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HR 4479

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.

119th Congress Introduced by Emanuel Cleaver and 14 co-sponsors

HR 4479 enables HUD to insure second liens for financing accessory dwelling units, boosting housing availability and affordability for homeowners.

Sponsor introductory remarks on measure. (CR H3469)
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Bill Summary · HR 4479

Summary of HR 4479: Accessory Dwelling Unit Financing Program

Bill Number: HR 4479
Introduced: July 17, 2025
Status: Referred to the House Committee on Financial Services
Sponsors: Eric Swalwell and multiple cosponsors

Purpose and Intent

HR 4479 aims to amend the National Housing Act by establishing a program under the Department of Housing and Urban Development (HUD) to insure certain second liens on properties. The primary goal of this program is to facilitate financing for the construction of accessory dwelling units (ADUs), which are secondary housing units located on the same property as a primary residence.

Key Provisions

  1. Program Establishment:

    • The Secretary of HUD is required to establish the insurance program within two years of the bill's enactment.

  2. Insurance Coverage:

    • The program will insure second liens with a principal obligation amount that is the lesser of:
      • 30% of the dollar amount specified for a one-unit residence under section 203(b)(2)(A).
      • 100% of the projected value of the property after the ADU construction, when combined with any existing loans secured by the same property.
    • The Secretary may increase the insured amount by 50% of the projected annual rental income from the ADU.

  3. Application Process:

    • Borrowers must submit an application for insurance, including proof of property ownership and any other information required by the Secretary.

  4. Premium Charges:

    • The insurance premium cannot exceed 1% of the principal amount insured annually.

  5. Reporting Requirements:

    • The Secretary must submit an annual report to Congress detailing the program's activities, starting one year after the enactment of the bill.

  6. Definition of Accessory Dwelling Unit:

    • An ADU is defined as a unit that:
      • Is a modular, prefabricated, or manufactured unit, or a conversion of an existing structure.
      • Contains kitchen, sleeping, and bathroom facilities.
      • Is added to, created within, or detached from a single-family dwelling.

Impact

  • Homeowners: The bill is designed to assist homeowners in financing the construction of ADUs, potentially increasing housing availability and affordability.
  • Housing Market: By facilitating the creation of ADUs, the bill may help alleviate housing shortages in certain areas.
  • Local Governments: The program may encourage local jurisdictions to adapt zoning laws to accommodate more ADUs.

Procedural Aspects

  • The bill was introduced and referred to the House Committee on Financial Services on the same day, July 17, 2025.
  • The Secretary of HUD is tasked with implementing the program within a two-year timeframe post-enactment.

Related Legislation

  • HR 4568: This bill is noted as a companion to HR 4479, indicating that there may be parallel legislative efforts addressing similar issues.

This summary provides an overview of HR 4479, highlighting its objectives, key provisions, and potential impacts on homeowners and the housing market.

Compiled from official sources — confirm details with the bill’s official record.

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