Supporting Upgraded Property Projects and Lending for Yards (SUPPLY) Act
Sponsored By: Representative Liccardo
Introduced
Summary
Creates an insurance program for second liens to finance accessory dwelling units (ADUs). This bill would require the Secretary to set up HUD Title II insurance for certain second mortgages that pay for building or converting ADUs, with rules on loan size, premiums, and eligibility set by the Secretary.
Show full summary
- Homeowners: Owners could use an insured second lien to build an ADU. The insured amount is capped in statute at about 30% of a reference one‑unit amount, and the Secretary may increase that cap based on up to 50% of projected annual ADU rental income.
- Borrowers and lenders: Borrowers must certify property ownership and pay an annual premium fixed by the Secretary not to exceed 1% of the insured principal. Insurance is meant to lower lender risk for these second liens.
- Secondary market and housing supply: The Federal Housing Finance Agency Director would allow Fannie Mae and Freddie Mac to buy and securitize these loans, but may block purchases if market risks are excessive; the Director and the Secretary must report annually on program activities.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Insured second loans for homeowner ADUs
If enacted, homeowners could use a HUD-insured second loan to build an accessory dwelling unit (ADU). The insured amount would be the lesser of 30% of a federal one-unit loan limit or, with other loans, up to 100% of the home’s projected value after the ADU. HUD could raise that cap using up to 50% of expected yearly ADU rent. The annual insurance premium would be no more than 1% of the insured balance. You would need to apply and certify you own the property. The ADU must have a kitchen, sleeping area, and bathroom, and be prefab, manufactured, or a conversion at a single-family home, built to recent local codes. HUD would need to set up the program within two years and report to Congress each year starting one year after enactment.
Fannie and Freddie could buy ADU loans
If enacted, the housing regulator would let Fannie Mae and Freddie Mac buy and bundle the insured ADU second-lien loans. The Director could halt purchases if market pressures create excessive, unfixable risk, starting when Congress is notified. FHFA would include these purchases in its yearly report.
Sponsors & CoSponsors
Sponsor
Liccardo
CA • D
Cosponsors
Garbarino
NY • R
Sponsored 7/21/2025
Cleaver
MO • D
Sponsored 7/21/2025
Sherman
CA • D
Sponsored 7/21/2025
Thompson (CA)
CA • D
Sponsored 7/21/2025
Ruiz
CA • D
Sponsored 7/21/2025
Soto
FL • D
Sponsored 7/21/2025
Peters
CA • D
Sponsored 7/21/2025
Garamendi
CA • D
Sponsored 7/21/2025
Swalwell
CA • D
Sponsored 7/21/2025
McBride
DE • D
Sponsored 7/21/2025
Goodlander
NH • D
Sponsored 7/21/2025
Fields
LA • D
Sponsored 7/21/2025
Elfreth
MD • D
Sponsored 7/21/2025
Gray
CA • D
Sponsored 7/21/2025
Cisneros
CA • D
Sponsored 7/21/2025
Stanton
AZ • D
Sponsored 7/21/2025
Harder (CA)
CA • D
Sponsored 7/21/2025
Meeks
NY • D
Sponsored 7/21/2025
Ansari
AZ • D
Sponsored 7/21/2025
Foster
IL • D
Sponsored 7/21/2025
Costa
CA • D
Sponsored 7/21/2025
Garcia (CA)
CA • D
Sponsored 7/22/2025
Lucas
OK • R
Sponsored 7/22/2025
Salinas
OR • D
Sponsored 7/29/2025
Lawler
NY • R
Sponsored 7/29/2025
Panetta
CA • D
Sponsored 7/29/2025
Fitzpatrick
PA • R
Sponsored 8/8/2025
Schneider
IL • D
Sponsored 8/15/2025
Nunn (IA)
IA • R
Sponsored 8/15/2025
Salazar
FL • R
Sponsored 8/15/2025
Beyer
VA • D
Sponsored 8/26/2025
Beatty
OH • D
Sponsored 9/10/2025
Latimer
NY • D
Sponsored 10/3/2025
Vindman
VA • D
Sponsored 11/18/2025
Whitesides
CA • D
Sponsored 11/25/2025
McDonald Rivet
MI • D
Sponsored 12/10/2025
Vasquez
NM • D
Sponsored 1/16/2026
Suozzi
NY • D
Sponsored 1/22/2026
Gillen
NY • D
Sponsored 1/22/2026
Riley (NY)
NY • D
Sponsored 3/4/2026
Kim
CA • R
Sponsored 3/4/2026
Kiley (CA)
CA • I
Sponsored 3/18/2026
Min
CA • D
Sponsored 3/26/2026
Barragan
CA • D
Sponsored 4/6/2026
Roll Call Votes
No roll call votes available for this bill.
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