USDA Announces Farmworker Housing Loans and Grants
Bryan Little, Farm Employers Labor Service
April 29, 2024
Recently USDA Rural Development announced two programs related to financing of farmworker housing. The agency has loans available to develop or rehabilitate certain on-farm worker housing. It also has grants and loans available to help finance the development of off-farm housing for year-round and migrant or seasonal domestic farm workers.
According to USDA these opportunities are available for housing that is used to house H-2A workers, since the definition of “domestic farm laborer” to include “a person legally admitted to the United States and authorized to work in agriculture.”
Below are high-level summaries of each program. Visit the links below for more important details about these opportunities.
Overview
- Provides affordable financing to develop or rehabilitate affordable rental housing for very low to moderate income domestic, migrant, and seasonal farm laborers
- Provides funding used to increase the supply of affordable housing for farm labor
- Provides the producer the ability to offer affordable, decent, safe, and sanitary housing for farmworkers
Eligible applicants include:
- Individual farm owner
- Family farm partnership
- Family farm corporation
- Association of farmers
Loan terms include:
- No loan minimum
- Loan maximum is 100 percent of the allowable total development cost
- Loan interest rate is 1.0% annually
- Loan term will not exceed 33 years
- Grants are not available for on-farm labor housing
Deadline: This program accepts applications on a first-come, first-served basis until funds are depleted.
Off-Farm Labor Housing Direct Loans & Grants
Overview: Provides affordable financing to develop housing for year-round and migrant or seasonal domestic farm laborers
Eligible applicants include:
- Broad-based nonprofit organizations
- Nonprofit organization of farmworkers
- Federally recognized Indian Tribes
- Community organizationsS
- tates or local governmentsLimited partnerships with a nonprofit general partner
Loan terms include:
- Low interest loans
- Up to 33 year payback period
- 1% fixed rate
- Grants based on need and may not exceed 90% of project cost
Deadline: Final applications for funding for repairs must be submitted by June 18, 2024, 12:00 p.m. ET. Final applications for funding for new construction must be submitted by July 3, 2024, 12:00 p.m. ET.
(Courtesy: wafla, FELS H-2A program partner for FELS subscribers; see: (FELS+wafla: FELS Subscriber H-2A Program Exclusive!)