H.R. 7792: Property Improvement and Manufactured Housing Loan Modernization Act of 2026

This bill, known as the Property Improvement and Manufactured Housing Loan Modernization Act of 2026, aims to amend existing laws related to home improvement and manufactured housing loans under the National Housing Act. Here’s a summary of its main provisions:

Increased Loan Limits

The bill proposes increases to the loan limits for property improvement and manufactured housing loans.

• Loans for property improvements will increase from $60,000 to $150,000.
• Loans for alterations, repairs, and improvements will be set at $75,000.
• Loan limits for purchasing manufactured homes will rise to $106,405 for single-section homes and $195,322 for multi-section homes.
• Additionally, loans for purchasing manufactured homes along with a developed lot will be adjusted to $149,782 for single-section and $238,699 for multi-section homes.

Accessory Dwelling Units

The bill also clarifies that property improvement loans can be used explicitly for the construction of accessory dwelling units (ADUs), which are secondary housing units on the same property as a primary residence.

Indexing of Loan Limits

A new requirement will be established for the Secretary of Housing and Urban Development to create methods for annually adjusting these loan limits based on appropriate data to keep pace with inflation or other economic factors.

Study on Off-Site Construction

The bill mandates a study by the Secretary of Housing and Urban Development evaluating the cost-effectiveness of off-site construction housing, which includes manufactured and modular homes. This study will analyze:

• The advantages of centralized construction in factories and its effects on costs and material waste.
• How well off-site construction meets existing housing quality standards compared to traditional site-built homes.
• The expected replacement and maintenance costs over the first 40 years of off-site homes compared to site-built ones.
• Potential uses of off-site construction in various types of housing, including accessory dwelling units and multi-family housing.

Deadline for Method Development

The bill sets a timeframe for the Secretary to develop the new indexing methods within one year of the bill's enactment. During this interim period, existing indexing methods will remain in effect.

Clarification of Terms

Changes to terminology in the National Housing Act are also introduced. For example, references to regulations are updated to "notice," and the bill includes definitions for off-site construction housing to enhance clarity.

Relevant Companies

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