Property Improvement and Manufactured Housing Loan Modernization Act of 2026

This legislation significantly amends Title I of the National Housing Act to expand and modernize property improvement and manufactured housing loan programs. It explicitly clarifies that loans for property improvements can now be utilized for the construction of accessory dwelling units (ADUs) , as defined by the Secretary. Furthermore, the bill substantially increases the maximum loan limits for various purposes, including up to $75,000 for single-family structure improvements, $150,000 for multi-family structures, and new limits for single-section ($106,405) and multi-section ($195,322) manufactured homes, with higher limits if a lot is included. To ensure these loan limits remain relevant, the bill mandates that the Secretary of Housing and Urban Development develop or choose a method for annually indexing them based on appropriate data, with a one-year deadline for implementation. It also requires a comprehensive study on the cost-effectiveness of off-site construction housing , encompassing both manufactured and modular homes. This study will analyze factors such as cost, precision, material waste, adherence to housing quality standards, and long-term maintenance costs compared to site-built homes, exploring potential applications beyond single-family housing, including ADUs and multi-family units.