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Increase the supply of housing in AmericaSection 502 › Proposal

Rent from an accessory dwelling unit may count toward a guaranteed loan

To increase the supply of housing in America, and for other purposes, section 502, Sec. 502. Written by .

Rent from an accessory dwelling unit may count toward a guaranteed loan

The document says “may not be construedWho acts: Secretary of AgricultureHow: statuteSec. 502 in the PDF
What the document says

“``(C) Rule of construction.--Nothing in this paragraph shall be construed to prohibit the leasing of an accessory dwelling unit or the use of rental income derived from such a lease to qualify for a loan guaranteed under this subsection--”

To increase the supply of housing in America, and for other purposes, Sec. 502

The section amends section 502(h)(4) of the Housing Act of 1949 to add a definition of an accessory dwelling unit as a single habitable living unit with its own way in and out, usually smaller, that can be added to, created within, or detached from a primary single-family dwelling and that together with it forms a single interest in real estate. It adds a rule of construction that nothing in the paragraph bars leasing such a unit or using the rent from it to qualify for a guaranteed loan, after the date of enactment and where the property was built before that date.

What the document actually says

“``(C) Rule of construction.--Nothing in this paragraph shall be construed to prohibit the leasing of an accessory dwelling unit or the use of rental income derived from such a lease to qualify for a loan guaranteed under this subsection--”

To increase the supply of housing in America, and for other purposes, Sec. 502
That sentence, in plain words

This part does not bar renting out a small extra home on the lot. It does not bar using that rent to qualify for a backed loan.

What this is about

An accessory dwelling unit is a second small home on one lot. The rule reaches loans after this law passed. The house itself must have been built before then.

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