[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 686 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 686
To amend the Housing Act of 1949 to permit certain grants to be used
for accessory dwelling units, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 24, 2025
Mr. King (for himself and Mr. Moran) introduced the following bill;
which was read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Housing Act of 1949 to permit certain grants to be used
for accessory dwelling units, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``The Farmhouse-to-Workforce Housing
Act of 2025''.
SEC. 2. HOUSING PRESERVATION GRANTS.
Section 533 of the Housing Act of 1949 (42 U.S.C. 1490m) is
amended--
(1) in subsection (b)--
(A) by redesignating paragraphs (1) though (7) as
subparagraphs (A) through (G), respectively, and
adjusting the margins accordingly;
(B) in the matter preceding subparagraph (A), as so
redesignated, by inserting ``(1)'' before
``Preservation'';
(C) in paragraph (1), as so designated--
(i) in subparagraph (D), as so
redesignated, by striking ``, except'' and all
that follows through ``that structure'';
(ii) in subparagraph (F), as so
redesignated, by striking ``and'' at the end;
(iii) in subparagraph (G), as so
redesignated, by striking the period at the end
and inserting ``; or''; and
(iv) by adding at the end the following:
``(H) be used to provide loans or grants for accessory
dwelling units.''; and
(D) by adding at the end the following:
``(2) Assistance under this section for single family housing--
``(A) may only be provided with respect to housing that is
not less than 25 years old, as of the date on which the
occupancy permit for the housing is issued; and
``(B) to an individual may not exceed $200,000.
``(3) A grantee may not use less than 75 percent of the assistance
provided under this section for single family housing for the purposes
of grants.
``(4) Assistance under this section for an accessory dwelling
unit--
``(A) may not cover more than 50 percent of the total cost
of the accessory dwelling unit; and
``(B) may not exceed $100,000 (as adjusted for inflation as
described in paragraph (5)).
``(5)(A) In this paragraph, the term `price index' means the
Consumer Price Index (all items--United States city average) published
monthly by the Bureau of Labor Statistics.
``(B) In the case of any calendar year beginning after December 31,
2026, the $100,000 dollar amount described in paragraph (4)(B) shall be
increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the percentage change in the price index amount
determined by the Secretary of Labor to represent the percent
change in the price index published for September of the
preceding year over the price index published for the September
of the year prior to the preceding year, adjusted to the
nearest one-tenth of 1 percent.'';
(2) in subsection (c)(1)--
(A) in the matter preceding subparagraph (A), by
inserting ``not more than $16,000,000 (as adjusted for
inflation) of the'' after ``allocate''; and
(B) in the flush text following subparagraph (C),
by adding at the end the following: ``Any amounts
appropriated for this section in a fiscal year over
$16,000,000 shall be transferred to States that have
committed to grantees all funds allocated to the State
under this subsection.'';
(3) in subsection (e), by adding at the end the following:
``(4)(A) Except as provided in subparagraph (B), the owner of a
single-family dwelling unit that uses assistance under this section for
1 or more accessory dwelling units shall--
``(i) reside in the single-family dwelling unit or
1 of the accessory dwelling units;
``(ii) maintain ownership of the single-family
dwelling unit and each accessory dwelling unit;
``(iii) ensure that no accessory dwelling unit is
subject to a lease or sublease of less than 6 months in
duration; and
``(iv) earn not more than 150 percent of the area
median income.
``(B) The requirements under clauses (i) and (ii) of
subparagraph (A) shall cease to be effective on the earlier
of--
``(i) the date that is 5 years after the date on
which the final accessory dwelling unit is available
for occupancy; or
``(ii) the death of the owner.
``(C) If the owner of a single-family dwelling unit does
not meet the requirements under clauses (i) and (ii) of
subparagraph (A), the owner shall return to the Secretary the
full amount of assistance received under this section.''; and
(4) by adding at the end the following:
``(j) A recipient of assistance under this section may use not more
than 20 percent of the funds for direct and indirect administrative
costs related to projects carried out under this section, which--
``(1) may include--
``(A) payment of reasonable salaries or contracts
for professional, technical, and clerical staff
actively assisting in the delivery of the project;
``(B) payment of necessary and reasonable office
expenses such as office rental, supplies, utilities,
telephone services, and equipment., with any item of
nonexpendable personal property having a unit value of
$1,000 or more, acquired with funds provided under this
section specifically identified to the Secretary in
writing;
``(C) payment of necessary and reasonable
administrative costs such as workers' compensation,
liability insurance, and the employer's share of Social
Security and health benefits, with payments to private
retirement funds only permitted if the grantee already
has such a fund established and ongoing;
``(D) payment of reasonable fees for necessary
training of grantee personnel;
``(E) payment of necessary and reasonable costs for
an audit upon expiration of the grant agreement;
``(F) other reasonable travel and miscellaneous
expenses necessary to accomplish the objectives of the
specific grant which were anticipated in the individual
grant proposal and have been approved as eligible
expenses at the time of grant approval; and
``(G) costs related to landlord education; and
``(2) may not include--
``(A) preparing housing development plans and
strategies except as necessary to accomplish the
specific objectives of the project;
``(B) substitution of any financial support
previously provided or currently available from any
other source;
``(C) reimbursing personnel to perform construction
related to housing preservation assistance;
``(D) buying property of any kind from persons
receiving assistance from the grantee under the terms
of the grant agreement;
``(E) paying for or reimbursing the grantee for any
expense or debts incurred before the Secretary executes
the grant agreement;
``(F) paying any debts, expenses, or costs which
should be the responsibility of the individual
homeowner, owner, tenant or household member of a
rental property, or owner (member) or non-member of a
co-op receiving assistance under this section outside
the costs of repair and rehabilitation as well as for
replacement housing (individual homeowners only);
``(G) any type of political activities prohibited
by the Office of Management and Budget Circular A-122,
or any successor guidance;
``(H) other costs including contributions and
donations, entertainment, fines and penalties, interest
and other financial costs unrelated to the assistance
to be provided, legislative expenses, and any excess of
cost from other grant agreements; or
``(I) paying added salaries for employees paid by
other sources.
``(k) There are authorized to be appropriated to the Secretary
$200,000,000 to carry out this section, to remain available until
expended.
``(l) In this section, the term `accessory dwelling unit' means a
self-contained dwelling unit--
``(1) located within, attached to, or detached from a
single-family dwelling unit; and
``(2) that is located on the same parcel of land as the
single-family dwelling unit.''.
<all>