S 686 — The Farmhouse-to-Workforce Housing Act of 2025

Bill Text

• Introduced Introduced in Senate Current html February 24, 2025

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill expands the uses of housing preservation grants to include financing for accessory dwelling units and sets new parameters for grant distribution and eligibility.

• 42 U.S.C. 1490m(b)

  as provided under this subsection for any structure shall not exceed 75 per centum of the total costs associated with the rehabilitation or replacement of that structure;

  The limit on grant amounts for rental rehabilitation or replacement assistance is removed.

• 42 U.S.C. 1490m(b)

  (H) be used to provide loans or grants for accessory dwelling units.

  Grants can now be used to finance accessory dwelling units.

• 42 U.S.C. 1490m(b)

  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.

  New eligibility criteria and funding caps for single-family housing assistance are introduced.

• 42 U.S.C. 1490m(b)

  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)).

  New limits are established for grant amounts specifically for accessory dwelling units.

• 42 U.S.C. 1490m(c)(1)

  not more than $16,000,000 (as adjusted for inflation) of the

  A cap on the amount of funds allocated to each state is introduced.

• 42 U.S.C. 1490m(e)

  (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.

  New residency and income requirements for owners receiving grants for accessory dwelling units are established.

• 42 U.S.C. 1490m(e)

  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.

  The compliance period for residency and ownership can now end under specified conditions.

• 42 U.S.C. 1490m(e)

  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.

  Owners who fail to comply with new accessory dwelling unit requirements risk returning grant funds.

• 42 U.S.C. 1490m

  (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--

  A new provision allows recipients to allocate a portion of funds for administrative costs.

• 42 U.S.C. 1490m

  (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.

  An official definition of 'accessory dwelling unit' is now included in the law.

Action History

1. February 24, 2025

   Introduced in Senate

2. February 24, 2025

   Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Sponsors

• King, Angus S., Jr. · Primary
• Jerry Moran · Cosponsor

Subjects