Farm Labor Housing (FLH)

Transcription

1 Farm Labor Housing (FLH)

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3 FARM LABOR HOUSING LOANS AND GRANTS CHAPTER 12: HB Appendix 1 This chapter describes the loan and grant origination process for Farm Labor Housing projects. While the origination process for loans and grants to these projects has many similarities to the process for Section 515 loans, there are several important differences. This chapter will highlight the additional requirements and procedures that are specific to the process of making Farm Labor Housing loans and grants.

4 Location Requirements (7 CFR ) Unlike section 515 rural rental housing properties, farm labor housing financed under section 514 and 516 may be developed in any area where a need for farm labor housing exists

5 CENSUS HISTORY The first Census of Agriculture was conducted in 1840 in 26 states and the District of Columbia. 176 YEARS LATER National Agricultural Statistics Service (NASS)has conducted the Census of Agriculture since 1997 with the transfer of authority from the Census Bureau. Census of Agriculture encompasses 50 states and Puerto Rico and Outlying Areas. Data are available for: National, State and County levels Congressional Districts Watersheds Organic, Irrigation, Horticulture, Specialty Crops and Aquaculture

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7 NUMBER OF FARMS 2,109,363 Farms and Ranches 4.3 percent fewer than 2007

8 TOP 10 STATES NUMBER OF FARMS 2007 State 2007 Farms 2012 State 2012 Farms Texas 247,437 Texas 248,810 Missouri 107,825 Missouri 99,170 Iowa 92,856 Iowa 88,631 Oklahoma 86,565 Oklahoma 80,245 Kentucky 85,260 California 77,864 California 81,033 Kentucky 77,064 Minnesota 80,992 Ohio 75,462 Tennessee 79,280 Illinois 75,087 Wisconsin 78,463 Minnesota 74,537 Illinois 76,860 Wisconsin 69,756

9 DEMOGRAPHICS Age Primary occupation Years on present farm Sex Ethnicity Race

10 DEMOGRAPHIC CHANGES FOR THE PRINCIPAL OPERATOR SINCE 2007 Fewer female operators More minority operators Average age of farm operators continues to increase Fewer beginning operators Fewer small farms More reported farming as their primary occupation

11 SEX OF PRINCIPAL OPERATOR % Change 2012 Coefficient of Variation (%) Male Principal Operators* 1,898,583 1,821, Female Principal Operators 306, , * Indicates significant

12 FARMS BY ECONOMIC CLASS FOR SELECTED GROUPS, 2012 Less than $50,000 $50,000 or more All farms 75% 25% Female 91% 9% Hispanic 85% 15% American Indian 92% 8% Asian 65% 35% Black 94% 6%

13 Separate Subparts: Off-Farm Labor Housing - 7 CFR 3560, subpart L On-Farm Labor Housing - 7 CFR 3560, subpart M Off-Farm Labor Housing is located in any location approved by the Agency but not on the farm where the laborer works Off-Farm Projects 313 projects, 35 States, Mostly in CA (39%), FL (13%), and OR (9%) On-Farm Labor Housing is located in any location approved by the Agency. On-Farm Projects 308 projects, 26 States, Mostly in AR (36%), MI (20%), VT (13%)

14 OFF-FARM LABOR HOUSING LOANS AND GRANTS Off-Farm Labor Housing projects are designed to increase the supply of affordable housing for farm laborers regardless of the farm where they work. Loans, grants, or both may finance these projects. Developers of these projects may apply for Agency rental assistance contracts. Off-farm labor housing is normally developed by broad-based nonprofit organizations or public bodies that see a need for labor housing as a specific market area Each year the Agency establishes a specific allocation of funding for the development of off-farm labor housing.

15 Operating Assistance (7 CFR ) Unlike the Section 515 Rural Rental Housing Program, Off-farm labor housing may be used to serve migrant farmworkers; In lieu of Rental Assistance in Off-Farm LH projects that serve migrant farmworkers; and Unlike Rental Assistance, Operating Assistance provides assistance even when the housing is vacant

16 Farm Worker Housing of the Past

17 USDA Rural Development is the only national source of construction funds dedicated to farm labor housing. Today s Farm Worker Housing

18 Energy Efficient Accomplishment Community center with large central activity room, kitchen, computer lab, and common laundry area

19 Mutual Housing California at Spring 19

20 Net Zero Energy Project King Station

21 Net Zero Energy Project King Station 21

22 Net Zero Energy Project King Station 22

23 Who can live in Farm Labor Housing? 7 CFR Active farm laborer households; a. Very low-income households b. Low-income households c. Moderate-income households; 2. Retired domestic farm laborer households and disabled domestic farm laborer households in the local market area; and 3. Retired domestic farm laborer households and disabled domestic farm laborer households who were not active in the local market area.

24 Colonial House-Oxnard, California 24

25 Definition of a Domestic Farm Laborer (7 CFR ) A person who.receives a portion of their income from farm labor.and either is a citizen of the United States or resides in the United States after being legally admitted for permanent residence. Farmworkers who are admitted under temporary visas, such as H2A workers, are not eligible to live in Farm Labor Housing (they are not admitted for permanent residence).

26 WHAT IS FARMLABOR Fundamentally, It Consists Of Five Stages Stage 1: The raising of the agricultural or aqua-cultural commodity on the farm; Stage 2: The transportation of the agricultural or aqua-cultural commodity after harvest; Stage 3: The post-harvest handling, storage, processing and packaging of the agricultural or aqua-cultural commodity; Stage 4: The delivery to market; and, finally, Stage 5: The market itself which may either, be a wholesale or retail market (if the commodity is a fresh market commodity) or a food processing manufacturer

27 Stage 1. Raising the commodity on the farm Eligible activities include: Field workers hand work, field preparation, planting, irrigating, weeding, spraying, thinning, picking, pruning, loading, flagman, livestock caretakers, milkers Agricultural equipment operators tractors, sprayers (including aerial sprays), harvesters, combines Professional crop services agronomists, veterinarians, pest advisors, orchard managers

28 Stage 2. Transporting the commodity after harvest. Eligible activities include: Harvester/combine operators Truck drivers Loading and unloading commodities prior to processing 28

29 Stage 3. Post-harvest handling, storage, processing and packaging Eligible activities include: Boxing, crating, loading and unloading produce, hulling nuts, drying grain Working in a post-harvest commodity storage facility 29

30 Stage 4. Delivery to market or processing. Eligible activities include: Truck drivers, loading and unloading commodities prior to processing Trucking processed agricultural products (when employed by Processing Plant)

31 Stage 5. Processing or marketing. Eligible activities include: Processing plant workers canneries, salad mix, creameries, frozen foods, dried fruit, slaughterhouse

32 Notice of Solicitation of Applications (NOSA) This year we publish a Notice of Solicitation of Applications (NOSA) the content in all practicality is identical to the NOFA, notable differences are: 1. Funding will not be noted. Unlike a NOFA, the NOSA will refer the reader to the RD website for that information. (The amount of funding available in FY 2016 is based on current appropriation: FLH 514 Loan $20,338,000 and FLH 516 Grant $6,336, Response period for the 2016 NOSA is 90 days. 1. Of particular note this year, the Agency will assign additional points to pre-applications for projects based in or serving census tracts with poverty rates greater than or equal to 20 percent over the last 30 years. This emphasis will support Rural Development s mission of improving the quality of life for rural Americans and commitment to directing resources to those who most need them

33 What is a broad-based organization? A broad-based nonprofit organization is an organization that has a membership that reflects a variety of interests in the area where the housing will be located.

34 Who Can Apply For Off-Farm Labor Housing Loans Under the NOSA? 1. A broad-based nonprofit organization; Nonprofit organization of farm workers; 2. A Federally recognized Indian tribe; 3. An agency or political subdivision of State or local government; and 4. Limited partnerships which have a nonprofit entity as their sole general partner (LP s are not eligible for grants).

35 Off-Farm Labor Housing Grants Under the NOSA? Maximum Grant Amount The maximum grant amount is limited to no more than 90 percent of the total development cost (TDC) of the project. Documented Need for the Project The applicant must document that the housing and related facilities will fulfill a pressing need in the area in which the project is or will be located and that there is reasonable doubt that such housing can be provided without the grant.

36 Off-Farm LH NOSA 2016 Loan funds available: $23,602,484. Grant funds available: $8,336,000 Rental Assistance: $1,663,000

37 Can funds from the NOSA be used for repair/rehab? Unlike the section 515 Rural Rental -Housing Program, FLH appropriated dollars are no year monies. No year monies mean that unused funds can be carried forward into the next fiscal year; The unused portion is used for repair/rehab of FLH properties.

38 Restrictive Use Provision (RUP) for Off-Farm LH Loans 7 CFR (a)(2)(i) requires a specific RUP to be included in the mortgage and deed of trust when making Off-Farm LH loans. The RUP period is for 20 years.

39 Section 516 Grant Eligibility 7 CFR (b) Applicant to contribute at one-tenth of the total farm labor housing development cost from its own or other resources. An off-farm labor housing loan financed by RHS may be used to meet this requirement.

40 The Term (length) of a LH Grant The LH grant term was changed at from a 50-year term to so long as there is a need for farm labor housing. This is consistent with the LH Grant Agreement.

41 Farm Labor Housing Technical Assistance (7 CFR ) Section 516 of the Housing Act of 1949 authorizes the Rural Housing Service (RHS) to provide financial assistance (grants) to eligible private and public nonprofit agencies to encourage the development of domestic and migrant farm labor housing projects. Work performed under these grants is expected to result in an increased submission of applications for farm labor housing and grants under 514 and 516 programs and increase of the availability of decent, safe and sanitary housing for farm laborers. Field offices are encouraged to establish a working relationship with the Grantee covering their particular region.

42 Central Region Arkansas, Illinois, Iowa, Louisiana, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma, South Dakota, Texas, New Mexico, Kansas and Wisconsin ND MN SD WI MI NB IA IL KS MO NM OK AR TX LA

43 Eastern Region Alabama, Connecticut, Delaware, Florida, Georgia, Indiana, Kentucky, Maine, Maryland, Maine, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Virginia and West Virginia NH MA NY RI CT OH PA IN KY TN WV NC -SC VA VA MS AL GA FL Puerto Rico

44 Western Region Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington, Wyoming, and Pacific Territories, and Regions UT

45 On-Farm Labor Housing 7 CFR 3560, Subpart M On-Farm housing owned by the farm owner Workers may only work on this one farm Only eligible for loan funds Be unable to provide the necessary housing from their own resources; Loan applications are on a first come first served basis Rent may not be charged. Project must be operated on a nonprofit basis Applicant must agree to use the labor housing to engage in the farming operation.

46 Who cannot live in on-farm labor housing? 7 CFR Immediate family members of the applicant cannot live in an on-farm labor property. Immediate family includes: mother, father, brothers, sisters, sons, and daughters of the applicant and spouse.

47 On-Farm Labor Housing Restrictive Use Provision Restrictive Use Provision for On-Farm LH loans added at 7 CFR (if determined to be appropriate by the Agency). Example: On-Farm LH with multiple units. When used, a 20-year RUP will be added to the mortgage and deed of trust.

48 Accessibility Requirements for On-Farm LH 7 CFR (d) On-Farm LH that consist of buildings with less than three units, need not meet the requirement that 5% of the units be constructed as fully accessible units. Other accessibility requirements are still applicable (i.e., reasonable accommodations)

49 Special Servicing Requirements for On-Farm LH On-Farm LH servicing requirement that had previously been issued as a Servicing AN are now found in the Asset Management Handbook at Chapter 3.23.

50 On-Farm vs. Off-Farm On-Farm housing owned by the farm owner Workers may only work on this one farm Only eligible for loan funds Loan applications are on a first come first served basis Rent may not be charged. Project must be operated on a nonprofit basis. Off-Farm owned by a nonprofit organization Workers may work on any farm Eligible for loan and grant funds Loan/grant applications are selected thru a nationwide competition Agency approved rent may be charged. Project must be operated on a nonprofit basis.

51 Farm Labor Housing Training Guide 51

52 Ask me Rural Housing Service, Multi-Family Housing 52

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