Bill > HR4479

This bill amends the National Housing Act to direct the Secretary of Housing and Urban Development (HUD) to establish a program that insures second liens for financing the construction of accessory dwelling units (ADUs) within two years of enactment. The program allows homeowners to secure a second loan to build an ADU, which can be a modular, prefabricated, manufactured, or converted existing structure that includes kitchen, sleeping, and bathroom facilities and is added to, created within, or detached from a single-family dwelling. The insurance has specific loan amount limitations: the second lien can be up to 30% of the one-unit residence dollar amount or up to 100% of the property's projected post-construction value, with potential increases based on 50% of expected annual rental income. The Secretary will set insurance premiums not exceeding 1% of the principal amount annually and must submit yearly reports to Congress about the program's activities. Additionally, the bill requires the Federal Housing Finance Agency to permit Fannie Mae and Freddie Mac to purchase and securitize these insured loans, with the ability to prohibit such purchases if market risks are deemed excessive. The goal is to facilitate and incentivize the development of additional housing units on existing residential properties.

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https://www.congress.gov/bill/119th-congress/house-bill/4479/all-info