In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

[EX Q]: SECTION 1. DENIAL OF CASH BENEFITS TO DRUG ADDICTS AND ALCOHOLICS.

    (a) Amendments Relating to Title II Disability Benefits.--
            (1) In general.--Section 225(c) of the Social Security Act 
        (42 U.S.C. 425(c)) is amended--
                    (A) by striking ``(c)(1)(A)'' and inserting 
                ``(2)(A)'';
                    (B) by striking paragraph (7) and by redesignating 
                paragraphs (2) through (6) as paragraphs (3) through 
                (7), respectively; and
                    (C) by inserting before paragraph (2) as 
                redesignated by subparagraph (A) the following new 
                paragraph:
    ``(c)(1) No cash benefits shall be payable under this title to any 
individual who is otherwise entitled to benefits under this title based 
on disability, if such individual's alcoholism or drug addiction is a 
contributing factor material to the Commissioner's determination that 
such individual is disabled.''.
            (2) Treatment Requirements.--
                    (A) Section 225(c)(2)(A) of such Act (42 U.S.C. 
                425(c)(2)(A)), as redesignated by paragraph (1), is 
                amended to read as follows:
    ``(2)(A)(i) Any individual who would be entitled to cash benefits 
under this title but for the application of paragraph (1) may elect to 
comply with the provisions of this subsection.
            ``(ii) Any individual who is entitled to cash benefits 
        under this title by reason of disability (or whose entitlement 
        to such benefits is suspended), and who was entitled to such 
        benefits by reason of disability, for which such individual's 
        alcoholism or drug addiction was a contributing factor material 
        to the Commissioner's determination that such individual was 
        disabled, for the month preceding the month in which this 
        paragraph takes effect, shall be required to comply with the 
        provisions of this subsection.
                    (B) Section 225(c)(2)(B) of such Act (42 U.S.C. 
                425(c)(2)(B)), as so redesignated, is amended--
                            (i) by striking ``who is required under 
                        subparagraph (A)'' and inserting ``described in 
                        clause (ii) of subparagraph (A) who is 
                        required''; and
                            (ii) by striking ``paragraph (3)'' and 
                        inserting ``paragraph (4)''.
                    (C) Section 225(c)(3)(A) of such Act (42 U.S.C. 
                425(c)(3)(A)), as so redesignated, is amended--
                            (i) by striking ``paragraph (1)'' and 
                        inserting ``paragraph (2)(A)''; and
                            (ii) by striking ``paragraph (5)'' and 
                        inserting ``paragraph (6)''.
                    (D) Section 225(c)(3)(B) of such Act (42 U.S.C. 
                425(c)(3)(B)), as so redesignated, is amended by 
                striking ``paragraph (1)'' and inserting ``paragraph 
                (2)(A)''.
                    (E) Section 225(c)(5) of such Act (42 U.S.C. 
                425(c)(5)), as so redesignated, is amended by striking 
                ``paragraph (2)'' and inserting ``paragraph (3)''.
                    (F) Section 225(c)(6)(A) of such Act (42 U.S.C. 
                425(c)(6)(A), as so redesignated, is amended--
                            (i) by striking ``who are receiving 
                        benefits under this title and who as a 
                        condition of payment of such benefits'' and 
                        inserting ``described in paragraph (2)(A)(i) 
                        who elect to undergo treatment; and the 
                        monitoring and testing of all individuals 
                        described in paragraph (2)(A)(ii) who'';
                            (ii) by striking ``under paragraph (1)''; 
                        and
                            (iii) by striking ``paragraph (2)(A)'' and 
                        inserting ``paragraph (3)(A)''.
                    (G) Section 225(c)(6)(C)(ii)(I) of such Act (42 
                U.S.C. 425(c)(6)(C)(ii)(I)), as so redesignated, is 
                amended--
                            (i) by striking ``residing in the State'' 
                        and all that follows through ``they are 
                        disabled'' and inserting ``described in 
                        paragraph (2)(A) residing in the State''; and
                            (ii) by striking ``paragraph (2)(A)'' and 
                        inserting ``paragraph (3)(A)''.
                    (H) Section 225(c)(6)(C)(ii)(III) of such Act (42 
                U.S.C. 425(c)(6)(C)(ii)(III)), as so redesignated, is 
                amended by striking ``paragraph (2)(A)'' and inserting 
                ``paragraph (3)(A)''.
                    (I) Section 225(c)(6)(C) of such Act (42 U.S.C. 
                425(c)(6)(C)), as so redesignated, is amended by adding 
                at the end the following:
    ``(iii) The monitoring requirements of clause (ii) shall not apply 
in the case of any individual described in paragraph (2)(A)(i) who 
fails to comply with the requirements of paragraph (2).''.
                    (J) Section 225(c)(7) of such Act (42 U.S.C. 
                425(c)(7)), as so redesignated, is amended--
                            (i) in subparagraph (A), by striking ``who 
                        is entitled'' and all that follows through ``is 
                        under a disability'' and inserting ``described 
                        in paragraph (2)(A)''; and
                            (ii) in subparagraph (D), by striking ``(4) 
                        or (7)'' and inserting ``(5)''.
                    (K) Section 225(c)(8) of such Act (42 U.S.C. 
                425(c)(8)) is amended by striking ``(1), (4) or (7)'' 
                and inserting ``(2) or (5)''.
                    (L) Section 225(c) of such Act (42 U.S.C. 425(c)) 
                is amended by adding at the end the following new 
                paragraphs:
    ``(10) The Commissioner shall provide appropriate notification to 
each individual subject to the limitation on cash benefits contained in 
paragraph (1) and the treatment provisions contained in paragraph (2).
    ``(11) The requirements of paragraph (2) shall cease to apply to 
any individual if the Commissioner determines that such individual no 
longer needs treatment.''.
            (3) Representative payee requirements.--
                    (A) Section 205(j)(1)(B) of such Act (42 U.S.C. 
                405(j)(1)(B)) is amended to read as follows:
    ``(B) In the case of an individual entitled to benefits based on 
disability, the payment of such benefits shall be made to a 
representative payee if the Commissioner of Social Security determines 
that such payment would serve the interest of the individual because 
the individual also has an alcoholism or drug addiction condition (as 
determined by the Commissioner) and the individual is incapable of 
managing such benefits.''.
                    (B) Section 205(j)(2)(C)(v) of such Act (42 U.S.C. 
                405(j)(2)(C)(v)) is amended by striking ``entitled to 
                benefits'' and all that follows through ``under a 
                disability'' and inserting ``described in paragraph 
                (1)(B)''.
                    (C) Section 205(j)(2)(D)(ii)(II) of such Act (42 
                U.S.C. 405(j)(2)(D)(ii)(II)) is amended by striking all 
                that follows ``15 years, or'' and inserting ``described 
                in paragraph (1)(B).''.
                    (D) Section 205(j)(4)(A)(i)(II) of such Act (42 
                U.S.C. 405(j)(4)(A)(ii)(II)) is amended by striking 
                ``entitled to benefits'' and all that follows through 
                ``under a disability'' and inserting ``described in 
                paragraph (1)(B)''.
    (b) Amendments Relating to SSI Benefits.--
            (1) In general.--Section 1611(e)(3) of the Social Security 
        Act (42 U.S.C. 1382(e)(3)) is amended--
                    (A) by striking ``(B)'' and inserting ``(C)'';
                    (B) by striking ``(3)(A)'' and inserting ``(B)''; 
                and
                    (C) by inserting before subparagraph (B) as 
                redesignated by paragraph (2) the following new 
                subparagraph:
    ``(3)(A) No cash benefits shall be payable under this title to any 
individual who is otherwise eligible for benefits under this title by 
reason of disability, if such individual's alcoholism or drug addiction 
is a contributing factor material to the Commissioner's determination 
that such individual is disabled.''.
            (2) Treatment requirements.--
                    (A) Section 1611(e)(3)(B)(i)(I) of such Act (42 
                U.S.C. 1382(e)(3)(B)(i)(I)), as redesignated by 
                paragraph (1), is amended to read as follows:
    ``(B)(i)(I)(aa) Any individual who would be eligible for cash 
benefits under this title but for the application of subparagraph (A) 
may elect to comply with the provisions of this subparagraph.
            ``(bb) Any individual who is eligible for cash benefits 
        under this title by reason of disability (or whose eligibility 
        for such benefits is suspended) or is eligible for benefits 
        pursuant to section 1619(b), and who was eligible for such 
        benefits by reason of disability, for which such individual's 
        alcoholism or drug addiction was a contributing factor material 
        to the Commissioner's determination that such individual was 
        disabled, for the month preceding the month in which this 
        subparagraph takes effect, shall be required to comply with the 
        provisions of this subparagraph.''.
                    (B) Section 1611(e)(3)(B)(i)(II) of such Act (42 
                U.S.C. 1382(e)(3)(B)(i)(II)), as so redesignated, is 
                amended by striking ``who is required under subclause 
                (I)'' and inserting ``described in division (bb) of 
                subclause (I) who is required''.
                    (C) Subclauses (I) and (II) of section 
                1611(e)(3)(B)(ii) of such Act (42 U.S.C. 
                1382(e)(3)(B)(ii)), as so redesignated, are each 
                amended by striking ``clause (i)'' and inserting 
                ``clause (i)(I)''.
                    (D) Section 1611(e)(3)(B) of such Act (42 U.S.C. 
                1382(e)(3)(B)), as so redesignated, is amended by 
                striking clause (v) and by redesignating clause (vi) as 
                clause (v).
                    (E) Section 1611(e)(3)(B)(v) of such Act (42 U.S.C. 
                1382(e)(3)(B)(v)), as redesignated by subparagraph (D), 
                is amended--
                            (i) in subclause (I), by striking ``who is 
                        eligible'' and all that follows through ``is 
                        disabled'' and inserting ``described in clause 
                        (i)(I)''; and
                            (ii) in subclause (V), by striking ``or 
                        (v)''.
                    (F) Section 1611(e)(3)(C)(i) of such Act (42 U.S.C. 
                1382(e)(3)(C)(i)), as redesignated by paragraph (1), is 
                amended by striking ``who are receiving benefits under 
                this title and who as a condition of such benefits'' 
                and inserting ``described in subparagraph (B)(i)(I)(aa) 
                who elect to undergo treatment; and the monitoring and 
                testing of all individuals described in subparagraph 
                (B)(i)(I)(bb) who''.
                    (G) Section 1611(e)(3)(C)(iii)(II)(aa) of such Act 
                (42 U.S.C. 1382(e)(3)(C)(iii)(II)(aa)), as so 
                redesignated, is amended by striking ``residing in the 
                State'' and all that follows through ``they are 
                disabled'' and inserting ``described in subparagraph 
                (B)(i)(I) residing in the State''.
                    (H) Section 1611(e)(3)(C)(iii) of such Act (42 
                U.S.C. 1382(e)(3)(C)(iii)), as so redesignated, is 
                amended by adding at the end the following:
    ``(III) The monitoring requirements of subclause (II) shall not 
apply in the case of any individual described in subparagraph 
(B)(i)(I)(aa) who fails to comply with the requirements of subparagraph 
(B).''.
                    (I) Section 1611(e)(3) of such Act (42 U.S.C. 
                1382(e)(3)), as amended by paragraph (1), is amended by 
                adding at the end the following new subparagraphs:
    ``(D) The Commissioner shall provide appropriate notification to 
each individual subject to the limitation on cash benefits contained in 
subparagraph (A) and the treatment provisions contained in subparagraph 
(B).
    ``(E) The requirements of subparagraph (B) shall cease to apply to 
any individual if the Commissioner determines that such individual no 
longer needs treatment.''.
            (3) Representative payee requirements.--
                    (A) Section 1631(a)(2)(A)(ii)(II) of such Act (42 
                U.S.C. 1383(a)(2)(A)(ii)(II)) is amended to read as 
                follows:
    ``(II) In the case of an individual eligible for benefits under 
this title by reason of disability, the payment of such benefits shall 
be made to a representative payee if the Commissioner of Social 
Security determines that such payment would serve the interest of the 
individual because the individual also has an alcoholism or drug 
addiction condition (as determined by the Commissioner) and the 
individual is incapable of managing such benefits.''.
                    (B) Section 1631(a)(2)(B)(vii) of such Act (42 
                U.S.C. 1383(a)(2)(B)(vii)) is amended by striking 
                ``eligible for benefits'' and all that follows through 
                ``is disabled'' and inserting ``described in 
                subparagraph (A)(ii)(II)''.
                    (C) Section 1631(a)(2)(B)(ix)(II) of such Act (42 
                U.S.C. 1383(a)(2)(B)(ix)(II)) is amended by striking 
                all that follows ``15 years, or'' and inserting 
                ``described in subparagraph (A)(ii)(II).''.
                    (D) Section 1631(a)(2)(D)(i)(II) of such Act (42 
                U.S.C. 1383(a)(2)(D)(i)(II)) is amended by striking 
                ``eligible for benefits'' and all that follows through 
                ``is disabled'' and inserting ``described in 
                subparagraph (A)(ii)(II)''.
            (4) Preservation of medicaid eligibility.--Section 1634(e) 
        of such Act (42 U.S.C. 1382(e)) is amended--
                    (A) by striking ``clause (i) or (v) of section 
                1611(e)(3)(A)'' and inserting ``subparagraph (A) or 
                subparagraph (B)(i)(II) of section 1611(e)(3)''; and
                    (B) by adding at the end the following: ``This 
                subsection shall cease to apply to any such person if 
                the Commissioner determines that such person no longer 
                needs treatment.''.
            (5) Conforming amendment.--Section 201(c) of the Social 
        Security Independence and Program Improvements Act of 1994 (42 
        U.S.C. 425 note) is repealed.
    (c) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to applicants for 
        benefits under title II or title XVI of the Social Security Act 
        for months beginning on or after the date of the enactment of 
        this Act, without regard to whether regulations have been 
        issued to implement such amendments.
            (2) Application to current recipients.--Notwithstanding any 
        other provision of law, in the case of an individual who is 
        receiving benefits under title II of the Social Security Act or 
        supplemental security income benefits under title XVI of such 
        Act as of the date of the enactment of this Act and whose 
        entitlement or eligibility for such benefits would terminate by 
        reason of the amendments made by this section, such amendments 
        shall apply with respect to the benefits of such individual for 
        months beginning on or after January 1, 1997, and the 
        Commissioner of Social Security shall so notify the individual 
        not later than 90 days after the date of the enactment of this 
        Act.
            (3) Benefits under title xvi.--For purposes of this 
        subsection, the term ``benefits under title XVI of the Social 
        Security Act'' includes supplementary payments pursuant to an 
        agreement for Federal administration under section 1616(a) of 
        the Social Security Act, and payments pursuant to an agreement 
        entered into under section 212(b) of Public Law 93-66.
[EX A]: Denies monthly cash disability benefits under titles II (Old Age, Survivors and Disability Insurance) (OASDI) and XVI (Supplemental Security Income) (SSI), respectively, of the Social Security Act for drug addicts and alcoholics whose substance abuse is a contributing factor material to their disability.  Allows such individuals, instead, to elect to undergo treatment for their substance abuse. (Currently, such recipients are required to undergo treatment only at approved facilities or institutions.) 
Revises OASDI and SSI program representative payee requirements to require the payment of program benefits through a representative payee if it is in the interest of an otherwise disabled individual with an alcohol or drug addiction condition who is incapable of managing such benefits. 
Preserves the Medicaid eligibility of SSI recipients denied cash disability benefits because of the connection between their drug addiction or alcoholism and their disability.

[EX Q]: SECTION 1. FINDINGS.

    Congress finds the following:
            (1) It is in the national interest that all citizens, 
        including active-duty service members, be allowed to vote in 
        Federal elections.
            (2) Since 1977, active-duty service members serving 
        overseas or on the United States mainland have been excluded 
        from fully participating and voting in both general and runoff 
        Federal elections in American Samoa due to several factors, 
        including local law that requires active duty military members 
        to register in person, limited air and mail service between the 
        U.S. mainland and American Samoa, and delays in the preparation 
        of new ballots in the case of runoff elections.
            (3) American Samoa law requiring uniformed service voters 
        to register to vote in person is contrary to the Uniformed and 
        Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff et 
        seq.).
            (4) The Uniformed and Overseas Citizens Absentee Voting Act 
        has been in effect for over 15 years, and American Samoa has 
        not addressed this discrepancy between Federal and territorial 
        law, despite notice that the discrepancy exists.
            (5) It is necessary to take additional action to ensure 
        that the votes of uniformed voters are counted in Federal 
        elections conducted in American Samoa and that active duty 
        service members (including reservists called to active duty) do 
        not need to appear in person to register to vote.
            (6) It is necessary to state that the Uniformed and 
        Overseas Citizens Absentee Voting Act supersedes American Samoa 
        law and American Samoa must comply with this Federal law.
            (7) It is also in the national interest that, to the extent 
        possible, Members of the United States House of Representatives 
        and non-voting Delegates be elected in the first week of 
        November in even-numbered years.
            (8) Since 1980, when the first election for the 
        Congressional Delegate from American Samoa was held, there have 
        been several general elections at which there was no final 
        resolution of who was elected as the Delegate for the next 
        Congress, and run-off elections were required.
            (9) When the outcome of the Delegate election is not 
        resolved until a runoff election is held, a final determination 
        of who the Delegate will be is not made known until late 
        November.
            (10) A delayed outcome may place a newly elected Delegate 
        in a more junior position to other Members of Congress elected 
        on the first Tuesday after the first Monday of November in an 
        election year.
            (11) When more than 2 candidates file to run for election 
        for the office of Delegate, holding a primary election to 
        reduce the number of candidates to 2 will greatly increase the 
        likelihood that the general election will produce a candidate 
        who receives a majority of the votes cast.

SEC. 2. PRIMARY ELECTION REQUIRED.

    Section 2(a) of the Act entitled ``An Act to provide that the 
Territory of American Samoa be represented by a nonvoting Delegate to 
the United States House of Representatives, and for other purposes'', 
approved October 31, 1978 (48 U.S.C. 1732(a)) is amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following new paragraphs:
    ``(2) In any general election year when 3 or more eligible 
individuals file by the first Tuesday of July as candidates for the 
office of Delegate, a primary election shall be held on the first 
Tuesday of August of that general election year. If the primary 
election results in 1 candidate receiving more than 50 percent of the 
votes cast, then that candidate shall be the only candidate on the 
ballot for the general election for Delegate that year. If the primary 
election results in no candidate receiving more than 50 percent of the 
votes cast, then the 2 candidates receiving the most votes cast shall 
be on the ballot for the general election year. If there is a tie for 
the 2 candidates receiving the most votes, the names of the 2 
candidates shall be listed on the ballot for that general election 
year.
    ``(3) Candidates for the office of Delegate to the United States 
House of Representatives must file their candidacy not later than the 
first Tuesday of July each year that a general election referred to in 
paragraph (1) is scheduled to be held.''.

SEC. 3. CONFORMING AMENDMENTS.

    Section 4 of the Act entitled ``An Act to provide that the 
Territory of American Samoa be represented by a nonvoting Delegate to 
the United States House of Representatives, and for other purposes'', 
approved October 31, 1978 (48 U.S.C. 1734), is amended by inserting 
``in a general Federal election'' after ``ties between candidates''.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on January 1, 
2003.
[EX A]: Declares that it is necessary to state that the Uniformed and Overseas Citizens Absentee Voting Act supersedes American Samoa law and American Samoa must comply with it.Requires a primary election to be held in American Samoa on the first Tuesday of August of any general election year when three or more eligible individuals have filed by the first Tuesday of July as candidates for the office of Delegate representing American Samoa in the U.S. House of Representatives.

[EX Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``FHA Modernization and Efficiency Act 
of 1995''.

SEC. 2. CONGRESSIONAL FINDINGS.

    The Congress finds that--
            (1) the single family housing mortgage insurance program of 
        the Department of Housing and Urban Development is a 
        significant factor in promoting first-time and affordable 
        homeownership in the United States;
            (2) use of mortgage financing under the program has 
        decreased in recent years, due in part to increasing complexity 
        of mortgage origination and servicing under the program;
            (3) simplifying and streamlining the loan criteria and loan 
        approval process under the program would have a positive effect 
        on use of the program without increasing risk to the Mutual 
        Mortgage Insurance Fund; and
            (4) flexible lending products can be developed without 
        increasing risk to the Mutual Mortgage Insurance Fund.

SEC. 3. MAXIMUM MORTGAGE AMOUNT FLOOR FOR SINGLE FAMILY MORTGAGE 
              INSURANCE.

    Subparagraph (A) of the first sentence of section 203(b)(2) of the 
National Housing Act (12 U.S.C. 1709(b)(2)(A)) is amended by striking 
``the greater of'' and all that follows through ``applicable size'' and 
inserting the following: ``50 percent of the dollar amount limitation 
determined under section 305(a)(2) of the Federal Home Loan Mortgage 
Corporation Act (as adjusted annually under such section) for a 
residence of the applicable size''.

SEC. 4. CALCULATION OF DOWNPAYMENT.

    Section 203(b)(2) of the National Housing Act (12 U.S.C. 
1709(b)(2)) is amended--
            (1) by striking subparagraph (B) and inserting the 
        following new subparagraph:
                    ``(B) except as otherwise provided in this 
                paragraph (2), not in excess of--
                            ``(i) in the case of a mortgage for a 
                        property with an appraised value equal to or 
                        less than $50,000, 98.75 percent of the 
                        appraised value of the property,
                            ``(ii) in the case of a mortgage for a 
                        property with an appraised value in excess of 
                        $50,000 but not in excess of $125,000, 97.65 
                        percent of the appraised value of the property,
                            ``(iii) in the case of a mortgage for a 
                        property with an appraised value in excess of 
                        $125,000, 97.15 percent of the appraised value 
                        of the property, or
                            ``(iv) notwithstanding clauses (ii) and 
                        (iii), in the case of a mortgage for a property 
                        with an appraised value in excess of $50,000 
                        and which is located in a State for which the 
                        average closing cost exceeds 3.25 percent of 
                        the average, for the State, of the sale price 
                        of properties located in the State for which 
                        mortgages have been executed, 97.75 percent of 
                        the appraised value of the property,
                plus the amount of the mortgage insurance premium paid 
                at the time the mortgage is insured.'';
            (2) in the 1st sentence of the matter following 
        subparagraph (B), by inserting before the period at the end the 
        following: ``, and the term `average closing cost' means, with 
        respect to a State, the average, for mortgages executed for 
        properties that are located within the State, of the total 
        amounts (as determined by the Secretary) of initial service 
        charges, appraisal, inspection, and other fees (as the 
        Secretary shall approve) that are paid in connection with such 
        mortgages'';
            (3) by striking the 2d sentence of the matter following 
        subparagraph (B); and
            (4) in penultimate undesignated paragraph--
                    (A) in the 2d sentence, by striking ``the preceding 
                sentence'' and inserting ``this subsection''; and
                    (B) by striking the 1st sentence.

SEC. 5. ELIMINATION OF RESTRICTIONS REGARDING NEW CONSTRUCTION.

    (a) In General.--Section 203(b)(2) of the National Housing Act (12 
U.S.C. 1709(b)(2)) is amended, in the matter following subparagraph 
(B)--
            (1) in the 1st undesignated paragraph, by striking 
        ``Notwithstanding any other provision of this section,'' and 
        all that follows through ``beginning of construction.''; and
            (2) by striking the 2d undesignated paragraph (relating to 
        mortgage insurance amounts for residences having solar energy 
        systems).
    (b) Repeal of Authority to Expend Amounts From Insurance Fund to 
Correct Substantial Defects.--Section 518 of the National Housing Act 
(12 U.S.C. 1735b) is hereby repealed.

SEC. 6. AUTHORITY TO USE AMOUNTS BORROWED FROM FAMILY MEMBERS FOR 
              DOWNPAYMENTS.

    (a) In General.--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''.
    (b) Definition of Family Member.--Section 201 of the National 
Housing Act (12 U.S.C. 1707) is amended by adding at the end the 
following new subsections:
    ``(e) The term `family member' means, with respect to a mortgagor 
under such section, a child, parent, or grandparent of the mortgagor 
(or the mortgagor's spouse). In determining whether any of the 
relationships referred to in the preceding sentence exist, a legally 
adopted son or daughter of an individual (and a child who is a member 
of an individual's household, if placed with such individual by an 
authorized placement agency for legal adoption by such individual), and 
a foster child of an individual, shall be treated as a child of such 
individual by blood.
    ``(f) The term `child' means, with respect to a mortgagor under 
such section, a son, stepson, daughter, or stepdaughter of such 
mortgagor.''.

SEC. 7. APPROVAL OF CONDOMINIUM PROJECTS.

    Section 234 of the National Housing Act (12 U.S.C. 1715y) is 
amended by striking subsection (k) and inserting the following new 
subsection:
    ``(k) Approval of Projects.--
            ``(1) In general.--A mortgage covering a multifamily 
        project or a condominium unit in a multifamily project shall be 
        eligible for mortgage insurance under this section 
        notwithstanding any other provision of this section relating to 
        requirements for multifamily projects if the project has been 
        approved by a government-sponsored housing enterprise and--
                    ``(A) in the case of a mortgage covering any 
                condominium unit in the project, the mortgage otherwise 
                complies with the requirements under this section 
                regarding eligibility of mortgages for mortgage 
                insurance provided under subsection (c); and
                    ``(B) in the case of a blanket mortgage covering 
                the multifamily project, the mortgage otherwise 
                complies with the requirements under this section 
                regarding eligibility of mortgages for mortgage 
                insurance provided under subsection (d).
            ``(2) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(A) The term `approved by a government-sponsored 
                housing enterprise' means, with respect to a 
                multifamily housing project having a condominium 
                ownership structure, that a government-sponsored 
                housing enterprise has determined that any mortgage 
                covering the project or any condominium property in the 
                project may be purchased by the enterprise if such 
                mortgage is otherwise determined by the enterprise to 
                meet the standards and requirements of the enterprise 
                relating to mortgages.
                    ``(B) The term `condominium unit' means, with 
                respect to a multifamily property, a 1-family dwelling 
                unit in the project and an undivided interest in the 
                common areas and facilities that serve the project.
                    ``(C) The term `government-sponsored housing 
                enterprise' means--
                            ``(i) the Federal National Mortgage 
                        Association; and
                            ``(ii) the Federal Home Loan Mortgage 
                        Corporation.''.

SEC. 8. DELEGATION OF SINGLE FAMILY MORTGAGE INSURING AUTHORITY TO 
              DIRECT ENDORSEMENT MORTGAGEES.

    Title II of the National Housing Act (12 U.S.C. 1707 et seq.) is 
amended by adding at the end the following new section:

  ``delegation of insuring authority to direct endorsement mortgagees

    ``Sec. 256. (a) Authority.--The Secretary may delegate, to one or 
more mortgagees approved by the Secretary under the direct endorsement 
program, the authority of the Secretary under this Act to insure 
mortgages involving property upon which there is located a dwelling 
designed principally for occupancy by 1 to 4 families.
    ``(b) Considerations.--In determining whether to delegate authority 
to a mortgagee under this section, the Secretary shall consider the 
experience and performance of the mortgagee under the direct 
endorsement program, the default rate of insured mortgages originated 
by the mortgagee compared to the default rate of all insured mortgages 
in comparable markets, and such other factors as the Secretary 
determines appropriate to minimize risk of loss to the insurance funds 
under this Act.
    ``(c) Enforcement of Insurance Requirements.--
            ``(1) In general.--If the Secretary determines that a 
        mortgage insured by a mortgagee pursuant to delegation of 
        authority under this section was not originated in accordance 
        with the requirements established by the Secretary, and the 
        Secretary pays an insurance claim with respect to the mortgage 
        within a reasonable period specified by the Secretary, the 
        Secretary may require the mortgagee approved under this section 
        to indemnify the Secretary for the loss.
            ``(2) Fraud or misrepresentation.--If fraud or 
        misrepresentation was involved in connection with the 
        origination, the Secretary may require the mortgagee approved 
        under this section to indemnify the Secretary for the loss 
        regardless of when an insurance claim is paid.
    ``(d) Termination of Mortgagee's Authority.--If a mortgagee to 
which the Secretary has made a delegation under this section violates 
the requirements and procedures established by the Secretary or the 
Secretary determines that other good cause exists, the Secretary may 
cancel a delegation of authority under this section to the mortgagee by 
giving notice to the mortgagee. Such a cancellation shall be effective 
upon receipt of the notice by the mortgagee or at a later date 
specified by the Secretary. A decision by the Secretary to cancel a 
delegation shall be final and conclusive and shall not be subject to 
judicial review.
    ``(e) Requirements and Procedures.--Before approving a delegation 
under this section, the Secretary shall issue regulations establishing 
appropriate requirements and procedures, including requirements and 
procedures governing the indemnification of the Secretary by the 
mortgagee.''.

SEC. 9. INSURANCE OF 2-STEP SINGLE FAMILY MORTGAGES.

    Title II of the National Housing Act (12 U.S.C. 1701 et seq.), as 
amended by the preceding provisions of this Act, is further amended by 
adding at the end the following new section:

                    ``2-step single family mortgages

    ``Sec. 257. (a) Authority.--After making the finding required under 
subsection (d), the Secretary may insure under any provision of this 
title a mortgage involving property upon which there is located a 
dwelling designed principally for occupancy by 1 to 4 families, where 
the mortgage provides that the effective rate of interest charged is--
            ``(1) fixed for the duration of a specified period that 
        consists of not less than the first 5 years of the mortgage 
        term;
            ``(2) adjusted by the mortgagee upon the expiration of the 
        specified period referred to in paragraph (1) for the mortgage; 
        and
            ``(3) for the term of the mortgage remaining after such 
        adjustment--
                    ``(A) fixed at the adjusted rate established 
                pursuant to paragraph (2); or
                    ``(B) periodically adjusted by the mortgagee.
    ``(b) Redetermination of Rate.--For each mortgage insured pursuant 
to this section, the adjustment of the effective rate of interest 
pursuant to subsection (a)(2) may be accomplished through adjustments 
in the monthly payment amount, the outstanding principal balance, or 
the mortgage term, or a combination of such factors, except that in no 
case may any extension of a mortgage term result in a total term in 
excess of 40 years. The adjustment in the effective rate of interest 
shall correspond to a specified national interest rate index that is 
approved in regulations issued by the Secretary and information on 
which is readily accessible to the mortgagors from generally available 
published sources.
    ``(c) Limitations on Second-Step Periodic Rates.--For each mortgage 
insured pursuant to this section for which the effective rate of 
interest charged pursuant to subsection (a)(3) is periodically adjusted 
under subparagraph (B) of such subsection, such adjustments in the 
interest rate--
            ``(1) may be accomplished through adjustments in the 
        monthly payment amount, the outstanding principal balance, or 
        the mortgage term, or a combination of such factors, except 
        that in no case may any extension of a mortgage term result in 
        a total term in excess of 40 years;
            ``(2) shall correspond to a specified national interest 
        rate index that is approved in regulations issued the Secretary 
        and information on which is readily accessible to the 
        mortgagors from generally available published sources;
            ``(3) shall be made on an annual basis;
            ``(4) shall be limited, with respect to any single interest 
        rate increase, to no more than 1 percent on the outstanding 
        loan balance; and
            ``(5) be limited to a maximum increase of 5 percentage 
        points above the initial contract interest rate over the term 
        of the mortgage.
    ``(d) Conditions on Insuring Authority.--The Secretary may insure 
mortgages pursuant to this section only after determining that the risk 
posed by such insurance to the financial safety and soundness of the 
insurance fund of which the mortgage insurance is an obligation does 
not exceed such risk posed by insurance of mortgages of equivalent 
terms having fixed interest rates over such terms.
    ``(e) Description of Features.--The Secretary shall issue 
regulations requiring that the mortgagee make available to the 
mortgagor, at the time of loan application, a written explanation of 
the features of the 2-step mortgage insured pursuant to this section.
    ``(f) Limitation of Total Number of Mortgages Insured.--The 
aggregate number of mortgages and loans insured pursuant to this 
section in any fiscal year may not exceed 10 percent of the aggregate 
number of mortgages and loans insured by the Secretary under this title 
during the preceding fiscal year.''.
[EX A]:
FHA Modernization and Efficiency Act of 1995 - Amends the National Housing Act to revise single family mortgage insurance program provisions regarding:  (1) maximum mortgage amount floor; (2) downpayment calculations and family loans; (3) new construction; (4) condominiums; (5) direct endorsement mortgages; and (6) two-step adjustable mortgages.