No official summary available for this bill.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4479 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 4479
To amend the National Housing Act to direct the Secretary of Housing
and Urban Development to establish a program to insure certain second
liens secured against property for the purpose of financing the
construction of an accessory dwelling unit, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 17, 2025
Mr. Liccardo (for himself, Mr. Cleaver, Mr. Sherman, Mr. Thompson of
California, Mr. Ruiz, Mr. Soto, Mr. Peters, Mr. Garamendi, Mr.
Swalwell, Ms. McBride, Ms. Goodlander, Mr. Fields, Ms. Elfreth, Mr.
Gray, Mr. Cisneros, Mr. Stanton, and Mr. Harder of California)
introduced the following bill; which was referred to the Committee on
Financial Services
_______________________________________________________________________
A BILL
To amend the National Housing Act to direct the Secretary of Housing
and Urban Development to establish a program to insure certain second
liens secured against property for the purpose of financing the
construction of an accessory dwelling unit, 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. INSURANCE WITH RESPECT TO THE FINANCING OF THE CONSTRUCTION
OF ACCESSORY DWELLING UNITS.
Title II of the National Housing Act (12 U.S.C. 1707 et seq.) is
amended by adding at the end the following:
``SEC. 259. ACCESSORY DWELLING UNIT CONSTRUCTION INSURANCE.
``(a) In General.--Not later than 2 years after the date of the
enactment of this section, the Secretary shall establish a program to
insure, in the discretion of the Secretary and under such terms and
conditions as the Secretary may prescribe, certain second liens that
are secured against properties for the purpose of financing the
construction of accessory dwelling units.
``(b) Maximum Loan Amount.--
``(1) In general.--Except as described in paragraph (2),
the Secretary may only insure a second lien under this section
that has a principal obligation in an amount that is the lesser
of--
``(A) 30 percent of the dollar amount determined
under section 203(b)(2)(A) with respect to a one-unit
residence; or
``(B) when combined with any outstanding amounts
owed on any other loans secured by a lien against the
same property as the second lien, 100 percent of the
projected value of the property after the construction
of the accessory dwelling unit, as determined by the
Secretary.
``(2) Rental income.--The Secretary may increase the amount
described in paragraph (1) based on 50 percent of any projected
rental income expected annually from an accessory dwelling unit
to be financed using the second lien to be insured under this
section.
``(c) Application.--The borrower seeking insurance for a second
lien under this section shall submit an application for insurance at
such time, in such manner, and containing such information as the
Secretary may require, including a certification that the borrower is
the owner of the property on which an accessory dwelling unit is to be
constructed.
``(d) Premium.--The Secretary shall fix a premium charge for
insurance provided under this section in an amount that may not exceed,
for each year, 1 percent of the principal amount insured under this
section.
``(e) Report.--Beginning on the date that is 1 year after the date
of the enactment of this section, and annually thereafter, the
Secretary shall submit to the Congress a report that describes the
activities carried out under this section.
``(f) Rulemaking.--The Secretary may issue such rules as the
Secretary determines appropriate to carry out this section.
``(g) Accessory Dwelling Unit Defined.--In this section, the term
`accessory dwelling unit' means a dwelling unit which--
``(1) is a--
``(A) modular or prefabricated unit constructed to
at least 1 of the 3 most recent editions of a
consensus-based building code adopted by the State,
local jurisdiction, territory, or tribal entity;
``(B) manufactured unit (as such term is defined in
section 102 of the Housing and Community Development
Act of 1974 (42 U.S.C. 5402)); or
``(C) conversion of an existing structure on a
property;
``(2) includes kitchen, sleeping, and bathroom facilities;
and
``(3) is added to, created within, or detached from a
single-family dwelling on a single property.''.
SEC. 2. PURCHASE AND SECURITIZATION OF INSURED LOANS FOR THE
CONSTRUCTION OF ACCESSORY DWELLING UNITS.
(a) In General.--Except as provided in subsection (b), the Director
of the Federal Housing Finance Agency (hereafter referred to as the
``Director'') shall permit the Federal National Mortgage Association
and the Federal Home Loan Mortgage Corporation to purchase and
securitize loans that are insured under section 259 of the National
Housing Act.
(b) Exception.--The Director may prohibit the purchase and
securitization of loans that are insured under section 259 of the
National Housing Act--
(1) if there are market pressures which would pose an
excessive and unmitigable risk to the lending market for such
loans, as determined by the Director; and
(2) beginning on the date that the Director submits to the
Congress a written notice with respect to such prohibition.
(c) Report.--The Director shall include in the annual report
required under section 1319B(a) of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (12 U.S.C. 4521(a))
information with respect to the purchase and securitization of loans
that are insured under section 259 of the National Housing Act.
<all>
Introduced in House
Sponsor introductory remarks on measure. (CR H3469)
Introduced in House
Referred to the House Committee on Financial Services.
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