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Catalog of Federal Domestic Assistance

Program Descriptions

CATALOG OF FEDERAL DOMESTIC ASSISTANCE

10.405:  Farm Labor Housing Loans and Grants

Popular Name:  Labor Housing

Objectives:  To provide decent, safe, and sanitary low-rent housing and related facilities for domestic farm laborers.

PROGRAM AND AWARD FINANCIAL AND INFORMATION CONTACTS
ELIGIBILITY REQUIREMENTS FINANCIAL AND ADMINISTRATIVE INFO.
APPLICATION AND AWARD PROCESS INFORMATION CONTACTS
RELATED PROGRAMS ASSISTANCE CONSIDERATIONS
PROGRAM ACCOMPLISHMENTS POST ASSISTANCE REQUIREMENTS


10.405 ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:  Loans are available to farmers, family farm partnership, family farm corporation, or an association of farmers. Loans and grants are available to States, Puerto Rico, the U.S. Virgin Islands, political subdivisions of States, broad-based public or private nonprofit organizations, federally recognized Indian Tribes and non-profit corporations of farm workers. Grants are available to eligible applicants only when there is a pressing need and when it is doubtful that such facilities could be provided unless grant assistance is available.

Beneficiary Eligibility:  A domestic farm laborer is any person who receives a substantial portion of his/her income as a laborer on a farm in the United States and is either (1) a citizen of the United States, or (2) has been legally admitted for permanent residency.

Credentials/Documentation:  The applicant must furnish factual evidence of the following: (a) The number of domestic farm laborers currently being used in the area; (b) the kind of labor performed; (c) the future need for domestic farm labor in the area; (d) the kind, condition, and adequacy of housing presently used for such labor; (e) ownership of presently occupied housing; (f) ability of workers to pay necessary rent; and (g) with the exception of State and local public agencies, be unable to provide housing from its own resources or credit on terms and conditions that would enable the applicant to provide labor housing. Costs will be determined in accordance with 7 CFR 3015 or 3016 for State and local governments.

10.405 APPLICATION AND AWARD PROCESS:

Preapplication Coordination:  Not applicable. This program is excluded from coverage under E.O. 12372.

Application Procedure:  For FY 00 the Section 515 Program will be awarded through a Notice of Funding Available (NOFA) announced in the Federal Register December 21, 1999. The NOFA application period is 6 month from the date of the announcement. The NOFA deadline is June 19, 2000.

Award Procedure:  Applications will be scored on the following factors: The presence and extent of leveraged assistance Seasonal, temporary, migrant housing For FY 2000, outstanding preapplications or applications that were issued an AD-622, "Notice of Preapplication Review Action," inviting a formal application, or that had been reviewed and authorized by the National Office prior to October 29, 1998. The RHS Administrator will make awards based on application scores as submitted by the Rural Development State Director.

Deadlines:  None.

Range of Approval/Disapproval Time:  From 90 days to 200 days.

Appeals:  A person or organization who is directly and adversely affected by an administrative decision by Rural Development should follow the procedures found in 7 CFR Part 1900, Subpart B of "Rural Development Administrative Appeal Procedures."

Renewals:  Not applicable, although subsequent financing can be made available.

Criteria for Selecting Proposals:  A clearly defined need must exist to provide housing for domestic farm workers.

Examples of Funded Projects:  Examples of funded projects are the projects sponsored by the Homestead Housing Authority in Homestead, Florida, or The Boulder County Housing Authority, Boulder, Colorado.

Range and Average of Financial Assistance:  Initial Grants $135,000 to $2,300,000; $1,104,120. Initial Loans to individuals $20,000 to $200,000; $34,500. Initial Loans to organizations $165,000 to $670,000; $292,753.

10.405 RELATED PROGRAMS:

  • 10.410 Very Low to Moderate Income Housing Loans;
  • 10.415 Rural Rental Housing Loans;
  • 10.427 Rural Rental Assistance Payments.

10.405 PROGRAM ACCOMPLISHMENTS:

During fiscal year 1999, 622 new units were built and 626 units were rehabilitated or developed as multiple family type housing and on-farm individual type housing units.

10.405 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency:  RURAL HOUSING SERVICE (RHS), (DEPARTMENT OF AGRICULTURE )

Type of Assistance:  Project Grants; Guaranteed/Insured Loans.

Obligations:  (Loans) FY 99 $20,000,000; FY 00 est $25,001,000; and FY 01 est $30,000,000. (Grants) FY 99 $13,176; FY 00 est $14,232; and FY 01 est $15,000,000.

Budget Account Number:  (Grants) 12-2004-0-1-604; (Loans) 12-4141-0-3-371; 12-2081-0-4-371.

Authorization:  Housing Act of 1949, as amended, Sections 514 and 516, Public Laws 89-117 and 89-754, 42 U.S.C 1484 and 1486.

Regulations, Guidelines, and Literature:  7 CFR Subpart D of Part 1944, Chapter XVIII; RD Instruction 1944-D, "Farm Labor Housing Loan and Grant Policies, Procedures and Authorization"; (PA-521) revised August 1987.

10.405 INFO CONTACTS:

Regional or Local Office:  Consult your local phone directory for Rural Development District Office number. If no listing, contact appropriate Rural Development State Office listed in Appendix IV of the Catalog or on the internet at http://www.rurdev.usda.gov/recd_map.html.

Headquarters Office:  Multi-Family Housing Processing Division, Rural Housing Service, Department of Agriculture, Washington, DC 20250. Phone: (202) 720-1604. Use the same number for FTS. (Home Page)

(See Appendix IV for more contact info.)

10.405 ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:  In case of a grant, 10 percent or more of the total development cost must be obtained from other sources. This may include funds made available through the power to levy taxes, assessments or charges, or from other credit sources including an Rural Development Labor Housing loan under Section 514.

Length and Time Phasing of Assistance:  Loans are usually made for 33 years or useful life of security, whichever is less. However, if manufactured housing is used, the amortization period is 30 years.

Uses and Use Restrictions:  The loans and grants may be used for construction, repair, or purchase of year-round or seasonal housing; acquiring the necessary land and making improvements on land for housing; and developing related support facilities including central cooking and dining facilities, small infirmaries, laundry facilities, day care centers, other essential equipment and facilities or recreation areas. Funds may also be used to pay certain fees and interest incidental to the project. Restrictions on the use of funds are: The housing must be of a practical type and must be constructed in an economical manner and not of elaborate material or extravagant design. Housing financed with labor housing loan or grant funds must be occupied by domestic farm laborers and their families.

10.405 POST ASSISTANCE REQUIREMENTS:

Reports:  Monthly progress reports are to be made to the Rural Development District/State Offices during the first year of operation or until requirement is waived by Rural Development.

Audits:  For borrowers not covered under OMB Circular No. A-133, annual audits are required from borrowers with 25 or more units in one or more projects. In accordance with the provisions of 7 CFR Part 3052, which implement OMB Circular No. A-133 (Revised, June 24, 1997), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that receive financial assistance of $300,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $300,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 7 CFR 3052.

Records:  Adequate operating tenant, and accounting records must be maintained by borrower.

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