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FARM LABOR HOUSING LOANS AND GRANTS
RD REGULATION 7 CFR 3560
HANDBOOK-1-3560
HANDBOOK-2-3560
HANDBOOK-3-3560
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The purpose of the Farm Labor Housing Loan and Grant Program
is to make loans to provide decent, safe, and sanitary housing for domestic farm labor in areas where needed and
provide grants where there is a pressing need for such facilities in an area for farm laborers, and there is a
reasonable doubt that housing can be provided without the grant assistance. |
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Eligible Applicants |
Must be a farm owner, family farm partnership, family farm corporation, or an association of farmers whose farming
operations demonstrate a need for farm labor housing, or an organization which will own the housing and operate it
on a nonprofit basis. |
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Eligibility Requirements |
To be eligible for a loan the applicant must meet the following:
- Unable to provide needed housing from their own resources and unable to obtain credit elsewhere
- Own the housing and related land or become the owner when the loan is closed
- Refer to Attachment 4-B of HB-1-3560, MFH Loan Origination Handbook, for more specific requirements
- Have sufficient initial operating capital to pay costs such as property and liability insurance premiums, fidelity bond coverage,
utility hookup deposits, maintenance equipment, printing other lease forms, and other initial expenses. Can include up to 2%
of the development costs for the initial operating capital for nonprofit organizations and State or local public agencies
In addition to the above, to be eligible for a labor housing grant the applicant must meet the following:
- Must be broad-based nonprofit or nonprofit organization of farm workers only.
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| Rates and Terms |
Loan will be amortized for 33 years at 1% percent interest rate. |
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| Applications and Funding Selection |
Applications for loans are processed by one of our six area offices throughout the state. Applications for Farm Labor Housing Grants are now announced annually as a Notice of Funding Availability (NOFA) in the Federal Register. Allocation for loans and grants are maintained by the National Office. Must get authorization from National Office before proceeding with final requests. |
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| Loan Purposes |
- Build, buy, improve or repair housing
- Purchase and improve the necessary land on which the housing
will be located
- Develop and install water supply, sewage disposal, streets,
storm water retention facilities and heat and light systems
- Construct other related facilities in connection with the
housing such as maintenance workshop, storage facilities,
recreation center, central cooking and dining, laundry, etc.
- Construct office and living quarters for the resident manager
and other operating personnel
- Purchase and install ranges, refrigerators, drapes, washers and dryers
- Provide landscaping, foundation planting, seeding or
installation of sod, and necessary facilities
related to building such as walks, yards, fences, parking areas and driveways
- Provide funds to enable a nonprofit group or public body to be reimbursed for technical assistance
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| Grant Requirements |
A grant may be made to an eligible applicant when the following requirements are met:
- Applicant contributes at least 10% of the total development cost from their own resources
- Davis-Bacon Act applies to construction if a grant is involved.
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