Program 101

Program Status: CLOSED
Application Deadline:  April 12, 2016
Notice of Solicitation of Application (pdf)

What does this program do?
It provides affordable financing to develop housing for year-round and migrant or seasonal domestic farm laborers. (1)

Who may apply for this program?
This program assists qualified applicants that cannot obtain commercial credit on terms that will allow them to charge rents that are affordable to low-income tenants. Borrowers must have sufficient qualifications and experience to develop and operate the project. Qualified applicants include:

  • Farmers, associations of farmers and family farm corporations
  • Associations of farmworkers and nonprofit organizations*
  • Most State and local governmental entities*
  • Federally-recognized Tribes*

*Eligible to apply for grants and loans

What is an eligible area?
Housing may be constructed in urban or rural areas, as long as there is a demonstrated need.

How may funds be used?
Construction, improvement, repair and purchase of housing for domestic farm laborers is the primary objective of this program.

*NOTE: The amount of funding available in FY 2015 is based on current appropriations.  FLH Loan (514): $20,338,000  FLH Grant (516): $6,336,000

Funding may also be available for related activities including:

  • Buying and improve land
  • Purchasing household furnishings
  • Paying construction loan interest
  • For a complete list see 7 CFR 3560.53.

Who may live in the rental housing?

  • Domestic farm laborers, including those working on fish and oyster farms and on-farm processing (1)
  • Retired and/or disabled farm laborers
  • Must be a U.S. citizen or permanent resident
  • Very-low- to moderate-income households (2)

What kinds of funding are available?

  • Low interest loans
  • Grants based on need and may not exceed 90% of project cost

What are the loan terms?

  • Up to 33 year payback period
  • 1% fixed rate
  • An allocation of loan funds is also available for on-farm labor housing and is funded on a first-come, first-served basis
  • Contact your local RD office for details applicable for your project

How do we get started?
A two-phase application process starts with pre-applications accepted on an annual basis through a Notice of Funding Availability (NOFA) in the Federal Register. Selected pre-applications are invited to submit final applications

Who can answer questions?
Contact your RD State office  or you can find Rural Rental Properties

What governs this program?

NOTE: Because citations and other information may be subject to change please always consult the program instructions listed in the section above titled "What Law Governs this Program?" You may also contact your local office for assistance.

(1) Domestic farm laborer: A person who receives a portion of his/her income from farm labor employment. This definition may include the immediate family members residing with such a person.

(2) Very-low to moderate-income: Very-low income is below 50% of area median income; low-income is 50-80% of area median income; moderate income is capped at $5,500 above low-income limit.

Forms & Resources

NOTE: If state specific forms are not shown above, please refer to the application materials listed below to start the process of applying. Please ensure that your state is selected in the dropdown menu above to find the State Office contact information for this program and speak to a Housing Programs Specialist before attempting to fill out any forms or applications. This will save you valuable time in the process.

Funding

Funding available in FY 2016 for the FLH Notice for Loan and Grant applications:

  • FLH Loan (514):  $23,338,000
  • FLH Grant (516):   $8,336,000

Funding available for the Technical Assistance (TA) NOSA that was published on June 23, 2016 is as follows, with one grant for each of the three geographic regions:

  • Eastern Region:  $250,000
  • Central Region:   $250,000
  • Western Region: $250,000

NOSA Responses

Engineering

Individual states may have particular requirements based on state and local regulations. Please contact the state office in the state where your project is located.

Environmental

Individual states may have particular requirements based on state and local regulations. Please contact the state office in the state where your project is located.

Architect

Individual states may have particular requirements based on state and local regulations. Please contact the state office in the state where your project is located.