119-s964

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 964 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 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

 March 11 (legislative day, March 10), 2025

 Mr. Reed (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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Property Improvement and 
Manufactured Housing Loan Modernization Act of 2025''.

SEC. 2. NATIONAL HOUSING ACT AMENDMENTS.

    (a) In General.--

Section 2 of the National Housing Act (12 U.S.C. 
1703) is amended--

    (1) in subsection

    (a) , by inserting ``construction of 
 additional or accessory dwelling units, as defined by the 
 Secretary,'' after ``improvements,''; and

    (2) in subsection

    (b) --
        (A) in paragraph

    (1) --
            (i) by striking subparagraph
        (A) and 
 inserting the following new subparagraph:
 ``
        (A) $75,000 if made for the purpose of financing 
 alterations, repairs and improvements upon or in connection 
 with an existing single-family structure, including a 
 manufactured home;'';
            (ii) in subparagraph
        (B) --
            (I) by striking ``$60,000'' and 
 inserting ``$150,000'';
            (II) by striking ``$12,000'' and 
 inserting ``$37,500''; and
            (III) by striking ``an apartment 
 house or'';
            (iii) by striking subparagraphs
            (C) and
            (D) and inserting the following:
 ``
            (C) 
            (i) $106,405 if made for the purpose of financing the 
 purchase of a single-section manufactured home; and
 ``
            (ii) $195,322 if made for the purpose of financing the 
 purchase of a multi-section manufactured home;
 ``
            (D) 
            (i) $149,782 if made for the purpose of financing the 
 purchase of a single-section manufactured home and a suitably 
 developed lot on which to place the home; and
 ``
            (ii) $238,699 if made for the purpose of financing the 
 purchase of a multi-section manufactured home and a suitably 
 developed lot on which to place the home;'';
            (iv) in subparagraph
        (E) --
            (I) by striking ``$23,226'' and 
 inserting ``$43,377''; and
            (II) by striking the period at the 
 end and inserting a semicolon;
            (v) in subparagraph
        (F) , by striking 
 ``and'' at the end;
            (vi) in subparagraph
        (G) , by striking the 
 period at the end and inserting ``; and''; and
            (vii) by inserting after subparagraph
        (G) the following:
 ``
        (H) such principal amount as the Secretary may prescribe 
 if made for the purpose of financing the construction of an 
 accessory dwelling unit.''; and
            (viii) in the matter preceding paragraph

    (2) --
            (I) by striking ``regulation'' and 
 inserting ``notice'';
            (II) by striking ``increase'' and 
 inserting ``set'';
            (III) by striking ``
            (ii) ,
            (C) ,
            (D) , 
 and
        (E) '' and inserting ``through
        (H) '';
            (IV) by inserting ``, or as 
 necessary to achieve the goals of the 
 Federal Housing Administration, 
 periodically reset the dollar amount 
 limitations in subparagraphs
        (A) through
        (H) based on justification and 
 methodology set forth in advance by 
 regulation'' before the period at the 
 end; and
            (V) by adjusting the margins 
 appropriately;
        (B) in paragraph

    (3) , by striking ``exceeds--'' and 
 all that follows through the period at the end and 
 inserting ``exceeds such period of time as determined 
 by the Secretary, not to exceed 30 years.'';
            (C) by striking paragraph

    (9) and inserting the 
 following:
 ``

    (9) Annual Indexing of Certain Dollar Amount Limitations.--The 
Secretary shall develop or choose 1 or more methods of indexing in 
order to annually set the loan limits established in paragraph

    (1) , 
based on data the Secretary determines is appropriate for purposes of 
this section.''; and
            (D) in paragraph

    (11) , by striking ``lease--'' and 
 all that follows through the period at the end and 
 inserting ``unless such lease meets the terms and 
 conditions established by the Secretary''.

    (b) Deadline for Development or Choice of New Index; Interim 
Index.--

    (1) Deadline for development or choice of new index.--Not 
 later than 1 year after the date of enactment of this Act, the 
 Secretary of Housing and Urban Development shall develop or 
 choose 1 or more methods of indexing as required under 

section 2

    (b)

    (9) of the National Housing Act (12 U.S.C. 1703

    (b)

    (9) ), as 
 amended by subsection

    (a) of this section.

    (2) Interim index.--During the period beginning on the date 
 of enactment of this Act and ending on the date on which the 
 Secretary of Housing and Urban Development develops or chooses 
 1 or more methods of indexing as required under 

section 2

    (b)

    (9) of the National Housing Act (12 U.S.C. 1703

    (b)

    (9) ), as amended 
 by subsection

    (a) of this section, the method of indexing 
 established by the Secretary under that section before the date 
 of enactment of this Act shall apply.

SEC. 3. HUD STUDY OF FACTORY-BUILT HOUSING.

    (a) 

=== Definitions. ===
-In this section:

    (1) Factory-built housing.--The term ``factory-built 
 housing'' includes manufactured homes and modular homes.

    (2) Manufactured home.--The term ``manufactured home'' 
 means any home constructed in accordance with the construction 
 and safety standards established under the National 
 Manufactured Housing Construction and Safety Standards Act of 
 1974 (42 U.S.C. 5401 et seq.).

    (3) Modular home.--The term ``modular home'' has the 
 meaning given the term in 

section 1027
            (c) of the Consumer 
 Financial Protection Act of 2010 (12 U.S.C. 5517
            (c) ).

    (b) Study.--The Secretary of Housing and Urban Development shall 
conduct a study and submit to Congress a report on the cost 
effectiveness of factory-built housing, that includes--

    (1) an analysis of the reductions in costs from the 
 centralization of manufacturing compared to the expense of 
 transferring the unit from the factory to its final location;

    (2) the advantages in precision and reduction of materials 
 waste associated with factory-built housing;

    (3) the expected replacement and maintenance costs over the 
 first 40 years of life of factory-built homes; and

    (4) opportunities for use beyond single-family housing, 
 such as applications in accessory dwelling units, two- to four-
 unit housing, and large multifamily housing.
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