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
H.R. 4479 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 would allow homeowners to obtain insured loans 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 bill's enactment would likely increase the availability of financing for ADU construction. This could lead to an increase in the number of ADUs, potentially addressing housing shortages and providing homeowners with additional income opportunities. The FHFA could prohibit the purchase and securitization of these loans if market pressures pose excessive risk.
Potential Benefits
- Increased housing supply, particularly in areas with high demand.
- Homeowners gain access to financing for ADU construction, creating potential rental income.
- Potential for increased property values for homeowners.
- Supports smaller, more affordable housing options.
- Could stimulate local economies through construction and related services.
Potential Disadvantages
- Potential for increased debt burden on homeowners if rental income projections are inaccurate.
- Risk of market instability if FHFA oversight is insufficient.
- Possible strain on local infrastructure (utilities, parking) if ADU construction is widespread.
- Premiums for insurance may add to the overall cost of ADU construction.
- Potential for negative impact on neighborhood character if ADUs are not well-designed or regulated.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to regulate housing and financial matters through legislation, as seen in previous acts like the National Housing Act. The bill does not appear to infringe on any specific individual rights or freedoms outlined in the Bill of Rights.
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).