Rural Housing Service MultiFamily Housing Farm Labor Housing
Rural Housing Service Multi-Family Housing 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 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 lowincome tenants. Borrowers who demonstrate experience or capacity to develop or operate similar housing. Type of Borrowers include: • Farmers, associations of farmers and family farm corporations • Associations of farmworkers and nonprofit organizations • Most State and local governmental entities • Federally-recognized Tribes 2
Farm Labor Housing What kinds of funding are available? • Low interest loans • Grants based on need (may not exceed 90 percent of project costs) What are the loan terms? • Up to 33 year payback period • 1 percent fixed rate How 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
Farm 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 4 construction.
Farm 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
Farm 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 laborers • Must be a U. S. citizen, permanent resident, or H 2 A Visa holder • Very-low- to moderate-income households 6
Farm 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
Farm 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, 8 cb. alonso@usda. gov at the National Office.
Farm Labor Housing Portfolio Overview 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 9
Farm Labor Housing Portfolio Overview State CA Off Farm On Farm AR On Farm FL Off Farm VT On Farm OR Off Farm MI On Farm Off Farm WA Off Farm On Farm TX Off Farm NJ On Farm Off Farm Properties 127 124 3 83 83 38 38 36 36 28 28 26 24 2 22 20 2 18 18 18 17 1 RA Units 4756 0 0 0 2719 0 0 680 45 603 0 938 24 0 24 Total Units 7322 7309 13 111 3965 38 38 951 121 75 46 771 730 41 1122 46 22 24 State CO Off Farm NM Off Farm NY On Farm Off Farm WI On Farm Off Farm MS On Farm Off Farm IA On Farm Off Farm ID Off Farm HI Off Farm On Farm AZ Off Farm On Farm Properties 14 14 9 9 9 7 2 9 6 3 9 8 1 7 6 1 7 7 7 4 3 5 4 1 RA Units 496 280 24 59 0 59 28 0 28 4 0 4 265 123 0 120 0 Total Units 513 285 78 54 24 69 6 63 40 12 28 15 11 4 384 129 126 3 124 121 3 State MA On Farm Off Farm NC Off Farm SC On Farm IL On Farm Off Farm TN On Farm Off Farm MN Off Farm NE Off Farm On Farm PR Off Farm NV On Farm Properties 5 3 2 4 4 4 3 1 3 2 1 3 3 3 2 1 2 2 RA Units 47 0 47 99 99 0 0 0 23 73 73 24 24 0 42 42 0 0 Total Units 52 4 48 109 4 4 22 22 0 26 2 24 78 78 26 24 2 42 42 3 10 3
Farm Labor Housing Portfolio Overview State VA Off Farm ME Off Farm On Farm GA Off Farm UT Off Farm MD Off Farm PA Off Farm KS Off Farm Properties 2 2 2 1 1 2 2 2 2 2 RA Units 34 34 6 6 0 48 48 25 25 82 82 25 25 7 7 Total Units 58 58 7 6 1 48 48 25 25 90 90 26 26 28 28 State OH Off Farm On Farm OK Off Farm LA Off Farm NH On Farm AL Off Farm DE Off Farm Grand Total Properties 2 1 1 2 2 1 1 1 1 524 RA Units 23 23 0 18 18 39 39 0 0 10 10 42 42 11, 831 Total Units 28 24 4 42 42 40 40 1 1 10 10 50 50 16, 899 11
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