Bill Summary
The "Heirs Estate Inheritance Resolution and Succession Act of 2025" (HEIRS Act of 2025) aims to establish a grant program to support states that adopt the Uniform Partition of Heirs Property Act or similar laws. This legislation includes several key provisions:
1. **Grant Program Establishment**: The Secretary of Housing and Urban Development (HUD) is tasked with creating a grant program within one year of the act’s enactment. This program will provide financial support to states or local governments that implement the Uniform Partition of Heirs Property Act.
2. **Use of Funds**: Eligible entities receiving grants must use the funds to assist residents in managing expenses related to proving property ownership or settling estates. This includes costs for legal services, title reports, and other related expenses.
3. **Additional Assistance**: The legislation allows for layering of assistance, meaning that entities can utilize these funds alongside other financial resources from various sources.
4. **Housing Counseling and Legal Assistance Grants**: The act also establishes a separate program for annual grants aimed at providing housing counseling and legal assistance to owners of "heirs' property," defined as residential property that has passed through intestacy to multiple heirs. These grants will focus on helping low- and moderate-income individuals and communities with title clearing and home retention efforts.
5. **Counseling Requirements**: The act mandates that nonprofit organizations receiving HUD funds provide education on heirs' property, its risks, and available options for estate planning and title clearing.
6. **Funding Authorization**: The legislation authorizes appropriations of $30 million annually for the first program and $10 million for the housing counseling program, from fiscal years 2026 through 2036, to ensure the ongoing support of these initiatives.
Overall, the HEIRS Act of 2025 seeks to address the challenges faced by heirs' property owners, particularly in minority and low-income communities, by providing financial assistance and legal resources to help them navigate property ownership and inheritance issues.
Possible Impacts
The "Heirs Estate Inheritance Resolution and Succession Act of 2025" (HEIRS Act of 2025) has the potential to affect people in various ways. Here are three examples:
1. **Improved Access to Property Rights**: The grant program established under the HEIRS Act will provide financial assistance to states and local governments to help residents document property ownership rights and settle estates. This means that individuals who may have inherited property but lack clear title or documentation will receive the necessary support to navigate the legal complexities. By covering expenses such as title reports, legal fees, and estate planning, the act can empower heirs to secure their property rights, thereby reducing the risk of property loss or disputes.
2. **Support for Low- and Moderate-Income Families**: The act specifically targets assistance for minority and low- and moderate-income individuals and families. By funding housing counseling and legal assistance programs, the HEIRS Act aims to help these vulnerable populations who are often disproportionately affected by issues related to heirs' property. This targeted support can help them retain their homes, avoid displacement, and ensure they have proper legal representation in matters involving inherited property.
3. **Educational Outreach and Prevention**: The inclusion of provisions for counseling regarding heirs' property will educate individuals about the risks associated with owning such property and the importance of estate planning. Nonprofit organizations receiving funding will be required to inform consumers about heirs' property issues and available assistance options. This proactive approach may prevent future complications, such as disputes among heirs or loss of property due to lack of planning, ultimately fostering a more informed community with a better understanding of their property rights and responsibilities.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1640 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1640
To establish a grant program for States that adopt the Uniform
Partition of Heirs Property Act, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 26, 2025
Ms. Williams of Georgia (for herself, Mrs. Fletcher, Mr. Cleaver, Mr.
Donalds, Mr. Bishop, Mr. Mfume, Ms. Norton, and Ms. Tlaib) introduced
the following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To establish a grant program for States that adopt the Uniform
Partition of Heirs Property Act, and for other purposes.
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 ``Heirs Estate Inheritance Resolution
and Succession Act of 2025'' or the ``HEIRS Act of 2025''.
SEC. 2. GRANTS FOR ELIGIBLE ENTITIES THAT ADOPT THE UNIFORM PARTITION
OF HEIRS PROPERTY ACT.
(a) In General.--The Secretary of Housing and Urban Development
shall, not later than 1 year after the date of the enactment of this
section, establish a grant program that provides amounts to eligible
entities that--
(1) before the date of the enactment of this section, had
enacted or adopted the Uniform Partition of Heirs Property Act
as approved and recommended for enactment in all the States by
the National Conference of Commissioners on Uniform State Laws
in 2010 or a similar law that the Secretary determines is a
substantial equivalent; and
(2) on or after the date of the enactment of this section,
enact or adopt the Uniform Partition of Heirs Property Act as
approved and recommended for enactment in all the States by the
National Conference of Commissioners on Uniform State Laws in
2010 or a similar law that the Secretary determines is a
substantial equivalent.
(b) Use of Amounts.--
(1) In general.--Each eligible entity that receives amounts
under this section shall use such amounts to assist residents
of such eligible entity with bona fide expenses relating to
establishing and documenting property ownership rights or
settling a decedent's estate, including fees and costs related
to obtaining title reports and title abstracts, copies of
public records, land surveys, estate planning, heirs search or
tracing services, recording and filing fees, notary fees, and
legal fees and expenses.
(2) Layering of assistance.--An eligible entity that
receives amounts under this section may use such amounts to
assist residents of such State who are receiving assistance
from other sources, including Federal, State, local, private,
public, and nonprofit sources.
(c) Regulations and Criteria for Selection.--The Secretary shall,
not later than 1 year after the date of the enactment of this section,
issue a rule to carry out this section, that includes criteria for the
selection of recipients.
(d) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Secretary of Housing and Urban Development $30,000,000 each
of year fiscal years 2026 through 2036 to carry out this
section.
(2) Availability.--Any amounts appropriated under this
subsection shall remain available until expended.
(e) Definitions.--In this section:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(2) Eligible entity.--The term ``eligible entity'' means a
``State'' and a ``unit of general local government'' as such
terms are defined in section 102 of title 1 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5302) a territory,
or a Tribal government.
SEC. 3. GRANTS TO PROVIDE ASSISTANCE RELATING TO HEIRS' PROPERTY
RESOLUTION.
(a) In General.--The Secretary of Housing and Urban Development
shall carry out a program under this section to provide grants each
year to eligible entities to use to provide housing counseling, legal
assistance, and financial assistance related to title clearing and home
retention efforts for owners of heirs' property.
(b) Awards.--The Secretary shall consider the following when
awarding grants under this section:
(1) Whether the eligible entity has a proven track record
of--
(A) providing assistance to homeowners;
(B) targeting services to minority and low- and
moderate-income persons; and
(C) providing services in neighborhoods that have a
high concentrations of minority persons or low- and
moderate-income persons.
(2) Whether the eligible entity has planned or existing
partnerships with other eligible entities.
(3) Whether the eligible entity is located in an area with
a high number of owners of heirs' property, as determined by
the Secretary.
(c) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary, for grants under this section,
$10,000,000 in each of fiscal years 2026 through 2030.
(d) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a HUD approved housing counseling agency;
(B) a legal services clinics operated by an
institute of higher education; or
(C) a qualifiying nonprofit.
(2) Heirs' property.--The term ``heirs' property'' means
residential property for which title passed by operation of law
through intestacy and is held by two or more heirs as tenants
in common.
(3) Hud approved housing counseling agency.--The term ``HUD
approved housing counseling agency'' means a housing counseling
agency found eligible to receive assistance by the Department
of Housing and Urban Development under section 106(a)(2) of the
Housing and Urban Development Act of 1968.
(4) Low- and moderate-income persons.--
(A) In general.--The term ``low- and moderate-
income persons'' means a person whose household income
does not exceed 120 percent of the median income for
the area, as determined by the Secretary, within
which--
(i) the heirs' property which respect to
which the homeowner is seeking assistance is
located; or
(ii) the place of residence of the
homeowner is located.
(B) Exception.--If the area described in
subparagraph (A) is a high-cost area, as determined by
the Secretary, the term ``low- and moderate-income
persons'' means a homeowner whose household income does
not exceed 140 percent of the median income for the
area.
(5) Qualifying nonprofit.--The term ``qualifying
nonprofit'' means a nonprofit, mission-driven entity that, as
determined by the Secretary--
(A) has a track record of providing assistance to
homeowners;
(B) targets services to minority and low- and
moderate-income persons; or
(C) provides services in neighborhoods that have
high concentrations of minority persons and low- and
moderate-income persons.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
SEC. 4. HEIRS' PROPERTY HOUSING COUNSELING.
Section 106(g) of the Housing and Urban Development Act of 1968 (12
U.S.C. 1701x(g)) is amended by adding at the end the following new
paragraph:
``(6) Counseling with respect to heirs' property.--
``(A) In general.--Any nonprofit organization that
receives amounts under this section shall, when
providing homeownership counseling services to
consumers--
``(i) explain to such consumer what heirs'
property is, the risks associated with heirs'
property, and how to avoid heirs' property
issues; and
``(ii) inform consumers of all available
estate planning and title clearing options,
assistance, and services, including those
offered under sections 2 and 3 of the Heirs
Estate Inheritance Resolution and Succession
Act of 2025.
``(B) Referral.--The Secretary shall ensure that
each nonprofit organization that receives amounts under
this section knows how to refer consumers, where
appropriate, to mission-driven nonprofit organizations
and legal services clinics operated by institutes of
higher education that are capable of assisting a
consumer to clear title and with general estate
planning.
``(C) Heirs' property.--The term `heirs' property'
means residential property for which title passed by
operation of law through intestacy and is held by two
or more heirs as tenants in common.''.
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