Federal RuleAug 21
62
DOL Rewrites Disability Rules for 'Merit-Based Opportunity' Push
RuleLabor DepartmentFederal Contract Compliance Programs OfficeSignificant Wallet
119-hr-4479119th CongressWALLET
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.
Sponsored By: Representative Liccardo, Sam T. [D-CA-16]
Introduced
Summary
Federal ADU second-lien insurance program. This bill would create a program to insure certain second liens used to finance accessory dwelling unit construction, with loan-size limits and a premium cap.
Show full summary
- Homeowners and families: Would let owner-occupants obtain insured second liens to add or convert ADUs. The maximum insured loan is the lesser of 30% of the one-unit loan limit or, when combined with other loans, up to 100% of the property’s projected value after ADU construction.
- Borrowers: Must certify they own the property and apply for insurance. The Secretary would set a premium that may not exceed 1% per year of the insured principal.
- Lenders and the secondary market: The Federal Housing Finance Agency director could permit Fannie Mae and Freddie Mac to purchase and securitize these insured loans unless doing so would pose excessive market risk. The Secretary and the FHFA must report annually to Congress on program activity.
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
HUD-insured second loans to build ADUs
If enacted, HUD would create within 2 years a program to insure second-lien loans to build accessory dwelling units (ADUs) that include a kitchen, sleeping area, and bath on a single-family property. You would need to own the property and apply under HUD's rules. The insured amount would be the smaller of 30% of the FHA one‑unit limit or the amount that keeps all liens at or below 100% of the home's projected value after the ADU. HUD could raise that cap by up to 50% of the ADU’s projected yearly rent. Annual insurance premiums would be capped at 1% of the insured principal.
Fannie and Freddie could buy ADU loans
If enacted, the FHFA Director would allow Fannie Mae and Freddie Mac to buy and securitize HUD‑insured ADU second‑lien loans. The Director could stop these purchases if they pose excessive, unfixable risk to the lending market, starting when Congress is notified in writing. FHFA would report on these purchases each year.
Sponsors & CoSponsors
Sponsor
Liccardo, Sam T. [D-CA-16]
CA • D
Cosponsors
Rep. Cleaver, Emanuel [D-MO-5]
MO • D
Sponsored 7/17/2025
Rep. Sherman, Brad [D-CA-32]
CA • D
Sponsored 7/17/2025
Rep. Thompson, Mike [D-CA-4]
CA • D
Sponsored 7/17/2025
Rep. Ruiz, Raul [D-CA-25]
CA • D
Sponsored 7/17/2025
Rep. Soto, Darren [D-FL-9]
FL • D
Sponsored 7/17/2025
Rep. Peters, Scott H. [D-CA-50]
CA • D
Sponsored 7/17/2025
Rep. Garamendi, John [D-CA-8]
CA • D
Sponsored 7/17/2025
Rep. Swalwell, Eric [D-CA-14]
CA • D
Sponsored 7/17/2025
Rep. McBride, Sarah [D-DE-At Large]
DE • D
Sponsored 7/17/2025
Rep. Goodlander, Maggie [D-NH-2]
NH • D
Sponsored 7/17/2025
Rep. Fields, Cleo [D-LA-6]
LA • D
Sponsored 7/17/2025
Rep. Elfreth, Sarah [D-MD-3]
MD • D
Sponsored 7/17/2025
Rep. Gray, Adam [D-CA-13]
CA • D
Sponsored 7/17/2025
Rep. Cisneros, Gilbert Ray [D-CA-31]
CA • D
Sponsored 7/17/2025
Rep. Stanton, Greg [D-AZ-4]
AZ • D
Sponsored 7/17/2025
Rep. Harder, Josh [D-CA-9]
CA • D
Sponsored 7/17/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov