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United States: Farm Labor Housing Loans and Grants Application 2021



United States: Farm Labor Housing Loans and Grants Application 2021

The Farm Labor Housing Loan and Grant program provides capital financing for the development of housing for domestic farm labourers.

Farm Labor Housing loans and grants are provided to buy, build, improve, or repair housing for farm labourers, including persons whose income is earned in aquaculture (fish and oyster farms) and those engaged in on-farm processing. Funds can be used to purchase a site or a leasehold interest in a site; to construct housing, daycare facilities, or community rooms; to pay fees to purchase durable household furnishings, and to pay construction loan interest.


Program Requirements

Loans are made to farmers, associations of farmers, family farm corporations, Indian tribes, nonprofit organizations, public agencies, and associations of farmworkers. Typically, loan applicants are unable to obtain credit elsewhere, but in some instances, farmers able to get credit elsewhere may obtain loans at a rate of interest-based on the cost of federal borrowing.

Grants are made to farmworker associations, nonprofit organizations, Indian tribes, and public agencies. Funds may be used in urban areas for nearby farm labour. (This is the only Rural Housing Service rural service area exception.)

Application Process

Upon publication of a Notice in the Federal Register, a two-stage application process is used. In stage one, applicants submit a pre-application, which is used to determine preliminary eligibility and feasibility. Pre-applications selected for further processing will be invited to submit an application. The pre-application consists of SF-424.2, “Application for Federal Assistance (For Construction)” and the information listed in exhibit A-1 or A-2 of Rural Development regulations, 1944-D, as applicable.

Loan Terms

Loans are for 33 years at 1 per cent interest. Grants may cover up to 90 per cent of development costs. The balance may be a Farm Labor Housing Program loan.

Contact Information

For more information, please visit the Farm Labor Housing Loan and Grant program website.

Additional Information

Max Loan Length33 years
Interest Rate1%
Max Loan AmountVaries
Payment FrequencyMonthly
Prepayment PenaltiesVaries

What does this program do?
This program provides payments to owners of USDA-financed Rural Rental Housing or Farm Labor Housing projects on behalf of low-income tenants unable to pay their full rent.

Who may apply for this program?

  • Project owners as part of their Rural Rental Housing or Farm Labor Housing new construction financing applications
  • Projects must be established on a nonprofit or limited profit basis

What is an eligible area?
Rental Assistance can only be provided for apartments in new or existing Rural Rental Housing and Farm Labor Housing financed properties.

How may funds be used?
Payments are made on behalf of the tenants and become part of the property’s income, which pays operational expenses

Who may receive assistance?
Properties with low- or very low-income (1) tenants qualify to receive assistance.  Properties with very low-income tenants receive first priority.

How do we get started?
Rental Assistance is coupled with an application for new construction financing under the Rural Rental Housing or Farm Labor Housing programs. For questions, contact your designated regional coordinator listed on the Contact tab.

Visit the official website to apply

Bernard Bassey is a graduate of Software Engineering from AfriHUB University, Abuja. He is an expert in field journalism, his interest in socio-politics activities is keen.

1 Comment

1 Comment

  1. Alima

    Wednesday, 5 January 2022, 1:00 at 1:00 pm

    I like it

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