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Congressional Justifications for 1998 Budget Estimates
Community Planning and Development
Revolving Fund (Liquidating Programs)
Program Highlights
|
Actual
1996 |
Budget
Estimate
1997 |
Estimate
1997 |
Current
Estimate
1998 |
Increase
+
Decrease -
1998 vs 1997 |
(Dollars in Thousands)
|
Receipts
and Repayments |
$73,528
|
$65,000
|
$65,000
|
$60,000
|
-$5,000 |
Repayments
to the Treasury: |
In
year dividend |
70,000
|
60,000
|
60,000
|
60,000
|
... |
Cumulative
|
1,897,519 |
1,957,519
|
1,957,519 |
2,017,519 |
+60,000 |
Budget
Authority |
...
|
...
|
...
|
...
|
... |
Book
Value of Assets, |
EOY
|
454,000
|
445,000
|
421,000
|
374,000 |
-47,000 |
Budget
Outlays (Net receipts) |
-45,727
|
-31,000
|
-29,660
|
-38,649
|
-8,989 |
Summary of Budget Estimates
1.
Summary of Budget Request
The
expenses of the Revolving Fund (Liquidating Programs) are financed
from repayments of loans and advances; therefore, no appropriation
is requested.
2.
Changes From 1996 Estimates Included In 1997 Budget
Receipts
and repayments were only $528 thousand more than the projected.
Net receipts were $12.7 million more than anticipated because obligated
balances spent out more slowly than anticipated.
3.
Changes
From
Original 1997 Budget
Estimates
A
reduction of $1.3 million in net receipts was made to reflect a
minor increase in estimated outlays from obligated balances. Also,
Book Value of Assets was reduced to reflect a lower 1997 end of
year estimate.
Explanation of Increases and Decreases
The
changes reflect the continued liquidation of the available balances
of the Fund. The net receipts increase by $9 million in 1998 because
it is anticipated that all obligated amounts within the Rental Rehabilitation
Grants and the Rehabilitation Loan (Section 312) programs will be
expended by the end of 1998. After 1998, projected receipts and
repayments begin to decline as loans are repaid.
Program
Description and Activity
-
Legislative Authority. The Revolving Fund (Liquidating Programs)
was established by the Independent Offices Appropriation Act,
1955, to provide a single fund to assist in the efficient liquidation
of assets acquired under various housing and urban development
programs. The assets of certain war and emergency housing constructed
under the Lanham and Related Acts, Alaska Prefabricated Housing,
War Public Works, Defense Community Facilities and Reconstruction
Finance Corporation Public Agency Loan programs initially were
included in this Fund. At the end of 1970, the Public Works
Planning Advances, Grants to Aid Advance Acquisition of Land,
and the Alaska Housing Grants and Loans programs were terminated
and the assets were transferred to this Fund for liquidation.
-
Program Area Organization. In 1975, the assets and liabilities
of four community development categorical programs comprised
of Basic Water and Sewer Facilities, Neighborhood Facilities,
Open Space Land, and Public Facility Loans were included in
the Fund pursuant to Section 117(b) of the Housing and Community
Development Act of 1974, which provided for such transfers to
facilitate liquidation of the programs. In 1984, the New Communities
program was transferred to the Revolving Fund; and, on October
1, 1986, the Urban Renewal Program was tranre t to the Fund.
The
National Affordable Housing Act repealed the Rental Rehabilitation
Grants and Rehabilitation Loan (Section 312) programs. Both programs
were transferred to the Revolving Fund (Liquidating Programs), effective
October 1, 1991, pursuant to P.L. 102-27 and P.L. 102-139.
Starting
in 1994, income exceeded operating expenses and disbursements of
obligations, resulting in net receipts. This income is mostly from
the repayments of active loans from the Section 312, Rehabilitation
Loan program.
Status of Funds
Balances
Available
Unobligated
Balances. The following table shows the status of the Revolving
Fund for fiscal years 1996-1998.
|
Actual
1996 |
Estimate
1997 |
Estimate
1998 |
(Dollars in Thousands)
|
Source
of Funds: |
|
Unobligated
balance, start of year |
$102,248 |
$97,213
|
$86,873 |
Receipts: |
|
Income
|
3,528 |
5,000
|
3,000 |
Repayments |
70,000 |
60,000
|
57,000 |
Recaptures
|
874 |
... |
... |
Total
available |
176,650 |
162,213
|
146,873 |
Application
of Funds: |
|
Loan
Servicing |
8,147
|
7,250
|
7,000 |
Acquired
Security, Collateral, and Maintenance |
...
|
6,800
|
6,000 |
Payment
of Salaries and Expenses to HUD |
1,290 |
1,290 |
1,290 |
Rental
Rehabilitation Grants |
... |
...
|
... |
Payment
of dividend to the U. S. Treasury |
70,000 |
60,000
|
60,000 |
Total,
application of funds |
79,437 |
75,340 |
74,290 |
Unobligated
balance, end of year |
97,213 |
86,873
|
72,583 |
Summary of Obligated Balances within the Revolving Fund
Summary
of obligated balances, end of year, follows:
Summary
of Obligated Balances
|
Actual
1996 |
Estimate
1997 |
Estimate
1998 |
(Dollars in Thousands)
|
Rehabilitation
Loans, Section |
312
|
$10,130
|
$2,590
... |
Rental
Rehabilitation Grants |
17,021 |
4,410
|
... |
Totals
|
27,151 |
7,000 |
... |
|