Supporting Upgraded Property Projects and Lending for Yards (SUPPLY) Act
Summary
The SUPPLY Act aims to amend the National Housing Act by directing the Secretary of Housing and Urban Development (HUD) to establish a program insuring second liens for financing the construction of accessory dwelling units (ADUs). This program intends to increase housing options and affordability by enabling homeowners to build ADUs on their properties. The bill also addresses the purchase and securitization of these insured loans by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, under the oversight of the Federal Housing Finance Agency (FHFA).
Expected Effects
The SUPPLY Act, if enacted, would likely lead to an increase in the construction of accessory dwelling units across the country. This would expand housing options, particularly in areas with high housing costs. The program could also stimulate local economies through construction and related activities.
Potential Benefits
- Increased housing supply, particularly of more affordable units.
- Potential income generation for homeowners through renting out ADUs.
- Stimulation of local economies through construction and related services.
- Greater flexibility in housing options for families and individuals.
- Modernization of housing stock with updated building codes.
Potential Disadvantages
- Potential strain on local infrastructure (water, sewage, etc.) if ADU construction is widespread.
- Possible negative impacts on neighborhood character and density.
- Risk of default on second liens, particularly if rental income projections are inaccurate.
- Increased burden on HUD to administer the new insurance program.
- Potential for increased housing costs if demand outstrips supply.
Most Disadvantaged Areas:
Constitutional Alignment
The SUPPLY Act appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to regulate housing and promote economic activity through legislation. The Act's focus on housing falls under Congress's enumerated powers to make laws necessary and proper for carrying into execution the foregoing powers, as outlined in Article I, Section 8.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).