Farm Labor Housing Loans and Grants provide low cost financing for the development of affordable rental housing for both year-round and migrant "domestic farm laborers" and their households. These programs may be used to build, buy, improve, or repair farm labor housing and provide related facilities, such as on-site child care centers.

Section 514 (long-term, low interest loans) are the basis of all assistance, to which Section 516 (grants) and Section 521 (Rental Assistance: project-based tenant subsidy that pays a portion of the tenant's shelter costs) assistance must be added based on need and funding availability.

The details for this program are divided into two categories: On Farm (housing developed for workers who work for the farmer borrowing the funds) and Off Farm (housing developed for farm workers working any farm operation).

Individual farm owner, family farm partnership, family farm corporation, or an association of farmers.

On-Farm labor housing proposals are accepted on an on-going basis with application being funded on first come - first serve basis.

Up to 100% of security value. Section 516 grants and Section 521 Rental Assistance is not available to on-farm proposals.

33-year term; full amortized at one percent interest. Loans are subject to a 20-year restrictive period.

Broad-based nonprofit corporations, cooperatives, public bodies (including housing authorities and Native American Indian Tribes) and limited partnerships with a single, nonprofit general partner.

The application process and competitive criteria is described in the annual Notice of Funding Availability (NOFA) published by RHS.

Combined Section 514 loan and Section 516 grant assistance may not exceed the limit published annually in the Federal Register. Section 516 grant funds are available only based on demonstrated need and may not exceed 90 percent of the project's total development cost.

Section 514: 33-year term; full amortized; monthly or annual payments

Contact our State Office for more information.