Congressional Justifications for 1998 Budget Estimates

Community Planning and Development Revolving Fund (Liquidating Programs)

Program Highlights


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

  1. 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.

  2. 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.

(Dollars in Thousands)
Source of Funds:  
Unobligated balance, start of year $102,248 $97,213 $86,873
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
(Dollars in Thousands)
Rehabilitation Loans, Section 312 $10,130 $2,590 ...
Rental Rehabilitation Grants 17,021 4,410 ...
Totals 27,151 7,000 ...


Content Archived: January 20, 2009