The Administration has no objection to the majority of the program extensions
in S. 562 and the provisions of the bill designed to protect participants in
the HUD's reverse mortgage program from unnecessary or excessive mortgage costs
charged by unscrupulous companies.
The Administration, however, is concerned about the provisions of S. 562 that
would extend a multifamily housing restructuring demonstration and renew
section 8 contracts at levels above fair market rents. These temporary
extensions are a costly approach to the multifamily housing problem.
S. 562 would affect direct spending; therefore, it is subject to the
pay-as-you-go requirement of the Omnibus Budget Reconciliation Act (OBRA) of
1990. OMB's scoring estimate of the bill is under development. If S. 562 is
enacted with direct spending increases in FY 1998 that are not offset during
the remainder of this session of Congress, a pay-as-you-go sequester would be
triggered at the end of the session.