HUD's FY99 Budget
Congressional Justifications
Office of Housing

Annual Contributions for Assisted Housing

(Including Contract Renewals)

SUMMARY OF BUDGET REQUEST

1. SUMMARY OF BUDGET REQUEST

No new appropriation is requested in fiscal year 1999. Funding for contract renewals, section 8 rental assistance, and section 8 amendments is requested under the Housing Certificate Fund; for Elderly and Disabled under HOME Investment Partnerships Program; for Indian Housing Development under the Indian Housing Block Grant; and for Modernization under the Public Housing Capital Fund. No funds are requested for Preservation.

2. CHANGES FROM 1997 ESTIMATES INCLUDED IN 1998 BUDGET

The difference between 1997 estimates included in the 1998 Budget and actual activity during fiscal year 1997 are as follows:

The 1998 Budget assumed $464 thousand in new budget authority, carryover of $1.8 billion and $231 million in recaptures. It also reflected transfer of $50 million and $25 million in recaptures to the Housing Certificate Fund and to Housing Opportunities for Persons with AIDS (HOPWA), respectively. In addition, it reflected a transfer of carryover of $14.4 million to HOPWA. Furthermore, the President�s Budget proposed a rescission of $250 million in recaptures.

A total of almost $2 billion carried over as compared to the 1998 Budget estimate of $1.8 billion. The Department realized $7.8 billion in recaptures instead of $231 million as originally estimated. Of the total recaptures , the fiscal year 1997 Disaster Supplemental rescinded $3.7 billion and the remaining $4.2 billion were transferred to the Section 8 Reserve Preservation account pursuant to the fiscal year 1998 Appropriations Act. In fiscal year 1997, the Department made an aggressive effort to identify excess project reserves and use these project reserves to offset contract renewal requirements. Housing authorities accumulate these reserves when existing multiyear contracts are renewed, but have outstanding balances remaining on the existing contract at the time of renewal. In fiscal year 1997 $7.8 million in recaptures were realized from these project reserves.

3. CHANGES FROM 1998 BUDGET ESTIMATES

In fiscal year 1998, $495 million carried over in this account. Of the total carryover, $272 million is being transferred to new accounts and $3 million transferred into the account pursuant to the fiscal year 1998 Appropriations Act. The Department will not rescind $855 million in recaptures as originally proposed. Pursuant to the fiscal year 1998 Appropriations Act, $550 million was rescinded from recaptures transferred in fiscal year 1997 to the Section 8 Reserve Preservation account.