Farm Labor Housing Loans and Grants

Loans and grants may be used for construction, repair, or purchase of seasonal or year round housing for farm workers and their families. A farm worker is a domestic farm laborer who receives a substantial portion of his/her income as a laborer on a farm, and is a citizen of the United States or has been legally admitted for permanent residence.

Funds can be used to purchase land and pay for Architectural/Engineering (A/E) fees, legal fees and interest during construction.

Loans are available to farmers, family farm partnerships, family farm corporations, associations of farmers or State and Local governments and eligible non-profit corporations.
Construction grants and rental assistance may be available only to State and Local governments and eligible non-profit corporations.

TYPES OF HOUSING

Off-Farm Housing for Farmworkers

USDA low-cost mortgage loans and grants are available to State or local governments and nonprofit organizations to build, buy, improve or repair rental housing for farm laborers and their families. Funds may also be used to provide facilities for recreation, medical and child-care and educational programs.

Limited partnerships in which the general partner is a nonprofit entity may also obtain loans under this program. Such partnerships are eligible for low-income housing tax credits, which may be used in conjunction with USDA's Farm Labor Housing Program.

Farm labor housing financed by Rural Development must be modest in size and cost but adequate to meet the farm laborer's family needs. USDA typically provides a rental assistance subsidy to tenants, making the rent affordable.

On-Farm Housing for Farmworkers

USDA low-cost loans are available to farmers who wish to build, buy, improve or repair housing for farm workers who work for the farmer borrowing the funds.

Housing built by individual farmers can be either single-family homes or dormitory-style housing. In most cases, rent cannot be charged, although some exceptions can be made for high-volume-occupancy structures.

Rates and Terms

1% fixed interest rate; 33 year term

Application Process

Applications are processed through the Rural Development Area/Sub-Area Offices. The application process and competitive selection criteria are described in the annual Notice of Funding Availability (NOFA) published by the Rural Housing Service.