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Expands a federal housing program to pay for repairs, renovations, and accessory dwelling units (ADUs) for older single-family homes and other eligible properties, sets per-person and per-unit funding limits, establishes income and owner-occupancy rules for ADU assistance, caps grantee administrative spending, and authorizes $200 million in funding. It adds repayment triggers if owners fail to meet occupancy or ownership requirements and indexes certain limits to inflation after 2026.
The bill creates a federally funded program that can materially help homeowners—especially lower-income households—build ADUs and preserve housing through sizable grants, but it limits eligibility, caps benefits relative to high-cost markets, and imposes repayment and administrative constraints that reduce flexibility and could expose recipients to financial risk.
Homeowners (including low- and moderate-income households) can receive up to $100,000 per ADU (and up to 50% of ADU cost), with at least 75% of single-family assistance delivered as grants, reducing out-of-pocket costs and enabling rental income or additional living space.
Homeowners and local governments gain a dedicated federal funding stream — $200 million (available until expended) — to support housing preservation and creation of ADUs nationwide.
Grantees and local administrators have clear rules on allowable administrative costs, including a 20% cap, which provides predictable funding rules and helps prioritize project funding over excessive overhead.
Homeowners who stop occupying or owning the assisted property within five years (or who die) may be required to repay the full assistance, creating a substantial financial clawback risk for recipients.
Homeowners of properties built less than 25 years ago are ineligible for single-family assistance, excluding many owners who may still need help and narrowing program reach.
Per-individual caps (e.g., $200,000 total) and per-ADU support limits may be insufficient in high-cost housing markets, leaving owners to cover substantial remaining costs.
Introduced February 24, 2025 by Angus Stanley King · Last progress February 24, 2025