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.

On-Farm Labor Housing Loans

 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!)