SEC-340 -- INCREASE IN LOAN LIMITS FOR PROPERTY IMPROVEMENT LOAN 

 
INSURANCE.
 
 (a) Study.-The Secretary of Housing and Urban Development shall conduct
a study regarding the need for increasing the loan limits under section
2(b) of the National Housing Act for insurable property improvement
loans and the effects of such an increase. The Secretary shall submit
a report to the Congress not later than 6 months after the date of the
enactment of this Act regarding the findings and conclusions of the
study.
 
 (b) Maximum Loan Amounts.-
 
 (1) In general.-Section 2(b)(1) of the National Housing Act (12 U.S.C.
1703(b)(1)) is amended-
 
 (A) by striking subparagraph (A) and inserting the following new
subparagraph:
 
 "(A)(i) $25,000 if made for the purpose of financing alterations,
repairs and improvements upon or in connection with existing
single-family structures; and
 
 "(ii) $17,500 if made for the purpose of financing alterations,
repairs and improvements upon or in connection with existing
manufactured homes;"; and
 
 (B) in subparagraph (B), by striking "$43,750 or an average amount of
$8,750 per family unit ($50,000 and $10,000, respectively, where
financing the installation of a solar energy system is involved)" and
inserting "$60,000 or an average amount of $12,000 per family unit".
 
 (2) Applicability.-The amendments made by this subsection shall apply
to loans executed on or after June 1, 1991.
 
 (c) Loan Term.-Section 2(b)(3) of the National Housing Act (12 U.S.C.
1703(b)(3)) is amended-
 
 (1) by striking subparagraph (A) and inserting the following new
subparagraph:
 
 "(A)(i) twenty years and thirty-two days if made for the purpose of
financing alterations, repairs, and improvements upon or in connection
with an existing single-family structure; and
 
 "(ii) fifteen years and thirty-two days if made for the purpose of
financing alterations, repairs, and improvements upon or in connection
with an existing manufactured home;"; and
 
 (2) in subparagraph (B), by striking "fifteen years" and inserting
"twenty years".
Subtitle C-Effective Date