II 119th CONGRESS 1st Session S. 964 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.

1. Short title This Act may be cited as the Property Improvement and Manufactured Housing Loan Modernization Act of 2025 . 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. 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.