HEIRS Act of 2025 creates federal grant programs administered by the Department of Housing and Urban Development (HUD) to help states and local entities adopt the Uniform Partition of Heirs Property Act (UPHPA) or a substantially equivalent law, and to assist homeowners with heirs’ property in resolving title and estate issues. The bill provides two main grant tracks: (1) support for eligible entities (such as states, units of local government, territories, and tribal governments) to offset costs tied to establishing and documenting ownership rights and settling estates when UPHPA is adopted or enacted; and (2) ongoing grants to provide housing counseling, legal assistance, and financial help for heirs’ property title clearing and home retention. The act also expands HUD-approved housing counseling services to include counseling specifically about heirs’ property, with referrals to related nonprofit and legal-service resources. In short, the bill aims to reduce the risk of loss of homes held as heirs’ property by funding legal and practical assistance to families, standardizing procedures through UPHPA adoption, and embedding heirs’ property counseling into federal housing programs.
Key Points
- 1Establishes a HUD-administered grant program for eligible entities to reward and support adoption of the Uniform Partition of Heirs Property Act (UPHPA) or substantial equivalents, with funds to help document ownership and settle estates (title reports, surveys, fees, legal costs, etc.).
- 2Eligible entities include states, units of general local government, territories, and Tribal governments, with annual authorizations of $30 million for 2026–2036 (availability of funds to be carried forward until expended).
- 3Creates a separate annual grants program (starting FY2026) totaling $10 million per year through FY2030 to furnish housing counseling, legal assistance, and financial help for heirs’ property title clearing and home retention; awards consider track record, partnerships, and areas with high concentrations of heirs’ property owners and minority/low- to moderate-income residents.
- 4Defines key terms (heirs’ property, eligible entities, qualifying nonprofit, low- and moderate-income thresholds) and lays out eligibility criteria for grant recipients and the types of entities that may receive funding (HUD-approved housing counseling agencies, legal services clinics affiliated with higher education, or qualifying nonprofits).
- 5Adds and formalizes heirs’ property counseling within HUD housing counseling programs (Section 106(g) of the HUD Act of 1968). Nonprofits receiving HUD funds must explain heirs’ property concepts, inform clients of estate planning and title-clearing options (including Sections 2 and 3 of HEIRS Act), and be prepared to refer clients to appropriate mission-driven services and legal clinics.