a/ A Budget amendment was submitted on July 10, 1996, which increased budget authority and projected obligations by $25 million to a total of $196 million.

NA = Not Applicable

Note: Obligations in the Actual 1996 and Estimate 1997 columns include carryover from prior year appropriations.

Summary of Budget Estimates

1. Summary of Budget Request

The Housing Opportunities for Persons with AIDS (HOPWA) program was funded under the Annual Contributions for Assisted Housing account from its inception in 1992 until 1996. In 1997, the Congress provided funding for HOPWA under a separate appropriation, as requested by the Department. All balances from prior appropriations in the Annual Contributions account will be merged into the new HOPWA account. This justification reflects use of obligated funds rather than on a reservation basis, as was past practice.

Funding of $204 million is proposed for HOPWA in 1998. Based on the number and incidence of cases of acquired immunodeficiency syndrome reported to the Centers for Disease Control (CDC), an additional ten States or localities will become eligible for formula-based allocations in 1998. This would bring the total number of jurisdictions eligible to receive formula-based allocations to 90. The number of eligible jurisdictions has grown each year as the HIV/AIDS epidemic continues to spread. Therefore, incremental funding is required to keep pace with the number of jurisdictions that become eligible for assistance under the formula program. This level of funding would support approximately 37,525 units of housing assistance and would provide related services to approximately 67,355 persons with HIV/AIDS and their families.

2. Changes from 1996 Estimates Included in 1997 Budget

The Congress appropriated $171 million, a reduction of $15 million from the Administration request of $186 million for 1996. The obligations of $199.6 million are higher than the 1996 estimate of $185 million, reflecting the reporting of funds on an obligation basis rather than a reservation basis. Actual outlays ($6.2 million) were only slightly more than estimated.

The Notice of Funding Availability (NOFA) for the competitive portion of the HOPWA program (10 percent of the total appropriation) was published in February 1996, and announcement of awards was made in August 1996.

3. Changes from 1997 Budget Estimates

The original 1997 Budget proposed that HOPWA be funded at $171 million. Subsequently, a budget amendment was proposed which increased the funding request by $25 million to $196 million. The 1997 appropriation (P.L. 104-204) provided $171 million in new budget authority and $25 million in Annual Contributions for Assisted Housing recaptures for a total of $196 million. Of this total, 90 percent will be distributed by formula and 10 percent will be awarded competitively, as required by law.

Housing Opportunities For Persons With AIDS

Estimated obligations increased by $65.9 million because of the increase in the enacted level by $25 million over the original Budget estimate and also because of changing the usage of funds to an obligation basis.

Explanation of Increases and Decreases

Obligations in 1998 will be $33 million lower than the $237 million expected to occur in 1997. However, the 1997 total includes $41 million of unused funds carried over from prior years. No carryover is estimated for 1998 and the $204 million of obligations represents full utilization of the 1998 appropriation request. Outlays are expected to increase as the cumulative amount of funds awarded and obligated increase, and additional programs and projects become operational.

Program Description and Activity

1. Legislative Authority. The Housing Opportunities for Persons with AIDS program is authorized by the AIDS Housing Opportunity Act, 42 U.S.C. 12901 [Title VIII, Subtitle D, of the Cranston-Gonzalez National Affordable Housing Act (NAHA) as amended by the Housing and Community Development Act of 1992].

2. Program Area Organization.

a. Program Purpose. The purpose of the program is to provide States and localities with resources and incentives to devise long-term comprehensive strategies for meeting the housing needs of persons with HIV/AIDS and their families. Authorizing legislation (Section 854(c) of NAHA) requires that 90 percent of appropriated funds be distributed by formula to qualifying States and metropolitan areas on the basis of the number and incidence of acquired immunodeficiency syndrome reported to the CDC by March 31 of the year preceding the appropriation year. The remaining 10 percent of funds are to be distributed through a national competition.

b. Eligible Applicants. As indicated above, 90 percent of each year's appropriation is distributed by formula to those jurisdictions that meet the minimum requirements, as reported to the CDC. Metropolitan areas with a population of at least 500,000 which have at least 1,500 reported cases of AIDS and areas of a State outside of qualifying metro areas which have at least 1,500 reported cases of AIDS qualify for formula awards. In 1995, 66 jurisdictions qualified for a formula allocation. In 1996, 76 jurisdictions qualified. In 1997, 80 jurisdictions qualify for formula grants. This Budget request assumes that an additional ten jurisdictions, for a total of 90, will qualify for formula funding in 1998.

Competitive grants are available to States and local governments and private nonprofit entities for projects of national significance, and to States and local governments for projects in areas which do not qualify for a formula allocation. Recipients of either formula or competitive grants must use HOPWA assistance consistent with a HUD-approved Consolidated Plan, except for activities undertaken on a nation-wide basis.

c. Eligible Activities. Grants are available for activities designed to carry out strategies to prevent homelessness and include:

• housing information and coordination services;

• short-term supported housing and services;

• rental assistance;

• single room occupancy dwellings;

• community residences and services;

• program development; and

• administrative costs.

The 1997 and 1998 appropriations are expected to provide assistance for approximately 35,945 and 37,525 units and to 64,519 and 67,355 persons, respectively. Experience suggests that the funding will be used as follows:

a/ Includes family members residing with the person living with AIDS.

b/ Persons receiving Supportive Services only; persons receiving both housing assistance and services are included in the three housing assistance lines.

Status of Funds

1. Authorization. Authorizing legislation is not required to continue the program.

2. Balances Available

a. Unobligated Balances. The following table compares the program obligations with funds available by year.

b. Obligated Balances. The status of reserved balances is as follows.

Distribution of Funds by States

The distribution of the formula allocation portion (90 percent) of the 1996, 1997 and 1998 appropriations are shown below. The amounts are for local and State grantees located within these States.