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Updates FHA single-family and manufactured-home loan limits, lets HUD set a loan amount for accessory dwelling unit (ADU) construction, and requires HUD to adopt an annual indexing method for those limits (with up to one year to choose or develop the method). Directs HUD to study the cost-effectiveness of factory-built housing (manufactured and modular homes), including manufacturing savings, waste reduction, and 40-year maintenance/replacement costs, and to report findings to Congress. These changes aim to modernize how loan limits are set and to produce information that could encourage greater use of factory-built housing and ADUs as affordable housing options.
Replace subsection (b)(1)(A) with a new limit of $75,000 for loans made to finance alterations, repairs, and improvements upon or in connection with an existing single-family structure, including a manufactured home.
Modify subsection (b)(1)(B) by striking "$60,000" and inserting the text shown in the bill (document text reads: "inserting50,000"); also strike the text 'striking2,000' and insert "$37,500" as shown in the bill text. (Text in source is transcribed as presented.)
Strike former subparagraphs (C) and (D) and insert new amounts: (C)(i) $106,405 for financing the purchase of a single-section manufactured home; (C)(ii) $195,322 for financing the purchase of a multi-section manufactured home; (D)(i) $149,782 for financing the purchase of a single-section manufactured home and a suitably developed lot; (D)(ii) $238,699 for financing the purchase of a multi-section manufactured home and a suitably developed lot.
In subparagraph (E) strike the figure '3,226' and insert '$43,377' and change the punctuation as shown.
Insert new subparagraph (H) authorizing 'such principal amount as the Secretary may prescribe' for loans made to finance the construction of an accessory dwelling unit (ADU).
Who is affected and how:
Homebuyers and homeowners: Changes to FHA loan limits and an annual indexing method can raise or adjust maximum mortgage amounts available through FHA programs, affecting the purchase power of buyers using FHA financing and owners seeking FHA-insured refinancing.
Owners and prospective buyers of manufactured and modular homes: Explicit changes to manufactured-home financing limits and the required HUD study could expand financing options, support broader market acceptance, and provide evidence to lower costs or increase longevity expectations.
Accessory dwelling unit (ADU) owners and homebuilders: By allowing HUD to set a loan amount for ADU construction, the bill creates a pathway for FHA-backed financing of ADUs, which could make ADU construction more affordable and increase housing supply options.
Lenders and mortgage market participants (banks, credit unions, FHA-approved servicers): Updated loan limits and indexing methods will change underwriting ceilings for FHA-insured loans and require operational updates to pricing, product offerings, and compliance processes.
Department of Housing and Urban Development (HUD): HUD must develop or adopt an indexing method within one year, implement the administrative changes (e.g., notice vs. regulation), and conduct a detailed study with a report to Congress—adding short-term administrative and analytic workload.
Manufactured/modular housing industry and builders: The HUD study could provide data supportive of factory-built housing adoption, influencing construction practices, investment, and marketing.
Net expected effects:
Budgetary and legal effects:
Expand sections to see detailed analysis
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (Sponsor introductory remarks on measure: CR S1666)
Introduced March 11, 2025 by John F. Reed · Last progress March 11, 2025
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (Sponsor introductory remarks on measure: CR S1666)
Introduced in Senate