Research Roadmap, including the long-term commitmentto evaluate Moving-to-Work policy initiatives and expansion.

Centralized technical assistance through the R&T account enables HUDto support its partners with better coordinated, cross-program TA ratherthan the conventional, program-oriented technical assistance. HUD's mis-sion for affordable housing and community development is carried out ina complex community environment; the more comprehensive approach isvaluable for helping grantees, public housing authorities, and other partnersimplement programs in an informed, aligned, and holistic way.



Direct obligations:497362Research and development contracts .......................................25.536513Grants, subsidies, and contributions ........................................41.0

8512465Direct obligations ..................................................................99.0.................2.................Reimbursable obligations .....................................................99.0


✦

FAIR HOUSING AND EQUAL OPPORTUNITYFederal Funds

FAIR HOUSING ACTIVITIES

For contracts, grants, and other assistance, not otherwise provided for, as author-ized by title VIII of the Civil Rights Act of 1968, as amended by the Fair HousingAmendments Act of 1988, and section 561 of the Housing and Community Develop-ment Act of 1987, as amended, $62,300,000, to remain available until September30, 2020: Provided, That notwithstanding 31 U.S.C. 3302, the Secretary may assessand collect fees to cover the costs of the Fair Housing Training Academy, and mayuse such funds to provide such training: Provided further, That no funds madeavailable under this heading shall be used to lobby the executive or legislativebranches of the Federal Government in connection with a specific contract, grant,or loan: Provided further, That of the funds made available under this heading,$300,000 shall be available to the Secretary for the creation and promotion oftranslated materials and other programs that support the assistance of persons withlimited English proficiency in utilizing the services provided by the Department ofHousing and Urban Development.




Obligations by program activity:242424Fair Housing Assistance ............................................................0001363916Fair Housing Initiatives .............................................................0002

THE BUDGET FOR FISCAL YEAR 2019584 Policy Development and ResearchFederal Funds

22.................National Fair Housing Training Academy ...................................0005

626540Total new obligations .....................................................................0900

















Offsetting collections (collected) from:–1–1–1Non-Federal sources .........................................................4033626565Budget authority, net (total) ..........................................................4180666564Outlays, net (total) ........................................................................4190

The Budget requests $62.3 million for fair housing activities to supportefforts to end housing discrimination. Of the amount requested, $24.3million is for the Fair Housing Assistance Program (FHAP); $36.2 millionis for the Fair Housing Initiatives Program (FHIP); $1.5 million is for theNational Fair Housing Training Academy (NFHTA); and $300 thousandis for the Limited English Proficiency Initiative (LEPI). These resourcesaddress the national and ongoing problem of discrimination againstminority homebuyers and renters, as identified in the 2012 Housing Dis-crimination Against Racial and Ethnic Minorities Study, and directly sup-ports HUD's mission to create strong, inclusive communities free fromdiscrimination.

The FHAP provides funding to State and local agencies to assure promptand effective processing of complaints under substantially equivalent Stateand local fair housing laws. To be eligible for assistance through FHAP,an agency must administer a fair housing law that HUD has certified assubstantially equivalent to the Federal Fair Housing Act. It is estimatedthat there will be a total of 85 FHAP jurisdictions in 2019. The fundingrequested for FHAP supports intergovernmental partnerships by fundingState and local agencies to perform local fair housing enforcement.

FHIP provides funding to States and local governments, and to publicand private non-profit organizations that administer programs to preventor eliminate discriminatory housing practices through enforcement, educa-tion, and outreach. HUD's grants will support approximately 155 nationaland local fair housing organizations working to confront violations of thenation's landmark Fair Housing Act. These grants allow the organizationsto provide fair housing enforcement through testing in the rental and salesmarkets, to file fair housing complaints to HUD, and to conduct investiga-tions. Further, the education and outreach activities these organizationsconduct also help to educate the public, housing providers, and local gov-

ernments about their rights and responsibilities under the Fair HousingAct.

The NFHTA provides comprehensive fair housing and civil rights trainingfor investigators, local agencies, educators, attorneys, industry representat-ives, and other housing industry professionals.

LEPI provides funds for oral interpretation and written translation ser-vices, which help make fair housing programs and activities accessible topeople who are not proficient in English.



Direct obligations:111Advisory and assistance services ..............................................25.1

616439Grants, subsidies, and contributions ........................................41.0


✦

OFFICE OF LEAD HAZARD CONTROL AND HEALTHYHOMES

Federal Funds

LEAD HAZARD REDUCTION

For the Lead Hazard Reduction Program, as authorized by section 1011 of theResidential Lead-Based Paint Hazard Reduction Act of 1992, $145,000,000, to re-main available until September 30, 2020, of which up to $25,000,000 shall be forthe Healthy Homes Initiative, pursuant to sections 501 and 502 of the Housing andUrban Development Act of 1970 that shall include research, studies, testing, anddemonstration efforts, including education and outreach concerning lead-basedpaint poisoning and other housing-related diseases and hazards: Provided, Thatfor purposes of environmental review, pursuant to the National EnvironmentalPolicy Act of 1969 (42 U.S.C. 4321 et seq.) and other provisions of the law thatfurther the purposes of such Act, a grant under the Healthy Homes Initiative, or theLead Technical Studies program under this heading or under prior appropriationsActs for such purposes under this heading, shall be considered to be funds for aspecial project for purposes of section 305(c) of the Multifamily Housing PropertyDisposition Reform Act of 1994: Provided further, That of the total amount madeavailable under this heading, an amount to be determined by the Secretary shall bemade available on a competitive basis for areas with the highest lead paint abatementneeds: Provided further, That each recipient of funds provided under the previousproviso shall contribute an amount not less than 25 percent of the total: Providedfurther, That each applicant shall certify adequate capacity that is acceptable tothe Secretary to carry out the proposed use of funds pursuant to a notice of fundingavailability: Provided further, That amounts made available under this heading inthis or prior appropriations Acts, and that still remain available, may be used forany purpose under this heading notwithstanding the purpose for which such amountswere appropriated if a program competition is undersubscribed and there are otherprogram competitions under this heading that are oversubscribed.




Obligations by program activity:605759Lead Hazard Control Grants ......................................................0001555552Lead Hazard Reduction Demonstration .....................................0002253019Healthy Homes Grants and Support ...........................................0003522Lead Technical Studies and Support .........................................0004





585DEPARTMENT OF HOUSING AND URBAN DEVELOPMENTOffice of Lead Hazard Control and Healthy Homes

Federal Funds

LEAD HAZARD REDUCTION—Continued











11.................Outlays from new discretionary authority ..........................4010117103102Outlays from discretionary balances .................................4011


The primary purpose of the Lead-Based Paint Hazard Control GrantProgram is to reduce the exposure of young children to lead-based paintand other environmental hazards in their homes, including protecting themfrom permanent developmental problems and asthma, and exposure topesticides and carbon monoxide.

The program plays a critical role in addressing the number one environ-mental disease impacting children: lead poisoning. The Budget requests$145 million, including $115 million for HUD's Lead Hazard ControlProgram; $25 million for the Healthy Homes Program; and $5 million forlead-based paint technical studies and support. The Budget includes anappropriations provision that would allow the transfer of unobligated bal-ances and recaptured funds from undersubscribed competitive programsto other competitive programs experiencing oversubscription. The Budgetalso includes two general provisions: the first would grant the Secretaryauthority to carry out investigations, administer oaths, and subpoena docu-ments related to violations of the Lead Disclosure provision of Title X; thesecond would increase the threshold for requiring lead abatement to reflectinflation, providing grantees more flexibility in how they address lead-based paint in a residence.

The Lead Hazard Control Grant Program provides grants of $1 millionto $3 million to State and local governments and Indian Tribes for controlof lead-based paint hazards in pre–1978 private low-income rental andowner-occupied housing. The grants are also designed to facilitate the de-velopment of a housing maintenance and rehabilitation workforce trainedin lead-safe work practices and a certified hazard evaluation and controlindustry. In awarding grants, HUD promotes the use of new, low-cost ap-proaches to hazard control that can be replicated across the nation.

The Healthy Homes program enables the Department to assess and controlhousing-related hazards that contribute to childhood diseases and injuries.With funding from this program, grantees implement and evaluate methodsfor controlling two or more housing-related diseases through a single inter-vention. In addition, Healthy Homes funding is used to provide technicalsupport and training; assist in completion of national surveys; and conducteducation and outreach to help State, local and non-governmental agencies,housing industry stakeholders, and the public understand the health andhousing relationship and identify and address housing-related health andsafety hazards.

The Office of Lead Hazard Control and Healthy Homes will continue itslead-based paint technical studies and support activities, which includepublic education; support for State and local agencies, private propertyowners, HUD programs and field offices, and professional organizations;

technical studies to improve program policy and implementation; qualitycontrol to ensure that the evaluation and control of lead-based paint hazardsis done properly in HUD-assisted housing; and development of standards,technical guidance, regulations, and improved testing and hazard controlmethods.

✦

MANAGEMENT AND ADMINISTRATIONFederal Funds

EXECUTIVE OFFICES

For necessary salaries and expenses for Executive Offices, which shall be com-prised of the offices of the Secretary, Deputy Secretary, Adjudicatory Services,Congressional and Intergovernmental Relations, Public Affairs, Small and Disad-vantaged Business Utilization, and the Center for Faith-Based and NeighborhoodPartnerships, $15,583,000: Provided, That not to exceed $25,000 of the amountmade available under this heading shall be available to the Secretary for officialreception and representation expenses as the Secretary may determine.




Obligations by program activity:11108Personnel costs .........................................................................0001323Benefits .....................................................................................0002222Non-Personnel costs ..................................................................0003







–16–14–13Outlays (gross) ......................................................................3020





161412Outlays from new discretionary authority ..........................4010..................................1Outlays from discretionary balances .................................4011


The Executive Offices account supports the total salaries and expensesof the Department's executive management offices, including the immediateoffices of the Secretary; Deputy Secretary; Congressional and Intergovern-mental Relations; Public Affairs; Adjudicatory Services; the Center forFaith-Based and Neighborhood Partnerships; and the Office of Small andDisadvantaged Utilization. The Budget requests $15.6 million for this ac-count.



Direct obligations:11108Personnel compensation: Full-time permanent .........................11.1323Civilian personnel benefits ........................................................12.1

THE BUDGET FOR FISCAL YEAR 2019586 Office of Lead Hazard Control and Healthy Homes—ContinuedFederal Funds—Continued

111Travel and transportation of persons .........................................21.0111Other services from non-Federal sources ..................................25.2


Employment Summary



✦

ADMINISTRATIVE SUPPORT OFFICES

For necessary salaries and expenses for Administrative Support Offices, whichshall include the Office of the Chief Financial Officer, Office of the General Counsel,Office of Administration, Office of the Chief Human Capital Officer, Office of FieldPolicy and Management, Office of the Chief Procurement Officer, Office of Depart-mental Equal Employment Opportunity, Office of Business Transformation, andOffice of the Chief Information Officer, $507,372,000: Provided, That up to$7,500,000 may be used to fully fund the second phase of HUD's initiative to con-solidate four headquarters satellite offices into the Robert C. Weaver Federalbuilding: Provided further, That funds provided under this heading may be used fornecessary administrative and non-administrative expenses of the Department ofHousing and Urban Development, not otherwise provided for, including purchaseof uniforms, or allowances therefor, as authorized by 5 U.S.C. 5901–5902; hire ofpassenger motor vehicles; and services as authorized by 5 U.S.C. 3109: Providedfurther, That notwithstanding any other provision of law, funds appropriated underthis heading may be used for advertising and promotional activities that directlysupport program activities funded in this title.




Obligations by program activity:207214212Personnel compensation ...........................................................0001224222250Non-personnel costs ..................................................................0002767878Benefits .....................................................................................0003



..................................2Unobligated balance transfer from other acct [086–0334] ....1011



..................................3Unobligated balance transfers between expired and unexpired

accounts ...........................................................................1012

..................................7Unobligated balance (total) ......................................................1050Budget authority:


..................................16Appropriations transferred from other acct [086–0334] ....1121


507514536Appropriation, discretionary (total) .......................................1160Spending authority from offsetting collections, discretionary:

..................................1Collected ...........................................................................1700507514537Budget authority (total) .............................................................1900507514544Total budgetary resources available ..............................................1930














..................................1Offsetting collections credited to expired accounts ...........4052

507514536Budget authority, net (discretionary) .........................................4070538515505Outlays, net (discretionary) .......................................................4080507514536Budget authority, net (total) ..........................................................4180538515505Outlays, net (total) ........................................................................4190

The Administrative Support Offices (ASO) account funds offices thatperform central Departmental functions, including the offices of the ChiefHuman Capital Officer, Chief Financial Officer, Chief Procurement Officer,General Counsel, Field Policy and Management, Business Transformation,Departmental Equal Employment Opportunity, Chief Information Officer,and Administration. The ASO account supports all personnel and non-personnel expenses for these offices. The Budget requests a total of $507.4million for this account, including up to $7.5 million for the second phaseof HUD's initiative to consolidate four headquarters satellite offices intothe main HUD headquarters at the Robert C. Weaver Federal building.This initiative would reduce HUD's real property footprint and annualleasing costs.




199203208Full-time permanent .............................................................11.1111Other than full-time permanent ............................................11.3455Other personnel compensation ..............................................11.5


104103103Rental payments to GSA ............................................................23.1202020Communications, utilities, and miscellaneous charges ............23.3111Printing and reproduction .........................................................24.0

555555Advisory and assistance services ..............................................25.1444Other services from non-Federal sources ..................................25.2

262946Other goods and services from Federal sources ........................25.3444Operation and maintenance of facilities ...................................25.4222Supplies and materials .............................................................26.0648Equipment .................................................................................31.0111Insurance claims and indemnities ............................................42.0


Employment Summary


1,6981,7711,809Direct civilian full-time equivalent employment ............................1001

✦

PROGRAM OFFICE SALARIES AND EXPENSES

PUBLIC AND INDIAN HOUSING

For necessary salaries and expenses of the Office of Public and Indian Housing,$209,473,000.


587DEPARTMENT OF HOUSING AND URBAN DEVELOPMENTManagement and Administration—Continued


PUBLIC AND INDIAN HOUSING—Continued



Obligations by program activity:146150149Personnel costs .........................................................................0001454646Benefits .....................................................................................0002182018Non-personnel expenses ............................................................0004



.................1.................Unobligated balance brought forward, Oct 1 .........................1000

..................................–1Unobligated balance transfer to other accts [086–0335] ......1010


accounts ...........................................................................1012



..................................–2Appropriations transferred to other accts [086–0335] .......1120

209215214Appropriation, discretionary (total) .......................................1160209216215Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:..................................–1Unobligated balance expiring ................................................1940..................................1Unexpired unobligated balance, end of year ..........................1941











This account provides funding for all salaries and expenses of the Officeof Public and Indian Housing, including the Office of the Assistant Secret-ary. The Office's mission is to ensure safe, decent, and affordable housingfor low-income families; create opportunities for residents' self-sufficiencyand economic independence; and assure fiscal integrity by all programparticipants. The Budget requests $209.5 million for this account.




145149147Full-time permanent .............................................................11.1111Other personnel compensation ..............................................11.5

146150148Total personnel compensation ...........................................11.9454646Civilian personnel benefits ........................................................12.1344Travel and transportation of persons .........................................21.0555Other services from non-Federal sources ..................................25.2

101110Other goods and services from Federal sources ........................25.3


Employment Summary



✦

COMMUNITY PLANNING AND DEVELOPMENT

For necessary salaries and expenses of the Office of Community Planning andDevelopment, $105,906,000.





..................................1Disaster supplemental—PS ......................................................0007



22126Unobligated balance brought forward, Oct 1 .........................1000.................102Unobligated balance transfer from other acct [086–0162] ....1011..................................2Unobligated balance transfer from other acct [086–0143] ....1011




106109113Appropriation, discretionary (total) .......................................1160128131123Total budgetary resources available ..............................................1930













This account provides funding for all salaries and expenses of the Officeof Community Planning and Development, including the Office of theAssistant Secretary. The Office provides funding to a broad array of Stateand local governments and non-profit and for-profit organizations to ad-minister a wide range of housing, economic development, and homelessassistance, and supports integrated planning for housing, transportationand infrastructure, disaster recovery, and other community developmentactivities in urban and rural areas across the country. The Budget requests$105.9 million for this account.

THE BUDGET FOR FISCAL YEAR 2019588 Management and Administration—ContinuedFederal Funds—Continued



777879Direct obligations: Personnel compensation: Full-time

permanent .............................................................................11.1


.................22Other services from non-Federal sources ..................................25.2544Other goods and services from Federal sources ........................25.3


Employment Summary



✦

HOUSING

For necessary salaries and expenses of the Office of Housing, $359,448,000.Note.—A full-year 2018 appropriation for this account was not enacted at the time the budget




Obligations by program activity:256262266Personnel costs .........................................................................0001818183Benefits .....................................................................................0002224720Non-Personnel Services .............................................................0003



.................1.................Unobligated balance brought forward, Oct 1 .........................1000



accounts ...........................................................................1012

.................1.................Unobligated balance (total) ......................................................1050Budget authority:


..................................–16Appropriations transferred to other accts [086–0335] .......1120

..................................–4Appropriations transferred to other acct [086–4598] ........1120

359389373Appropriation, discretionary (total) .......................................1160359389373Budget authority (total) .............................................................1900359390373Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:..................................–3Unobligated balance expiring ................................................1940..................................1Unexpired unobligated balance, end of year ..........................1941






–1–1–2Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060..................................1Change in uncollected pymts, Fed sources, expired ..............3071





355384353Outlays from new discretionary authority ..........................4010

52120Outlays from discretionary balances .................................4011





359389373Budget authority, net (discretionary) .........................................4070360405372Outlays, net (discretionary) .......................................................4080359389373Budget authority, net (total) ..........................................................4180360405372Outlays, net (total) ........................................................................4190

This account provides funding for all salaries and expenses of the Officeof Housing, including the Office of the Federal Housing Commissioner.The mission of the Office is to maintain and expand homeownership,rental housing, and healthcare opportunities; stabilize credit markets intimes of economic disruption; and contribute to building and preservinghealthy neighborhoods and communities. The Budget requests $359.4million for this account.






184115Other services from non-Federal sources ..................................25.2


Employment Summary



✦

POLICY DEVELOPMENT AND RESEARCH

For necessary salaries and expenses of the Office of Policy Development andResearch, $25,366,000.















POLICY DEVELOPMENT AND RESEARCH—Continued






252422Outlays from new discretionary authority ..........................4010..................................2Outlays from discretionary balances .................................4011


This account provides funding for all salaries and expenses of the Officeof Policy Development and Research, including the Office of the AssistantSecretary. The Office is responsible for conducting research on priorityhousing and community development issues and maintaining current in-formation on housing needs, market conditions, and program evaluations.The Office also provides objective data, technical and statistical samplingsupport, and analysis to help inform policy decisions. The Budget requests$25.4 million for this account.



Direct obligations:171616Personnel compensation: Full-time permanent .........................11.1555Civilian personnel benefits ........................................................12.1333Other goods and services from Federal sources ........................25.3


Employment Summary



✦

FAIR HOUSING AND EQUAL OPPORTUNITY

For necessary salaries and expenses of the Office of Fair Housing and EqualOpportunity, $71,312,000.




Obligations by program activity:515271Personnel costs .........................................................................00011616.................Benefits .....................................................................................000244.................Non-personnel expenses ............................................................0003





accounts ...........................................................................1012

Budget authority:Appropriations, discretionary:

717272Appropriation ....................................................................1100717272Total budgetary resources available ..............................................1930












This account provides funding for all salaries and expenses of the Officeof Fair Housing and Equal Opportunity, including the Office of the AssistantSecretary. The Office administers and enforces the Fair Housing Act andother civil rights laws, and establishes policies to ensure all Americanshave equal access to the housing of their choice. The Budget requests $71.3million for this account.





515251Total personnel compensation ...........................................11.9161615Civilian personnel benefits ........................................................12.1111Travel and transportation of persons .........................................21.0334Other services from non-Federal sources ..................................25.2


Employment Summary



✦

OFFICE OF LEAD HAZARD CONTROL AND HEALTHY HOMES

For necessary salaries and expenses of the Office of Lead Hazard Control andHealthy Homes, $7,540,000.




Obligations by program activity:665Personnel costs .........................................................................0001112Benefits .....................................................................................000213.................Non-personnel expenses ............................................................0003



.................1.................Unobligated balance brought forward, Oct 1 .........................1000Budget authority:


..................................–1Appropriations transferred to other acct [086–4598] ........1120

898Appropriation, discretionary (total) .......................................1160



..................................1Unexpired unobligated balance, end of year ..........................1941


1..................................Unpaid obligations, brought forward, Oct 1 ..........................30008107New obligations, unexpired accounts ....................................3010

–8–9–7Outlays (gross) ......................................................................3020

11.................Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

1..................................Obligated balance, start of year ............................................310011.................Obligated balance, end of year ..............................................3200



897Outlays from new discretionary authority ..........................4010898Budget authority, net (total) ..........................................................4180897Outlays, net (total) ........................................................................4190

This account provides funding for all salaries and expenses of the Officeof Lead Hazard Control and Healthy Homes. The Office seeks to eliminatelead-based paint hazards in America's privately-owned and low-incomehousing, and to lead the nation in addressing other housing-related healthhazards that threaten vulnerable low-income residents. The Budget requests$7.5 million for this account.



Direct obligations:665Personnel compensation: Full-time permanent .........................11.1112Civilian personnel benefits ........................................................12.113.................Other goods and services from Federal sources ........................25.3


Employment Summary



✦

SALARIES AND EXPENSES



Obligations by program activity:111Gulf Coast Disaster related activities ........................................0801



235Unobligated balance brought forward, Oct 1 .........................1000..................................–2Unobligated balance transfer to other accts [086–0338] ......1010


Spending authority from offsetting collections, discretionary:..................................1Collected ...........................................................................1700..................................1Budget authority (total) .............................................................1900




111New obligations, unexpired accounts ....................................3010.................–1–1Outlays (gross) ......................................................................3020

1..................................Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

1..................................Obligated balance, end of year ..............................................3200


..................................1Budget authority, gross .........................................................4000Outlays, gross:

.................11Outlays from discretionary balances .................................4011Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:..................................–1Federal sources .................................................................4030...................................................Budget authority, net (total) ..........................................................4180.................1.................Outlays, net (total) ........................................................................4190

Beginning with the passage of the Consolidated Appropriations Act,2008, this account no longer receives annual appropriations for Department-al administrative expenses. Instead, funds for salaries and expenses aredistributed across multiple accounts. Resources in this account primarilyreflect prior-year disaster supplemental appropriations.

✦

OFFICE OF INSPECTOR GENERAL

For necessary salaries and expenses of the Office of Inspector General in carryingout the Inspector General Act of 1978, as amended, $128,000,000: Provided, Thatthe Inspector General shall have independent authority over all personnel and ac-quisition issues within this office.




Obligations by program activity:1009999OIG Salaries and Benefits .........................................................0001282829OIG Non-Personnel Costs ...........................................................0002

..................................3Hurricane Sandy and Other Disaster related activities ..............0004



..................................3Unobligated balance brought forward, Oct 1 .........................1000Budget authority:





–2–2–4Recoveries of prior year unpaid obligations, expired .............3041







The Office of the Inspector General (OIG) provides independent andobjective reviews of the integrity, efficiency, and effectiveness of Depart-mental programs and operations. Through various activities, the OIG seeksto promote efficiency and effectiveness in programs and operations, detectand deter fraud and abuse, investigate allegations of misconduct by HUDemployees, and review and make recommendations regarding existing andproposed legislation and regulations affecting HUD. The Budget includes$128 million to support agency-wide audit and investigative functions.



OFFICE OF INSPECTOR GENERAL—Continued





717073Total personnel compensation ...........................................11.9282829Civilian personnel benefits ........................................................12.1444Travel and transportation of persons .........................................21.0777Rental payments to GSA ............................................................23.1

171717Other services from non-Federal sources ..................................25.2111Equipment .................................................................................31.0


Employment Summary



✦

INFORMATION TECHNOLOGY FUND

For the development, modernization, and enhancement of, modifications to, andinfrastructure for Department-wide and program-specific information technologysystems, for the continuing operation and maintenance of both Department-wideand program-specific information systems, and for program-related maintenanceactivities, $260,000,000, to remain available until September 30, 2020: Provided,That any amounts transferred to this Fund under this Act shall remain availableuntil expended: Provided further, That any amounts transferred to this Fund fromamounts appropriated by previously enacted appropriations Acts may be used forthe purposes specified under this Fund, in addition to any other information techno-logy purposes for which such amounts were appropriated.




Obligations by program activity:279317254Information Technology Expenses ..............................................0001





Spending authority from offsetting collections, discretionary:..................................2Collected ...........................................................................1700






–2–2–1Recoveries of prior year unpaid obligations, unexpired .........3040..................................–9Recoveries of prior year unpaid obligations, expired .............3041








..................................–2Offsets against gross budget authority and outlays (total) ....4040260255257Budget authority, net (total) ..........................................................4180265263238Outlays, net (total) ........................................................................4190

The Information Technology (IT) Fund provides for the infrastructure,systems, and services that support HUD programs, which include all ofHUD's mortgage insurance liabilities, rental subsidies, formula grants, andcompetitive grants. The Budget provides $260 million for the development,modernization, enhancement, operation, and maintenance of HUD's ITinfrastructure and systems.



Direct obligations:111Other goods and services from Federal sources ........................25.3

268306242Operation and maintenance of equipment ................................25.7101011Equipment .................................................................................31.0


✦

WORKING CAPITAL FUND

(INCLUDING TRANSFER OF FUNDS)

For the working capital fund for the Department of Housing and Urban Develop-ment (referred to in this paragraph as the "Fund"), pursuant, in part, to section 7(f)of the Department of Housing and Urban Development Act (42 U.S.C. 3535(f)),amounts transferred, including reimbursements pursuant to section 7(f), to the Fundunder this heading shall be available for Federal shared services used by officesand agencies of the Department, and for such portion of any office or agency'sprinting, records management, space renovation, furniture, supply services, orother shared services as the Secretary determines shall be derived from centralizedsources made available by the Department to all offices and agencies and fundedthrough the Fund: Provided, That of the amounts made available in this title forsalaries and expenses under the headings "Executive Offices", "AdministrativeSupport Offices", "Program Office Salaries and Expenses", and "Government Na-tional Mortgage Association", the Secretary shall transfer to the Fund such amounts,to remain available until expended, as are necessary to fund services specified inthe matter preceding the first proviso, for which the appropriation would otherwisehave been available, and may transfer not to exceed an additional $5,000,000, inaggregate, from all such appropriations, to be merged with the Fund and to remainavailable until expended for any purpose under this heading: Provided further, Thatamounts in the Fund shall be the only amounts available to each office or agencyof the Department for the services, or portion of services, specified in the matterpreceding the first proviso: Provided further, That with respect to the Fund, theauthorities and conditions under this heading shall supplement the authorities andconditions provided under such section 7(f): Provided further, That up to $6,550,000in the Fund may be made available for the management reporting initiative to im-prove the effectiveness of enterprise data governance, analysis, and reporting, in-cluding information technology investments to make such improvements: Providedfurther, That, to carry out the previous proviso, the Secretary shall transfer anyamounts for related information technology investments to the heading "InformationTechnology Fund".





Obligations by program activity:.................1.................Financial Management, Procurement, Travel, and Relocation ....0001

.................1.................Direct program activities, subtotal ................................................0100

.................1.................Total direct obligations ..................................................................0799

.................2224Financial Management, Procurement, Travel, and Relocation ....0801

.................1517Human Resources Services and Systems ..................................0802

.................11National Finance Center Payroll ................................................080448..................................Working Capital Fund Services ..................................................0805

483842Total reimbursable obligations ......................................................0899




Appropriations, discretionary:..................................4Appropriations transferred from other acct [086–0334] ....1121..................................1Appropriations transferred from other acct [086–0341] ....1121

..................................5Appropriation, discretionary (total) .......................................1160Spending authority from offsetting collections, discretionary:

483842Collected ...........................................................................1700483847Budget authority (total) .............................................................1900625357Total budgetary resources available ..............................................1930




–48–39–42Outlays (gross) ......................................................................3020





483842Outlays from new discretionary authority ..........................4010.................1.................Outlays from discretionary balances .................................4011


Offsetting collections (collected) from:–48–38–42Federal sources .................................................................4030

..................................5Budget authority, net (total) ..........................................................4180

.................1.................Outlays, net (total) ........................................................................4190

The Department of Housing and Urban Development's Working CapitalFund (WCF) was established by the Consolidated Appropriations Act of2016. The purpose of the WCF is to promote economy, efficiency, andaccountability. Amounts transferred/reimbursed to the Fund are for sharedservices used by offices of the Department and GNMA, and are derivedfrom centralized Salaries and Expenses accounts. The WCF is revolvingin nature and will begin to fully recover operational costs in 2019. TheWCF provides the following shared services: financial management, pro-curement, travel, relocation, human resources and, starting in 2019, man-agement data governance and analysis.



Direct obligations:1..................................Personnel compensation: Full-time permanent .........................11.11..................................Advisory and assistance services ..............................................25.1

.................1.................Other goods and services from Federal sources ........................25.3

21.................Direct obligations ..................................................................99.0

463842Reimbursable obligations: Other goods and services from Federal

sources ......................................................................................25.3

463842Reimbursable obligations .....................................................99.0


Employment Summary


5..................................Direct civilian full-time equivalent employment ............................1001

✦

TRANSFORMATION INITIATIVE




173677Unpaid obligations, brought forward, Oct 1 ..........................3000–12–19–35Outlays (gross) ......................................................................3020







The Transformation Initiative (TI) was initiated in 2010 to increase theeffectiveness of HUD's program and service delivery, improve programoutcomes, and enable innovative approaches to address the Nation's housingand urban development problems. A central concept of TI was to make theDepartment's investments increasingly coordinated, efficient, and effectivethough focused investments in three complementary purposes: 1) researchand evaluation; 2) program demonstrations; and 3) technical assistance forHUD's customers and partners. The Budget does not request funding ortransfer authority for the Transformation Initiative. Instead, funding forthese activities is requested in the Research and Technology Account.

✦

GENERAL FUND RECEIPT ACCOUNTS(in millions of dollars)

2019 est.2018 est.2017 actual

Offsetting receipts from the public:

.................11.................Green Retrofit Program for Multifamily Housing, Downward

Reestimates of Subsidies ...........................................086–267810

629872676FHA-General and Special Risk, Negative Subsidies ........086–271910

.................433402FHA-General and Special Risk, Downward Reestimates of

Subsidies ...................................................................086–271930

.................1221Indian Housing Loan Guarantees, Downward Reestimates

of Subsidies ...............................................................086–274330

.................63Title VI Indian Loan Guarantee Downward Reestimate ....086–276230

.................4310Community Development Loan Guarantees, Downward

Reestimates ...............................................................086–277330

.................1.................Native Hawaiian Housing Loan Guarantees, Downward

Reestimates of Subsidies ...........................................086–279930

12126All Other General Fund Proprietary Receipts Including

Budget Clearing Accounts ..........................................086–322000

6411,3901,118General Fund Offsetting receipts from the public .....................................

Intragovernmental payments:5515Undistributed Intragovernmental Payments ...................086–388510

5515General Fund Intragovernmental payments ..............................................

✦

593DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT GENERAL FUND RECEIPT ACCOUNTS

GENERAL PROVISIONS—DEPARTMENT OF HOUSINGAND URBAN DEVELOPMENT

(INCLUDING TRANSFER OF FUNDS)(INCLUDING CANCELLATIONS)

SEC. 201. SECTION 8 SAVINGS.—Section 1012(b) of the Stewart B. McKinneyHomeless Assistance Amendments Act of 1988 (42 U.S.C. 1437f note) is amendedto read as follows:

"Fifty percent of the amounts of budget authority, or in lieu thereof 50 percent ofthe cash amounts associated with such budget authority, that are recaptured fromprojects described in section 1012(a) of the Stewart B. McKinney Homeless Assist-ance Amendments Act of 1988 (42 U.S.C. 1437 note) shall be cancelled or in thecase of cash, shall be remitted to the Treasury, and such amounts of budget authorityor cash recaptured and not cancelled or remitted to the Treasury shall be used byState housing finance agencies or local governments or local housing agencies withprojects approved by the Secretary of Housing and Urban Development for whichsettlement occurred after January 1, 1992, in accordance with such section. Notwith-standing the previous sentence, the Secretary may award up to 15 percent of thebudget authority or cash recaptured and not cancelled or remitted to the Treasuryto provide project owners with incentives to refinance their project at a lower interestrate.".

SEC. 202. None of the amounts made available under this Act may be used duringfiscal year 2019 to investigate or prosecute under the Fair Housing Act any otherwiselawful activity engaged in by one or more persons, including the filing or maintainingof a nonfrivolous legal action, that is engaged in solely for the purpose of achievingor preventing action by a Government official or entity, or a court of competentjurisdiction.

SEC. 203. Except as explicitly provided in law, any grant, cooperative agreementor other assistance made pursuant to title II of this Act shall be made on a compet-itive basis and in accordance with section 102 of the Department of Housing andUrban Development Reform Act of 1989 (42 U.S.C. 3545).

SEC. 204. GNMA AMENDMENT.—Section 7 of the Department of Housing andUrban Development Act (42 U.S.C. 3535) is amended by adding at the end the fol-lowing new subsection:

"(u) Funds of the Department of Housing and Urban Development subject to theGovernment Corporation Control Act or section 402 of the Housing Act of 1950shall be available, without regard to the limitations on administrative expenses, forlegal services on a contract or fee basis, and for utilizing and making payment forservices and facilities of the Federal National Mortgage Association, GovernmentNational Mortgage Association, Federal Home Loan Mortgage Corporation, Fed-eral Financing Bank, Federal Reserve banks or any member thereof, Federal HomeLoan banks, and any insured bank within the meaning of the Federal Deposit Insur-ance Corporation Act, as amended (12 U.S.C. 1811–1).".

SEC. 205. Corporations and agencies of the Department of Housing and UrbanDevelopment which are subject to the Government Corporation Control Act arehereby authorized to make such expenditures, within the limits of funds and borrow-ing authority available to each such corporation or agency and in accordance withlaw, and to make such contracts and commitments without regard to fiscal yearlimitations as provided by section 104 of such Act as may be necessary in carryingout the programs set forth in the budget for 2019 for such corporation or agencyexcept as hereinafter provided: Provided, That collections of these corporationsand agencies may be used for new loan or mortgage purchase commitments onlyto the extent expressly provided for in this Act (unless such loans are in support ofother forms of assistance provided for in this or prior appropriations Acts), exceptthat this proviso shall not apply to the mortgage insurance or guaranty operationsof these corporations, or where loans or mortgage purchases are necessary to protectthe financial interest of the United States Government.

SEC. 206. TRANSFERS OF ASSISTANCE, DEBT, AND USE RESTRICTIONS.(a) AUTHORITY.—Notwithstanding any other provision of law, subject to the

conditions listed under this section, for fiscal years 2019 and 2020, the Secretaryof Housing and Urban Development may authorize the transfer of some or allproject-based assistance, debt held or insured by the Secretary and statutorilyrequired low-income and very low-income use restrictions if any, associated withone or more multifamily housing project or projects to another multifamily housingproject or projects.

(b) PHASED TRANSFERS.—Transfers of project-based assistance under thissection may be done in phases to accommodate the financing and other require-ments related to rehabilitating or constructing the project or projects to whichthe assistance is transferred, to ensure that such project or projects meet thestandards under subsection (c).

(c) CONDITIONS.—The transfer authorized in subsection (a) is subject to thefollowing conditions:

(1) NUMBER AND BEDROOM SIZE OF UNITS.—(A) For occupied units in the transferring project: The number of low-income

and very low-income units and the configuration (i.e., bedroom size) providedby the transferring project shall be no less than when transferred to the receiv-ing project or projects and the net dollar amount of Federal assistance providedto the transferring project shall remain the same in the receiving project orprojects.

(B) For unoccupied units in the transferring project: The Secretary mayauthorize a reduction in the number of dwelling units in the receiving projector projects to allow for a reconfiguration of bedroom sizes to meet currentmarket demands, as determined by the Secretary and provided there is no in-crease in the project-based assistance budget authority.(2) The transferring project shall, as determined by the Secretary, be either

physically obsolete or economically nonviable.(3) The receiving project or projects shall meet or exceed applicable physical

standards established by the Secretary.(4) The owner or mortgagor of the transferring project shall notify and consult

with the tenants residing in the transferring project and provide a certificationof approval by all appropriate local governmental officials.

(5) The tenants of the transferring project who remain eligible for assistanceto be provided by the receiving project or projects shall not be required to vacatetheir units in the transferring project or projects until new units in the receivingproject are available for occupancy.

(6) The Secretary determines that this transfer is in the best interest of thetenants.

(7) If either the transferring project or the receiving project or projects meetsthe condition specified in subsection (d)(2)(A), any lien on the receiving projectresulting from additional financing obtained by the owner shall be subordinateto any FHA-insured mortgage lien transferred to, or placed on, such project bythe Secretary, except that the Secretary may waive this requirement upon determ-ination that such a waiver is necessary to facilitate the financing of acquisition,construction, and/or rehabilitation of the receiving project or projects.

(8) If the transferring project meets the requirements of subsection (d)(2), theowner or mortgagor of the receiving project or projects shall execute and recordeither a continuation of the existing use agreement or a new use agreement forthe project where, in either case, any use restrictions in such agreement are ofno lesser duration than the existing use restrictions.

(9) The transfer does not increase the cost (as defined in section 502 of theCongressional Budget Act of 1974, as amended) of any FHA-insured mortgage,except to the extent that appropriations are provided in advance for the amountof any such increased cost.(d) DEFINITIONS.—For purposes of this section—

(1) the terms "low-income" and "very low-income" shall have the meaningsprovided by the statute and/or regulations governing the program under whichthe project is insured or assisted;

(2) the term "multifamily housing project" means housing that meets one ofthe following conditions—

(A) housing that is subject to a mortgage insured under the National HousingAct;

(B) housing that has project-based assistance attached to the structure in-cluding projects undergoing mark to market debt restructuring under theMultifamily Assisted Housing Reform and Affordability Housing Act;

(C) housing that is assisted under section 202 of the Housing Act of 1959,as amended by section 801 of the Cranston-Gonzales National AffordableHousing Act;

(D) housing that is assisted under section 202 of the Housing Act of 1959,as such section existed before the enactment of the Cranston-Gonzales NationalAffordable Housing Act;

(E) housing that is assisted under section 811 of the Cranston-GonzalesNational Affordable Housing Act; or

(F) housing or vacant land that is subject to a use agreement;(3) the term "project-based assistance" means—

(A) assistance provided under section 8(b) of the United States Housing Actof 1937;

(B) assistance for housing constructed or substantially rehabilitated pursuantto assistance provided under section 8(b)(2) of such Act (as such section existedimmediately before October 1, 1983);

(C) rent supplement payments under section 101 of the Housing and UrbanDevelopment Act of 1965;

(D) interest reduction payments under section 236 and/or additional assist-ance payments under section 236(f)(2) of the National Housing Act;

THE BUDGET FOR FISCAL YEAR 2019594 GENERAL PROVISIONS—DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

(E) assistance payments made under section 202(c)(2) of the Housing Actof 1959; and

(F) assistance payments made under section 811(d)(2) of the Cranston-Gonzalez National Affordable Housing Act;(4) the term "receiving project or projects" means the multifamily housing

project or projects to which some or all of the project-based assistance, debt,and statutorily required low-income and very low-income use restrictions areto be transferred;

(5) the term "transferring project" means the multifamily housing projectwhich is transferring some or all of the project-based assistance, debt, and thestatutorily required low-income and very low-income use restrictions to the re-ceiving project or projects; and

(6) the term "Secretary" means the Secretary of Housing and Urban Develop-ment.(e) RESEARCH REPORT.—The Secretary shall conduct an evaluation of the

transfer authority under this section, including the effect of such transfers on theoperational efficiency, contract rents, physical and financial conditions, and long-term preservation of the affected properties.SEC. 207. (a) No assistance shall be provided under section 8 of the United States

Housing Act of 1937 (42 U.S.C. 1437f) to any individual who—(1) is enrolled as a student at an institution of higher education (as defined under

section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002));(2) is under 24 years of age;(3) is not a veteran;(4) is unmarried;(5) does not have a dependent child;(6) is not a person with disabilities, as such term is defined in section 3(b)(3)(E)

of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(3)(E)) and was notreceiving assistance under such section 8 as of November 30, 2005; and

(7) is not otherwise individually eligible, or has parents who, individually orjointly, are not eligible, to receive assistance under section 8 of the United StatesHousing Act of 1937 (42 U.S.C. 1437f).(b) For purposes of determining the eligibility of a person to receive assistance

under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f), anyfinancial assistance (in excess of amounts received for tuition and any other requiredfees and charges) that an individual receives under the Higher Education Act of1965 (20 U.S.C. 1001 et seq.), from private sources, or an institution of highereducation (as defined under the Higher Education Act of 1965 (20 U.S.C. 1002)),shall be considered income to that individual, except for a person over the age of23 with dependent children.

SEC. 208. CAP ON NUMBER OF HECM LOANS.— Section 255(g) of the NationalHousing Act (12 U.S.C. 1715z–20(g)) is amended by striking "AUTHORITY—"andall that follows through "275,000." and inserting "AMOUNT.—".

SEC. 209. Notwithstanding any other provision of law, in fiscal year 2019, inmanaging and disposing of any multifamily property that is owned or has a mortgageheld by the Secretary of Housing and Urban Development, and during the processof foreclosure on any property with a contract for rental assistance payments undersection 8 of the United States Housing Act of 1937 or other Federal programs, theSecretary shall maintain any rental assistance payments under section 8 of theUnited States Housing Act of 1937 and other programs that are attached to anydwelling units in the property. To the extent the Secretary determines, in consultationwith the tenants and the local government, that such a multifamily property ownedor held by the Secretary is not feasible for continued rental assistance paymentsunder such section 8 or other programs, based on consideration of (1) the costs ofrehabilitating and operating the property and all available Federal, State, and localresources, including rent adjustments under section 524 of the Multifamily AssistedHousing Reform and Affordability Act of 1997 ("MAHRAA") and (2) environmentalconditions that cannot be remedied in a cost-effective fashion, the Secretary may,in consultation with the tenants of that property, contract for project-based rentalassistance payments with an owner or owners of other existing housing properties,or provide other rental assistance. The Secretary shall also take appropriate stepsto ensure that project-based contracts remain in effect prior to foreclosure, subjectto the exercise of contractual abatement remedies to assist relocation of tenants forimminent major threats to health and safety after written notice to and informedconsent of the affected tenants and use of other available remedies, such as partialabatements or receivership. After disposition of any multifamily property describedunder this section, the contract and allowable rent levels on such properties shallbe subject to the requirements under section 524 of MAHRAA.

SEC. 210. No official or employee of the Department of Housing and Urban Devel-opment shall be designated as an allotment holder unless the Office of the ChiefFinancial Officer has determined that such allotment holder has implemented anadequate system of funds control and has received training in funds control proced-

ures and directives. The Chief Financial Officer shall ensure that there is a trainedallotment holder for each HUD appropriation under the accounts "Executive Offices"and "Administrative Support Offices," as well as each account receiving appropri-ations under the general heading "Program Office Salaries and Expenses", and"Government National Mortgage Association—Guarantees of Mortgage-BackedSecurities Loan Guarantee Program Account" within the Department of Housingand Urban Development.

SEC. 211. The Secretary of the Department of Housing and Urban Developmentshall, for fiscal year 2019, notify the public through the Federal Register and othermeans, as determined appropriate, of the issuance of a notice of the availability ofassistance or notice of funding availability (NOFA) for any program or discretionaryfund administered by the Secretary that is to be competitively awarded. Notwith-standing any other provision of law, for fiscal year 2019, the Secretary may makethe NOFA available only on the Internet at the appropriate Government web siteor through other electronic media, as determined by the Secretary.

SEC. 212. The Secretary is authorized to transfer up to 20 percent or $6,000,000,whichever is less, of funds appropriated for any office under the heading "Adminis-trative Support Offices" or for any account under the general heading "ProgramOffice Salaries and Expenses" to any other such office or account: Provided, Thatno appropriation for any such office or account shall be increased or decreased bymore than 20 percent or $6,000,000, whichever is less, without prior notificationto the House and Senate Committees on Appropriations.

SEC. 213. (a)(1) Any entity receiving housing assistance payments shall maintaindecent, safe, and sanitary conditions in good repair, as determined by the Secretaryof Housing and Urban Development (in this section referred to as the "Secretary"),and comply with any standards under applicable State or local laws, rules, ordin-ances, or regulations relating to the physical condition of any property coveredunder a housing assistance payment contract.

(2) The requirements in this section shall apply to insured and noninsured projectswith assistance attached to the units under section 8 of the United States HousingAct of 1937 (42 U.S.C. 1437f), but do not apply to such units assisted under section8(o)(13) (42 U.S.C. 1437f(o)(13)) of such Act or to public housing units assistedwith capital or operating funds under section 9 (42 U.S.C. 1437g) of such Act.

(b) The Secretary may take action under subsection (c) when a multifamily housingproject with a section 8 contract or contract for similar project-based assistance:

(1) receives a Uniform Physical Condition Standards (UPCS) score of 59 or less;(2) fails to certify in writing to the Secretary within 3 business days that all Exigent

Health and Safety deficiencies identified by the inspector at the project have beencorrected; or

(3) fails to meet UPCS or local code requirements that establish standards fordecent, safe, and sanitary housing.

(c) (1) If the Secretary decides to take action based on a deficiency listed in sub-section (b), the Secretary must provide the owner with a Notice of Default with aspecified timetable, determined by the Secretary, for correcting all deficiencies. TheSecretary must also provide a copy of the Notice of Default to the local government,any mortgagees, and any contract administrator. If the owner's appeal results in aUPCS score of 60 or above, the Secretary may withdraw the Notice of Default.

(2) At the end of the time period for correcting all deficiencies specified in theNotice of Default, if the owner has failed to fully correct such deficiencies, the Sec-retary may—

(A) require immediate replacement of project management with a managementagent approved by the Secretary;

(B) impose civil money penalties;(C) abate or suspend payment on the section 8 contract, including partial abatement

or suspension, as determined by the Secretary;(D) pursue transfer of the project to an owner, approved by the Secretary under

established procedures, which will be obligated to promptly make all required repairsand to accept renewal of the assistance contract as long as such renewal is offered;

(E) transfer the existing section 8 contract to another project or projects andowner or owners, as determined by the Secretary under established procedures,which will be obligated to promptly make all required repairs and to accept renewalof the assistance contract as long as such renewal is offered;

(F) pursue exclusionary sanctions, including suspensions or debarments fromFederal programs;

(G) seek judicial appointment of a receiver to manage the property and cure allproject deficiencies or seek a judicial order of specific performance requiring theowner to cure all project deficiencies;

(H) work with the owner, lender, or other related party to stabilize the propertyin an attempt to preserve the property through compliance, transfer of ownership,or an infusion of capital provided by a third-party that requires time to effectuate;or

595DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT GENERAL PROVISIONS—DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT—Continued

(I) take any other regulatory or contractual remedies available, including abate-ment, suspension, or termination of the section 8 contract, as deemed necessary andappropriate by the Secretary.

(d)(1) Any Notice of Default issued pursuant to subsection (c)(1) shall include arequirement that the owner provide a copy of the Notice of Default to each tenant.

(2) The Secretary shall ensure that the owner or its agents provide tenants anopportunity to comment on the physical condition and management of the property,and any needed repairs. The Secretary may provide the substance of these commu-nications to the project owner to assist in its corrective opportunity.

(3) If the Secretary terminates the section 8 contract pursuant to subsection (c)(2),the Secretary shall provide tenants with a copy of any notice to the owner to thateffect.

(e) The Secretary shall report quarterly on all properties covered by this sectionthat are assessed through the Real Estate Assessment Center and have UPCSphysical inspection scores of less than 60 or have received an unsatisfactory man-agement and occupancy review within the past 36 months. The report shall include—

(1) the enforcement actions being taken to address such conditions, includingimposition of civil money penalties and termination of subsidies, and identify prop-erties that have such conditions multiple times; and

(2) actions that the Secretary is taking to protect tenants of such identified prop-erties.

SEC. 214. None of the funds made available by this Act, or any other Act, for pur-poses authorized under section 8 (only with respect to the tenant-based rental assist-ance program) and section 9 of the United States Housing Act of 1937 (42 U.S.C.1437 et seq.), may be used by any public housing agency for any amount of salary,including bonuses, for the chief executive officer of which, or any other official oremployee of which, that exceeds the annual rate of basic pay payable for a positionat level IV of the Executive Schedule at any time during any public housing agencyfiscal year 2019.

SEC. 215. The Secretary may elect, through notice, not to require or enforce thePhysical Needs Assessment (PNA) for public housing units.

SEC. 216. None of the funds made available in this Act shall be used by the FederalHousing Administration, the Government National Mortgage Administration, or theDepartment of Housing and Urban Development to insure, securitize, or establisha Federal guarantee of any mortgage or mortgage backed security that refinancesor otherwise replaces a mortgage that has been subject to eminent domain condem-nation or seizure, by a State, municipality, or any other political subdivision of aState.

SEC. 217. Amounts made available under this Act which are either appropriated,allocated, advanced on a reimbursable basis, or transferred to the Office of PolicyDevelopment and Research in the Department of Housing and Urban Developmentand functions thereof, for research, evaluation, or statistical purposes, and whichare unexpended at the time of completion of a contract, grant, or cooperativeagreement, may be deobligated and shall immediately become available and maybe reobligated in that fiscal year or the subsequent fiscal year for the research,evaluation, or statistical purposes for which the amounts are made available to thatOffice.

SEC. 218. Employees of the Department of Housing and Urban Development whoare subject to administrative discipline in fiscal year 2019, including suspensionfrom work, shall not receive awards (including performance, special act, or spot)for the remainder of fiscal year 2019 after the effective date of the disciplinary action.

SEC. 219. RAD AMENDMENTS.—The language under the heading "Rental Assist-ance Demonstration" in the Department of Housing and Urban Development Appro-priations Act, 2012 (Public Law 112–55), as amended by Public Law 113–76,Public Law 113–235, and Public Law 114–113, is amended—

(1) in the matter preceding the first proviso, by inserting the following beforethe colon: "(herein the "First Component")";

(2) in the second proviso, by striking "until September 30, 2018" and inserting"for fiscal year 2012 and thereafter";

(3) by striking the fourth proviso;(4) in the thirteenth proviso, as reordered above, by—

(A) inserting "or nonprofit" before "entity, then a capable entity,"; and(B) striking "preserves its interest" and inserting "or a nonprofit entity pre-

serves an interest";(5) in the seventeenth proviso, as reordered above, by—

(A) inserting "or with a project rental assistance contract under section202(c)(2) of the Housing Act of 1959," after "section 8(o) of the Act,";

(B) inserting "the subordination, restructuring, or both, of any documenta-tion, including any note, mortgage, use agreement or other agreements evid-encing or securing a capital advance previously provided by the Secretaryunder section 202(c)(1) of the Housing Act of 1959 as necessary to facilitatethe conversion of assistance while maintaining the affordability period and

the designation of the property as serving elderly persons, and" following"including but not limited to";

(C) inserting "or assistance contracts" after "for such vouchers"; and(D) inserting the following before the colon: "(herein the "Second Compon-

ent")";(6) by inserting the following proviso after the seventeenth proviso, as re-

ordered above: "Provided further, That conversions of assistance under theSecond Component may not be the basis for re-screening or termination of as-sistance or eviction of any tenant family in a property participating in thedemonstration and such a family shall not be considered a new admission forany purpose, including compliance with income targeting:";

(7) in the nineteenth proviso, by striking "the previous proviso" and all thatfollows through the end of the proviso and inserting "the Second Componentshall be available for project-based subsidy contracts entered into pursuant tothe Second Component:";

(8) in the twentieth proviso, by striking "the previous two provisos" and insert-ing "the Second Component, except for conversion of section 202 project rentalassistance contracts,";

(9) in the twenty-first proviso, by striking "the three previous provisos" andinserting "the Second Component, except for conversion of section 202 projectrental assistance contracts,";

(10) by inserting the following proviso after the twenty-first proviso: "Providedfurther, That the Secretary may transfer amounts made available under theheading "Housing for the Elderly" to the accounts under the headings "Project-Based Rental Assistance" or "Tenant-Based Rental Assistance" to facilitate anysection 202 project rental assistance contract conversion under the SecondComponent, and any increase in cost for "Project-Based Rental Assistance" or"Tenant-Based Rental Assistance" associated with such conversion shall beequal to amounts so transferred:"; and

(11) in the twenty-third proviso, as reordered above, by striking "the previousfour provisos" and inserting "the Second Component".

SEC. 220. Funds made available in this title under the heading "Homeless Assist-ance Grants" may be used by the Secretary to participate in Performance PartnershipPilots authorized under section 526 of division H of Public Law 113–76, section524 of division G of Public Law 113–235, section 525 of division H of Public Law114–113, section 525 of division H of Public Law 115–31, and such authorities asare enacted for Performance Partnership Pilots in an appropriations Act for fiscalyears 2018 or 2019.

SEC. 221. With respect to grant amounts awarded under the heading "HomelessAssistance Grants" for fiscal year 2019 for the Continuum of Care (CoC) programas authorized under subtitle C of title IV of the McKinney-Vento Homeless AssistanceAct, costs paid by program income of grant recipients may count toward meetingthe recipient's matching requirements, provided the costs are eligible CoC coststhat supplement the recipients CoC program.

SEC. 222. INFORMATION TECHNOLOGY FEE.—(a) FEE.— For a period of four years, as established by the Secretary in paragraph

(c), notwithstanding any provision of law, and in addition to any other fees chargedin connection with the provision of insurance under title II of the National HousingAct (hereafter referred to as "the Act") (12 U.S.C. 1707 et seq.), the Secretary maycharge and collect from each mortgagee a fee not to exceed $25 per mortgage en-dorsed or submitted for insurance endorsement under title II of the Act, exceptmortgages insured under section 255 of such title (12 U.S.C. 1715z–20).

(b) USE OF FEE.—Such fee collected shall be used as offsetting collections forpart of the administrative contract expenses funding and information technologyexpenses funding provided under the Mutual Mortgage Insurance Program Accountunder title II of the Act, for the purpose of modernizing single-family technologysystems and supporting the implementation of new practices for interaction withmortgagees.

(c) IMPLEMENTATION.—The Secretary shall establish the amount of such feethrough Mortgagee Letter or other administrative issuance after providing forpublic comment.

SEC. 223. HECM Spousal Survival.—Section 255 of the National Housing Act (12U.S.C. 1715z–20) is amended—

(1) in subsection (b)(2), by inserting before the period ", except that the term"mortgagor" shall not include the successors and assigns of the original borrowerunder a mortgage"; and

(2) in subsection (j), by amending that subsection to read as follows:"(j) SAFEGUARD TO PREVENT DISPLACEMENT OF HOMEOWNER.—"(1) In order for a mortgage to be eligible for insurance under this section, the

mortgage shall provide that the obligation of the homeowner to satisfy the loan ob-ligation is deferred until the death of the homeowner, the sale of the home, or theoccurrence of other events specified in regulations of the Secretary.

THE BUDGET FOR FISCAL YEAR 2019596 GENERAL PROVISIONS—DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT—Continued

"(2) The Secretary shall provide deferrals for non-borrowing spouses meeting theeligibility criteria prescribed by the Secretary. The Secretary may, within the Sec-retary's sole discretion, also provide for further deferrals.

"(3) Section 1647(b) of title 15 and any implementing regulations issued by theBoard of Governors of the Federal Reserve System shall not apply to a mortgageinsured under this section.".

SEC. 224. REPLACEMENT HOUSING EXCEPTION.(a) Section 8(o)(13) of the United States Housing Act of 1937 (42 U.S.C.

1437f(o)(13)), as amended by section 106 of the Housing Opportunity ThroughModernization Act of 2016 (Public Law 114–201), is amended by—

(1) revising the second sentence of subparagraph (B)(ii) by inserting after"Secretary", ", or that qualify, as defined by the Secretary, as replacement unitsfor such units,"; and

(2) revising subparagraph (D)(ii)(IV) by inserting after "Secretary", ", or thatqualify, as defined by the Secretary, as replacement units for such units,".(b) The Secretary may implement the changes in subsection (a) through notice,

and in such case the changes will not take effect until the effective date of the notice.SEC. 225. SUPPORTIVE SERVICES INCOME-MIXING EXCEPTION.

(a) Section 8(o)(13)(D)(ii)(I) of the United States Housing Act of 1937 (42 U.S.C.1437f(o)(13)(D)(ii)(I)), as amended by section 106 of the Housing OpportunityThrough Modernization Act of 2016 (P.L. 114–201), is amended by striking "ofthe project" and inserting in its place, "in the project's supportive service units".

(b) The Secretary may implement the changes in subsection (a) through notice,and in such case the changes will not take effect until the effective date of the notice.SEC. 226. RENT INCREASES.—For this fiscal year, the Secretary may elect through

a Federal Register notice not to provide rent adjustments for properties receivingassistance under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q), section811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013),section 101 of the Housing and Urban Development Act of 1965 (12 U.S.C. 1701s),section 236(f)(2) of the National Housing Act (12 U.S.C. 1715z–1(f)(2)), or section8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) other than the voucherprogram under section 8(o) and the moderate rehabilitation program under section8(e)(2) (including the single room occupancy program authorized by title IV of theMcKinney-Vento Homeless Assistance Act).

SEC. 227. PUBLIC HOUSING FLEXIBILITIES.—For funds made available inthis or prior acts under the accounts "Public Housing Capital Fund" and "PublicHousing Operating Fund", the Secretary of Housing and Urban Development maywaive, or specify alternative requirements for, statutory or regulatory provisionsrelated to public housing agency (PHA) administrative, planning, and reportingrequirements, energy audits, income recertifications, and program assessments,upon a finding by the Secretary, consistent with a process and criteria establishedby notice published in the Federal Register, that any such waivers or alternativerequirements are necessary to reduce costs or for the effective delivery and admin-istration of such funds.

SEC. 228. TENANT-BASED RENTAL ASSISTANCE FLEXIBILITIES. For fundsmade available in this or prior acts under the account "Tenant-Based Rental Assist-ance", the Secretary of Housing and Urban Development may waive, or specify al-ternative requirements for, statutory or regulatory provisions related to the settingand adjustment of allowable rent levels, payment standards, tenant rent contributions,occupancy standards, public housing agency (PHA) program assessments, or otherPHA administrative, planning, and reporting requirements, upon a finding by theSecretary, consistent with a process and criteria established by notice published inthe Federal Register, that any such waivers or alternative requirements are necessaryto reduce costs or for the effective delivery and administration of such funds.

SEC. 229. ENHANCED VOUCHER PAYMENT STANDARDS.—(a) Section 8(t)(1) of the United States Housing Act of 1937 (42 U.S.C.

1437f(t)(1)) is amended—(1) in subparagraph (B), by striking ", and if, during" and all that follows

through "families";(2) by amending subparagraph (C) to read as follows:"(C) the tenant rent limitation in section 8(o)(3) shall not apply to families

receiving enhanced voucher assistance under this paragraph; and"; and(3) in subparagraph (D), by striking "exceed" and inserting "be less than".

(b) The changes in this section only apply for eligibility events that occur 180or more days after enactment of this Act.SEC. 230. CAPITAL AND OPERATING FUND FLEXIBILITY.—A public housing

agency may use operating reserve funds or any amounts allocated to the agencyfrom funds appropriated under the heading "Public Housing Operating Fund" infiscal year 2019 or prior fiscal years, except for any set-asides listed under suchheadings, for any eligible activities under sections 9(d)(1) and 9(e)(1) of the UnitedStates Housing Act of 1937 (42 U.S.C. 1437g(d)(1) and (e)(1)). For funds appropri-ated under the heading "Public Housing Capital Fund" in prior fiscal years, except

for any set-asides listed under such headings, a public housing agency may use anyamounts allocated to the agency for any eligible activities under sections 9(d)(1)and 9(e)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437g(d)(1) and(e)(1)).

SEC. 231. MARK-TO-MARKET.—Section 579 of the Multifamily Assisted HousingReform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by striking"October 1, 2017" each place it appears and inserting in lieu thereof "October 1,2022".

SEC. 232. CONTINUUM OF CARE TRANSITION GRANTS. Section 428 of theMcKinney-Vento Homeless Assistance Act (42 U.S.C. 11386b) is amended by addingat the end of the section, subsection (f) to read as follows:

"(f) TRANSITION FOR REALLOCATED GRANT.—"(1) From amounts under this subtitle made available to carry out subtitle B and

this subtitle, the Secretary may award one-year transition grants to recipients totransition from one Continuum of Care program component to another.

"(2) In order to be eligible to receive a transition grant, the project must have theconsent of the Continuum of Care, and meet standards determined by the Secretary.".

SEC. 233. Of the unobligated balances, including recaptures and carryover, fromfunds appropriated under the heading "Choice Neighborhoods Initiative" in fiscalyear 2017, $137,000,000 are hereby permanently cancelled.

Of the unobligated balances from prior year appropriations under the heading"Revitalization of Severely Distressed Public Housing (HOPE VI)", $1,000,000 arehereby permanently cancelled.

SEC. 234. THRESHOLD REQUIREMENTS FOR LEAD-BASED PAINT HAZARDELIMINATION IN FEDERALLY ASSISTED HOUSING.—Section 302(a)(1) of theLead-Based Paint Poisoning Prevention Act (42 U.S.C. 4822(a)(1) is amended—

(1) in subparagraph (D), by striking "$25,000 per unit in Federal funds" andinserting "$45,000 per unit in Federal funds, updated to adjust for inflation, asdetermined by the Secretary using a publicly available price or cost index, androunded down to a multiple of $1,000, with such adjustment published by noticein the Federal Register with opportunity for public comment"; and

(2) in subparagraph (E), by striking "$25,000 per unit in Federal funds" andinserting "the amount of Federal funds specified in subparagraph (D)".SEC. 235. Section 1018(a) of the Residential Lead-Based Paint Hazard Reduction

Act of 1992 (42 U.S.C. 4852d(a)) is amended by adding at the end the followingnew paragraph:

"(6) AUTHORITY OF THE SECRETARY.—"(A) INVESTIGATIONS.—The Secretary is authorized to conduct such investiga-

tions as may be necessary to administer and carry out the Secretary's duties underthis section. The Secretary is authorized to administer oaths and require by subpoenathe production of documents, and the attendance and testimony of witnesses as theSecretary deems advisable. Nothing contained in this subparagraph shall preventthe Administrator of the Environmental Protection Agency from exercising authorityunder the Toxic Substances Control Act or this Act.

"(B) ENFORCEMENT.—Any district court of the United States within the juris-diction of which an inquiry is carried, on application of the Attorney General, may,in the case of contumacy or refusal to obey a subpoena of the Secretary issued underthis section, issue an order requiring compliance therewith; and any failure to obeysuch order of the court may be punished by the court as a contempt thereof.".

SEC. 236. Section 858 of the Cranston-Gonzalez National Affordable HousingAct (42 U.S.C. 12907) is amended—

(1) in the title, by inserting ", SHORT-TERM AND MEDIUM-TERM HOUSINGPAYMENTS ASSISTANCE," after "SUPPORTED HOUSING";

(2) by amending subsection (a)(2) to read as follows:"(2) SHORT-TERM AND MEDIUM-TERM HOUSING PAYMENTS ASSIST-

ANCE.—Providing rent assistance payments for short-term supported housingand short-term and medium-term rent and utilities payments to eligible personswho are homeless or in need of housing assistance to prevent homelessness of thetenant, and short-term and medium-term mortgage and utilities payments to preventhomelessness of a mortgagor of a dwelling."; and

(3) by amending subsection (b)(3)(B) to read as follows:"(B) HOUSING PAYMENTS ASSISTANCE.—A program assisted under this

section may provide short-term and medium-term assistance, accruing over aperiod of no more than 24 months, for rent and utilities payments to eligible personswho are homeless or in need of housing assistance to prevent homelessness andfor mortgage and utilities payments to eligible persons in need of housing assist-ance to prevent homelessness, provided that after receiving 3 months of assistance,the person's housing and supportive services needs are assessed on an ongoingmonthly basis."SEC. 237. With respect to grants awarded under the heading "Homeless Assistance

Grants" for fiscal year 2019 for the continuum of care (CoC) program as authorized


under section 422 of the McKinney-Vento Homeless Assistance Act (42 U.S.C.11382), grant amounts for rental assistance may be—

(1) the amount calculated by multiplying—(A) the fair market rent, as established by the Secretary of Housing and Urban

Development, as of the date of the application for each unit proposed by the ap-plicant to be assisted over the grant period; by

(B) the number and size of such units; or(2) an estimate submitted by the applicant, so long as the estimate does not exceed

the amount that would have been determined for that applicant based on paragraph(1).SEC. 238. Notwithstanding section 423 of the McKinney-Vento Homeless Assist-

ance Act (42 U.S.C. 11383), grants awarded to qualified applicants may be used,at the discretion of the Secretary, to carry out projects that serve homeless individualsor families in rural communities that consist of one or more of the following eligibleactivities:

(1) Payment of relocation assistance;(2) Payment of short-term emergency lodging, including in motels or shelters,

either directly or through vouchers;(3) Repairs such as insulation, window repair, door repair, roof repair, and re-

pairs that are necessary to make premises habitable; and(4) Capacity building activities, including payment of staff training and staff

retention.SEC. 239. Section 106(a)(4)(A) of the Housing and Urban Development Act of

1968 (12 U.S.C. 1701x(a)(4)(A)) is amended—(a) (1) by striking "and" and inserting a comma; and(2) by inserting the following before the period at the end: ", State and local

governments, Indian tribes, and tribally designated housing entities. The terms"Indian tribes" and "tribally designated housing entities" have the meanings givento them by section 4 of the Native American Housing Assistance and Self-Determ-ination Act of 1996 (25 U.S.C. 4103)".SEC. 240. For mortgages insured under section 255 of the National Housing Act

(hereafter referred to as "the Act") (12 U.S.C. 1715z–20), the Secretary may byMortgagee Letter establish limits, based on the area in which the insured propertyis located, on the insurance benefits available under section 255(g) of the Act (12U.S.C. 1715z–20(g) and on the principal obligation available under section 255(m)(2)of the Act (12 U.S.C. 1715z–20(m)(2)).

SEC. 241. Section 8(o)(11) of the United States Housing Act of 1937 (42 U.S.C.1437f(o)(11)) is amended by inserting the following new subparagraph at the end:

"(C) PHA RESPONSIBILITES AS OWNER.—As the owner of the unit, the publichousing agency is subject to all of the program requirements and the terms andconditions of the housing assistance payment contract that the public housingagency would otherwise have executed as the owner of the unit. The public housingagency shall sign a certification, as prescribed by the Secretary, for the publichousing agency-owned unit in lieu of executing a housing assistance paymentcontract, unless the unit is owned by an entity, limited liability company, or limitedpartnership described in subparagraph (B), in which case the entity, limited liab-ility company, or limited partnership shall sign the housing assistance paymentcontract as the owner.".SEC. 242. UNEXPENDED INDIAN HOUSING BLOCK GRANT FUNDS.—Section

203(f)(2) of the Native American Housing Assistance and Self-Determination Actof 1996 (25 U.S.C. 4133(f)(2)) is amended by adding "The Secretary may still de-termine the recipient did not carry out eligible activities in a timely manner in ac-cordance with section 405 of this Act." after "any subsequent fiscal year.".

SEC. 243. Section 401(a)(4) of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4161(a)(4)) is amended—

(1) in subparagraph (A), to read as follows:"(A) IN GENERAL.—Notwithstanding any other provision of this Act or regula-

tion, if the Secretary makes a determination that an action or a failure to act bya recipient of assistance under this Act is resulting, and would continue to result,in a continuing expenditure of Federal funds in a manner that is not authorizedby law, the Secretary may immediately take an action described in paragraph (1)before conducting a hearing."; and

(2) in subparagraph (B)(ii), to read as follows:"(ii) commence the hearing procedures not later than 60 days after the date on

which the Secretary provides notice under clause (i).".SEC. 244. NAHASDA GRANT RECOUPMENT.—

(a) Section 302 of the Native American Housing Assistance and Self-Determin-ation Act of 1996 (25 U.S.C. 4152) is amended:

(1) by redesignating subsection (e) as subsection (f), and(2) by inserting after subsection (d) the following:"(e) OVERFUNDING.—If the Secretary determines that a recipient received

more block grant funding than it should have according to the allocation formula,

the recipient shall return the amount overfunded so that it may be properly al-located according to the formula. The recipient may return the overfunding frompast, current, or future grant amounts, or from other funds. If the recipient failsto make arrangements to return the overfunding within a reasonable period oftime, as determined by the Secretary, the Secretary may recoup the overfundingby offset against past, current, or future grant amounts. Nothing in this Act shallbe construed as limiting the Secretary's authority to recoup grant overfunding;nor shall anything in this Act be construed as requiring formal hearing proced-ures or a finding of noncompliance for the Secretary to recoup grant overfund-ing."(b) This amendment applies to any overfunding, including funds allocated in

prior fiscal years and to offsets completed in prior fiscal years.SEC. 245. NAHASDA TECHNICAL EDITS.—The Native American Housing As-

sistance and Self-Determination Act of 1996 is amended—(1) in section 103(c) (25 U.S.C. 4113(c)), by striking "section 102(c)(5)" and

inserting "section 102(b)(2)(D)"; and(2) in section 401(b)(4)(A) (25 U.S.C. 4161(b)(4)(A)), by striking "and" and in-

serting "or".SEC. 246. Section 184(b) of the Housing and Community Development Act of

1992 (12 U.S.C. 1715z–13a(b)) is amended by adding at the end the following newparagraph:

"(6) DIRECT GUARANTEE AND INDEMNIFICATION.—"(A) The Secretary may authorize qualifying lenders to participate in a direct

guarantee process for approving loans. If the Secretary determines that a mortgageinsured through the direct guarantee process was not originated in accordance withthe requirements established by the Secretary, then the Secretary may require thelender approved under this subparagraph to indemnify the Secretary for the loss,irrespective of whether the violation caused the mortgage default. If fraud or mis-representation was involved in the direct guarantee process, the Secretary shallrequire the lender approved under this subparagraph to indemnify the Secretaryfor the loss regardless of when an insurance claim is paid.

"(B) Periodically, the Secretary may review the mortgagees originating or under-writing single family mortgages under this section, as follows:

"(i) In conducting this review the Secretary shall compare a mortgagee with othermortgagees originating or underwriting loan guarantees for Indian housing basedon the rates of defaults and claims for insured single family mortgage loans origin-ated or underwritten by that mortgagee.

"(ii) The Secretary may also compare a mortgagee with other mortgagees basedon underwriting quality, geographic area served, or any commonly used factors theSecretary deems necessary for comparing mortgage default risk, provided that suchcomparison is of factors that the Secretary would expect to reduce the default riskof mortgages insured by the Secretary.

"(iii) In carrying out the periodic review of mortgagee performance, the Secretaryshall implement such comparisons by regulation, notice, or mortgagee letter.

"(iv) The Secretary may terminate the approval of a mortgagee to originate orunderwrite loan guarantees for Indian Housing if the Secretary determines that themortgage loans originated or underwritten by the mortgagee present an unacceptablerisk to the Indian Housing Loan Guarantee fund based on a comparison of any ofthe factors set forth in this subparagraph or by a determination that the mortgageeengaged in fraud or misrepresentation.".

SEC. 247. Section 184(l) of the Housing and Community Development Act of 1992(12 U.S.C. 1715z–13a(l)) is amended—

(1) in paragraph (3), to read as follows:"(3) The term "Indian" has the same definition as in section 4(10) of the Native

American Housing Assistance and Self-Determination Act of 1996."; and(2) in paragraph (8), to read as follows:"(8) INDIAN TRIBE.—"(A) INDIAN TRIBE.—The term "Indian tribe" has the same definition as in

section 4(13)(A) of the Native American Housing Assistance and Self-DeterminationAct of 1996.

"(B) FEDERALLY RECOGNIZED TRIBE.—The term "Federally recognizedtribe" has the same definition as in section 4(13)(B) of the Native AmericanHousing Assistance and Self- Determination Act of 1996.

"(C) STATE-RECOGNIZED TRIBE.—The term "State-recognized tribe" hasthe same definition as in section 4(13)(C)(i) of the Native American Housing As-sistance and Self-Determination Act of 1996.

"(D) CONDITIONS.—Nothing in subparagraph (C) shall be construed to conferupon a State-recognized tribe any rights, privileges, responsibilities, or obligationsotherwise accorded Indian tribes recognized by the United States for other pur-poses.".

THE BUDGET FOR FISCAL YEAR 2019598 GENERAL PROVISIONS—DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT—Continued

SEC. 248. Section 184A(c)(4) of the Housing and Community Development Actof 1992 (12 U.S.C. 1715z–13b(c)(4)) is amended by adding the following new sub-paragraph (C):

"(C) DIRECT GUARANTEE AND INDEMNIFICATION.—"(i) The Secretary may authorize qualifying lenders to participate in a direct

guarantee process for approving loans. If the Secretary determines that a mortgageinsured through the direct guarantee process was not originated in accordance withthe requirements established by the Secretary, then the Secretary may require thelender approved under this subparagraph to indemnify the Secretary for the loss,irrespective of whether the violation caused the mortgage default. If fraud or mis-representation was involved in the direct guarantee process, the Secretary shallrequire the lender approved under this subparagraph to indemnify the Secretaryfor the loss regardless of when an insurance claim is paid.

"(ii) Periodically, the Secretary may review the mortgagees originating or under-writing single family mortgages under this section, as follows:

"(AA) In conducting this review the Secretary shall compare that mortgagee withother mortgagees originating or underwriting loan guarantees for Native Hawaiianhousing based on the rates of defaults and claims for insured single-family mortgageloans originated or underwritten by that mortgagee.

"(BB) The Secretary may also compare that mortgagee with such other mortgageesbased on underwriting quality; geographic area served; or any commonly usedfactors the Secretary deems necessary for comparing mortgage default risk, providedthat such comparison is of factors that the Secretary would expect to reduce thedefault risk of mortgages insured by the Secretary.

"(CC) In carrying out the periodic review of mortgagee performance, the Secretaryshall implement such comparisons by regulation, notice, or mortgagee letter.

"(DD) The Secretary may terminate the approval of a mortgagee to originate orunderwrite loan guarantees for Native Hawaiian housing if the Secretary determinesthat the mortgage loans originated or underwritten by the mortgagee present anunacceptable risk to the Native Hawaiian Housing Loan Guarantee Fund ProgramAccount based on a comparison of any of the factors set forth in this subparagraphor by a determination that the mortgagee engaged in fraud or misrepresentation."

SEC. 249. Amounts made available in title II of division K of the ConsolidatedAppropriations Resolution, 2003 (Public Law 108–7) under the heading "IndianHousing Loan Guarantee Fund Program Account" for necessary expenses of theLand Title Report Commission may be used by the Secretary of Housing and UrbanDevelopment, notwithstanding the purposes for which such funds originally wereappropriated, in addition to other amounts made available to the Secretary, for ne-cessary expenses including the support of meetings, hearings, or other collaborationswith the Bureau of Indian Affairs of the Department of the Interior to improve theprocess or system for maintaining land ownership records and title documents andissuing certified title status reports relating to Indian trust lands.

SEC. 250. Of the amounts made available for salaries and expenses under allaccounts under this title (except for the Office of Inspector General account), a totalof up to $10,000,000 may be transferred to and merged with amounts made availablein the ''Information Technology Fund'' account under this title.

SEC. 251. Of remaining unobligated balances, including recaptures and carryover,from funds appropriated under the heading "Native Hawaiian Housing LoanGuarantee Fund Program Account" for the cost of guaranteed loans, $5,000,000shall be cancelled: Provided, That this cancellation shall not limit the authority tocommit new loan guarantees under loan guarantee limitation provided in prior ap-propriations Acts.


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