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.

# Summary of HR 4479: Accessory Dwelling Unit Financing Program **What the bill would do:** This bill would direct the Department of Housing and Urban Development (HUD) to create a new federal insurance program for second mortgages used to finance the construction of accessory dwelling units (ADUs). An ADU is a smaller, secondary residential unit built on the same property as a single-family home—such as a basement apartment, garage conversion, or separate cottage. By insuring these second liens (loans), the federal government would reduce lenders' risk, potentially making it easier and cheaper for homeowners to borrow money for ADU construction. **Who it affects:** The bill primarily affects homeowners interested in building ADUs on their property, as well as lenders and financial institutions that would offer these mortgages.

It could also benefit renters by potentially increasing the housing supply in areas where ADUs become more affordable to construct. **Current status:** HR 4479 is currently in committee and has not yet been voted on by the full House. The bill was introduced by Representative Sam Liccardo (D-CA) in the 119th Congress. No specific provisions beyond the core insurance program concept are detailed in the available information.