II
119THCONGRESS
1
STSESSION 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
FEBRUARY24, 2025
Mr. K
ING(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 Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘The Farmhouse-to- 4
Workforce Housing Act of 2025’’. 5
SEC. 2. HOUSING PRESERVATION GRANTS. 6
Section 533 of the Housing Act of 1949 (42 U.S.C. 7
1490m) is amended— 8
(1) in subsection (b)— 9
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(A) by redesignating paragraphs (1) 1
though (7) as subparagraphs (A) through (G), 2
respectively, and adjusting the margins accord-3
ingly; 4
(B) in the matter preceding subparagraph 5
(A), as so redesignated, by inserting ‘‘(1)’’ be-6
fore ‘‘Preservation’’; 7
(C) in paragraph (1), as so designated— 8
(i) in subparagraph (D), as so redes-9
ignated, by striking ‘‘, except’’ and all that 10
follows through ‘‘that structure’’; 11
(ii) in subparagraph (F), as so redes-12
ignated, by striking ‘‘and’’ at the end; 13
(iii) in subparagraph (G), as so redes-14
ignated, by striking the period at the end 15
and inserting ‘‘; or’’; and 16
(iv) by adding at the end the fol-17
lowing: 18
‘‘(H) be used to provide loans or grants for ac-19
cessory dwelling units.’’; and 20
(D) by adding at the end the following: 21
‘‘(2) Assistance under this section for single family 22
housing— 23
‘‘(A) may only be provided with respect to hous-24
ing that is not less than 25 years old, as of the date 25
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on which the occupancy permit for the housing is 1
issued; and 2
‘‘(B) to an individual may not exceed $200,000. 3
‘‘(3) A grantee may not use less than 75 percent of 4
the assistance provided under this section for single family 5
housing for the purposes of grants. 6
‘‘(4) Assistance under this section for an accessory 7
dwelling unit— 8
‘‘(A) may not cover more than 50 percent of 9
the total cost of the accessory dwelling unit; and 10
‘‘(B) may not exceed $100,000 (as adjusted for 11
inflation as described in paragraph (5)). 12
‘‘(5)(A) In this paragraph, the term ‘price index’ 13
means the Consumer Price Index (all items—United 14
States city average) published monthly by the Bureau of 15
Labor Statistics. 16
‘‘(B) In the case of any calendar year beginning after 17
December 31, 2026, the $100,000 dollar amount de-18
scribed in paragraph (4)(B) shall be increased by an 19
amount equal to— 20
‘‘(i) such dollar amount, multiplied by 21
‘‘(ii) the percentage change in the price index 22
amount determined by the Secretary of Labor to 23
represent the percent change in the price index pub-24
lished for September of the preceding year over the 25
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price index published for the September of the year 1
prior to the preceding year, adjusted to the nearest 2
one-tenth of 1 percent.’’; 3
(2) in subsection (c)(1)— 4
(A) in the matter preceding subparagraph 5
(A), by inserting ‘‘not more than $16,000,000 6
(as adjusted for inflation) of the’’ after ‘‘allo-7
cate’’; and 8
(B) in the flush text following subpara-9
graph (C), by adding at the end the following: 10
‘‘Any amounts appropriated for this section in 11
a fiscal year over $16,000,000 shall be trans-12
ferred to States that have committed to grant-13
ees all funds allocated to the State under this 14
subsection.’’; 15
(3) in subsection (e), by adding at the end the 16
following: 17
‘‘(4)(A) Except as provided in subparagraph (B), the 18
owner of a single-family dwelling unit that uses assistance 19
under this section for 1 or more accessory dwelling units 20
shall— 21
‘‘(i) reside in the single-family dwelling 22
unit or 1 of the accessory dwelling units; 23
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‘‘(ii) maintain ownership of the single-fam-1
ily dwelling unit and each accessory dwelling 2
unit; 3
‘‘(iii) ensure that no accessory dwelling 4
unit is subject to a lease or sublease of less 5
than 6 months in duration; and 6
‘‘(iv) earn not more than 150 percent of 7
the area median income. 8
‘‘(B) The requirements under clauses (i) and 9
(ii) of subparagraph (A) shall cease to be effective 10
on the earlier of— 11
‘‘(i) the date that is 5 years after the date 12
on which the final accessory dwelling unit is 13
available for occupancy; or 14
‘‘(ii) the death of the owner. 15
‘‘(C) If the owner of a single-family dwelling 16
unit does not meet the requirements under clauses 17
(i) and (ii) of subparagraph (A), the owner shall re-18
turn to the Secretary the full amount of assistance 19
received under this section.’’; and 20
(4) by adding at the end the following: 21
‘‘(j) A recipient of assistance under this section may 22
use not more than 20 percent of the funds for direct and 23
indirect administrative costs related to projects carried out 24
under this section, which— 25
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‘‘(1) may include— 1
‘‘(A) payment of reasonable salaries or 2
contracts for professional, technical, and clerical 3
staff actively assisting in the delivery of the 4
project; 5
‘‘(B) payment of necessary and reasonable 6
office expenses such as office rental, supplies, 7
utilities, telephone services, and equipment., 8
with any item of nonexpendable personal prop-9
erty having a unit value of $1,000 or more, ac-10
quired with funds provided under this section 11
specifically identified to the Secretary in writ-12
ing; 13
‘‘(C) payment of necessary and reasonable 14
administrative costs such as workers’ compensa-15
tion, liability insurance, and the employer’s 16
share of Social Security and health benefits, 17
with payments to private retirement funds only 18
permitted if the grantee already has such a 19
fund established and ongoing; 20
‘‘(D) payment of reasonable fees for nec-21
essary training of grantee personnel; 22
‘‘(E) payment of necessary and reasonable 23
costs for an audit upon expiration of the grant 24
agreement; 25
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‘‘(F) other reasonable travel and miscella-1
neous expenses necessary to accomplish the ob-2
jectives of the specific grant which were antici-3
pated in the individual grant proposal and have 4
been approved as eligible expenses at the time 5
of grant approval; and 6
‘‘(G) costs related to landlord education; 7
and 8
‘‘(2) may not include— 9
‘‘(A) preparing housing development plans 10
and strategies except as necessary to accom-11
plish the specific objectives of the project; 12
‘‘(B) substitution of any financial support 13
previously provided or currently available from 14
any other source; 15
‘‘(C) reimbursing personnel to perform 16
construction related to housing preservation as-17
sistance; 18
‘‘(D) buying property of any kind from 19
persons receiving assistance from the grantee 20
under the terms of the grant agreement; 21
‘‘(E) paying for or reimbursing the grantee 22
for any expense or debts incurred before the 23
Secretary executes the grant agreement; 24
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‘‘(F) paying any debts, expenses, or costs 1
which should be the responsibility of the indi-2
vidual homeowner, owner, tenant or household 3
member of a rental property, or owner (mem-4
ber) or non-member of a co-op receiving assist-5
ance under this section outside the costs of re-6
pair and rehabilitation as well as for replace-7
ment housing (individual homeowners only); 8
‘‘(G) any type of political activities prohib-9
ited by the Office of Management and Budget 10
Circular A–122, or any successor guidance; 11
‘‘(H) other costs including contributions 12
and donations, entertainment, fines and pen-13
alties, interest and other financial costs unre-14
lated to the assistance to be provided, legislative 15
expenses, and any excess of cost from other 16
grant agreements; or 17
‘‘(I) paying added salaries for employees 18
paid by other sources. 19
‘‘(k) There are authorized to be appropriated to the 20
Secretary $200,000,000 to carry out this section, to re-21
main available until expended. 22
‘‘(l) In this section, the term ‘accessory dwelling unit’ 23
means a self-contained dwelling unit— 24
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‘‘(1) located within, attached to, or detached 1
from a single-family dwelling unit; and 2
‘‘(2) that is located on the same parcel of land 3
as the single-family dwelling unit.’’. 4
Æ
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