Post #39: The SUPPLY Act

July 2025

Sam Liccardo, Congressional representative of California’s 16th District, has introduced bipartisan legislation to make building accessory dwelling units (ADUs) more affordable for many. Liccardo, a Democrat, worked with a Republican representative to introduce the SUPPLY Act, which would authorize FHA insurance for second mortgages to build ADUs, giving homeowners “of modest means” the opportunity to build an ADU.

My perspective

As someone who has grown up in Atherton, California, the idea of towns relying solely on ADUs to meet state regulations has always left me feeling — for lack of a better word — icky. Towns like Atherton have encouraged residents to build — but not necessarily rent out — their ADUs to “maintain the character of the town.” 

This basically means homeowners build a smaller unit on their property that could even be a part of a larger house, and it will be counted towards the state’s RHNA quota whether or not someone is actually living in it. Effectively, this prevents Atherton from creating multifamily housing. 


However…

I understand, though, that this bill will create new opportunities for individuals to build ADUs and offer others shelter in a time when housing costs make that challenging. Building and living in ADUs is a net positive, of course. This bill could create housing for many people across our country who need it.

It’s wonderful that District 16’s representative who campaigned on a platform focused on finding creative solutions to our housing crisis is doing just that in office.


Image Credits: The Almanac/Kevin Arroyo/Pete Moffat Construction/Ana Williamson Architect.