1 Balances of selected resources are identified on the statement of financial condition. The Housing Act of 1964 authorized a new program of low-interest-rate loans to owners or tenants of property in urban renewal areas to finance rehabilitation required to make such properties conform to code requirements and other objectives of the urban renewal plan for the area. The program will provide financing to persons or business firms otherwise unable to undertake necessary rehabilitation because loans cannot be obtained in sufficient amounts or under reasonable terms. Maximum loan amounts are 1,780 46,050 -5 -75 1,775 45,975 799 -799 -22,047 15,523 976 9,204 980 24,800 -73 $10 thousand for residential units and $50 thousand for businesses. Appropriations of $50 million are authorized to capitalize the fund. A supplemental appropriation of $10 million is requested in the current year, and the remaining $40 million in 1966. Budget program. The specialists on the staff of the local public agency engaged in a rehabilitation program will handle initial contacts with potential applicants. An 25.3 Payment to "Salaries and expenses," Office of the Administrator.. Public enterprise funds-Continued REHABILITATION LOAN FUND-Continued application for a rehabilitation loan on residential property will be referred to a local HHFA Rehabilitation Loan Office. The appropriate FHA insuring office will make technical examinations of applications and inspect the work under approved loans, and the Federal National Mortgage Association will arrange for and supervise loan servicing by private institutions. The Small Business Administration will process business loan applications and handle loan closing and servicing. Loan approvals are estimated at $1.8 million during the current year (assuming the supplemental appropriation is available for the final quarter of the year) and $48.3 million in the budget year. Loan disbursements are estimated at $0.8 million and $23 million for the respective years. Operating results. Current operating losses for the initial operating period are estimated at $199 thousand in the current and $2,464 thousand in the 1966 fiscal year, chiefly attributable to administrative expenses and an allowance for losses estimated for the purpose of this budget at 3% of outstanding loans. Revenue, Expense, and Retained Earnings (in thousands of dollars) 1,600 44,250 1,780 46,050 1964 actual 1965 1966 estimate estimate Capital outlay, funded: Purchase-money mortgages acquired to finance property disposal.. 1966 ceeds of mortgage sales.. -12 estimate 14 Non-Federal sources: Loans repaid.. Interest and other revenue.. -200 Proceeds of real estate sales. -611 -72 -3,090 -199 -2,464 -199 year... -2,792 -1,845 -1,870 24.98 Unobligated balance available, end of -199 -2,663 27 Capital transfer to general fund. 1,000 1,500 The Atomic Energy Community Act of 1955 (42 U.S.C. 2301), providing for the disposition of Governmentowned properties at Oak Ridge, Tenn., and Richland, Wash., was amended in 1963 (76 Stat. 664) to provide for the disposal of federally owned properties at Los Alamos, N. Mex. Sales and financing functions are delegated to the Housing and Home Finance Agency. Budget program.-At the beginning of the current year, only 2 properties with an appraised value of $72 thousand remained out of the 12,000 properties appraised Undisbursed loan obligations 1. 800 Unobligated balance....... 8,405 Invested capital and earnings. 776 at $80 million in the Oak Ridge and Richland disposal programs. There also remained $3.9 million in purchase money mortgages out of the $33 million written in the course of sales. Predisposition work is underway at Los Alamos, covering the planning, zoning, platting, and property classification which precede appraisal and sales efforts. Appraisals will begin in the second half of the current fiscal year. Operating results.-The deficit in the fund is expected to increase from $13.1 million in 1965 to $13.4 million in 1966. This deficit is due primarily to the discounts provided by law to purchasers of property who have statutory priority. Revenue, Expense and Retained Earnings (in thousands of dollars) -1,500 URBAN TRANSPORTATION ACTIVITIES URBAN MASS TRANSPORTATION GRANTS For grants as authorized by the Urban Mass Transportation Act of 1964 [(78 Stat. 302)], as amended (49 U.S.C. 1601 et seq.), to remain available until expended, [$60,000,000 $150,000,000 for the fiscal year 1966, and $150,000,000 for the fiscal year 1967. (Supplemental Appropriation Act, 1965.) URBAN MASS TRANSPORTATION LOANS For loans as authorized by section 3 of the Urban Mass Transportation Act of 1964 [(78 Stat. 302), $5,000,000], as amended (49 U.S.C. 1601 et seq.), $10,000,000. (Supplemental Appropriation Act, 1965.) ADMINISTRATIVE EXPENSES, URBAN TRANSPORTATION ACTIVITIES For necessary expenses to carry out the provisions of the Urban Mass Transportation Act of 1964 [(78 Stat. 302), $187,500], as amended (49 U.S.C. 1601 et seq.), $550,000. (Supplemental Appropriation Act, 1965.) [ADMINISTRATIVE EXPENSES, MASS TRANSPORTATION [For necessary expenses in connection with mass transportation demonstration projects, as authorized by section 103(b) of the Housing Act of 1949, as amended, $100,000.] (Independent Offices Appropriation Act, 1965.) Repayment of capital investment to Treasury... -1,000 750-100-65- -52 Federal assistance to public bodies to assist in the financing of urban transportation facilities and equipment and for demonstration projects designed to assist in the reduction of urban transportation needs and the improvement of urban transportation service was authorized by the Urban Mass Transportation Act of 1964 (49 U.S.C. 1601). Applicants must show that facilities to be financed under the program are necessary for a program for a unified or officially coordinated public transportation system in the urban area, and are necessary for the sound, economic, and desirable development of the area. Under the Urban Mass Transportation Act of 1964 the grant authorization for appropriation, currently $75 million, will increase by $150 million in 1966. The Act further provides that $10 million of the grant authorization shall be available in each year (1965-66) for financing demonstration projects. Consolidated into the Urban Mass Transportation fund during the current year are the fund balances, unexpended authorizations, and other financial and budgetary data for the mass transportation demonstration grant program authorized under the Housing Act of 1961 which were formerly shown under Urban renewal fund, and Administrative expenses, mass transportation demonstrations. The transportation facility loan program as authorized in the Housing Act of 1961, which expired on June 30, 1963, was reactivated by the Urban Mass Transportation Act of 1964. Loan projects are financed by annual appropriations. Financial and budgetary data for transportation facility loans formerly shown under Public facility loans are consolidated with the Urban mass transportation fund. Facility grant program.-Net grant reservations are estimated at $50 million for the current year and $140 million for the budget year. Grants are available for up to two-thirds of "net project cost"-that portion of total project cost which cannot reasonably be financed from revenues. The applicant's share must be in cash from sources other than Federal funds or anticipated revenues. methods for improving mass transportation systems and service. Types of eligible projects include changes in frequency and other service improvements; improvements in forms of mass transportation traffic flow; testing new and improved technology; and coordination of various modes of urban transportation service. Facility loan program.-Net loan reservations are estimated at $5 million for the current year and $10 million for the budget year. Loans under the program are designed to assist transit operations which are able to finance needed improvements and extensions of their transportation facilities out of revenues, but which cannot borrow the necessary funds on reasonable terms. Interest rates are based on a statutory formula and 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 1965 rate is 4%. Financing.-Budgetary expenditures for the program total $16.2 and $47.9 million for 1965 and 1966 respectively. Revenue, Expense, and Retained Earnings (in thousands of dollars) Assets: Financial Condition (in thousands of dollars) Treasury balance. Accounts receivable, net.. Loans receivable, net. Total assets. Government equity: Non-interest-bearing capital: Appropriations. Appropriations transferred from Urban renewal fund.. 17.058 Appropriations transferred from Public facility loans.... 3,000 348 Prior year appropriations for Administrative expenses assumed at inception of fund.. Appropriations expended (grants disbursed).. End of year. Deficit.... Total Government equity. |