Farm Labor Housing Presented by Bruce Lammers Rural Housing Service Administrator Farm Labor Housing Section 514 What does this Program Do Provides affordable financing to develop Off and On Farm Labor Housing for yearround or seasonal domestic farm laborers ID: 793709
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Rural Housing Service Multi-Family Housing
Farm Labor Housing
Presented by
Bruce Lammers, Rural Housing Service Administrator
Slide2Farm Labor Housing: Section 514
What does this Program Do?
Provides affordable financing to develop “Off and On” Farm Labor Housing for year-round or seasonal domestic farm laborers. Off Farm Labor Housing is not co-located on the farms where the laborers work. On Farm Labor Housing is co-located on the farms where the laborers work.Who may Apply for this Program?Borrowers who demonstrate that they are unable to obtain commercial credit on terms that will allow affordable rent levels to low-income tenants. Borrowers who demonstrate experience or capacity to develop or operate similar housing. Type of Borrowers include:Farmers, associations of farmers and family farm corporationsAssociations of farmworkers and nonprofit organizationsMost State and local governmental entitiesFederally-recognized Tribes
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Slide3Farm Labor Housing
What kinds of funding are available?
Low interest loansGrants based on need (may not exceed 90 percent of project costs)What are the loan terms?Up to 33 year payback period1 percent fixed rateHow is funding availability announced?For Off Farm Labor Housing, through a notice of solicitation of applications (NOSA) published in the Federal Register. For On Farm Labor Housing, there is a year-round open application period.3
Slide4Farm Labor Housing
Does the program work with other sources of funds?
Preference is given to applications for Off Farm Labor Housing projects that leverage other sources of funds. There is no leveraging preference for On Farm Labor Housing applications. Farm Labor Housing financing is compatible with other funding sources including HOME funds or Low-income Housing Tax Credits. How much funding is available for Farm Labor Housing annually?Congress appropriates between $30 and $40 million for the program. Awards are 75 percent loans and 25 percent grants. For Off Farm, the award limit is $3 million, which may be all loan, all grant, or a combination thereof. On Farm housing is typically small, one to four units. Awards reflect the area’s cost of single family construction.4
Slide5Farm Labor Housing
How may Funds be Used?
Farm Labor Housing loans and grants may be used for construction, improvement, repair and acquisition of housing for domestic farm laborers. How does existing Section 514 Housing get rehabilitation funding?Funds not awarded or recoveries of unused funds are awarded for rehabilitation. These are awarded as loans or grants. 5
Slide6Farm Labor Housing
What is an Eligible Area?
Farm Labor Housing may be constructed in urban or rural areas, as long as there is a demonstrated need.Who May Live in the Rental Housing?Domestic farm laborers, including those working on fish and oyster farms and on-farm processing Retired and/or disabled farm laborersMust be a U.S. citizen, permanent resident, or H2A Visa holderVery-low- to moderate-income households6
Slide7Farm Labor Housing
Are there different Borrower Organization Requirements for Off Farm versus On Farm?
For Off Farm, the borrower must be a non-profit organization or a nonprofit organization of farmworkers. The non-profit organization must have a membership that reflects a variety of interests in the area where the housing will be located. The borrower may also be organized as a for-profit limited partnership with a non-profit general partner.For On Farm, the borrower must be a farm owner, family farm partnership, family farm corporation, or an association of farmers engaged in agricultural or aquacultural farming operations. Although the non-profit organizational structure is not a requirement for On Farm borrowers, they must operate the housing without generating profit.7
Slide8Farm Labor Housing
How do we get started?
For Off Farm Labor Housing, a two-phase application process starts with pre-applications accepted on an annual basis in response to a NOSA in the Federal Register. Selected pre-applications are invited to submit final applications. Pre-applications are selected and funded in the month of September. Full applications are due 60 days after notification of the pre-application selection. For On Farm Labor Housing, the application period is open year-round. Applications are submitted to the RD State Office where the proposed project is located. On Farm Labor Housing loan applications are processed on a first-come, first-served basis. Handbook 1-3560, 12.15 ON-FARM LABOR HOUSING LOAN CHECKLIST, outlines the requirements for a On Farm loan application.What if I need help developing an application?RD offers no-cost help developing applications through Technical Assistance (TA) providers. For the TA provider that services your area please contact your RD State Office or CB Alonso, cb.alonso@usda.gov at the National Office.
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Slide9Farm Labor Housing
Farm Labor Housing Portfolio Overview
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Type
Projects
RA Units
Total Units
Average Total Units
Off Farm
310
11,831
16,467
53
On Farm
214
-
432
2
Grand Total
524
11,831
16,899
32
Slide10Farm Labor Housing
Farm Labor Housing Portfolio Overview
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State
Properties
RA Units
Total Units
CA
127
4756
7322
Off Farm
124
4756
7309
On Farm
3
0
13
AR
83
0
111
On Farm
83
0
111
FL
38
2719
3965
Off Farm3827193965VT36038On Farm36038OR28680951Off Farm28680951MI2645121On Farm24075Off Farm24546WA22603771Off Farm20603730On Farm2041TX189381122Off Farm189381122NJ182446On Farm17022Off Farm12424
StatePropertiesRA UnitsTotal UnitsCO14496513Off Farm14496513NM9280285Off Farm9280285NY92478On Farm7054Off Farm22424WI95969On Farm606Off Farm35963MS92840On Farm8012Off Farm12828IA7415On Farm6011Off Farm144ID7265384Off Farm7265384HI7123129Off Farm4123126On Farm303AZ5120124Off Farm4120121On Farm103
State
Properties
RA Units
Total Units
MA
5
47
52
On Farm
3
0
4
Off Farm
2
47
48
NC
4
99
109
Off Farm
4
99
109
SC
4
0
4
On Farm
4
0
4
IL
4
0
22
On Farm
3
0
22
Off Farm
1
0
0
TN
3
23
26
On Farm
2
0
2
Off Farm
1
23
24
MN
3
73
78
Off Farm
3
73
78
NE
3
24
26
Off Farm
2
24
24
On Farm
1
0
2
PR
2
42
42
Off Farm
2
42
42
NV
2
0
3
On Farm
2
0
3
Slide11Farm Labor Housing
Farm Labor Housing Portfolio Overview
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State
Properties
RA Units
Total Units
VA
2
34
58
Off Farm
2
34
58
ME
2
6
7
Off Farm
1
6
6
On Farm
1
0
1
GA
2
48
48
Off Farm24848UT22525Off Farm22525MD28290Off Farm28290PA22526Off Farm22526KS2728Off Farm2728StatePropertiesRA UnitsTotal UnitsOH22328Off Farm12324On Farm104OK21842Off Farm21842LA1
3940Off Farm13940NH101On Farm101AL11010Off Farm11010DE14250Off Farm14250Grand Total52411,83116,899
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