Rural Housing Service's Section 514/516 Farm Labor Housing Program: A Guide for Applicants

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

II. RHS RURAL HOUSING PROGRAMS

A. Using RHS Rural Housing Programs

RHS rural housing programs are relatively easy to use. While land and housing development are complicated processes with complex governmental involvement, use of the RHS programs as financing vehicles should not add roadblocks to a project’s success. They are very close to “do it yourself ” programs for which the informed person or organization can apply without extensive use of expensive consultants.

There are five “basics” to understanding and properly using RHS housing programs:

Know what they do. Know the programs’ purposes, as defined by law.
Know how they do it. Know the programs’ processing procedures, as established by agency instructions, which are used by Rural Development and RHS loan processing and approval officials.
Know why they do it a particular way. Know how much authority Rural Development officials have. Variations from national instructions may occur because of state or local law or because of misinterpretation by individual officials.
Follow agency instructions. Provide what is asked for in the manner requested. Consult with the RHS/Rural Development office prior to developing a preapplication.
Obtain information on the current and future availability of funds. This is essential since LH appropriations are limited. One should also obtain information on current or anticipated priorities for the use of LH funds.

Given a working knowledge in these basics, anyone can become reasonably proficient in using the RHS programs.

B. RHS Service Area

Financing for the LH program, unlike that for other RHS housing assistance programs, is available in both urban and rural areas, because the program addresses farm labor housing needs wherever they might occur. Therefore applicants need not be concerned with the service area limitations that apply for other RHS programs.

C. RHS/Rural Development Organization

RHS is a federal agency and is part of the Rural Development mission area within the U.S. Department of Agriculture. Most of its loan programs are processed directly by Rural Development or RHS employees. Its organization is as follows:

The RHS National Office sets policy and develops regulations.
Rural Development Local Offices administer direct single-family programs in a state or multistate area. The Local Office director is titled “Community Development Manager.”
Rural Development Area Offices and/or State Offices receive, process and service multifamily housing applications, including those for Section 514/516 LH. Rural Development State Directors have been given discretion in their use of Area Offices, so Area Office use varies among states. The directors of Area Offices, where they exist, are titled “Rural Development Managers.”

D. Locating Rural Development Area Offices

Rural Development maintains approximately 260 Area Offices serving all rural areas of the United States, Puerto Rico, the Virgin Islands and the Western Pacific Territories. To locate the Area Office serving your area:

Look for the local Rural Development office in the telephone book under U.S. Government, Department of Agriculture, Rural Development. If not under Rural Development, it may still be listed under the Farmers Home Administration or Rural Economic and Community Development. Local office staff can provide you with the address and telephone number of the Area Office serving your area.
Write or call the Rural Development State Office (see Appendix 15).
Contact the National RHS Office for the current office address of any Rural Development office in the nation. Write to Rural Housing Service, U.S. Department of Agriculture, Washington, DC 20250, or call 202-692-0067.

E. Applicable Regulations

The regulations for the Section 514/516 LH program are set out in Title 7, Part 1944 of the Code of Federal Regulations (7 CFR Part 1944, Subpart D). The following are other agency instructions with which the reader should become familiar:

7 CFR Part 11 Appeals
1924-A Development standards, architectural requirements, contracts
1924-C Subdivision and site criteria
1930-C Management, tenant occupancy, rental assistance
1940-G Environmental
1944-L Tenant grievance and appeal

These regulations can be found in Title 7 of the Code of Federal Regulations (CFR). For example, Instruction 1924-A is located in 7 CFR Part 1924, Subpart A. While perhaps convenient, the CFRs are updated annually only, and may not reflect key changes or revisions made during the interim.

RHS is working on reinventing the regulations for its multifamily housing programs, but they will not be final during FY 2000.

Rural Development State Offices may issue relevant state instructions as well. State instructions are not discussed in this guide.

In this guide, instructions are often referenced by section number such as 1944.154. Unless otherwise noted, those numbers refer to sections of 7 CFR Part 1944.

F. Ordering Instructions

Public entities and nonprofit organizations can obtain single copies of a limited number of instructions free. Others can obtain a copy or copies for a copying charge. Instructions may be ordered from Rural Development Local, Area or State Offices by requesting the instruction by name and number. If the needed instruction is unavailable from those offices, write to:

Rural Development

Assistant Administrator

Finance Office

FC-313

1520 Market Street

St. Louis, MO 63103

Note you are a nonprofit or public organization.
Note the instruction number, such as 1944-D.
To subscribe for instruction changes, on a calendar year basis, send a check for $40.00 payable to the “Treasury of The United States.”

Most RHS/Rural Development regulations can also be downloaded from the USDA web site at http://rdinit.usda.gov/regs/.

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