a/	The $30.2 million in obligations is from the Emergency Supplemental Appropriations Act of 1997. Congress appropriated $15 million in 1998 within the CDBG account, therefore amounts related to obligations and outlays for this are reflected in the CDBG Budget justification.
	b/	The outlays reflect only amounts expended from this account. Outlays from appropriations in other accounts are reflected within their respective justifications.

SUMMARY OF BUDGET ESTIMATES SUMMARY OF BUDGET REQUEST The Budget does not include an appropriation request for the Capacity Building for Community Development and Affordable Housing program in 1999. CHANGES FROM 1997 ESTIMATES INCLUDED IN 1998 BUDGET The Emergency Supplemental Appropriations Act of 1997 (P.L. 105-18) transferred $30.2 million from the Homeownership and Opportunity for People Everywhere (HOPE) Grants account to the Capacity Building for Community Development and Affordable Housing account. This Act also amended the authorizing language under Section 4(a) and (b)(3) of the HUD Demonstration Act of 1993 to include Habitat for Humanity and Youthbuild USA as eligible recipients of these funds. Actual outlays were $3 million higher than previously anticipated, reflecting faster use of the funds by grantees. CHANGES FROM ORIGINAL 1998 BUDGET ESTIMATES The Current Estimate reflects the enacted level of $15 million within the CDBG appropriation. This is $5 million more than requested in the 1998 Budget. Obligations and outlays for the 1998 appropriation are included in the CDBG account. Estimated 1998 obligations of $30.2 million in this account indicate that all of the 1997 funding transferred pursuant to P.L. 105-18 will be obligated in 1998. Outlays are now expected to increase by $5.2 million above the Budget level reflecting spend-out of the $30.2 million transfer. EXPLANATION OF INCREASES AND DECREASES Since funding is not requested for 1999, the budget authority and obligations decrease to zero. In addition, it is anticipated that all of the $30.2 million transferred in 1997 will be obligated in 1998, leaving no unobligated balance in 1999. Outlays are expected to increase by $4.1 million reflecting the further spendout of the $30.2 million transfer in 1997. Capacity Building for Community Development and Affordable Housing PROGRAM DESCRIPTION AND ACTIVITY Legislative Authority. The Capacity Building for Community Development and Affordable Housing program is authorized by Section 4 of the HUD Demonstration Act of 1993 which established the National Community Development Initiative (NCDI). The Emergency Supplemental Appropriations Act of 1997 amended the authorizing language to include Habitat for Humanity and Youthbuild USA as eligible recipients of NCDI funds. Prior to this amendment, only the Local Initiatives Support Corporation (LISC) and The Enterprise Foundation had been eligible recipients. Program Area Organization. This program provides funding through the National Community Development Initiative (NCDI) to build the capacity of community-based development corporations and housing development organizations, and to assist such entities in carrying out community development and affordable housing activities. Eligible Recipients. Eligible recipients are the Local Initiatives Support Corporation, The Enterprise Foundation, Habitat for Humanity, and Youthbuild USA. Allocation of Funds. Prior to passage of P.L. 105-18, funds were provided through NCDI to LISC and The Enterprise Foundation. The 1997 funding will be distributed equally to the four eligible organizations, with $10 million of the total to be used in rural areas, including tribal areas. Finally, 1998 funding (in CDBG) will be split between the two originally eligible organizations, pursuant to the 1998 Appropriations Act (P.L. 105-65), with $5 million to be used in rural and tribal areas. Eligible Activities. Assistance under this section may be used for: training, education, support, and advice to enhance the technical and administrative capabilities of community development corporations and community housing development organizations; loans, grants, or predevelopment assistance to community development corporations and community housing development organizations to carry out community development and affordable housing activities that benefit low-income families; and such other activities as may be determined by the NCDI, Local Initiatives Support Corporation, The Enterprise Foundation, Habitat for Humanity, and Youthbuild USA in consultation with the Secretary. STATUS OF FUNDS 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: