[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3905 Introduced in Senate (IS)]

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118th CONGRESS
  2d Session
                                S. 3905

   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, 2024

 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 2024''.

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'';
                            (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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