Farm Labor Housing Loans and Grants

What is the aim of the Farm Labor Housing Loans and Grants?

The loans and grants may be used for construction, repair, or purchase of year-round or seasonal housing; acquiring the necessary land and making improvements on land for housing; and developing related support facilities including central cooking and dining facilities, small infirmaries, laundry facilities, day care centers, other essential equipment and facilities or recreation areas. Funds may also be used to pay certain fees and interest incidental to the project.

Restrictions on the use of funds are: Developers’ fees, resident services, cost of unrelated commercial space, costs associated with other lenders/grantors. Housing financed with labor housing loan or grant funds must be occupied by domestic farm laborers, individuals who derive a substantial portion of their income from farm labor, and their families. The occupants must also be a U.S. citizen or permanent resident.

Who is Eligible to Apply for the Farm Labor Housing Loans and Grants?

Grants are available to farmers, family farm partnership, family farm corporations, or an association of farmers. Loans and grants are available to States, Puerto Rico, the U.S. Virgin Islands, political subdivisions of States, broad-based public or private nonprofit organizations, federally recognized Indian Tribes and non- profit corporations of farm workers. Grants are available to eligible applicants only when there is a pressing need and when it is doubtful that such facilities could be provided unless grant assistance is available.

How to Apply for the Farm Labor Housing Loans and Grants?

Grant funds will be awarded through a Notice of Funding Available (NOFA) announced in the Federal Register May 10, 2010. The NOFA application period is 2 months from the date of the announcement.

How much is the Range and Average of Farm Labor Housing Loans and Grants?

Funds available for off-farm new construction and acquisition and rehabilitation grants are as follows: Section 514 Loan $22,128,195; Section 516 Grant $7,552,845; Rental Assistance (RA) and Operating Assistance (only for migrant workers) will be available for all new construction funds. Other Distribution of Funding: Loans: On-Farm-$2,000,000; Administrator’s Reserve-$1,928,413. Grants: Technical Assistant Grants-$0; Administrator’s Reserve-$1,698,243.

Where to Apply for the Farm Labor Housing Loans and Grants?

See Regional Agency Offices. Consult your local telephone directory for Rural Development Area Office number. If no listing, contact appropriate Rural Development State Office listed in Appendix IV of the Catalog or on the internet at http://www.rurdev.usda.gov/recd_map.html.

For more info on the Farm Labor Housing Loans and Grants, contact:

Headquarters Office
USDA Rural Development, Preservation and Direct Loan Division, 1400 Independence Ave. SW., Mail Stop 0782, Washington, District of Columbia 20250 0781
Phone: (202) 720-1604
Web Site Address: http://www.rurdev.usda.gov

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