a/ In 1975, the assets and liabilities of the Public Facility Loan Fund were transferred to the Revolving Fund (Liquidating Programs) pursuant to the Housing and Community Development Act of 1974. The budget proposes that the assets and liabilities of the College Housing Fund will be transferred to the Revolving Fund in FY 1977. The distribution by account of the actual and estimated permanent, indefinite appropriations for insufficiencies arising from sales authorized in 1967 follows: In the event principal of pooled loans is not paid in time to meet scheduled retirements of participation certificates, GNMA may sell additional certificates under the original sales authority to refund those coming due. Alternatively, those Trustor Accounts with unobligated balances available may repurchase pooled loans to provide the cash required for scheduled redemptions. Outlays during the transition period represent semi-annual payments of interest to holders of participation certificates. Offsetting receipts of interest income on pooled obligations and investment income normally occur later in the fiscal year. Appropriations required during the period represent the shortfall between estimated interest collections on pooled obligations and investment income and the estimated payment required on the certificates. The increase in the indefinite appropriation reflects a lower estimate of interest collections from the Public Facility Loans in the Revolving Fund (Liquidating Programs). [REHABILITATION LOAN FUND] [For the revolving fund established pursuant to section 1452b), $50,000,000, to remain available until August 22, 1 0 Includes, for comparability purposes, $40,000,000 proposed in the 1973 Budget under "proposed legislation" for Urban Community Development Revenue Sharing. a/ Authorization to approve loans expires August 22, 1976. b/ Rescission No. R76-28 was sent to the Congress by the President No appropriation is requested for 1977. Section 116(e) of the Housing and Community Development Act of 1974, as amended, provides for the termination of this program on August 22, 1976. On that date the program assets and liabilities will be transferred to the Revolving Fund (Liquidating Programs). 2. CHANGES FROM ORIGINAL 1976 BUDGET ESTIMATES The original 1976 budget assumed an August 22, 1975, termination date for the Rehabilitation Loan program as provided for in the Housing and Community Development Act of 1974 (P.L. 93-383). The program was extended until August 22, 1976, by the Emergency Housing Act of 1975 (P.L. 94-50). a. Program Level. The changes in loan reservations, obligations and outlays are due to the extension of this program. b. Appropriations. The authorization available in 1976 was reduced by Congress from $150 million to $100 million effective July 2, 1975, as provided for in P.L. 94-50. No appropriation was requested in the 1976 budget for the Rehabilitation Loan Program. However, Congress extended the authorization for the program to August 1976 and appropriated $50 million for this program in 1976. 65-490 0-76- pt.1 - 8 |