119th (2025–2027)
H.R. 4479
This bill directs the Department of Housing and Urban Development to create a federal insurance program for second mortgages used to finance the construction of accessory dwelling units (ADUs) — smaller residential units built on single-family properties, such as converted structures, modular homes, or manufactured units. The program must be established within two years and would allow HUD to insure second liens up to 30 percent of the median home price in an area, or potentially higher if the ADU is expected to generate rental income. Property owners seeking these insured loans would pay annual insurance premiums of up to 1 percent. Additionally, the bill authorizes Fannie Mae and Freddie Mac to purchase and resell these insured loans in the secondary mortgage market, which should increase their availability and affordability. The measure is intended to make it easier for homeowners to finance ADU construction as a way to increase housing supply and create rental income opportunities.