Section 514 loans
A domestic farm labor housing program authorized under Section 514 of the Housing Act of 1949. The Rural Housing Service (RHS) makes loans to farm owners, associations of farm owners, or nonprofit organizations to provide "modest" living quarters, basic household furnishings, and related facilities. The loans are repayable in 33 years and bear an interest rate of 1%. Applicants, who own farms or who represent farm owners, must show that the farming operations have a demonstrated need for farm labor housing and the applicants must agree to own and operate the property on a nonprofit basis. Except for state and local public agencies or political subdivisions, the applicants must be unable to provide the housing from their own resources and unable to obtain the credit from other sources on terms and conditions that they could reasonably be expected to fulfill and still provide farmworker housing at rental rates that would be affordable to the workers. The RHS may make exceptions to the "credit elsewhere" test when (1) there is a need in the area for housing for migrant farm workers and the applicant will provide such housing, and (2) there is no state or local body or no nonprofit organization that, within a reasonable period of time, is willing and able to provide the housing.
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