Farm Labor Housing Loans and Grants

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The Farm Labor Housing Loans and Grants program makes provision for providing insured government loans and government grants to domestic farm laborers to purchase homes and other related facilities. This program is one of the government loans that is under the jurisdiction of the US Department of Agriculture and is handled by the Rural Development Office. It is one of the housing loans authorized under the Housing Act of 1949. Its primary objective is to provide safe, low-rent housing and related facilities for domestic farm laborers.

The loans and grants provided by the Farm Labor Housing Loans and Grants program can be used for the construction, purchase or repair of houses or lands for homes. In addition, the funds can also be used for paying interest on the loan taken for construction and development of related facilities such as, household furnishings, infirmaries, cooking, dining and laundry areas, as well as day-care and recreation centers. This program is divided into two categories as on-farm and off-farm. The on-farm category provides funds to develop houses to those workers working for the farmer who is the borrower. The off-farm category provides funds to those workers who work under any farmer.

Those eligible for this government loans program are US citizens who are domestic farm laborers deriving a significant portion of their income from farm labor. Financial aid is also provided to those farmers engaged in aquaculture. In addition to individual farmers, loans that fall under Section 514 are also provided to organizations, associations or corporations of farmers. Not only farmers residing in the US, but those living Puerto Rico and US Virgin Islands are also eligible. As opposed to loans, grants that fall under Section 516 are given to farmer associations, non-profit organizations, Indian tribes, and public agencies. Grants are made only when there is a pressing need such that the housing unit or facilities cannot be acquired by any other means.

The Farm Labor Housing Loans and Grants provides for a maximum loan term of 33 years at an annual interest rate of 1%. Grants made cover up to 90% of the construction and/or development costs. To apply for this housing loans program a pre-application coordination along with an environment impact statement is required. All applications can be made through the Notice of Funding Available (NOFA). For more information regarding the program please visit the USDA official website.