Congressional Justifications for 1998 Budget Estimates

Community Planning and Development
Habitat for Humanity/Self-help Homeownership Opportunity Program

Program Highlights

NA = Not Applicable

Summary of Budget Estimates

1. Summary of Budget Request

A 1998 Budget request for $10 million for a grant to Habitat for Humanity International is included within the Community Development Block Grant (CDBG) appropriation. Further data and information related to obligations and outlays for this grant are included in the CDBG Budget Justification.

2. Changes from 1996 Estimates Included in 1997 Budget

There are no changes in the 1996 estimates included in the 1997 Budget. The Housing Opportunity Program Extension Act of 1996 authorized $40 million in Annual Contributions for Assisted Housing recaptures to be used for the Habitat/Self-Help Homeownership Opportunity Program in 1996. Of this total, $25 million was granted to Habitat for Humanity International, whose organizational headquarters is located in Americus, Georgia. The remaining $15 million was awarded on a competitive basis to the following organizations: Housing Assistance Council, Washington, D.C., $13.5 million; Neighborhood Reinvestment Corporation, Washington, D.C.,

$1.2 million; and, Northwest Regional Facilitators, Spokane, WA, $300,000. The 1996 appropriation and obligation, as well as 1997 and 1998 outlays, are included in the Annual Contributions for Assisted Housing account.

3. Changes from Original 1997 Budget Estimates

There are no changes from the original 1997 Budget estimates.

Explanation of Increase and Decrease

The budget request of $10 million in 1998 and thereafter is reflected in the CDBG budget justification.

Program Description and Activity

1. Legislative Authority. Funding for the Habitat for Humanity/Self-Help Homeownership Opportunity Program is authorized by the Housing Opportunity Program Extension Act of 1996 (P.L. 104-120).
2. Program Area Organization. The purpose of the Self-Help Homeownership Opportunity Program is to encourage communities to undertake innovative homeownership opportunities through the provision of self-help housing, under which the homeowner contributes a significant amount of sweat equity toward the construction of the new dwelling. Habitat would use grant funds to undertake innovative homeownership opportunities through the provision of self-help housing, under which a homeowner would contribute a significant amount of sweat equity toward the construction of the new dwelling. These decent, safe and sanitary non-luxury dwellings must be made available to eligible homeowners at prices below prevailing market prices. Eligible activities include land acquisition (including financing and closing costs) and infrastructure improvement (installing, extending, constructing, rehabilitating or otherwise improving utilities and other infrastructure).

Status of Funds

1. Balances Available

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

b. Obligated Balances. The status of obligated balances is as follows:

NOTE: Amounts shown are included in the Annual Contributions for Assisted Housing account.