The Farm Labor Housing Direct Loans and Grants program now allows for funding for non-citizen temporary worker housing, including housing for H-2A program participants. The deadline to submit pre-applications is August 27, 2018.
Previously, the program had been limited to housing for permanent residents and U.S. citizens. Now, not-for-profit entities can utilize the loan program to build or improve housing for a temporary labor force, a revision in the law created by an amendment offered by U.S. Representative Dan Newhouse (WA-4) in the Consolidated Appropriations Act of 2018 (P.L. 115-141).
A not-for-profit subsidiary of farmers, associations of farmers, or family farm corporations may apply for this federal loan program for construction, improvement, repair and purchase of housing for farm labor in either urban or rural areas. Loans will have a fixed interest rate of 1% with a 33 year payback period. Not-for-profit and government entities can apply for grants that are based on need but may not exceed 90% of the total project cost.
The United States Department of Agriculture (USDA) is authorized to extend approximately $30 million annually toward the program, with individual awards as high as $3 million. Payments on these labor housing loans are typically made from tenant rent payments, with an available rent subsidy from the USDA. Given the increasing competition for farm labor, this program may be a cost-effective way to expand or improve housing options to aid in attracting workers.
The Farm Labor Housing Loans and Grants program has a two-phased application process. First, those interested must submit pre-application to their respective state’s development office by Monday, August 27, 2018. From the pool of pre-applications, selected applicants will be notified by the USDA and will receive further guidance regarding the final stage of the process.
We encourage interested applicants to speak with their local USDA Rural Development State Office for questions or assistance:
J.C. Sherman III, State Director
230 North First Avenue, Suite 206
Phoenix, AZ 85003-1706
Voice: (602) 280-8701
Fax: (855) 699-8035
Kim Dolbow Vann, State Director
430 G Street, # 4169
Davis, CA 95616-4169
Voice: (530) 792-5800
Fax: (530) 792-5837
Sallie Clark, State Director
Denver Federal Center
Building 56, Room 2300
PO Box 25426
Denver, CO 80225-0426
Voice: (720) 544-2903
Fax: (720) 544-2981
Colorado Relay: (800) 659-3656
Arthur A. Garcia, State Director
100 Sun Avenue NE, Suite 130
Albuquerque, NM 87109
Voice: (505) 761-4950
Fax: (505) 761-4976
For more information on this program, please visit USDA’s Farm Labor Housing Direct Loans & Grants website.
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