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Policy

Policy Momentum Signals Nationwide Attention to Address Heirs Property

Advancing opportunity through evidence-based policy solutions.

Homeownership is one of the primary ways that households build wealth. Many families rely on home equity to cover educational costs, start a business, or create a financial safety net to weather economic shocks. However, these benefits are not available to all homeowners, particularly for those experiencing .Ìý

Heirs property arises most often when a homeowner dies without a will and several people gain rights to indivisible shares in the same home or piece of land. These heirs do not have , even if they have been living in the property for decades, and therefore , apply for government aid or tax relief, or be approved for home repair programs without clear title on the property. As a result, heirs property homeowners—who are disproportionately Black, Latino, Hispanic, low-income, and low-wealth families—face heightened housing insecurity, .Ìý

Hypothetical example of property passing to multiple heirs. Ownership originates with one individual who holds 100% ownership on the property’s title.

Hypothetical example of property passing to multiple heirs. Ownership originates with one individual who holds 100% ownership on the property’s title. The original owner’s two heirs are depicted in the second row as each having a 50% ownership of the property. This results in their respective heirs — depicted as two children per heir — each having a 25% ownership share. The final row of the graphic depicts the fourth generation in which there are now 8 heirs in total, each with a 12.5% ownership share in the original property.

Â鶹ÊÓƵ is committed to ensuring all homeowners can experience the full benefits of homeownership, which includes building and passing wealth to their families. Recent state and federal policy activity has generated important momentum to support heirs property owners. The Â鶹ÊÓƵ PolicyCenter is following this progress and amplifying solutions that help families build and preserve their generational wealth.Ìý

Recent Heirs Property Policy Activity

  • On April 9, Arizona Governor Katie Hobbs signed the Uniform Partition of Heirs Property Act (UPHPA) into . Arizona marks the . The UPHPA provides critical due process for families at risk of losing their home from an external third party purchasing a co-owner’s share of a property and subsequently forcing a partition sale. Â鶹ÊÓƵ supported enactment of the UPHPA in Arizona, building on our support for nationwide enactment of the UPHPA and prior legislative work to advance the UPHPA in California, Washington, Utah, Philadelphia, and the District of Columbia.
  • On April 24, Representatives Nikema Williams (D-GA), Emanuel Cleaver (D-MO), Lizzie Fletcher (D-TX), and Byron Donalds (R-FL) introduced the . Â鶹ÊÓƵ supports this proposal, which would establish a new grant program at the Department of Housing and Urban Development (HUD) to support individuals experiencing heirs property with key financial and technical assistance. The would create:

    • A grant program for states that adopt UPHPA (or substantially similar legislation) to fund a range of expenses relating to establishing and documenting property ownership rights or settling a decedent’s estate; and
    • A grant program for qualifying nonprofit organizations that provide housing counseling and legal and financial assistance related to title clearing and home retention efforts for heirs property owners.

This proposal reflects recognition of heirs property as an urgent federal policy priority and reflects the bipartisan nature of solutions that help homeowners maintain their property rights, preserve their wealth, and stay in their home.ÌýThe HEIRS Act is a strong complement to the existing U.S. Department of Agriculture (USDA) , which provides loans through eligible Community Development Financial Institutions (CDFIs) to help resolve heirs property cases. In 2023, the Â鶹ÊÓƵ PolicyCenter published recommendations to strengthen the HPRP. Several of these recommendations are addressed through the HEIRS Act, such as providing grants (rather than loans), which do not need to be repaid, to heirs and making heirs in all geographies eligible for HEIRS Act funds. legislation introduced by Representatives Sanford Bishop (D-GA) and Don Davis (D-NC) would also reauthorize the HPRP and direct USDA to incorporate pro-bono legal support for eligible heirs property owners.

On April 24, Representatives Williams (D-GA) and Fletcher (D-TX) also introduced the , which would allow heirs property owners to use alternate forms of documentation to prove property ownership to receive disaster aid. The Â鶹ÊÓƵ PolicyCenter highlighted the importance of accepting alternative pathways to verify ownership outside of formal deeds in its 2023 paper, Preserving Generational Wealth by Untangling Titles for Heirs Property Homeowners.

What’s Next

Recent policy momentum at multiple levels of government reflects the extent to which addressing heirs property is increasingly recognized as a homeownership stability and wealth preservation priority. In addition to the activity noted above, several other this year. The Â鶹ÊÓƵ PolicyCenter will continue to lift up evidence-based solutions that help homeowners build and preserve wealth.



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