“A bill to amend the Housing Act of 1949 to permit certain grants to be used for accessory dwelling units, and for other purposes.”
No CRS summary available for this bill.
This section revises the Housing Preservation Grant (HPG) program (42 U.S.C. 1490m), which provides grants to nonprofits, tribes, local governments, states, and consortia to rehabilitate or replace single-family and rental housing in rural areas for low- and very low-income households, as follows: (1) in mandatory program requirements, removes the 75% cap on rental housing rehabilitation or replacement assistance per structure; authorizes assistance for accessory dwelling units (ADUs); restricts single-family assistance to housing at least 25 years old (new requirement, based on occupancy permit date) and to $200,000 per individual (new cap); requires grantees to use at least 75% of single-family assistance for grants (new requirement); limits ADU assistance to 50% of total costs and $100,000 per unit (inflation-adjusted annually via CPI after December 31, 2026, new limits); and imposes owner requirements for ADU assistance, including residency in the primary dwelling or one ADU, ownership retention, minimum 6-month leases, and income not exceeding 150% of area median income (with residency and ownership requirements expiring after 5 years or owner death, and full repayment required for noncompliance); (2) limits state allocations to not more than $16 million (inflation-adjusted, new cap) and directs excess appropriations to states that have fully committed prior allocations to grantees; and (3) authorizes up to 20% of funds for specified administrative costs (new provision) while prohibiting uses such as construction labor reimbursement or pre-grant expenses.