Congressional Justifications for 1998 Budget Estimates

Office of Housing
Annual Contributions for Assisted Housing (Including Contract Renewals)

 

Actual
1996

Budget Estimate
1997

Current Estimate
1997

Estimate
1998

Increase + Decrease -
1998 vs 1997

(Dollars in Thousands)

Reservations (Units-Gross):

Incremental Units:

Public Housing a/

91

...

24

...

(24)

Indian Housing b/

1,347

[2,004] f/

...

...

...

Section 8 Rental Assist c/

27,128

[30,000] g/

14,309

...

(14,309)

Foster Child Care

50

...

...

...

...

Section 202 - Elderly d/

...

[6,750] h/

8,699

...

(8,699)

Section 811 - Disabled d/

...

[2,974] h/

4,212

...

(4,212)

Hsg. Opt. for Persons w/AIDS e/

6,682

[6,568] i/

...

...

...

Total, Increm. Units.

35,298

[48,296]

27,244

...

(27,244)

Non-Incremental

11,699

[20,000] g/

4,060

...

(4,060)

Subtotal, ACAH

46,997

[68,296]

31,304

...

(31,304)

Contract Renewals

407,603

833,501

NA

...

...

Total, Annual Contri. & Contract Renewals

454,600

833,501

31,304

...

(31,304)

Budget Authority Available (Including Contract Renewals):

Carryover

$353,816

...

$1,750,307

...

($1,750,307)

Recaptures Realized

407,912

...

230,701

...

(230,701)

Transfer of recap. to HCF

...

...

(50,000)

...

50,000

Transfer of recap. to HOPWA.

...

...

(25,000)

...

25,000

Transfer of carryover to HOPWA.

...

...

(14,439)

...

14,439

Proposed Rescission

...

($477,000)

[(250,000)]

[(855,000)]

[(1,105,000)]

New Authority

9,818,795

5,597,000

464

...

(464) j/

Net Total Available.

10,580,522

5,120,000

1,892,034

[(855,000)]

(1,892,034)

Budget Authority (Use)

8,599,514

5,120,000

1,892,034

[(855,000)]

(1,892,034)

    a/ No funds were appropriated for this program in fiscal year 1997.
    b/ Appropriated through the "Development of Additional New Subsidized Housing" account in 1997. See the "Native American Housing Block Grant" justification for 1998.
    c/See the "Housing Certificate Fund" for 1997 and 1998.
    d/ See the "Housing for Special Populations: Elderly and Disabled" justification.
    e/ See the "Housing for Persons with AIDS" justification.
    f/ Proposed in the "Public Housing Capital Fund."
    g/ Proposed under "Housing Certificate Fund."
    h/ Proposed under "Housing for Special Populations: Elderly and Disabled."
    i/ Proposed under "Housing for Persons with AIDS."
    j/ Represents amount appropriated for the Utah Housing Finance Agency under Section 210(b) of the Administrative Provisions.

    NOTE: For comparison purposes, this section of the Justifications provides a description of all the programs once included within the Annual Contributions for Assisted Housing account. Many of the programs included herein are nowbeing proposed as separate accounts or are moved to different accounts. These cases are noted throughout. In addition, the programs discussed here are administered by the Assistant Secretaries for Housing, Public and Indian Housing, Community Planning and Development, and the Office of Lead-Based Paint Abatement and Poisoning Prevention.

    1. Summary of budget request

    No new appropriation is requested in fiscal year 1998. Congress created several new accounts in the 1997 Appropriations Act. Activity for contract renewals, incremental rental assistance and Section 8 amendments were funded through the "Prevention of Resident Replacement" account. Funding for Elderly, Disabled and Indian Housing Development was provided under the "Development of Subsidized Housing" account. Funding for Modernization and Preservation was provided under the "Preserving Existing Housing Investment" account. The Department, however, is proposing to rescind an estimated $855 million of anticipated recaptures as a result of enactment and implementation of HUD's Multifamily Portfolio Reengineering proposal. This proposal would restructure the mortgages of selected FHA-insured multifamily properties. These properties are presently subsidized at above market rates through HUD's rental assistance programs. Budget authority remaining on these long-term, multiyear contracts would be rescinded. In addition, further savings in outlays, will be achieved in the future by avoiding the appropriations of funds to continue subsidizing these high-cost contracts. In addition, the Department proposes to transfer into this account all unobligated and obligated balances for preservation assistance which was previously made available in 1997 under the Preserving Existing Housing Investment account.

    2. Changes from 1996 estimates included in 1997 budget

    The difference between 1996 estimates included in the 1997 Budget and actual activity during fiscal year 1996 are as follows:

    The 1997 Budget assumed an appropriation of $10.2 billion and carryover of $387 million for a total program level of $10.5 billion.

    The 1996 Appropriations Act (P.L. 104-134) made available $9.8 billion in new authority for Annual Contributions for Assisted Housing account (including contract renewals), approximately $400 million less than HUD's request. However, with the addition of $354 million in carryover and $408 million in recaptures the program level for fiscal year 1996 was $10.6 billion.

    A total of $8.6 billion and 454,600 units were reserved during 1996 as compared to the Budget estimate of $10.6 billion and 493,944 units. Of the almost $1.8 billion that carried forward from 1996 into 1997, approximately $1 billion was in the Elderly and Disabled set-asides. The Government furlough during fiscal year 1996 delayed the publication of the Notice of Funding Availability for these programs. Consequently, to give potential sponsors sufficient time to prepare applications, fiscal year 1996 selections were pushed into fiscal year 1997. An additional $336 million of Contract Renewal funds carried forward into 1997.

    3. Changes from 1997 budget estimates

    The Department requested an appropriation for Contract Renewals, Section 8 Amendments, and Lead-Based Paint in the Annual Contributions for Assisted Housing account. However, Congress appropriated the funds for Contract Renewals and Section 8 Amendments in the "Prevention of Resident Displacement" account. Lead-Based Paint was appropriated under Community Development Block Grant. Congress did however, appropriate $464 thousand for the Utah Housing Finance Agency under the Annual Contributions account. The Department proposes to rescind approximately $250 million of obligated balances estimated to be recaptured during 1997 and prior years. These recaptures will result from the elimination of excess funds available on some long-term section 8 contracts, cancellation of reservations for Public Housing Development projects that are unable to proceed to construction, and the recapture of funds from inactive programs. Most of the other funding shown for fiscal year 1997 on the following table is derived from carryover balances and realized recaptures.

 

 
Content Archived: January 20, 2009