PUBLIC LAW 104-204—SEPT. 26, 1996 110 STAT. 2927 the Department in furnishing the hospital care, medical or surgical treatment, or examination; or "(B) an event not reasonably foreseeable; or "(2) the disability or death was proximately caused by the provision of training and rehabilitation services by the Secretary (including by a service-provider used by the Secretary for such purpose under section 3115 of this title) as part of an approved rehabilitation program under chapter 31 of this title."; and (2) in the second sentence— (A) by redesignating that sentence as subsection (b); (B) by striking out ", aggravation," both places it appears; and (C) by striking out "sentence" and substituting in lieu thereof "subsection". (b)(1) The amendments made by subsection (a) shall take effect Effective date. on October 1, 1996. 38 USC 1151 (2) Section 1151 of title 38, United States Code (as amended '^°^- by subsection (a)), shall govern all administrative and judicial determinations of eligibility for benefits under such section that are made with respect to claims filed on or after the effective date set forth in paragraph (1), including those based on original applications and applications seeking to reopen, revise, reconsider, or otherwise readjudicate on any basis claims for benefits under such section 1151 or any provision of law that is a predecessor of such section. (c) Notwithstanding subsection (b)(1), section 421(d), or any 38 USC 1151 other provision of this Act, section 421 and this section shall not ^ote. take effect until October 1, 1997, unless legislation other than this Act is enacted to provide for an earlier effective date. SEC. 423. The amount provided in title I for "Veterans Health Administration—Medical Care" is hereby increased by $5,000,000. SEC. 424. FHA MORTGAGE INSURANCE PREMIUMS.—Section 203(c)(2)(A) of the National Housing Act (12 U.S.C. 1709(c)(2)(A)) is amended by inserting after the first sentence the following new sentence: "In the case of a mortgage for which the mortgagor is a first-time homebuyer who completes a program of counseling with respect to the responsibilities and financial management involved in homeownership that is approved by the Secretary, the premium payment under this subparagraph shall not exceed 2.0 percent of the amount of the original insured principal obligation of the mortgage.". SEC. 425. (a) AUTHORITY TO USE AMOUNTS BORROWED FROM FAMILY MEMBERS FOR DOWNPAYMENTS ON FHA-INSURED LOANS. — Section 203(b)(9) of the National Housing Act (12 U.S.C. 1709(b)(9)) is amended by inserting before the period at the end the following: ": Provided further. That for purposes of this paragraph, the Secretary shall consider as cash or its equivalent any amounts borrowed from a family member (as such term is defined in section 201), subject only to the requirements that, in any case in which the repayment of such borrowed amounts is secured by a lien against the property, such lien shall be subordinate to the mortgage and the sum of the principal obligation of the mortgage and the obligation secured by such lien may not exceed 100 percent of the appraised value of the property plus any initial service charges, appraisal, inspection, and other fees in connection with the mortgage".
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