© Housing Assistance Council, December 1999

Permission is granted ONLY to nonprofit community-based organizations to reproduce and/or adapt this document, and only for their own use.

ISBN 1-58064-049-4

TABLE OF CONTENTS

1. Introduction

1. What is the Farm Labor Housing Program?

2. About This Guide

3. Agency Names and Acronyms

2. RHS Rural Housing Programs

1. Using RHS Rural Housing Programs

2. RHS Service Area

3. RHS/Rural Development Organization

4. Locating Rural Development Area Offices

5. Applicable Regulations  

6. Ordering Instructions

3. Developing Successful Farm Labor Housing

1. Community Relations

2. The Importance of the Farmer

3. How to Work Successfully with RHS/Rural Development

4. Beyond Construction  

5. Program Limitations

4. Requirements of the 514/516 Farm Labor Housing Program

1. Eligible Borrowers and Grantees

2. Applicant Eligibility Criteria for Farm Labor Housing Loans

3. Applicant Eligibility Criteria for Farm Labor Housing Grants

4. Financing Plans, Rates, and Terms

5. Conditions for Making Grants

6. Eligible Occupants

7. Priority for Occupancy

8. Eligible Uses of Loan and Grant Funds

9. Ineligible Uses of Loan and Grant Funds

10. Type of Housing and Standards

11. Seasonal Housing Design

12. Other Requirements and Conditions

13. Comments on Housing Location

14. Security Requirements

15. Loan and Grant Resolution

16. Grant Agreement

17. Rental Assistance

18. Management Plan

19. Management Information

20. Nondiscrimination in Use and Occupancy

21. RHS/Rural Development Review and Reports

5. Processing a Section 514/516 Preapplication

1. Where to Apply

2. Authorized Representative of Applicant

3. Composition of the Preapplication

4. Standard Form 424.2  “Application for Federal Assistance (for Construction)”

5. Project Description

6. Information to Include in Preapplication

7. HAC Comments on Specific Preapplication Items

6. RHS/Rural Development Processing and Final Application

1. Scoring and Ranking Applications

2. Preapplications That Will Not Be Selected

3. Final Application

4. Final Submission Checklist

5. HAC Recommendations

6. Submission of Final Application

7. Approval

8. Disapproval and Appeal

9. Interim Financing

10. Multiple Advances of Loan and Grant Funds

7. Loan Closing and Post Closing

8. Conclusion

Appendices

Additional  Links

Through the Section 514/516 Farm Labor Housing Program, the federal Rural Housing Service/Rural Development makes loans and grants available to provide good quality, affordable rental housing and related facilities for farmworkers.  This guide – part of the Housing Assistance Council’s popular Technical Series – explains the requirements for using the Section 514/516 program, and how to apply. 

This guide was prepared by Art Collings of the Housing Assistance Council (HAC).  The work that provided the basis for this publication was supported by funding under contracts and cooperative agreements with the U.S. Department of Housing and Urban Development, including most recently Cooperative Agreement H-21161 CA.  Ndeye Jackson served as Government Technical Representative for that Cooperative Agreement.  The substance and funding of that work are dedicated to the public.  HAC is solely responsible for the accuracy of the statements and interpretations contained in this publication and such interpretations do not necessarily reflect the views of the United States Government.

HAC, founded in 1971, is a nonprofit corporation which supports the development of rural low-income housing nationwide.  HAC provides technical housing services, loans from a revolving fund, housing program and policy assistance, research and demonstration projects, and training and information services.

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