What does Preamble of HR 4568 do?

This bill, formally titled '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,' aims to amend the National Housing Act. The bill directs the Secretary of Housing and Urban Development to establish a program. The program will insure certain second liens. The purpose of the program is to finance the construction of accessory dwelling units.

What does SHORT TITLE. of HR 4568 do?

This bill is formally titled the Supporting Upgraded Property Projects and Lending for Yards (SUPPLY) Act.

What does INSURANCE WITH RESPECT TO THE FINANCING OF THE CONSTRUCTION OF of HR 4568 do?

This section amends the National Housing Act to establish a program for insuring second liens used to finance the construction of accessory dwelling units (ADUs). The Secretary has discretion to establish the program and prescribe its terms and conditions, with implementation required within two years of enactment. The maximum loan amount the Secretary may insure is generally the lesser of 30% of the amount determined under section 203(b)(2)(A) of the National Housing Act or 100% of the projected property value after ADU construction. The Secretary may increase the loan amount based on 50% of projected rental income from the ADU. Borrowers must submit an application with required information, including certification of property ownership. The premium charge for insurance is capped at 1% of the principal amount insured annually. The Secretary must submit an annual report to Congress describing program activities. The term 'accessory dwelling unit' is defined as a dwelling unit with kitchen, sleeping, and bathroom facilities, which can be modular, manufactured, or a conversion of an existing structure. ADUs must be constructed to at least one of the three most recent editions of a consensus-based building code.

What does PURCHASE AND SECURITIZATION OF INSURED LOANS FOR THE of HR 4568 do?

This section directs the Director of the Federal Housing Finance Agency (FHFA) to permit Fannie Mae and Freddie Mac to purchase and securitize loans insured under section 259 of the National Housing Act. The Director may prohibit these purchases and securitizations if market pressures pose an excessive and unmitigable risk. Any prohibition requires the Director to submit a written notice to Congress. The Director must include information regarding these loan purchases and securitizations in the annual report required under section 1319B(a) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992.

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Supporting Upgraded Property Projects and Lending for Yards (SUPPLY) Act — HR. 4568

Last updated: 7/21/2025 · Introduced: 7/21/2025

Author: Sam Liccardo (D-CA)

TL;DR (AI)

This bill establishes a new program within the Department of Housing and Urban Development (HUD) to insure second liens for financing the construction of accessory dwelling units (ADUs).
The bill allows Fannie Mae and Freddie Mac to purchase and securitize loans insured under this program, subject to oversight by the Federal Housing Finance Agency (FHFA) to mitigate market risks.
Loans insured under this program are capped at a maximum amount based on property value and projected rental income, and ADUs must adhere to current building codes.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 2 more.

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