Property Improvement and Manufactured Housing

Summary#

This bill changes parts of Title I of the National Housing Act. It raises several dollar limits for Title I loans, clarifies that property improvement loans may pay for construction of accessory dwelling units (ADUs), and requires the Department of Housing and Urban Development (HUD) to study factory-built housing cost effectiveness. The bill also directs HUD to set or index loan limits annually and allows HUD to set some loan amounts by notice.

What it means for you#

  • If you use FHA Title I programs, some maximum loan amounts would be higher.
  • The bill explicitly allows property improvement loans to be used to finance construction of accessory dwelling units, with the loan amount set by HUD.
  • Specific loan-dollar changes in the bill text include: subparagraph (A) set to $75,000 for alterations, repairs, and improvements to an existing single-family structure (including a manufactured home); subparagraph (B) numbers changed from $60,000 to $150,000 and from $12,000 to $37,500; subparagraph (C) set to $106,405 for purchase of a single-section manufactured home and $195,322 for a multi-section manufactured home; subparagraph (D) set to $149,782 for a single-section manufactured home plus lot and $238,699 for a multi-section manufactured home plus lot; subparagraph (E) changed from $23,226 to $43,377; and a new subparagraph (H) lets the Secretary prescribe the principal amount for financing ADU construction.
  • Loan terms for certain Title I loans are limited to a period determined by the Secretary, not to exceed 30 years.
  • HUD must develop or choose 1 or more methods of indexing these loan limits within 1 year; the previously used indexing method will apply until HUD finishes that work.
  • HUD must study factory-built housing (including manufactured and modular homes) and report to Congress on cost effectiveness, waste reduction, maintenance and replacement costs over 40 years, and additional housing uses such as ADUs and multifamily applications.

Expenses#

  • The bill text sets new dollar amounts for Title I loan limits (see the specific amounts listed above).
  • No publicly available information on expected effects to the federal budget or other government costs is included in the provided text.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.