119-s686

[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.''.
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