| Eligibility
|
The Farm Labor Housing Loan and Grant program provides capital
financing for the development of housing for domestic farm laborers.
Loans
are made to farmers, associations of farmers, family farm
corporations, Indian tribes, nonprofit organizations, public
agencies, and associations of farmworkers. 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 farmworker associations,
nonprofit organizations, Indian tribes, and public agencies.
Funds may be used in urban areas for nearby farm labor.
(This is the only Rural Housing Service rural service area
exception.)
|
Fund Uses |
Farm Labor Housing loans
and grants are provided to buy, build, improve, or repair housing
for farm laborers, including persons whose income in earned
in aquaculture (fish and oyster farms) and those engaged in
on-farm processing. 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.
|
Application Processing |
The Area Director has the authority to appove loans to
individuals of up to $100,000, and the State Director can approve
loans of up to $400,000. Larger loans must receive prior
approval from the National Office. The State Director
can award grants with the prior approval of the National Office. |
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