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Grants for Building Secondary Housing Units (ADUs) to Increase Local Housing Supply.

This law allows eligible single-family homeowners with moderate incomes to receive federal grants to build Accessory Dwelling Units (ADUs) on their property, such as small cottages or garage apartments. This aims to increase local housing supply for the workforce. Owners must live on the property and adhere to minimum 6-month rental periods, with maximum assistance set at $100,000 per ADU.
Key points
New grants up to $100,000 (adjustable for inflation) are available to construct secondary housing units (ADUs) on existing single-family lots.
The owner must reside on the property and their income cannot exceed 150% of the area median income.
The grant can cover a maximum of 50% of the total ADU construction cost.
Rental restriction: ADUs built with this assistance cannot be leased for periods shorter than six months (banning short-term rentals).
The residency and ownership requirements expire after five years or upon the owner's death.
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Additional Information
The Farmhouse-to-Workforce Housing Act of 2024
Print number: S 5071
Sponsor: Sen. King, Angus S., Jr. [I-ME]
Process start date: 2024-09-17