Section 516 Grants
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Section 516 grants are a
USDA The United States Department of Agriculture (USDA) is the federal executive department responsible for developing and executing federal laws related to farming, forestry, rural economic development, and food. It aims to meet the needs of com ...
farm labor housing program authorized by Section 516 of the
Housing Act of 1949 The American Housing Act of 1949 () was a landmark, sweeping expansion of the federal role in mortgage insurance and issuance and the construction of public housing. It was part of President Harry Truman's program of domestic legislation, the Fai ...
(42 U.S.C. 1441 et seq.). Qualified nonprofit organizations, Indian tribes, or public bodies obtain grants for the development cost of farm labor housing. Grants may be used simultaneously with
Section 514 loans Section 514 loans are a domestic, farm labor housing program in the United States, authorized under Section 514 of the Housing Act of 1949. They are the only nationwide program to provide housing for farm laborers. The Rural Housing Service (RHS) ...
if the housing, for which there is a “pressing need,” will not be built without assistance from the
Rural Housing Service The Rural Housing Service (RHS) is an agency of the United States Department of Agriculture (USDA). Located within the Department's Rural Development mission area. RHS operates a broad range of programs to provide moderate- low- and very-low-incom ...
(RHS). Grants may be made for up to 90% of the development cost of the housing. In a given fiscal year, up to 10% of the Section 516 funds shall be for domestic and migrant farm worker housing. Applicants must contribute at least 10% of the total development costs from their own resources or from other sources including Section 514 loans. Funds may be used to buy, build, or improve housing and related facilities for farm workers, and to purchase and improve the land where the housing will be located, including installation of streets, water supply and waste disposal systems, parking areas, and driveways as well as for the purchase and installation of appliances such as ranges, refrigerators, and clothes washers and dryers. Related facilities may include the maintenance workshop, recreation center, small infirmary, laundry room, day care center, and office and living quarters for the resident manager.


References

*{{CRS, article = Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition, url = http://ncseonline.org/nle/crsreports/05jun/97-905.pdf, author= Jasper Womach United States Department of Agriculture