Statement of Administration Policy: H.R. 4568 - Department of Housing and Urban Development Supplemental Appropriations Bill, FY 1994

(House Floor)
(Sponsor: Obey (D), Wisconsin)

This Statement of Administration Policy provides the Administration's views on H.R. 4568, FY 1994 supplemental appropriations for the Department of Housing and Urban Development. The Administration commends the House for expeditiously considering this bill.

In a June 6th transmittal, the President asked the House to consider three FY 1994 supplemental appropriations for the Department of Housing and Urban Development. These requests would provide: (1) increased loan commitment authority for the Federal Housing Administration's (FHA) Mutual Mortgage Insurance (MMI) program; (2) increased Government National Mortgage Association (Ginnie Mae) loan guarantee commitment authority; (3) an increase in loan volume for condominium and other housing insurance programs in FHA's General and Special Risk Insurance Funds (GI/SRI); and (4) additional budget authority to subsidize mortgages in the GI/SRI funds for the purchase or construction of rental housing.

These appropriations are required because of the high level of refinancing of existing mortgages and new home purchases resulting from low interest rates. Without these increases, FHA's MMI fund would have to close down operations as early as the end of June and stop insuring mortgages for single-family home buyers. Likewise, Ginnie Mae, which is responsible for the secondary market for FHA, VA, and FmHA insured mortgages, would be forced to shut down in July.

The Administration strongly supports the expeditious approval of these supplemental requests and urges the House to limit the supplemental appropriations bill to the requested items for the Department of Housing and Urban Development discussed-above.