Program Description
The Farm Labor Housing Loan and Grant program provides capital
financing for the development of housing for domestic farm laborers. Farm
Labor Housing loans and grants are provided to buy, build, improve, or
repair housing for farm laborers, including persons whose income in earned
in aquaculture (fish and oyster farms) and those engaged in on-farm
processing. Funds can be used to purchase a site or a leasehold interest in
a site; to construct housing, day care facilities, or community rooms; to
pay fees to purchase durable household furnishings; and to pay construction
loan interest.
General Program Requirements
The Farm Labor Housing Loan and Grant program provides capital
financing for the development of housing for domestic farm laborers. Loans
are made to farmers, associations of farmers, family farm corporations,
Indian tribes, nonprofit organizations, public agencies, and associations of
farmworkers. Typically, loan applicants are unable to obtain credit
elsewhere, but in some instances, farmers able to get credit elsewhere may
obtain loans at a rate of interest based on the cost of federal borrowing.
Grants are made to farmworker associations, nonprofit organizations, Indian
tribes, and public agencies. Funds may be used in urban areas for nearby
farm labor. (This is the only Rural Housing Service rural service area
exception.)
Loan Terms
Loans are for 33 years at 1% interest. Grants may cover up to 90%
of development costs. The balance may be a Farm Labor Housing Program
loan.
The following information will lead you to the next steps to apply for this benefit.
Application Process
Upon publication of a Notice of Funds Availability (NOFA), a
two-stage application process is used. In stage one, applicants submit a
pre-application, which is used to determine preliminary eligibility and
feasibility. Pre-applications selected for further processing will be
invited to submit an application. The pre-application consists of SF-424.2,
"Application for Federal Assistance (For Construction)" and the information
listed in exhibit A-1 or A-2 of Rural Development regulations, 1944-D, as
applicable.
Program Contact Information
For more information about the Farm Labor Housing Loan and Grant
program, visit:
http://www.rurdev.usda.gov/rhs/
To find out about availability of farm labor housing in your
locality, contact your local Rural Development field office using this
office locator tool:
http://www.rurdev.usda.gov/recd_map.html
Managing Agency
U.S. Department of Agriculture
http://www.usda.gov/
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