Page:United States Statutes at Large Volume 101 Part 2.djvu/332

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PUBLIC LAW 100-000—MMMM. DD, 1987

101 STAT. 1318 Effective date. 38 USC 1816 note.

38 USC 1816 note. 38 USC 1816 note.

PUBLIC LAW 100-198—DEC. 21, 1987

(2) The amendment made by paragraph (1) shall take effect as of October 1, 1987. (b) MAXIMUM AMOUNT AND REHABILITATION LOANS.—(1) Section

1816(d) is amended by adding at the end the following new paragraphs: "(4)(A) Except as provided in subparagraph (B) of this paragraph, the amount of a loan made by the Administrator to finance the purchase of real property from the Administrator described in paragraph (1) of this subsection may not exceed an amount equal to 95 percent of the purchase price of such real property. "(B) The Administrator may waive the provisions of subparagraph (A) of this paragraph in the case of any loan described in paragraph (5) of this subsection. "(5) The Administrator may include, as part of a loan to finance a purchase of real property from the Administrator described in paragraph (1) of this subsection, an amount to be used only for the purpose of rehabilitating such property. Such amount may not exceed the amount necessary to rehabilitate the property to a habitable state, and payments shall be made available periodically as such rehabilitation is completed. "(6) This subsection shall cease to have effect on October 1, 1990.". (2) The amendment made by this subsection shall apply to loans made more than 30 days after the date of the enactment of this Act. (c) REPORT.—The Administrator of Veterans' Affairs shall, by March 1, 1990, transmit to the Congress a report of the activities carried out, through December 31, 1989, under paragraphs (4) and (5) of section 1816(d) of title 38, United States Code, as added by subsection (b) of this section. SEC. 7. REFINANCING HOME LOANS. (a) LOANS GUARANTEED OR INSURED BY THE VETERANS' ADMINIS-

TRATION.—Section 1810(e)(1) is amended— (1) in clause (B), by striking out "and such" and all that follows through "home"; and (2) in clause (D), by striking out "and"; (3) in clause (E), by striking out the period and inserting in lieu thereof "by more than 10 years; and '; and (4) by adding at the end the following new clause: "(F) the veteran must own the dwelling or farm residence securing the loan and— "(i) must occupy sudh dwelling or residence as such veteran's home; "(ii) must have previously occupied such dwelling or residence as such veteran's home and must certify, in such form as the Administrator shall require, that the veteran has previously so occupied such dwelling or residence; or "(iii) in any case in which a veteran is in active duty status as a member of the Armed Forces and is unable to occupy such residence or dwelling as a home because of such status, the spouse of the veteran must occupy, or must have previously occupied, such dwelling or residence as such spouse's home and must certify such occupancy in such form as the Administrator shall require.". (b) MANUFACTURED HOUSING LOANS.—Section 1819(a)(4)(A) is amended— (1) in clause (ii), by striking out "and such" and all that follows through "veteran's home";