Farm Labor Housing Direct Loans & Grants

Program Status: CLOSED
Application Deadline:  April 12, 2016
Notice of Solicitation of Application (pdf)

What does this program do?
It provides affordable financing to develop housing for year-round and migrant or seasonal domestic farm laborers. (1)

Who may apply for this program?
This program assists qualified applicants that cannot obtain commercial credit on terms that will allow them to charge rents that are affordable to low-income tenants. Borrowers must have sufficient qualifications and experience to develop and operate the project. Qualified applicants include:

• Farmers, associations of farmers and family farm corporations
• Associations of farmworkers and nonprofit organizations*
• Most State and local governmental entities*
• Federally-recognized Tribes*

*Eligible to apply for grants and loans

What is an eligible area?
Housing may be constructed in urban or rural areas, as long as there is a demonstrated need.

How may funds be used?
Construction, improvement, repair and purchase of housing for domestic farm laborers is the primary objective of this program.

*NOTE: The amount of funding available in FY 2015 is based on current appropriations.  FLH Loan (514): $20,338,000  FLH Grant (516): $6,336,000

Funding may also be available for related activities including:

• Buying and improve land
• Purchasing household furnishings
• Paying construction loan interest
• For a complete list see 7 CFR 3560.53.

Who may live in the rental housing?

• Domestic farm laborers, including those working on fish and oyster farms and on-farm processing (1)
• Retired and/or disabled farm laborers
• Must be a U.S. citizen or permanent resident
• Very-low- to moderate-income households (2)

What kinds of funding are available?

• Low interest loans
• Grants based on need and may not exceed 90% of project cost

What are the loan terms?

• Up to 33 year payback period
• 1% fixed rate
• An allocation of loan funds is also available for on-farm labor housing and is funded on a first-come, first-served basis
• Contact your local RD office for details applicable for your project

How do we get started?
A two-phase application process starts with pre-applications accepted on an annual basis through a Notice of Funding Availability (NOFA) in the Federal Register. Selected pre-applications are invited to submit final applications

Who can answer questions?
Contact your RD State office  or you can find Rural Rental Properties

What governs this program?

• Off-Farm: 7 CFR 3560-Subpart L
• On-Farm: 7 CFR 3560 Subpart M
• Title V of the Housing Act of 1949