,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #ahhe  ,,in ,,the ,,house ,,of  
,,representatives  ,may #h1 #bjac ,mrs4 
,davis of ,california 7for herself1 ,mr4
 ,lowenthal1 ,ms4 ,bonamici1 ,mr4       
,takano1 and ,mr4 ,huffman7 introduced  
the following bill2 which was referred  
to the ,committee on ,ways and ,means   
,a ,,bill  ,to amend the ,internal      
,revenue ,code of #aihf to allow        
eligible veterans to use qualified      
veterans mortgage bonds to refinance    
home loans1 and for other purposes4  #a4
 ,short title ,this ,act may be cited as
 the ,veterans ,home ,loan ,refinance   
,opportunity ,act of #bjac4  #b4        
,modification of qualified veterans'    
mortgage bonds program to allow eligible
 veterans to refinance current home     
loans  7a7 ,elimination of refinance    
prohibition for veterans' bonds ,section
 #adc7;b7 of the ,internal ,revenue     
,code of #aihf 7relating to qualified   
veterans' mortgage bond defined7 is     
amended--  7#a7 in paragraph 7#a7 by    

striking residences and inserting       
residences or qualified refinancing     
loans1 and  7#b7 in paragraph 7#c7 by   
striking 7i77#a714  7b7 ,definition     
,section #adc7l7 of the ,internal       
,revenue ,code of #aihf 7relating to    
additional requirements for qualified   
veterans' mortgage bonds7 is amended by 
adding at the end the following3  7#f7  
,qualified refinancing loan ,for        
purposes of this subsection1 the term   
qualified refinancing loan means a loan 
that is used to refinance acquisition   
indebtedness 7as defined in subclauses  
7,i7 and 7,,ii7 of section              
#afc7;h77#c77;,b77i77 for a principal   
residence 7within the meaning of section
 #aba74  4  7c7 ,effective date ,the    
amendments made by this section shall   
apply to bonds issued after the date of 
enactment of this ,act4  #c4 ,inflation 
adjustment of state veterans limit  7a7 
,in general ,paragraph 7#c7 of section  
#adc7l7 of the ,internal ,revenue ,code 
of #aihf 7relating to volume limitation7

 is amended by adding at the end the    
following new subparagraph3  7,d7       
,limitation adjustment based on         
inflation  7i7 ,in general ,in the case 
of any calendar year after #bjac1 the   
limit determined under subparagraph 7,b7
 for a ,state shall be adjusted for such
 calendar year by multiplying such limit
 by the inflation adjustment factor for 
the calendar year4  7ii7 ,computation of
 inflation adjustment factor ,for       
purposes of clause 7i7--  7,i7 ,in      
general ,the ,secretary shall1 not later
 than each ,october #a1 determine and   
publish in the ,federal ,register the   
inflation adjustment factor for the     
succeeding calendar year in accordance  
with this clause4  7,,ii7 ,inflation    
adjustment factor ,the term inflation   
adjustment factor means1 with respect to
 a calendar year1 a fraction the        
numerator of which is the ,,cmhpi for   
the second quarter of the calendar year 
preceding the calendar year for which   
the adjustment is being made1 and the   

denominator of which is the ,,cmhpi for 
the second quarter of calendar year     
#bjac4  7,,iii7 ,,cmhpi ,the term       
,,cmhpi means the ,conventional         
,mortgage ,home ,price ,index compiled  
by ,federal ,home ,loan ,mortgage       
,corporation4 ,the ,,cmhpi for any      
quarter shall be the ,,cmhpi first      
published for such quarter4  7,,iv7     
,limitation ,no adjustment shall be made
 under clause 7i7 for any year in which 
the fraction in subclause 7,,ii7 is less
 than #a4  4  7b7 ,effective date ,the  
amendments made by this section shall   
apply to bonds issued after the date of 
the enactment of this ,act4  #d4        
,modification of materially higher yield
 for mortgages made from qualified      
veterans' mortgage bonds  7a7 ,mortgage 
yield limitation measured under general 
program obligation provisions  7#a7     
,effective mortgage interest limitation 
excepted ,paragraph 7#c7 of section     
#adc7;b7 of the ,internal ,revenue ,code
 of #aihf 7relating to qualified        

veterans' mortgage bond defined7 is     
amended by inserting 7other than        
paragraph 7#b7 thereof7 after 7g74  7#b7
 ,increase in yield limit ,subparagraph 
7,c7 of section #adc7;g77#c7 of the     
,internal ,revenue ,code of #aihf       
7relating to requirements related to    
arbitrage7 is amended by striking #a4abe
 percentage points and inserting #a4ej  
percentage points4  7#c7 ,clerical      
amendment ,section #adc7;g77#c7 of such 
,code 7relating to requirements related 
to arbitrage7 is amended in the heading 
for subparagraph 7,c7 by striking where 
issuer does not use full #a4abe         
percentage points under paragraph 7#b7  
and inserting for certain unused        
amounts4  7b7 ,effective date ,the      
amendments made by this section shall   
apply to obligations issued after the   
date of the enactment of this ,act4