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Farm Labor Housing 


Description:

This program is designed to provide decent, safe, and sanitary housing for domestic farm labor to be located in areas where a 
need for farm labor exists. There are two basic components: one is a loan only to farmers for on-farm housing on a non-rental basis; 
the other is a loan or a combination loan/grant for off-farm housing on a rental basis for the local agricultural market. This can be either 
"seasonal" which will be occupied six months or less or "year-round".

Loan Purposes:

Build, buy, improve, or repair housing, or purchase and improve the necessary land on which the housing will be located. Funds may 
also be used for other related facilities such as child daycare, laundry room and equipment, maintenance workshops, and 
storage, recreation center if project is large enough to support such services, or central dining areas when needed and feasible.

Loan Terms

The maximum term is 33 years or the useful life of the security. The interest rate is 1% of the unpaid principal

Who Is Eligible?

Loans can be made to individual farm-owners, association of farmers, family farm partnerships, state or political subdivisions, 
public or private non-profit organizations, or a non-profit organization of farmworkers. Grants are only available to political 
subdivisions and non-profit corporations.

FY 2009

For FY 2009, Section 514 loans - $22,977,147 and Section 516 grants - $8,586,430. Funds are maintained in the National Office 
and applicants must compete nationally for loan and grant funds. 

The closing deadline for receipt of all applications is July 20, 2009.

Loan Amount:

Loan amounts will vary. The amount of the loan may not exceed the value of the security for the loan as determined by an appraisal 
less any outstanding prior liens. 

Where Do You Apply?

A Notice of Funds Availability (NOFA) is announced each year for off-farm funds. Applications for on-farm housing are accepted any 
time during the year and are funded on a first-come, first-served basis, based on the availability of funds. Applications for on-farm housing are accepted any time during the year and are funded on a first-come, first-served basis, based on the availability of funds. Applicants may contact their local Rural Development Area Office to obtain additional information and/or to request an application.