ADUs & “The Supply Act”

Recently, a bipartisan bill led by local Congressman Sam Liccardo (CA) and Congressman Andrew Garbarino (NY) was introduced to legislation to amend the National Housing Act. The bill directs the Secretary of Housing and Urban Development (or "the HUD") to establish a program to insure second liens, secured against property, are funded specifically for the purpose of financing the construction of an Accessory Dwelling Unit (ADU).

This bill is kind of huge, AND, it is a bipartisan bill which currently has 16 co-sponsors. As it stands, according to the bill, most banks do not offer loans for ADUs. However, if passed, federal housing agencies could back these loans under the National Housing Act, making them less risky.

Known as the SUPPLY ACT, H.R. Bill 4479 aims to create a federal pathway for financing ADUs. The bill directs the FHA, Fannie Mae, and Freddie Mac to back second-lien loans specifically for ADU construction, giving homeowners new ways to secure funding. Under this proposal, homeowners would be able to use projected rental income in their loan applications, count future property value gains, and access lower-risk financing that traditional banks often avoid. This marks a major step in addressing one of the biggest barriers to ADU growth: financing.

As always, if you have any questions regarding ADUs or JADUs, or would like to schedule a FREE site inspection, you can contact us at ADUNOW.HOUSE or scan the QR reader on the right to schedule a call!

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