Farm Labor Housing Loans and Grants
Eligibility: 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 Housing and
Community Facilities Programs rural service area exception.)
Fund Uses: 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. Loans are for 33 years
at 1% interest, except as noted above. Grants may cover up to 90% of development costs.
The balance may be a Farm Labor Housing Program loan. Funds may be used to build, buy,
improve, or repair labor housing and to provide related facilities.
Application Processing: The Program Director has the authority to approve loans to
individuals of up to $100,000, and the State Director can approve loans of up to
$400,000. Larger loans must receive prior approval from the National Office. The State
Director can award grants with the prior approval of the National Office
FLH NOFA Status Page
FLH Loans and Grants NOFA
The Pre-Application Packet can be found here.
Basic Instructions: 7 CFR 3560; Subpart L and RD Instruction 1944-D
For more information about this program, or to file an application, contact the local
Rural Development office in your area.