1 Selected resources as of June 30 are as follows: Undisbursed obligations, 1962; $3,229 thousand; 1963 adjustments, -$4 thousand; 1963. $17,941 thousand, 1964, $23,941 thousand; 1965, $38,941 thousand. Grants to State and local public bodies to help finance acquisition or permanent interest in undeveloped or predominantly undeveloped land in urban areas useful for park, recreation, conservation, historic, or scenic purposes are authorized by title VII of the Housing Act of 1961 (42 U.S.C. 1500). The program is designed to assist public bodies in taking prompt action to preserve as open space that land essential to economic and otherwise desirable long-range urban development, which will also curb urban sprawl and prevent the spread of urban blight and deterioration. 1 Selected resources as of June 30 are as follows: Undisbursed obligations, 1962. $846 thousand; 1963. $3,694 thousand; 1964. $2,894 thousand: 1965, $4.869 thousand. Status of Unfunded Contract Authorization (in thousands of dollars) Contract authorization.. Grants up to 20% of the land cost may be provided or up to 30% if the public body exercises or participates Unfunded balance brought forward.. in the exercise of open-space responsibility for all or a substantial portion of an urban area. Safeguards are provided to prohibit subsequent conversion of open-space land to other uses. The budget estimate for administrative expenses includes funds for technical assistance and studies as authorized by section 705 of the Housing Act of 1961. The budget program for 1965 assumes enactment of additional authorization for appropriation. Unfunded balance carried forward.. Appropriation: Applied to liquidate contract authorization... Appropriation to liquidate contract Grants to public or private bodies or agencies to develop and demonstrate new or improved means of providing housing for low income persons and families are authorized by the Housing Act of 1961 (42 U.S.C. 1436), which also provided $5 million contract authority for this purpose. An additional $5 million in contract authority will be proposed for separate transmittal to carry out the budget program for 1965. Object Classification (in thousands of dollars) LOW INCOME HOUSING DEMONSTRATION PROGRAMS For low income housing demonstration programs pursuant to section 207 of the Housing Act of 1961, [$1,200,000 $5,075,000: Provided, That not to exceed [$43,000 $75,000 of this appropriation may be used for administrative expenses, and no part shall be used for administrative expenses in connection with contracts to make grants in excess of the amount herein appropriated therefor. Direct long-term loans to assist institutions of higher education in providing housing and related facilities for students and faculty, and to hospitals for housing facilities for nurses and interns, are authorized by the Housing Act of 1950, as amended (12 U.S.C. 1749). The program is funded by a Treasury borrowing authorization. Under the Housing Act of 1961, the authorization, currently $2,575 million, will increase by $300 million in 1965. Interest rates are based on a statutory formula and are limited to the higher of either 2.75% or 0.25% above the average interest rate on all interest bearing obligations forming part of the Federal debt. The 1964 rate is 3%%. Budget program.-Net loan reservations are estimated at $300 million for the current year and for the budget year. A loan reservation is made after preliminary review of an application filed to determine the general eligibility and feasibility of a project. The reservation assures availability of loan funds to the applicant at the completion of Agency review of the loan application. The following table shows funds available and net reservations issued (in thousands of dollars): 1963 actual 1964 estimate 1965 estimate Disapproved or withdrawn. Gross loan reservations. Full applications: Received... Disapproved or withdrawn. Gross loan approvals. Financing. Bond purchases are estimated at $300 million in the current year and $289 million in the budget year. Purchase of bonds ordinarily occurs when construction is well advanced. Disbursements are based on the following projected construction schedule: Construction starts. Completions Operating results and financial condition.-Net earnings of $1,957 thousand are estimated for the budget year. The cumulative deficit is estimated to be eliminated by the end of 1964 which means that all operating costs, including staff expenses and allowances for losses, incurred since the inception of the program will have been entirely recovered by the Government. Revenue, Expense, and Retained Earnings (in thousands of dollars) 300,000 Liabilities: Current.. Repayments and net income.. Total funds available.. 349,888 435,131 513,354 Borrowings from Treasury, net Reservations are converted into loan contracts after detailed planning, filing of a full application, and comprehensive Agency review of engineering, architectural, financing, and legal aspects of proposed projects. After execution of the loan contracts, the institutions proceed with preparation of final plans and specifications, award of construction contracts, construction, and preparation of indentures and marketing of bonds in the private market or sale to the Government. Principal workload items are set forth in the following table: Total Government equity...1,225,223 1,531,269 1,752,768 1,969,725 Analysis of Government Equity and Undrawn Authorizations (in thousands of Undisbursed loan obligations 1. Subtotal..... dollars) 471,522 314.500 418,912 372,912 360,912 380,975 500,682 601,905 1,186,791 1,473,994 1.701.786 1,914,520 1,972,814 2,273,881 2,575,380 2.877.337 LIMITATION ON ADMINISTRATIVE EXPENSES, OFFICE OF THE ADMINISTRATOR, COLLEGE HOUSING LOANS Not to exceed [$1,903,000] $1,900,000 shall be available for all administrative expenses of carrying out the functions of the Administrator under the program of housing loans to educational institutions (title IV of the Housing Act of 1950, as amended, 12 U.S.C. 1749-1749d), but this amount shall be exclusive of payment for services and facilities of the Federal Reserve banks or any member thereof, the Federal home-loan banks, and any insured bank within the meaning of the Federal Deposit Insurance Corporation Act, as amended (12 U.S.C. 1811-1831). (Independent Offices Appropriation Act, 1964.) Financing: Revenues and other receipts: Regular loan repayments Sales and loan repayments from private refundings. Revenue.. 182 300 410 4,492 5,591 7,314 64,089 80,591 91_117,314 New obligational authority: Transferred from “Mass Transportation Loans and Grants" (42 U.S.C.1492) (appropriation adjusted). Financing applied to program. 1 Balances of selected resources are identified on the statement of financial condition. 64,089 80,591 117,314 Direct long-term loans for financing construction of essential public works are authorized to be extended to municipalities and other subdivisions and instrumentalities of States and to Indian tribes by the Housing Amendments of 1955, as amended (42 U.S.C. 1492). In addition, loans for provision of mass transportation facilities were authorized through fiscal 1963 by the Housing Act of 1963; reactivation of this authority by the urban transit legislation now before the Congress is assumed for the budget year. Loans are made only when credit is not otherwise available on reasonable terms and conditions. The loan program is funded by a Treasury borrowing authorization aggregating $650 million, of which $50 million is available solely for mass transportation facilities. The basic program for public facilities extends priority in processing to small municipalities under 10,000 population for water, sewage, and gas distribution systems. Loans may be provided also to larger communities up to 50,000; the limit is 150,000 in redevelopment areas as designated by the Area Redevelopment Administration and in areas where the National Aeronautics and Space Administration maintains research or development installations. Public facility loans may run for as long as 40 years and must be of sound value or so secured as reasonably to assure repayment. Interest rates are based on a statutory formula and are limited to the higher of either 3% or 0.50% above the average interest rate on all interest-bearing obligations forming part of the Federal debt. The fiscal 1964 rate is 3%% for regular public facility loan projects and 3%% for projects in redevelopment areas. Budget program.-Net loan approvals are estimated at $75 million for the current year and $110 million for the budget year; sales of bonds from portfolio and repayments are estimated at $11.3 and $26.9 million, respectively. The following table shows the relationship of this program to available funds (in thousands of dollars): 1963 actual 1964 estimate 1965 estimate Financing.-Budgetary expenditures for the program total $33.9 and $31.3 million for 1964 and 1965, respectively. At the end of the budget year, outstanding Treasury notes are estimated at $182.7 million. Operating results.-Cumulative deficit at the end of 1965 totals $9.1 million of which $2.6 million represents an increase in allowance for losses for the current and budget years. Revenue, Expense, and Retained Earnings (in thousands of dollars) portation loans and grants" Net expenses... 2,827 343,401 11,300 (42 U.S.C. 1492)__ -596 26,900 -663 Lapsing of current and expired -528 Net loan approvals.... Total funds available.. appropriations__- -20,098 3,000 Deficit... ---3,827 -5,263 -6,945 -9,081 Unreserved balance, end............ 407,764 343,401 259,773 Total Government equity. - 86,782 110,466 143,784 176,648 Unreserved balance, start. Repayment and sales of bonds. |