514 & 516 Farm Labor Housing

The Farm Labor Housing Loan and Grant program provides capital financing for the development of housing for domestic farm laborers.

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 farm worker 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.)

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.

For more information on this or any program offered by Rural Development, please contact your nearest Area Office.