,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #eejf  ,,in ,,the ,,house ,,of  
,,representatives  ,september #ag1 #bjad
 ,mr4 ,huffman 7for himself and ,mr4    
,heck of ,washington7 introduced the    
following bill2 which was referred to   
the ,committee on ,financial ,services  
,a ,,bill  ,to amend title ,i of the    
,national ,housing ,act to1 for         
financing alterations1 repairs1 and     
improvements to1 or conversion of1      
existing structures1 modify premium     
charges and the dollar amount limitation
 on loans1 including energy efficiency  
home improvements4  #a4 ,short title    
,this ,act may be cited as the ,home    
,improvement ,loan ,modernization ,act  
of #bjad4  #b4 ,modification to premium 
charges on financing certain            
alterations1 repairs1 and improvements  
to1 or conversions of1 existing         
structures ,subsection 7f7 of section #b
 of the ,national ,housing ,act 7#ab    
,u4,s4,c4 #agjc7;f77 is amended--  7#a7 
in paragraph 7#b71 by striking paragraph

 7#a7 and inserting paragraphs 7#a7 and 
7#c72 and  7#b7 by inserting at the end 
the following new paragraph3  7#c7      
,financing alterations1 repairs1        
improvements1 or conversions            
,notwithstanding paragraphs 7#a7 and    
7#b71 in the case of a loan1 advance of 
credit1 or purchase in connection with  
insurance granted under subparagraph    
7,a77i7 or subparagraph 7,b7 of         
paragraph 7#a71 the premium charge for  
such insurance shall be paid by the     
financial institution providing the loan
 or advance of credit1 as follows3  7,a7
 ,at the time of the making of the loan1
 advance of credit1 or purchase1 a      
single premium payment in an amount not 
to exceed #b4ge percent of the amount of
 the original insured principal         
obligation4  7,b7 ,in addition to the   
premium under subparagraph 7,a71 annual 
premium payments during the term of the 
loan1 advance1 or obligation purchased  
in an amount not exceeding #a4e percent 
of the remaining insured principal      

balance 7excluding the portion of the   
remaining balance attributable to the   
premium collected under subparagraph    
7,a7 and without taking into account    
delinquent payments or prepayments74    
7,c7 ,premium charges under this        
paragraph shall be established in       
amounts that are sufficient1 but do not 
exceed the minimum amounts necessary 7as
 determined based upon risk to the      
,federal ,government under existing     
underwriting requirements7 to maintain a
 negative credit subsidy for the program
 under this section for insurance of    
loans1 advances of credit1 or purchases 
in connection with--  7i7 financing     
alterations1 repairs1 and improvements  
for single-family structures2 and  7ii7 
financing alterations1 repairs1         
improvements1 or conversions of an      
existing structure used or to be used as
 an apartment house or a dwelling for   
two or more families4  7,d7 ,the        
,secretary may increase the limitations 
on premium payments to percentages above

 those set forth in subparagraphs 7,a7  
and 7,b71 but only if necessary1 and not
 in excess of the minimum increase      
necessary1 to maintain a negative credit
 subsidy as described in subparagraph   
7,c74  4  #c4 ,modification to loan     
limitation for financing certain        
alterations1 repairs1 and improvements  
to1 or conversions of1 existing         
structures ,subsection 7b7 of section #b
 of the ,national ,housing ,act 7#ab    
,u4,s4,c4 #agjc7;b77 is amended--  7#a7 
in paragraph 7#a7--  7,a7 in            
subparagraph 7,a77i71 by striking       
#be1jjj and inserting #db1jjj2  7,b7 in 
subparagraph 7,b7--  7i7 by striking    
#fj1jjj and inserting #aja1hhh2 and     
7ii7 by striking #ab1jjj and inserting  
#bj1cgh2 and  7,c7 in the matter after  
and below subparagraph 7,g71 by adding  
at the end the following3 ,the          
,secretary shall1 by notice1 annually   
increase the dollar amount limitation in
 subparagraph 7,a77i7 and subparagraph  
7,b7 7as such limitations may have been 

previously adjusted under this sentence7
 in accordance with the index           
established pursuant to paragraph       
7#ab742 and  7#b7 by adding at the end  
the following new paragraph3  7#ab7     
,annual indexing of loans for financing 
alterations1 repairs1 and improvements  
to1 or conversions of1 existing         
structures ,not later than #a year after
 the date of enactment of the ,home     
,improvement ,loan ,modernization ,act  
of #bjad1 the ,secretary shall develop a
 method of indexing to annually increase
 the dollar amount limitations          
established in subparagraph 7,a77i7 and 
subparagraph 7,b7 of paragraph 7#a74    
,such index shall be based on the       
,consumer ,price ,index for all urban   
consumers 7,,cpi-,u7 computed by the    
,bureau of ,labor ,statistics4  4  #d4  
,modification to loan limitation for    
energy efficiency home improvements     
,subsection 7b7 of section #b of the    
,national ,housing ,act 7#ab ,u4,s4,c4  
#agjc7;b771 as amended by section #b of 

this ,act1 is further amended by adding 
at the end the following new paragraph3 
7#ac7 ,the dollar amount limitations    
otherwise applicable under subparagraph 
7,a77i7 and subparagraph 7,b7 of        
paragraph 7#a7 7as adjusted by paragraph
 7#ab77 may be increased up to #aej     
percent of such limitation if at least  
half of the amount will be used for     
energy conserving improvements or the   
installation of solar energy systems 7as
 defined in the last paragraph of       
section #b7;a7 of this ,act74  4