This bill amends the Housing Act of 1949 to provide grants and loans for accessory dwelling units (ADUs) and sets requirements for single-family housing assistance, including age restrictions, cost limits, and owner obligations.
Angus King
Senator
ME
The Farmhouse-to-Workforce Housing Act of 2025 amends the Housing Act of 1949 to provide grants and loans for accessory dwelling units (ADUs) and the preservation of single-family housing that is at least 25 years old. It sets specific requirements for the use of funds, including owner-occupancy, lease terms, and income limits for ADUs, and it caps the amount of assistance available for both single-family housing and ADUs. The act also allows recipients to use up to 20% of the funds for administrative costs and authorizes an appropriation of $200,000,000 for these purposes.
Farmhouse-to-Workforce Housing Act Kicks Off: Up to $100K for ADU Builds, If You Play by the Rules
The Farmhouse-to-Workforce Housing Act of 2025 aims to tackle the housing crunch by turning old farmhouses into multi-unit homes. It's throwing $200 million into sprucing up older homes and, notably, adding accessory dwelling units (ADUs) – think granny flats or converted garages.
Remodel and Rent
The core idea is to preserve existing single-family homes while creating new rental opportunities. Here’s how it shakes out:
- Renovation Grants: Homeowners with properties at least 25 years old can get grants for renovations, capped at $200,000. At least 75% of these funds are straight-up grants, not loans, so it is free money for homeowners. (SEC. 2.)
- ADU Boost: The bill greenlights grants and loans specifically for building ADUs. This is capped at 50% of the ADU's total cost, up to $100,000. (SEC. 2.)
Real World Rollout
- Homeowner in a rural area: Imagine a homeowner in a rural community with an aging farmhouse. They can use these funds to modernize their home and add a separate apartment, creating rental income and providing needed housing. (SEC. 2.)
- Small town contractor: This bill could mean a steady stream of work for local contractors and builders, boosting the local economy. (SEC. 2.)
Strings Attached
This isn't just free money. There are some catches to make sure the funds go to workforce housing, and there is a little help for admins, too:
- Residency Requirement: If you get the ADU funds, you must live in the main house and keep owning the property for at least five years. (SEC. 2.)
- Rent Rules: The ADU has to be rented out for at least six months at a time – no short-term vacation rentals. (SEC. 2.)
- Income Limits: The folks renting your ADU can't be making bank. Their income is capped at 150% of the area's median income. (SEC. 2.)
- Admin Allowance: Up to 20% of the grant money can be used for administrative costs, both direct and indirect. This includes things like salaries, rent for office space, and utilities, but not political activities or lobbying. (SEC. 2.)
- Funding Cap and Redistribution: There's a cap of $16,000,000 for initial allocations. If any money is left over, it gets sent to states that have already used up their share, rewarding efficiency. (SEC. 2.)
The Bottom Line
The Farmhouse-to-Workforce Housing Act tries to kill two birds with one stone: preserving older homes and creating affordable rental options. It's got potential upsides for homeowners, renters, and local economies, but the five-year ownership and residency requirements, along with the income caps, could be a hurdle for some. The $200 million in funding, available until spent, is a serious chunk of change, but how it's actually distributed and used will determine its real-world impact. (SEC. 2.)