Weekly Real Estate News
A bipartisan effort is seeking to create a government-backed loan program that will help homeowners fund the creation of accessory dwelling units (ADUs) homes on their properties.
The Wall Street Journal reports Rep. Sam Liccardo (D-CA) and Rep. Andrew Garbarino (R-NY) are planning to introduce a bill that will direct the Federal Housing Administration to provide government backing for second mortgages that are used to finance the construction of ADUs. The bill would also enable the government-sponsored enterprises Fannie Mae and Freddie Mac to purchase these loans and securitize them into the secondary market.
ADUs range in size from 600 to 1,200 square feet and function as small units that supplement existing housing. The lawmakers stated the construction of new ADUs is needed to address the national housing shortage.
“This is a really pressing issue for Americans,” Liccardo said. “But it has not become nearly pressing enough for Congress.”
