The Farmhouse-to-Workforce Housing Act of 2025

Summary

Expands a federal rural housing program to allow loans and grants for accessory dwelling units (ADUs) and adjusts rules for single-family home assistance. It sets dollar caps and eligibility limits, requires most single-family aid to be paid as grants, allows limited administrative costs, defines ADUs, and authorizes $200 million for the program, available until expended.

• Allows loans or grants under the rural single-family program to fund accessory dwelling units (ADUs).
• Sets a $100,000 per-ADU cap (adjusted annually for inflation after 2026) and limits federal ADU aid to 50% of ADU costs.
• Imposes a $200,000 per-individual cap for single-family assistance and a 25-year minimum housing age for eligibility.
• Requires grantees to spend at least 75% of single-family assistance as grants rather than loans.
• Authorizes $200 million for the program, available until expended (authorization, not a direct appropriation).
• Owner-occupancy, ownership, lease-term, and income limits apply to ADU recipients, with a five-year occupancy/ownership minimum (or until owner's death) and repayment if violated.
• Allows up to 20% of funds for administrative costs but limits permissible administrative expenses.
• If annual appropriations exceed $16 million, funds are transferred only to States that commit to pass through allocated funds to grantees.