The Farmhouse-to-Workforce Housing Act of 2025

This bill expands an existing housing preservation grant program so it can help pay for accessory dwelling units (ADUs)—self‑contained homes on the same lot as a single‑family house, whether inside, attached, or detached. It adds clear limits on who can get help, how much funding is allowed, and basic rules for living in and renting these units.

Key points

• Who is affected: Homeowners adding ADUs to single‑family homes, and program grantees that run housing preservation projects. ADUs are defined as units within, attached to, or separate from a single‑family home on the same parcel.
• What changes:
  • Grants and loans can now be used for ADUs.
  • Help for single‑family homes is limited to houses at least 25 years old, with up to $200,000 per individual; at least 75% of this help must be grants, not loans.
  • For ADUs, assistance can cover no more than 50% of project cost, capped at $100,000, with that cap rising with inflation starting after 2026.
  • If a homeowner uses this help for ADUs, they must live in the main home or an ADU, keep ownership, avoid leases shorter than 6 months, and have income no higher than 150% of the area median. These live‑in and ownership rules end 5 years after the last ADU is ready or at the owner’s death; breaking the rules means paying back the full amount.
  • Grantees may use up to 20% of funds for admin needs like staff, offices, training, audits, and landlord education; they cannot use these funds for things like construction labor, buying property from people they assist, political activity, pre‑award costs, or paying old debts.
  • Any yearly funding above $16 million is moved to states that have committed all their allocated funds to grantees.
  • Authorizes $200 million for this program, available until spent.
• When: The ADU funding cap begins adjusting for inflation after December 31, 2026; the owner‑occupancy and ownership rules end 5 years after the final ADU is ready or at the owner’s death.