CA AB561

Establishes the Help Homeowners Add New Housing Program administered by the California State Treasurer's office to protect participating financial institutions from loan defaults on accessory dwelling unit construction loans.

Creates the Accessory Dwelling Unit Access Fund in the State Treasury to fund loss reserve accounts for each participating financial institution, available upon legislative appropriation.

Allows qualified homeowners (single-family property owners with no more than three residential properties of 1-4 units) to obtain loans from participating financial institutions for accessory dwelling unit construction, with borrowers and lenders paying fees of 2-3.5% of the loan principal deposited into loss reserve accounts.

Requires participating financial institutions to notify the Treasurer within 15 days of making a qualified loan and establishes procedures for institutions to submit claims for reimbursement of losses from loan defaults, subject to available funds in their loss reserve accounts.

Mandates annual reporting to the Governor and Legislature on program financial condition and results, including number of participating institutions, accessory dwelling units financed and constructed, geographic distribution of loans, and homeowner refinancing success rates.