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US HB4479
Bill
Status
7/17/2025
Primary Sponsor
Sam Liccardo
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AI Summary
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HUD Secretary must establish within 2 years a federal insurance program for second liens (secondary mortgages) used to finance accessory dwelling unit (ADU) construction on single-family properties
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Maximum insured loan amount is the lesser of 30% of FHA one-unit mortgage limits or 100% of the property's projected post-construction value; loan limits may increase based on 50% of projected annual ADU rental income
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Insurance premium capped at 1% of principal annually; borrowers must certify property ownership and submit applications per HUD requirements
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Fannie Mae and Freddie Mac must purchase and securitize these FHA-insured ADU loans unless FHFA Director determines market conditions pose excessive risk to the lending market
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Eligible ADUs include modular/prefabricated units, manufactured housing, or conversions of existing structures that contain kitchen, sleeping, and bathroom facilities and are attached to or detached from a single-family home
Legislative Description
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.
Housing and community development
Last Action
Referred to the House Committee on Financial Services.
7/17/2025