II 119th CONGRESS 1st Session S. 686 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.

1. Short title This Act may be cited as the The Farmhouse-to-Workforce Housing Act of 2025 . 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. .