H.R. 1640 — HEIRS Act of 2025

This section directs the Secretary of Housing and Urban Development (HUD), within one year of enactment, to establish a grant program providing funds to eligible entities—states, units of general local government (as defined in 42 U.S.C. 5302(a)), territories, and Tribal governments—that enacted the Uniform Partition of Heirs Property Act (or a substantial equivalent, as determined by HUD) before enactment or enact it on or after enactment. Grants assist residents with bona fide expenses to establish property ownership rights or settle decedents' estates (e.g., title reports, land surveys, legal fees), including layering with other federal, state, local, or private assistance. HUD must issue implementing regulations within one year of enactment, including recipient selection criteria. Authorizes $30 million annually for FY2026 through FY2036, to remain available until expended.

This section establishes a program under which the Secretary of Housing and Urban Development provides annual grants to eligible entities—HUD-approved housing counseling agencies, legal services clinics operated by institutes of higher education, or qualifying nonprofits—for housing counseling, legal assistance, and financial assistance to clear titles and retain heirs’ property (i.e., residential real property held by multiple heirs as tenants in common due to intestacy). In awarding grants, the Secretary considers entities’ track records assisting homeowners (especially minority and low- and moderate-income persons, defined as up to 120% of area median income or 140% in high-cost areas), serving high-concentration neighborhoods, maintaining partnerships with other entities, and operating in areas with many heirs’ property owners. Authorizes $10 million annually for FY2026 through FY2030.

This section requires nonprofit organizations receiving funds under the HUD housing counseling program to include, as part of homeownership counseling services, (1) explanations of heirs’ property (i.e., residential property for which title passed by intestacy and is held by multiple heirs as tenants in common), its risks, and strategies to avoid it; and (2) information on available estate planning and title-clearing options, including under sections 2 and 3 of the Heirs Estate Inheritance Resolution and Succession Act of 2025. The section further directs the Secretary to ensure such organizations know how to refer consumers, where appropriate, to mission-driven nonprofits and legal services clinics at institutes of higher education for title clearance and estate planning assistance. (As background, the program provides counseling to low- and moderate-income homeowners and tenants on property maintenance, financial management, and related matters.)