II
119THCONGRESS
1
STSESSION S. 964
To amend title I of the National Housing Act to increase the loan limits
and clarify that property improvement loans may be used for construction
of accessory dwelling units.
IN THE SENATE OF THE UNITED STATES
MARCH11 (legislative day, MARCH10), 2025
Mr. R
EED(for himself and Ms. LUMMIS) introduced the following bill; which
was read twice and referred to the Committee on Banking, Housing, and
Urban Affairs
A BILL
To amend title I of the National Housing Act to increase
the loan limits and clarify that property improvement
loans may be used for construction of accessory dwelling
units.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Property Improvement 4
and Manufactured Housing Loan Modernization Act of 5
2025’’. 6
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SEC. 2. NATIONAL HOUSING ACT AMENDMENTS. 1
(a) I
NGENERAL.—Section 2 of the National Housing 2
Act (12 U.S.C. 1703) is amended— 3
(1) in subsection (a), by inserting ‘‘construction 4
of additional or accessory dwelling units, as defined 5
by the Secretary,’’ after ‘‘improvements,’’; and 6
(2) in subsection (b)— 7
(A) in paragraph (1)— 8
(i) by striking subparagraph (A) and 9
inserting the following new subparagraph: 10
‘‘(A) $75,000 if made for the purpose of financ-11
ing alterations, repairs and improvements upon or in 12
connection with an existing single-family structure, 13
including a manufactured home;’’; 14
(ii) in subparagraph (B)— 15
(I) by striking ‘‘$60,000’’ and in-16
serting ‘‘$150,000’’; 17
(II) by striking ‘‘$12,000’’ and 18
inserting ‘‘$37,500’’; and 19
(III) by striking ‘‘an apartment 20
house or’’; 21
(iii) by striking subparagraphs (C) 22
and (D) and inserting the following: 23
‘‘(C)(i) $106,405 if made for the purpose of fi-24
nancing the purchase of a single-section manufac-25
tured home; and 26
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‘‘(ii) $195,322 if made for the purpose of fi-1
nancing the purchase of a multi-section manufac-2
tured home; 3
‘‘(D)(i) $149,782 if made for the purpose of fi-4
nancing the purchase of a single-section manufac-5
tured home and a suitably developed lot on which to 6
place the home; and 7
‘‘(ii) $238,699 if made for the purpose of fi-8
nancing the purchase of a multi-section manufac-9
tured home and a suitably developed lot on which to 10
place the home;’’; 11
(iv) in subparagraph (E)— 12
(I) by striking ‘‘$23,226’’ and in-13
serting ‘‘$43,377’’; and 14
(II) by striking the period at the 15
end and inserting a semicolon; 16
(v) in subparagraph (F), by striking 17
‘‘and’’ at the end; 18
(vi) in subparagraph (G), by striking 19
the period at the end and inserting ‘‘; 20
and’’; and 21
(vii) by inserting after subparagraph 22
(G) the following: 23
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‘‘(H) such principal amount as the Secretary 1
may prescribe if made for the purpose of financing 2
the construction of an accessory dwelling unit.’’; and 3
(viii) in the matter preceding para-4
graph (2)— 5
(I) by striking ‘‘regulation’’ and 6
inserting ‘‘notice’’; 7
(II) by striking ‘‘increase’’ and 8
inserting ‘‘set’’; 9
(III) by striking ‘‘(ii), (C), (D), 10
and (E)’’ and inserting ‘‘through 11
(H)’’; 12
(IV) by inserting ‘‘, or as nec-13
essary to achieve the goals of the Fed-14
eral Housing Administration, periodi-15
cally reset the dollar amount limita-16
tions in subparagraphs (A) through 17
(H) based on justification and meth-18
odology set forth in advance by regu-19
lation’’ before the period at the end; 20
and 21
(V) by adjusting the margins ap-22
propriately; 23
(B) in paragraph (3), by striking ‘‘ex-24
ceeds—’’ and all that follows through the period 25
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at the end and inserting ‘‘exceeds such period 1
of time as determined by the Secretary, not to 2
exceed 30 years.’’; 3
(C) by striking paragraph (9) and insert-4
ing the following: 5
‘‘(9) A
NNUALINDEXING OF CERTAINDOLLAR 6
A
MOUNTLIMITATIONS.—The Secretary shall develop or 7
choose 1 or more methods of indexing in order to annually 8
set the loan limits established in paragraph (1), based on 9
data the Secretary determines is appropriate for purposes 10
of this section.’’; and 11
(D) in paragraph (11), by striking 12
‘‘lease—’’ and all that follows through the pe-13
riod at the end and inserting ‘‘unless such lease 14
meets the terms and conditions established by 15
the Secretary’’. 16
(b) D
EADLINE FORDEVELOPMENT OR CHOICE OF 17
N
EWINDEX; INTERIMINDEX.— 18
(1) D
EADLINE FOR DEVELOPMENT OR CHOICE 19
OF NEW INDEX.—Not later than 1 year after the 20
date of enactment of this Act, the Secretary of 21
Housing and Urban Development shall develop or 22
choose 1 or more methods of indexing as required 23
under section 2(b)(9) of the National Housing Act 24
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(12 U.S.C. 1703(b)(9)), as amended by subsection 1
(a) of this section. 2
(2) I
NTERIM INDEX.—During the period begin-3
ning on the date of enactment of this Act and end-4
ing on the date on which the Secretary of Housing 5
and Urban Development develops or chooses 1 or 6
more methods of indexing as required under section 7
2(b)(9) of the National Housing Act (12 U.S.C. 8
1703(b)(9)), as amended by subsection (a) of this 9
section, the method of indexing established by the 10
Secretary under that section before the date of en-11
actment of this Act shall apply. 12
SEC. 3. HUD STUDY OF FACTORY-BUILT HOUSING. 13
(a) D
EFINITIONS.—In this section: 14
(1) F
ACTORY-BUILT HOUSING.—The term ‘‘fac-15
tory-built housing’’ includes manufactured homes 16
and modular homes. 17
(2) M
ANUFACTURED HOME .—The term ‘‘manu-18
factured home’’ means any home constructed in ac-19
cordance with the construction and safety standards 20
established under the National Manufactured Hous-21
ing Construction and Safety Standards Act of 1974 22
(42 U.S.C. 5401 et seq.). 23
(3) M
ODULAR HOME .—The term ‘‘modular 24
home’’ has the meaning given the term in section 25
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1027(c) of the Consumer Financial Protection Act 1
of 2010 (12 U.S.C. 5517(c)). 2
(b) S
TUDY.—The Secretary of Housing and Urban 3
Development shall conduct a study and submit to Con-4
gress a report on the cost effectiveness of factory-built 5
housing, that includes— 6
(1) an analysis of the reductions in costs from 7
the centralization of manufacturing compared to the 8
expense of transferring the unit from the factory to 9
its final location; 10
(2) the advantages in precision and reduction of 11
materials waste associated with factory-built hous-12
ing; 13
(3) the expected replacement and maintenance 14
costs over the first 40 years of life of factory-built 15
homes; and 16
(4) opportunities for use beyond single-family 17
housing, such as applications in accessory dwelling 18
units, two- to four-unit housing, and large multi-19
family housing. 20
Æ
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