S.964 - Property Improvement and Manufactured Housing Loan Modernization Act of 2025 (119th Congress)
Summary
S.964, the Property Improvement and Manufactured Housing Loan Modernization Act of 2025, aims to amend Title I of the National Housing Act. The bill seeks to increase loan limits for property improvement and manufactured housing loans. It also clarifies that property improvement loans can be used for the construction of accessory dwelling units (ADUs).
Expected Effects
The likely effect of this bill is to increase the availability of financing for home improvements, manufactured homes, and ADUs. This could lead to an increase in the supply of affordable housing and improvements to existing housing stock. The bill also mandates a study on the cost-effectiveness of factory-built housing, which could inform future housing policy.
Potential Benefits
- Increased access to financing for home improvements and manufactured housing.
- Potential increase in the supply of affordable housing through ADUs.
- Modernization of loan limits to reflect current market conditions.
- Support for factory-built housing, which can be a more affordable housing option.
- Annual indexing of loan limits to keep pace with inflation.
Potential Disadvantages
- Increased loan limits could lead to higher levels of debt for some borrowers.
- The study on factory-built housing may not lead to concrete policy changes.
- Potential for increased demand to outstrip supply, driving up costs despite increased financing.
- The indexing method chosen by the Secretary could negatively impact some borrowers if not implemented fairly.
- There is no guarantee that increased loan availability will translate into improved housing quality or affordability for all.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to regulate housing and lending practices under its enumerated powers (Article I, Section 8). The bill does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).