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RURAL HOUSING SERVICE’S SECTION 514/516 FARM LABOR HOUSING PROGRAM:  A GUIDE FOR APPLICANTS

(c) 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.

III.  DEVELOPING SUCCESSFUL FARM LABOR HOUSING

Few communities support the development of migrant or seasonally operated housing, regardless of the importance of agriculture in the area.  The “not in my backyard” mentality seems to be magnified when farmworkers are involved.  While community approval may not be a paramount consideration in the minds of those seeking to develop the housing, it will certainly become an issue when zoning, subdivision, and construction approvals are needed.

A.  Community Relations

Potential developers of labor housing projects should anticipate community opposition and be prepared to head it off in advance.  HAC recommends that potential sponsors make a wide range of attempts to gain local support by (1) including local people, especially community leaders, in the developing organization, when possible; (2) establishing advisory committees; (3) seeking advice of local leaders; (4) employing local people when at all possible; and (5) developing plans that the community can understand well enough to allay unwarranted fears.  State and regional organizations may find that establishing or using a local nonprofit as sponsor is the best means to assure community acceptance.  As it has been said:  “The best defense is a well prepared offense.”

It is important that units be attractive, not only for the benefit of the tenants, but to minimize community opposition.  It is equally important to develop a project requiring as few variances from local codes as possible.  In most communities, use of the RHS standards for seasonal housing (which are less strict than standards for buildings to be occupied year-round) will require some variance.  Whenever possible, this should be the only deviation from existing codes.

B.  The Importance of the Farmer

While many farmers will support improved farm labor housing activity, others will be undecided or opposed, and they have been known to provide formidable opposition.  Most farmers who use intensive farm labor recognize the need for improved housing, but face economic constraints in providing it or fear the possibility of losing control of their labor force if RHS assists.  Organizations that develop farm labor housing are working on behalf of the farm employees, and farmers have an interest in the project.  No project should go beyond the initial planning stage without communication between the sponsor and local farmers.

Housing farm laborers who live in the community year-round is a simpler, less controversial task than housing migrant laborers.  Since time is such a critical factor in planting and harvesting crops, farmers who grow perishable crops will understandably look for ways to ensure a dependable supply of labor.  The use of labor contractors and the provision of housing owned or controlled by the grower are two common means of ensuring the supply.  Traditionally, grower-provided housing is substandard, is expensive to upgrade or maintain, and may lead to clashes with regulatory agencies and farmworker advocates.  Nevertheless, farmers tend to resist RHS-financed labor housing that is developed by nonprofits and public bodies because the law prohibits employment by a particular grower as a precondition for occupancy.

Potential applicants for the RHS seasonal program cannot stand on some real or imagined social principle and ignore the farmer.  Seasonal housing, to be useful, must have tenants.  A cooperative effort is necessary.  There are economic benefits derived by farmers through well housed workers.  Methods should be developed to ensure that growers have the necessary supply of labor without requiring that individual tenants work on a given farm.  For example, it is common practice by one housing authority to stabilize housing use and labor supply by encouraging:

  1. workers to sign contracts with growers prior to migrating;

  2. growers to pay unit bonuses to those who work the entire contract season;

  3. growers and housing authority to develop good, integrated management plans;

  4. smaller growers to share crews.

The potential sponsor is helped by grower support in its dealings both in the community and with RHS/Rural Development.  To ensure grower support, farmers should be included in the development process.  If a local organization is formed to sponsor the project or if an advisory committee is created, farmers should be asked to participate.

C.  How to Work Successfully with RHS/Rural Development

It is impossible to provide a fail-safe formula for gaining RHS’s approval on a project.  It is, however, possible to minimize the possibility of rejection by observing a few basic rules.

  1. Read the Instructions to learn what RHS is looking for in a project.

  2. Once informed about RHS requirements, and prior to publication of the funding NOFA, set up a meeting with Rural Development Area or State Office officials to determine their expectations or priorities.

  3. Follow the instructions published in the NOFA.

  4. Prepare a complete and accurate preapplication and application.  Submit them in the order requested in the RHS/Rural Development Instructions and NOFA (unless there is a specific procedure in your state or locality).

  5. Provide solid market data that support the need for units and assure RHS/Rural Development that all units will be rented.  Do not limit the market survey to canned data, such as Census figures.  Such sources can be used, but need to be supplemented.  Other data should come from farmworkers and growers.  (See RD Instruction 1944-D Exhibit A-1 I. B, which is Appendix 3 to this guide.)

  6. Submit a plan that is as simple as possible.  Avoid having every aspect of the proposed housing be a demonstration of something new.  While innovation is important, its overuse can lead to misunderstanding, delay, or rejection.

  7. Provide, or arrange for, tenant support services.  In the 1999 regulations, RHS requires applicants to include a supportive services plan in a preapplication.

D.  Beyond Construction

Housing development encompasses much more than building the physical structure.  Planning is the real key to a successful project.  Well-planned tenant marketing throughout the planning and development processes is critical.  While this is true in any rental housing planning, it is critical for farm labor housing.

Housing farm laborers, especially migrant farm laborers, is extremely complex.  Prospective tenants are often far away much of the year and not necessarily individually identifiable.  Current practice may be for the grower to supply free housing.  However inferior that housing might be, laborers will probably be initially reluctant to exchange it for shelter at the cost of 30 percent of adjusted income.  Contact farmworkers, farmworker organizations, the state department of labor, growers, and grower organizations for marketing suggestions.

E.  Program Limitations

There are two regulations that limit effective participation in this program:

  1. RHS-approved nonprofit corporations must be membership organizations.  This effectively excludes other potential nonprofit sponsors from an already meager field.

  2. At least eight members of a regional or statewide nonprofit corporation applicant must be from the employment area served by the project.  This requirement is intended to ensure local community involvement, but in reality it often dilutes the potential number of prospective sponsors.  For example, a statewide or regional organization may find compliance impossible.  Adding members for each project could either be cumbersome or detract from the organization’s other purposes.  Regional groups have often assisted small, local nonprofit organizations to apply as the eligible sponsor.

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