In a bipartisan push to boost housing supply nationwide, Reps. Sam Liccardo (D-CA) and Andrew Garbarino (R-NY) have introduced the Supporting Upgraded Property Projects and Lending for Yards (SUPPLY) Act a bill designed to unlock financing for Accessory Dwelling Units (ADUs), commonly known as in-law suites, granny flats, or backyard cottages.
The SUPPLY Act (H.R. 4568) aims to address one of the most persistent challenges homeowners face when building ADUs: limited access to financing. Currently, many working- and middle-class homeowners lack the equity to qualify for second mortgages or traditional loans, leaving ADU construction largely in the hands of more affluent property owners.
Expanding Access for Everyday Homeowners
The proposed legislation would allow the U.S. Department of Housing and Urban Development (HUD) to back second-position mortgages a form of financing that doesn’t require refinancing an existing low-interest first mortgage. This change could make ADU construction more accessible to lower-income households and younger homeowners, expanding their ability to generate rental income, house extended family, or support multigenerational living.
“As mayor of San Jose, we saw firsthand how streamlining regulations sparked demand nearly 1,000 permit applications in one year,” said Rep. Liccardo. “But after securing permits, too many homeowners hit a wall with financing. The SUPPLY Act knocks that wall down.”
Rep. Garbarino echoed that sentiment: “On Long Island, families often find opportunity in their own backyard. The SUPPLY Act equips them with the tools to turn garages, basements, or sheds into livable spaces that build equity and strengthen our communities.”
Industry and Advocacy Support
The SUPPLY Act has received strong support from housing experts, builders, and financial institutions.
Noerena Limon, CEO of the Casita Coalition, hailed the bill as a “smart, targeted solution” that addresses a major financing gap. “It brings ADUs within reach for the families who need them most—especially lower-income and multigenerational households,” she said.
Buddy Hughes, Chairman of the National Association of Home Builders, praised the bill for helping “ease housing shortages and improve affordability” by making ADU loans more accessible.
The California Credit Union League also applauded the effort, with President and CEO Scott Simpson noting: “The SUPPLY Act is a meaningful step toward flexible lending and broader access to affordable housing just as ADUs are becoming a lifeline for many Californians.”
Addressing the Housing Supply Crisis
As the U.S. continues to grapple with an estimated shortage of 3.8 million homes, ADUs have gained traction as a faster, cost-effective way to increase the housing stock without major new land development. The SUPPLY Act builds on this momentum by offering a financing model that can be scaled across the country.
If passed, the bill could unlock thousands of new rental units and help homeowners invest in their properties one backyard at a time. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.