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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. Closing Date: 9/2/2014

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.

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Last Modified:10/10/2014 
 
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