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Other..

Repayment of capital invest

ment to Treasury........... Adjustment in statutory grants and donations, affecting deficit....

End of year..

Deficit...

Unobligated balance..
Invested capital and earnings...

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1963 actual

445,425

-112

-2,000

1964 1965 actual estimate

25.1 Other services..

32.0 Lands and structures.

92.0 Undistributed: Writeoff of current re

ceivables..

93.0 Administrative expenses (see separate

schedule)

Total obligations.....

427,142 400,592

Analysis of Government Equity

2,984 17,854

20,838

-24,550

-118

-2,000 -3,500

Object Classification (in thousands of dollars)

1964 actual

Program by activities:

Payment to "Salaries and expenses" (costs— obligations)

1,810 1,874 16,372 13,210 18,182

15,083

133

1.262

135

1,530

Program and Financing (in thousands of dollars)

1964 actual

135

100

100

1966 estimate

114

314

396,974

URBAN RENEWAL

-16,171

427,142 400,592 396,974 395,474

Federal assistance to local governments for acquisition, clearance, redevelopment, and rehabilitation of slums and -406.304-382,410-381,891 -381,536 blighted areas was authorized by the Housing Act of 1949, Total Government equity... 20,838 18,182 15,083 13,938

as amended (42 U.S.C. 1453). Federal grants may defray
two-thirds of the net project cost, except in cities with a
population of less than 50,000 (or 150,000 if located in a
redevelopment area as designated by the Area Redevelop-
ment Administration) where the Federal share is three-
fourths for projects approved after June 30, 1961.

1965 1966 estimate estimate

-1,500

114

1.910 12,029

13,938

LIMITATION ON ADMINISTRATIVE EXPENSES, OFFICE OF THE
ADMINISTRATOR, REVOLVING FUND (LIQUIDATING PROGRAMS)

During the current fiscal year not to exceed [$110,000 $115,000

shall be available for administrative expenses, but this amount shall be exclusive of expenses necessary in the case of defaulted obligations to protect the interests of the Government and legal services on a contract or fee basis and of payment for services and facilities of the Federal Reserve banks or any member thereof, any servicer approved by the Federal National Mortgage Association, 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, 1965.)

100 500

115

715

1965 1966 estimate estimate

115

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49

(a) Regular payments..

(b) 1964 act provisions.

3. Demonstration.....

4. Community renewal_

5. Uncollectible advances and interest.

6. Alaska disaster....

16

21.49 Unobligated balance available, start of year:

93

94

Subtotal..

Administrative reservations, start of year.
Administrative reservations, end of year.
Change in selected resources

1

Adjustment in selected resources (grant obligations).

Total obligations..

74.49

74.98

90

Financing:

Comparative transfer to Urban mass transportation fund..

24.49 Unobligated balance available, end of year:

Contract authorization (reserved).
Contract authorization (unreserved).

New obligational authority..

New obligational authority:

Contract authorization.

Proposed contract authorization..

Public Law 87-365): Contract authorization (unreserved).

Relation of obligations to expenditures:

Total obligations...

Receipts and other offsets (items 11-17).

Obligations affecting expenditures.

Program and Financing (in thousands of dollars)

Expenditures..

CAPITAL GRANTS

Cash transactions:
Gross expenditures.
Applicable receipts..

Administrative reservations

Contract authorization (reserved)

Contract authorization (unreserved).

23.49 Unobligated contract authority transferred to Urban mass transportation fund (12 U.S.C. 1749; Public Law 87-70;

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10

70

71

Obligated balance, start of year:
Contract authority.

72.49

72.98

Fund balance..

73.98 Obligated balance transferred to Urban mass transportation fund (12 U.S.C. 1749; Public Law 47-70; Public Law 87-365)

Obligated balance, end of year:

Contract authorization..

Fund balance.

669,700

21,600

60,000

1.200

6,000

1,500

642,454 665,000 760,000 1,451,227 1,672,230 1,737,230 -1,672,230 -1,737,230 -1,847,230

421,451 600,000 650,000

1964

actual

Costs and obligations

1 Balances of selected resources are identified on the statement of financial condition.

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1965 estimate

421,451
4,336

425,787

907,362

179,498

214,245

4,336

-1,451,227 -1,672,230 -1,737,230 -656,965 -10,176 -769,457 719

1,737,230
769,457

1,425,000

750,000
675,000

302,942 319,000 17.058

600,000 650,000

600,000

1966 estimate

275,300

15,000

21,000

1,200

280,000

7,000

1,500

10,000

331,000

600,000

1,228,814

69,587 -17,058 -1,228,814 -1,598,814 -1,917,814 -69,587 -2,529 -2,529 280,000 331,000

214,245

1,847,230 9,457

650,000

650,000

1,598,814 2,529

331,000

OFFICE OF THE ADMINISTRATOR-Continued

Public enterprise funds-Continued

URBAN RENEWAL Continued

CAPITAL GRANTS-continued

Status of Unfunded Contract Authorization (in thousands of dollars)

Unfunded balance brought forward..
Contract authorization transferred to
urban mass transportation fund (12
U.S.C. 1749; Public Law 87-70;
Public Law 87-365).

Contract authorization..
Unfunded balance carried forward..

Appropriation to liquidate contract

authorization:

Direct appropriation..
Proposed supplemental.

Transferred from "Mass transporta-
tion loans and grants," Office of the
Administrator (42 U.S.C. 1453) .....

Appropriation to liquidate con-
tract authorization (adjusted) -
Applied to liquidation of contract
authority.
Lapsing..

Net new approvals.

Planning completed...
Planning in process, end of year... - - - -

1964 actual

3,015,555

100,000

4,805

-719 1,425,000

-2,911,219 -4,105,500-3,774,500

104,805

104,336
469

1965 estimate

Cumulative
as of
June 30,
1963

1,295

717

578

Budget program.-New reservations and adjustments in existing, reservations will total $760 million net in 1966. This assumes the enactment of $675 million in additional authorization in 1965. An administrative reservation of contract authority for grants is made at the time of approval of each urban renewal project (including the estimated cost of relocation payments), community renewal program, and urban renewal demonstration.

1. Projects.-Urban renewal projects are usually approved for grant reservation at the beginning of the planning period. In the case of general neighborhood renewal plans, which cover a larger or more complex area from which more than one project is expected to develop, reservations are made for the first project when approval is initially given for preparation of the overall plan. The reservation assures the availability of grant assistance when it is needed after the substantial community activity required for planning an urban renewal project. The following table reflects planning activity for urban renewal projects, including general neighborhood renewal plans:

200,000
30,000

156

143

1966 estimate

1964 actual

591

2. Relocation.-Grants also are provided to reimburse the community for relocation payments made to cover 2,911,219 4,105,500 moving expenses of families and businesses displaced from urban renewal areas, including actual direct losses of property not otherwise compensated for. A maximum of $200 per family and the actual certified costs, not in excess of $25 thousand per business are allowable. In addition, legislation enacted as a part of the Housing Act of 1964 provides relocation adjustment payments to families, individuals and small businesses under certain circumstances to ease the burden of relocation.

230,000 331,000
230,000 331,000

331,000

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guaranteed lending for working capital. The number of projects in execution is shown in the following table:

When a project is ready to enter the execution phase, a loan and grant contract is drawn between the community and the Housing and Home Finance Agency. In addition to a statement of the community's responsibility for carrying out the project in accordance with the general plan, the contract provides for progress grant payments based on extent of performance and for Federal or federally

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4. Community renewal.---Federal grants are available to pay up to two-thirds of the cost incurred in preparing a local community renewal program covering the full range citywide basis. All the deteriorated and deteriorating of urban renewal action required to meet needs on a areas of the city can be identified and classified as to the relative urgency and degree of urban renewal action needed. The locality's resources for taking urban renewal action can be established and the community can develop a long-range program for urban renewal, including protable shows estimated community renewal program vision of related public improvements. The following activity (dollars in millions):

Cumulative

as of

June 30.

1963

97

1

96

$12.3

com

1965 1966 estimate estimate 225 200 68 70

875 1,005

1964 actual

21

1965 estimate

30

5

25

112 117 $4.7 $6.0

1966 estimate 30

50

97

$6.0

Progress and final grant payments for urban renewal
activities are expected to reach a cumulative total of
$1,623 million by the end of 1966, requiring a grant ap-
propriation of $331 million in the budget year.

6. Alaska disaster. The 1964 amendments to the
Alaska Omnibus Act (Public Law 88-451, approved
August 18, 1964) provided $25 million of contract authori-
tion and redevelopment made necessary by the March
zation for urban renewal projects to aid in the reconstruc-
1964 earthquake. The Federal share of net project costs
project area has either been rendered unusable by the
may be increased up to 90% if a major portion of the
by the disaster.
disaster or is needed for new locations for those displaced

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Budget program. The Treasury borrowing authority of $1 billion is available for loan assistance to finance the planning and execution of urban renewal projects through the following types of commitments:

1. Planning advances.-Advances provide for costs directly associated with project planning. They are repayable, with interest, from funds made available to the projects during execution.

2. Temporary loans.-These are short-term direct Federal loans to provide initial financing for projects under contract. Thereafter, the local public agency generally relies upon private borrowings secured by pledge of the Federal loan commitment. Temporary

27,704 500,276

1,238

529,218

-240,459

-177,138

1965 estimate

1966 estimate

30,400

25,200 780,000

845,000

50,000

60,000

855,200

935,400

-262,906 -311,100

--370,259 -292,484

111,621 222,035 331,816

1 Balances of selected resources are identified on the statement of financial condition.

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14,535

89,016

222,035 331,816

231,345 -186,535

1966 estimate

25,800 216,000 1,000

242,800

7,800

4,100

11,900

343,716

-25,800

-191,000

-20 -8,100 -4,100 -459,785 345,089

118,728 -136,128

343,716 -229,020

-17,400

44,810 114,696

152,806 85,165 79,975 240,304 269,777 290,002

-85,165 -79,975 -174,671 -269,777 -290,002 -284,822

20,767

29,776

25,180

155,970 214,311 252,600 -135,203 -184,535 -227,420

loans are repaid from the proceeds of land sales and from local and Federal cash grants.

3. Definitive loans.-Definitive loans permit the disposition of project land through long-term leases in lieu of sale, at the option of the community. In such cases, commitments are issued to secure private financing for the net value of redeveloped land.

The loan commitments cover total expenditures by the statute and experience recognize that only a minor portion local public agency in carrying out the project. Both the of the Federal loan commitment is outstanding at any one time as direct Federal loans, and demand on Federal funds will not equal or even approach commitments made

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OFFICE OF THE ADMINISTRATOR-Continued

Public enterprise funds-Continued

URBAN RENEWAL Continued

LOANS AND PLANNING ADVANCES-continued

because: (a) project expenditures take place over several years; (b) early borrowings are progressively retired with funds provided from local and Federal grants and from the sale of land; and (c) private financing (guaranteed with a pledge of the Federal loan commitment) is relied upon as the major source of funds for temporary loans and definitive loans. Cumulative loan commitments will be $4,956 million by the end of 1966 but this amount will be reduced by $1,613 million in repayments and commitment waivers resulting in a net outstanding commitment of $3,343 million. The maximum Federal exposure (i.e., maximum demand for Federal loans at any one time) is estimated at $658 million on June 30, 1966.

The following table shows the status of loan commitments outstanding at the end of each of the years covered by the budget (in thousands of dollars):

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Mass transportation grants.
Operating income..........

2,126,941
151,013

Analysis of retained earnings:
Cumulative capital grants.
Losses on unsecured planning ad-

vances.

Accumulated cost.

Less appropriations expended.

Retained earnings..

1,179,923
796,005

Financing.-Borrowing authority previously committed is replenished by means of: (a) Repayment of planning advances; (b) repayment of temporary loans from project settlement funds (which include proceeds from the sale of land and Federal and local grants); (c) cancellation of temporary loan commitments; and (d) retirement of commitments due to the repayment of guaranteed nonFederal loans from project settlement funds.

The ratio of Federal exposure to temporary loan commitments set by the Administrator is estimated at 18% in 1965 and 1966. Planning advance commitments are included at 75%. Repayments of Federal temporary loans from the proceeds of non-Federal guaranteed loans, estimated to total $146 million in 1966, are reflected on the program and financing statement; such repayments act as receipts affecting budget expenditures, but from an obligation standpoint result in an increase in undisbursed commitments.

2,719,235

181,498

1,487,753
1,049,984

1,016,594
1,019,193

2,600

1,856, 173
1,279,884

Revenue, Expense, and Retained Earnings (in thousands of dollars)

Loans and planning advances:
Revenue.
Expense1

Net income for the year.
Analysis of retained earnings:
Retained earnings, start of year.

Retained earnings, end of year.

Assets:

Treasury balance.
Accounts receivable..
Loans receivable..

Total assets..

1 Excludes expenses borne by the Administrator, administrative expense appropriation amounting to $12,222 thousand in 1964; $12,485 thousand in 1965; and $13,175 thousand in 1966.

Financial Condition (in thousands of dollars)

Liabilities:
Current..

Government equity:
Interest-bearing capital:
Start of year.
Borrowings from
Treasury, net..
End of year..
Non-interest-bearing
capital:
Start of year.
Appropriations..
Appropriation trans-
ferred to Urban
Transportation
fund (12 U.S.C.
1749; Public Law
87-70; Public Law
87-365)..
Appropriations ex-
pended....

Operating results.-The use of grant appropriations is authorized to repay Treasury borrowing otherwise unrecoverable due to losses on planning advances and interest for terminated projects. The deficit resulting from Undisbursed capital grant capital grant payments and from uncollectible planning advances for terminated projects has been offset by the appropriation of funds for such purpose as shown in the Unobligated balance: following table (in thousands of dollars):

obligations1. Undisbursed loan obligations 1

Capital grants

Loans and planning ad

vances.

1964 actual 1965 estimate 1966 estimate
1,003,725 1,282,225 1,611,725
9,746

8,246

7,223 -2,600

11,246 -3,110

-2,810

1,289,161 1,619,861
1,291,970 1,622,970

2,810

3,110

End of year..
Retained earnings..

Total Government
equity.

Invested capital and earn-
ings....

1963 actual

Subtotal..

Less undrawn authoriza-
tions....

12,846

260,000

100,000

360,000

419,800 339,364
5,467
129,471

554,737

47,516 319,710

-187,730

179,496
2,395

1964 actual

541,891

1964 actual

5,209 6,860 8,100
5,004 6,650 7,800
205
210 300
2,395 2,600 2,810
2,600 2,810 3.110

541,891

1965 1966 estimate estimate

14,340

292,531

6,391 8,391 151,013 181,498

496,768

482,420

1965 estimate

179,496

104,336

16,840

360,000

410,240

50,240

50,000

410,240 460,240

482,428 465,580 Analysis of Government Equity and Undrawn Authorizations (in thousands of dollars)

2,530

2,810

1966 estimate

287,351 9,991

207,478

504,820

2,530

69,588 230,000 331,000

18,940

-17,058

-214,245 -280,000 -331,000

69,588
2,600

2,530 3,110

460,240

20,000

480,240

482,428 465,580

1,086,859 1,298.401 1,601,343 1,920,343 385,731 346,993 361,528 450,544 2,108, 192 1,682,406 2,506,687 1,856,687 487,195 504,594 459,785 345,089 129,470 151,013

181,498

207,478 4,197,447 3,983,407 5,110,840 4,780,140 -3,655,555 -3,500,979 -4,645,260 -4,294,260

485,880

Total Government
equity..

1 The changes in these items are reflected on the program and financing schedules

485,880

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