Budget Deferral of Low Income Housing Subsidies

The Department of Housing and Urban Development-Independent Agencies appropriations bill, 1982, provides $148 million in additional funds for 1981 operating subsidies for low income housing projects in addition to funds for operating subsidies for 1982. These would remain available until December 31, 1981. At least $82.4 million from the 1981 appropriation was withheld during the period of the first continuing resolution. The President's fourth special message stated that the impact of this deferral would be to preclude any payment that would apply retroactively to federal support for fiscal year 1981 operations. The statement indicated that the funds available until December 31 would not be used for the purpose for which they were appropriated and contained no indication that the funds would be released in sufficient time to be obligated prudently before they expired. The potential for imminent expiration of the funds due to the deferral was removed upon the enactment of H.J. Res. 370 which extended the period of availability of the funds until September 30, 1982. If GAO does not receive prompt assurance from the Office of Management and Budget that the funds will be released in sufficient time to be obligated prudently or that the funds will be the subject of a rescission, GAO will report the impoundment as an unreported rescission to Congress in January 1982.