,i  #aaith ,,congress  #ast ,session    
,h4 ,r4 #ddgi  ,,in ,,the ,,house ,,of  
,,representatives  ,july #ag1 #bjbe,mr4 
,liccardo 7for himself1 ,mr4 ,cleaver1  
,mr4 ,sherman1 ,mr4 ,thompson of        
,california1 ,mr4 ,ruiz1 ,mr4 ,soto1    
,mr4 ,peters1 ,mr4 ,garamendi1 ,mr4     
,swalwell1 ,ms4 ,mc,bride1 ,ms4         
,goodlander1 ,mr4 ,fields1 ,ms4         
,elfreth1 ,mr4 ,gray1 ,mr4 ,cisneros1   
,mr4 ,stanton1 and ,mr4 ,harder of      
,california7 introduced the following   
bill2 which was referred to the         
,committee on ,financial ,services  ,a  
,,bill  ,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   
unit1 and for other purposes4  #a4      
,insurance with respect to the financing
 of the construction of accessory       
dwelling units ,title ,,ii of the       

,national ,housing ,act 7#ab ,u4,s4,c4  
#agjg et seq47 is amended by adding at  
the end the following3  #bei4 ,accessory
 dwelling unit construction insurance   
7a7 ,in general ,not later than #b years
 after the date of the enactment of this
 section1 the ,secretary shall establish
 a program to insure1 in the discretion 
of the ,secretary and under such terms  
and conditions as the ,secretary may    
prescribe1 certain second liens that are
 secured against properties for the     
purpose of financing the construction of
 accessory dwelling units4  7b7 ,maximum
 loan amount  7#a7 ,in general ,except  
as described in paragraph 7#b71 the     
,secretary may only insure a second lien
 under this section that has a principal
 obligation in an amount that is the    
lesser of-- 7,a7 #cj percent of the     
dollar amount determined under section  
#bjc7;b77#b77;,a7 with respect to a     
one-unit residence2 or  7,b7 when       
combined with any outstanding amounts   
owed on any other loans secured by a    

lien against the same property as the   
second lien1 #ajj percent of the        
projected value of the property after   
the construction of the accessory       
dwelling unit1 as determined by the     
,secretary4  7#b7 ,rental income ,the   
,secretary may increase the amount      
described in paragraph 7#a7 based on #ej
 percent of any projected rental income 
expected annually from an accessory     
dwelling unit to be financed using the  
second lien to be insured under this    
section4  7c7 ,application ,the borrower
 seeking insurance for a second lien    
under this section shall submit an      
application for insurance at such time1 
in such manner1 and containing such     
information as the ,secretary may       
require1 including a certification that 
the borrower is the owner of the        
property on which an accessory dwelling 
unit is to be constructed4  7d7 ,premium
 ,the ,secretary shall fix a premium    
charge for insurance provided under this
 section in an amount that may not      

exceed1 for each year1 #a percent of the
 principal amount insured under this    
section4  7e7 ,report ,beginning on the 
date that is #a year after the date of  
the enactment of this section1 and      
annually thereafter1 the ,secretary     
shall submit to the ,congress a report  
that describes the activities carried   
out under this section4  7f7 ,rulemaking
 ,the ,secretary may issue such rules as
 the ,secretary determines appropriate  
to carry out this section4  7g7         
,accessory dwelling unit defined ,in    
this section1 the term accessory        
dwelling unit means a dwelling unit     
which-- 7#a7 is a--  7,a7 modular or    
prefabricated unit constructed to at    
least #a of the #c most recent editions 
of a consensus-based building code      
adopted by the ,state1 local            
jurisdiction1 territory1 or tribal      
entity2  7,b7 manufactured unit 7as such
 term is defined in section #ajb of the 
,housing and ,community ,development    
,act of #aigd 7#db ,u4,s4,c4 #edjb772 or

  7,c7 conversion of an existing        
structure on a property2  7#b7 includes 
kitchen1 sleeping1 and bathroom         
facilities2 and  7#c7 is added to1      
created within1 or detached from a      
single-family dwelling on a single      
property4  4  #b4 ,purchase and         
securitization of insured loans for the 
construction of accessory dwelling units
  7a7 ,in general ,except as provided in
 subsection 7b71 the ,director of the   
,federal ,housing ,finance ,agency      
7hereafter referred to as the ,director7
 shall permit the ,federal ,national    
,mortgage ,association and the ,federal 
,home ,loan ,mortgage ,corporation to   
purchase and securitize loans that are  
insured under section #bei of the       
,national ,housing ,act4  7b7 ,exception
 ,the ,director may prohibit the        
purchase and securitization of loans    
that are insured under section #bei of  
the ,national ,housing ,act-- 7#a7 if   
there are market pressures which would  
pose an excessive and unmitigable risk  

to the lending market for such loans1 as
 determined by the ,director2 and  7#b7 
beginning on the date that the ,director
 submits to the ,congress a written     
notice with respect to such prohibition4
  7c7 ,report ,the ,director shall      
include in the annual report required   
under section #acai;,b7a7 of the        
,federal ,housing ,enterprises          
,financial ,safety and ,soundness ,act  
of #aiib 7#ab ,u4,s4,c4 #deba7;a77      
information with respect to the purchase
 and securitization of loans that are   
insured under section #bei of the       
,national ,housing ,act4