| 1 | 1 | | II |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION S. 686 |
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| 5 | 5 | | To amend the Housing Act of 1949 to permit certain grants to be used |
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| 6 | 6 | | for accessory dwelling units, and for other purposes. |
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| 7 | 7 | | IN THE SENATE OF THE UNITED STATES |
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| 8 | 8 | | FEBRUARY24, 2025 |
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| 9 | 9 | | Mr. K |
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| 10 | 10 | | ING(for himself and Mr. MORAN) introduced the following bill; which |
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| 11 | 11 | | was read twice and referred to the Committee on Banking, Housing, and |
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| 12 | 12 | | Urban Affairs |
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| 13 | 13 | | A BILL |
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| 14 | 14 | | To amend the Housing Act of 1949 to permit certain grants |
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| 15 | 15 | | to be used for accessory dwelling units, and for other |
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| 16 | 16 | | purposes. |
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| 17 | 17 | | Be it enacted by the Senate and House of Representa-1 |
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| 18 | 18 | | tives of the United States of America in Congress assembled, 2 |
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| 19 | 19 | | SECTION 1. SHORT TITLE. 3 |
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| 20 | 20 | | This Act may be cited as the ‘‘The Farmhouse-to- 4 |
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| 21 | 21 | | Workforce Housing Act of 2025’’. 5 |
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| 22 | 22 | | SEC. 2. HOUSING PRESERVATION GRANTS. 6 |
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| 23 | 23 | | Section 533 of the Housing Act of 1949 (42 U.S.C. 7 |
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| 24 | 24 | | 1490m) is amended— 8 |
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| 25 | 25 | | (1) in subsection (b)— 9 |
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| 27 | 27 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 |
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| 28 | 28 | | •S 686 IS |
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| 29 | 29 | | (A) by redesignating paragraphs (1) 1 |
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| 30 | 30 | | though (7) as subparagraphs (A) through (G), 2 |
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| 31 | 31 | | respectively, and adjusting the margins accord-3 |
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| 32 | 32 | | ingly; 4 |
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| 33 | 33 | | (B) in the matter preceding subparagraph 5 |
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| 34 | 34 | | (A), as so redesignated, by inserting ‘‘(1)’’ be-6 |
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| 35 | 35 | | fore ‘‘Preservation’’; 7 |
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| 36 | 36 | | (C) in paragraph (1), as so designated— 8 |
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| 37 | 37 | | (i) in subparagraph (D), as so redes-9 |
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| 38 | 38 | | ignated, by striking ‘‘, except’’ and all that 10 |
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| 39 | 39 | | follows through ‘‘that structure’’; 11 |
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| 40 | 40 | | (ii) in subparagraph (F), as so redes-12 |
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| 41 | 41 | | ignated, by striking ‘‘and’’ at the end; 13 |
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| 42 | 42 | | (iii) in subparagraph (G), as so redes-14 |
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| 43 | 43 | | ignated, by striking the period at the end 15 |
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| 44 | 44 | | and inserting ‘‘; or’’; and 16 |
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| 45 | 45 | | (iv) by adding at the end the fol-17 |
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| 46 | 46 | | lowing: 18 |
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| 47 | 47 | | ‘‘(H) be used to provide loans or grants for ac-19 |
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| 48 | 48 | | cessory dwelling units.’’; and 20 |
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| 49 | 49 | | (D) by adding at the end the following: 21 |
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| 50 | 50 | | ‘‘(2) Assistance under this section for single family 22 |
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| 51 | 51 | | housing— 23 |
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| 52 | 52 | | ‘‘(A) may only be provided with respect to hous-24 |
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| 53 | 53 | | ing that is not less than 25 years old, as of the date 25 |
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| 55 | 55 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 |
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| 56 | 56 | | •S 686 IS |
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| 57 | 57 | | on which the occupancy permit for the housing is 1 |
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| 58 | 58 | | issued; and 2 |
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| 59 | 59 | | ‘‘(B) to an individual may not exceed $200,000. 3 |
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| 60 | 60 | | ‘‘(3) A grantee may not use less than 75 percent of 4 |
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| 61 | 61 | | the assistance provided under this section for single family 5 |
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| 62 | 62 | | housing for the purposes of grants. 6 |
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| 63 | 63 | | ‘‘(4) Assistance under this section for an accessory 7 |
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| 64 | 64 | | dwelling unit— 8 |
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| 65 | 65 | | ‘‘(A) may not cover more than 50 percent of 9 |
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| 66 | 66 | | the total cost of the accessory dwelling unit; and 10 |
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| 67 | 67 | | ‘‘(B) may not exceed $100,000 (as adjusted for 11 |
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| 68 | 68 | | inflation as described in paragraph (5)). 12 |
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| 69 | 69 | | ‘‘(5)(A) In this paragraph, the term ‘price index’ 13 |
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| 70 | 70 | | means the Consumer Price Index (all items—United 14 |
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| 71 | 71 | | States city average) published monthly by the Bureau of 15 |
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| 72 | 72 | | Labor Statistics. 16 |
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| 73 | 73 | | ‘‘(B) In the case of any calendar year beginning after 17 |
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| 74 | 74 | | December 31, 2026, the $100,000 dollar amount de-18 |
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| 75 | 75 | | scribed in paragraph (4)(B) shall be increased by an 19 |
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| 76 | 76 | | amount equal to— 20 |
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| 77 | 77 | | ‘‘(i) such dollar amount, multiplied by 21 |
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| 78 | 78 | | ‘‘(ii) the percentage change in the price index 22 |
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| 79 | 79 | | amount determined by the Secretary of Labor to 23 |
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| 80 | 80 | | represent the percent change in the price index pub-24 |
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| 81 | 81 | | lished for September of the preceding year over the 25 |
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| 83 | 83 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 4 |
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| 84 | 84 | | •S 686 IS |
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| 85 | 85 | | price index published for the September of the year 1 |
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| 86 | 86 | | prior to the preceding year, adjusted to the nearest 2 |
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| 87 | 87 | | one-tenth of 1 percent.’’; 3 |
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| 88 | 88 | | (2) in subsection (c)(1)— 4 |
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| 89 | 89 | | (A) in the matter preceding subparagraph 5 |
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| 90 | 90 | | (A), by inserting ‘‘not more than $16,000,000 6 |
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| 91 | 91 | | (as adjusted for inflation) of the’’ after ‘‘allo-7 |
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| 92 | 92 | | cate’’; and 8 |
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| 93 | 93 | | (B) in the flush text following subpara-9 |
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| 94 | 94 | | graph (C), by adding at the end the following: 10 |
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| 95 | 95 | | ‘‘Any amounts appropriated for this section in 11 |
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| 96 | 96 | | a fiscal year over $16,000,000 shall be trans-12 |
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| 97 | 97 | | ferred to States that have committed to grant-13 |
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| 98 | 98 | | ees all funds allocated to the State under this 14 |
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| 99 | 99 | | subsection.’’; 15 |
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| 100 | 100 | | (3) in subsection (e), by adding at the end the 16 |
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| 101 | 101 | | following: 17 |
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| 102 | 102 | | ‘‘(4)(A) Except as provided in subparagraph (B), the 18 |
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| 103 | 103 | | owner of a single-family dwelling unit that uses assistance 19 |
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| 104 | 104 | | under this section for 1 or more accessory dwelling units 20 |
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| 105 | 105 | | shall— 21 |
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| 106 | 106 | | ‘‘(i) reside in the single-family dwelling 22 |
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| 107 | 107 | | unit or 1 of the accessory dwelling units; 23 |
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| 109 | 109 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 5 |
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| 110 | 110 | | •S 686 IS |
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| 111 | 111 | | ‘‘(ii) maintain ownership of the single-fam-1 |
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| 112 | 112 | | ily dwelling unit and each accessory dwelling 2 |
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| 113 | 113 | | unit; 3 |
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| 114 | 114 | | ‘‘(iii) ensure that no accessory dwelling 4 |
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| 115 | 115 | | unit is subject to a lease or sublease of less 5 |
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| 116 | 116 | | than 6 months in duration; and 6 |
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| 117 | 117 | | ‘‘(iv) earn not more than 150 percent of 7 |
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| 118 | 118 | | the area median income. 8 |
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| 119 | 119 | | ‘‘(B) The requirements under clauses (i) and 9 |
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| 120 | 120 | | (ii) of subparagraph (A) shall cease to be effective 10 |
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| 121 | 121 | | on the earlier of— 11 |
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| 122 | 122 | | ‘‘(i) the date that is 5 years after the date 12 |
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| 123 | 123 | | on which the final accessory dwelling unit is 13 |
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| 124 | 124 | | available for occupancy; or 14 |
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| 125 | 125 | | ‘‘(ii) the death of the owner. 15 |
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| 126 | 126 | | ‘‘(C) If the owner of a single-family dwelling 16 |
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| 127 | 127 | | unit does not meet the requirements under clauses 17 |
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| 128 | 128 | | (i) and (ii) of subparagraph (A), the owner shall re-18 |
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| 129 | 129 | | turn to the Secretary the full amount of assistance 19 |
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| 130 | 130 | | received under this section.’’; and 20 |
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| 131 | 131 | | (4) by adding at the end the following: 21 |
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| 132 | 132 | | ‘‘(j) A recipient of assistance under this section may 22 |
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| 133 | 133 | | use not more than 20 percent of the funds for direct and 23 |
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| 134 | 134 | | indirect administrative costs related to projects carried out 24 |
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| 135 | 135 | | under this section, which— 25 |
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| 137 | 137 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 6 |
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| 138 | 138 | | •S 686 IS |
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| 139 | 139 | | ‘‘(1) may include— 1 |
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| 140 | 140 | | ‘‘(A) payment of reasonable salaries or 2 |
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| 141 | 141 | | contracts for professional, technical, and clerical 3 |
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| 142 | 142 | | staff actively assisting in the delivery of the 4 |
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| 143 | 143 | | project; 5 |
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| 144 | 144 | | ‘‘(B) payment of necessary and reasonable 6 |
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| 145 | 145 | | office expenses such as office rental, supplies, 7 |
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| 146 | 146 | | utilities, telephone services, and equipment., 8 |
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| 147 | 147 | | with any item of nonexpendable personal prop-9 |
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| 148 | 148 | | erty having a unit value of $1,000 or more, ac-10 |
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| 149 | 149 | | quired with funds provided under this section 11 |
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| 150 | 150 | | specifically identified to the Secretary in writ-12 |
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| 151 | 151 | | ing; 13 |
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| 152 | 152 | | ‘‘(C) payment of necessary and reasonable 14 |
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| 153 | 153 | | administrative costs such as workers’ compensa-15 |
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| 154 | 154 | | tion, liability insurance, and the employer’s 16 |
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| 155 | 155 | | share of Social Security and health benefits, 17 |
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| 156 | 156 | | with payments to private retirement funds only 18 |
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| 157 | 157 | | permitted if the grantee already has such a 19 |
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| 158 | 158 | | fund established and ongoing; 20 |
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| 159 | 159 | | ‘‘(D) payment of reasonable fees for nec-21 |
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| 160 | 160 | | essary training of grantee personnel; 22 |
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| 161 | 161 | | ‘‘(E) payment of necessary and reasonable 23 |
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| 162 | 162 | | costs for an audit upon expiration of the grant 24 |
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| 163 | 163 | | agreement; 25 |
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| 165 | 165 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 7 |
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| 166 | 166 | | •S 686 IS |
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| 167 | 167 | | ‘‘(F) other reasonable travel and miscella-1 |
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| 168 | 168 | | neous expenses necessary to accomplish the ob-2 |
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| 169 | 169 | | jectives of the specific grant which were antici-3 |
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| 170 | 170 | | pated in the individual grant proposal and have 4 |
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| 171 | 171 | | been approved as eligible expenses at the time 5 |
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| 172 | 172 | | of grant approval; and 6 |
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| 173 | 173 | | ‘‘(G) costs related to landlord education; 7 |
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| 174 | 174 | | and 8 |
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| 175 | 175 | | ‘‘(2) may not include— 9 |
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| 176 | 176 | | ‘‘(A) preparing housing development plans 10 |
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| 177 | 177 | | and strategies except as necessary to accom-11 |
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| 178 | 178 | | plish the specific objectives of the project; 12 |
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| 179 | 179 | | ‘‘(B) substitution of any financial support 13 |
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| 180 | 180 | | previously provided or currently available from 14 |
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| 181 | 181 | | any other source; 15 |
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| 182 | 182 | | ‘‘(C) reimbursing personnel to perform 16 |
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| 183 | 183 | | construction related to housing preservation as-17 |
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| 184 | 184 | | sistance; 18 |
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| 185 | 185 | | ‘‘(D) buying property of any kind from 19 |
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| 186 | 186 | | persons receiving assistance from the grantee 20 |
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| 187 | 187 | | under the terms of the grant agreement; 21 |
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| 188 | 188 | | ‘‘(E) paying for or reimbursing the grantee 22 |
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| 189 | 189 | | for any expense or debts incurred before the 23 |
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| 190 | 190 | | Secretary executes the grant agreement; 24 |
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| 193 | 193 | | •S 686 IS |
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| 194 | 194 | | ‘‘(F) paying any debts, expenses, or costs 1 |
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| 195 | 195 | | which should be the responsibility of the indi-2 |
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| 196 | 196 | | vidual homeowner, owner, tenant or household 3 |
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| 197 | 197 | | member of a rental property, or owner (mem-4 |
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| 198 | 198 | | ber) or non-member of a co-op receiving assist-5 |
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| 199 | 199 | | ance under this section outside the costs of re-6 |
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| 200 | 200 | | pair and rehabilitation as well as for replace-7 |
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| 201 | 201 | | ment housing (individual homeowners only); 8 |
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| 202 | 202 | | ‘‘(G) any type of political activities prohib-9 |
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| 203 | 203 | | ited by the Office of Management and Budget 10 |
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| 204 | 204 | | Circular A–122, or any successor guidance; 11 |
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| 205 | 205 | | ‘‘(H) other costs including contributions 12 |
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| 206 | 206 | | and donations, entertainment, fines and pen-13 |
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| 207 | 207 | | alties, interest and other financial costs unre-14 |
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| 208 | 208 | | lated to the assistance to be provided, legislative 15 |
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| 209 | 209 | | expenses, and any excess of cost from other 16 |
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| 210 | 210 | | grant agreements; or 17 |
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| 211 | 211 | | ‘‘(I) paying added salaries for employees 18 |
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| 212 | 212 | | paid by other sources. 19 |
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| 213 | 213 | | ‘‘(k) There are authorized to be appropriated to the 20 |
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| 214 | 214 | | Secretary $200,000,000 to carry out this section, to re-21 |
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| 215 | 215 | | main available until expended. 22 |
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| 216 | 216 | | ‘‘(l) In this section, the term ‘accessory dwelling unit’ 23 |
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| 217 | 217 | | means a self-contained dwelling unit— 24 |
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| 220 | 220 | | •S 686 IS |
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| 221 | 221 | | ‘‘(1) located within, attached to, or detached 1 |
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| 222 | 222 | | from a single-family dwelling unit; and 2 |
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| 223 | 223 | | ‘‘(2) that is located on the same parcel of land 3 |
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| 224 | 224 | | as the single-family dwelling unit.’’. 4 |
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| 225 | 225 | | Æ |
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