Latest news with #SamLiccardo
CNBC
18 hours ago
- Business
- CNBC
A new bill could make it easier to build a tiny home in your backyard—here's what to know
Granny flats, backyard cottages, garage apartments, in-law suites, guest houses — whatever you call them, a new bipartisan bill could make them easier to finance. The SUPPLY Act, introduced in the House last week by Reps. Sam Liccardo, D-Calif., and Andrew Garbarino, R-N.Y., would allow homeowners take out a government-backed second mortgage to build an accessory dwelling unit on their property. Second mortgages tailored for ADU construction are virtually non-existent, according to the Urban Institute, because lenders see them as risky and hard to resell without government backing. Currently, most homeowners who build ADUs have to rely on cash savings or home equity loans — options that aren't available to many lower- and middle-income households. That financing gap has made it harder for less affluent homeowners to build ADUs. The proposal comes as the U.S. faces a shortage of roughly 4 million homes, according to estimates, a supply gap that has pushed housing prices higher nationwide. Whether it's a detached backyard unit or a converted garage apartment, ADUs could help boost housing supply, especially in states like New York and California where shortages are most acute, the bill's co-sponsors say. These small dwellings can also provide homeowners with rental income to help offset rising housing costs. An ADU, as currently defined by the bill, is a self-contained living space with a kitchen, bathroom and sleeping area that's built onto, inside or next to a single-family home. The bill amends the National Housing Act to authorize FHA insurance for second mortgages used to build accessory dwelling units. It also allows Fannie Mae and Freddie Mac to purchase and securitize these loans, which helps lenders manage risk and offer the loans more broadly. Homeowners could qualify for larger loans by including up to 50% of the ADU's projected rental income. Lenders could also base the loan on the home's post-construction value, not just its current appraised value, according to the bill. The bill has bipartisan backing and support from housing industry groups, including the Mortgage Bankers Association and National Association of Home Builders. While the bill focuses on financing, it doesn't change state or local rules that govern where and how ADUs can be built. In many cities and suburbs, ADUs are still banned or heavily restricted, often through minimum lot size requirements, owner-occupancy rules or high permitting and utility connection fees. A handful of states have taken steps to loosen those rules. In California, recent reforms eliminated owner-occupancy mandates, capped permit fees and allowed ADUs by right in most residential areas. The state built about 23,000 ADUs in 2023 — more than seven times the number completed in 2018, according to the Wall Street Journal. One of the "biggest barriers" to more ADUs "is still local zoning," says Jenna Stauffer, a broker at Sotheby's International Realty. "There's too much red tape and too many upfront costs that discourage building. That keeps inventory low and prices high. It's something that has to be addressed at the local level — there needs to be more collaboration between local, state and federal leaders."
Daily Mail
2 days ago
- Business
- Daily Mail
A new law could introduce mortgages for building tiny homes
A new proposed law could make it easier to take on a loan to build a mobile home. Two congressmen have joined forces to present a bill that would create a new government-backed loan for Americans who want to build a tiny home on their property. Mobile homes have become increasingly popular as the rising cost of housing has shut many out of the dream of home ownership. Now existing homeowners want to build tiny homes on their properties - known as accessory dwelling units, or ADUs - to house their adult children, elderly parents or to let out to guests as a way of generating income. Even home builders are including ADUs as a selling point on properties. Sam Liccardo, a Democrat from California and Andrew Garbarino, a New York Republican, are co-leading the ADU bill that would allow for the unique second mortgages. 'This is a really pressing issue for Americans,' Liccardo said of the housing crisis. 'But it has not become nearly pressing enough for Congress,' he told The Wall Street Journal. ADUs are studio-style housing units which are normally between 600 and 1,200 square feet. The bill aims to ease the risk for private lenders to offer second mortgages for ADU construction by providing a government backstop in case the homeowner defaults, according to the Journal. So far the bill has been endorsed by at least 16 Democratic and Republican House members as well as the National Association of Home Builders and other influential industry groups. In 2020 around 1.4 million American homes had a supplemental tiny home on their property, and the trend is only gathering pace. The US is currently short 4 million homes and almost one third of all households are deemed to be 'cost-burdened,' because they spend more than a third of their income on rent or mortgage payments, the Journal reported. The housing crisis is increasingly encroaching onto politics and lawmakers are taking note. California Governor Gavin Newsom recently rolled back a landmark environmental law in a bid to boost house building. Lawmakers are also warming up to the idea that tiny homes could be a way to ease the housing crisis as they can be erected quicker and more cheaply, and often encounter less red tape than traditional full-size properties. Republican Andrew Garbarino (pictured) has worked with Democrat Liccardo to present the bill 'This happened to be a lower-hanging fruit,' Liccardo explained. 'It helps to start in an area where you can actually get something done.' For that reason modular home builders have targeted victims of the Los Angeles fires with offers of cheaper and quicker rebuilding options. Many homeowners who saw their properties burned to the ground were then met with the compounding heartbreak of home insurance payouts that will only cover a fraction of the rebuilding costs. Now businesses such as ICON and Hapi Homes see an opening to the mass market their tiny homes, which are built off-site with the help of 3-D printers and then transported to their final location. Building new homes off-site is often much cheaper because materials can be purchased in bulk and fewer workers are required for less time. After wildfires devastated Maui, Hawaii, in 2023 more than 100 modular companies flooded the building market.
CNBC
3 days ago
- Business
- CNBC
Rep. Liccardo warns of challenges for crypto market structure bill in Senate: CNBC Crypto World
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via Email Rep. Liccardo warns of challenges for crypto market structure bill in Senate: CNBC Crypto World On today's episode of CNBC Crypto World, PNC Bank announces a strategic partnership with the crypto exchange Coinbase aimed at expanding access to digital asset solutions to the bank's clients and institutional investors. Plus, Telegram's built-in wallet is launching in the U.S., allowing users to send and manage crypto directly within the app. And, Rep. Sam Liccardo (D-Calif.) explains why he expects the CLARITY Act will face 'headwinds' in the Senate.
Business Journals
19-06-2025
- Business
- Business Journals
Congressman warns ‘innovation economy is under threat,' calls for bipartisan approach
Expand Chris Thornberg and Sam Liccardo at the 2025 San Jose State University Economic Summit. Robert C. Bain
Bloomberg
13-06-2025
- Business
- Bloomberg
California Senator Handcuffed Outside Noem Briefing
"Balance of Power: Late Edition" focuses on the intersection of politics and global business. On today's show, Rep. Sam Liccardo discusses the forceful removal of Senator Alex Padilla at a Kristi Noem LA press conference, Bloomberg's Enda Curran discusses inflation, Jen Gavito, The Cohen Group Senior Advisor discusses the rising tensions between Israel and Iran. (Source: Bloomberg)
