FARM LABOR HOUSING LOANS AND GRANTS

BASIC PROGRAM INFORMATION

LEGISLATIVE OBJECTIVE.-To provide decent, safe, and sanitary lowrent housing for domestic farm laborers.

TYPE OF ASSISTANCE.-This program provides insured loans to farmers and associations of farmers. Loans and grants may be awarded to nonprofit organizations of farmworkers and public bodies who are unable to obtain credit through a labor housing loan or through other sources. Benefits to tenants consist of adequate housing at low rents. DATE ENACTED. The program originated with legislation in 1949. ADMINISTERING AGENCY.-The Farmers Home Administration of the U.S. Department of Agriculture, through State directors of Farmers Home Administration housing programs, county Farmers Home Administration supervisors, and county Farmers Home Administration committees appointed by the Secretary of Agriculture.

FINANCING. The program is financed through funds provided from the rural housing insurance fund.

TYPE OF HOUSING.-Loans may be used for construction or repair of modestly designed housing which may include single-family homes, apartments, dormitory-type units, or multiuse housing and for related facilities such as central cooking and dining facilities, laundry facilities, and recreation areas.

LOCATION OF HOUSING.-Housing must be on a farm or in or as part of a rural community in which there is need for housing for farm laborers as demonstrated by a survey showing the following: The number of farmers in the area using farm labor; the number of laborers used; the number of laborers likely to use the housing; and the rental levels and availability of other housing for laborers in the area. ELIGIBLE BORROWERS.-For loans, the applicant must be a farmowner, an association of farmers, or of farmworkers, a State or political subdivision, or a private broad-based nonprofit organization which will own the housing and operate it on a nonprofit basis. If the applicant is an individual farmowner or an association, the housing must be for labor which is to be used in farming operations other than on the

land owned or operated by the applicant. The term "applicant" is defined as an individual or any members of an applicant organization.

The applicants must be unable to provide the necessary housing from their own resources and unable to obtain credit from other sources. The recipients also must have sufficient resources for a sound loan in order to meet operating expenses and to repay the loan.

To be eligible for a grant, the applicant must be a broad-based nonprofit corporation, a nonprofit corporation of farmworkers, or a public organization with an assured life sufficient to carry out the purposes of the housing-ordinarily at least 50 years. The applicant also must be unable to provide the housing from its own resources or to obtain the necessary credit through a labor housing loan or other resources; and it must have sufficient assets needed for sound operation and repayment of debts, including a labor housing loan, if applicable.

LOAN LIMIT AND TERMS.-The amount of a loan is related to the value of a farm improved with the loan; or for an organization, related to the value of the completed housing and related facilities, less other debts against the property. The interest rate is 1 percent and repayments are scheduled for a period not to exceed 33 years.

GRANT LIMITS.- -The amount of a grant is the lesser of (1) 90 percent of the cost of the project, or (2) the amount needed in excess of the amount the applicant can provide through its own resources, plus the amount of a loan the applicant can be expected to repay, with interest, from rentals within the reach of low-income families. The applicant must contribute at least 10 percent of the cash development costs from its own resources which may include a labor housing loan. TENANT ELIGIBILITY.-Tenants must be domestic farm laborers and their families who are citizens of the United States or persons legally admitted for permanent residence.

INCOME LIMITS.-There are no specified income limits in legislation. ASSETS TEST.-There is none.

ACCOUNTING PERIOD.-The accounting period is not applicable to this program.

BENEFITS

Tenants obtain adequate housing at reasonable rentals which might not otherwise be available to them. Tenants pay the established rentals which are approved by FHA. For housing which is assisted by loans, a schedule of proposed rental rates is submitted with the application, along with information regarding rental levels for comparable housing and charges made to laborers in the area. The housing must be operated on a nonprofit basis.

For housing which is assisted by a grant, rental rates are established with consideration for earnings of farm labor in the area, prospective earnings of occupants, and the necessary cost of operating and maintaining the housing. The general guide for rental rates is that rents should not exceed 25 percent of the occupant families' estimated annual income. Scheduled rental charges may be adjusted subsequently if justified by a substantial change in the occupants' income, living costs, and other pertinent factors. A change in rent schedules requires FHA approval.

U.S. Department of the Interior Programs

INDIAN HOUSING IMPROVEMENT PROGRAM

BASIC PROGRAM INFORMATION

LEGISLATIVE OBJECTIVE.-To provide housing improvement assistance for Indians (repairs, renovation, and enlargement) and to construct new housing in isolated areas where other programs are not applicable. DATE ENACTED.-The Indian housing improvement program began operating in 1965, under the authority of legislation enacted in November 1921.

ADMINISTERING AGENCY.-The Bureau of Indian Affairs of the U.S. Department of the Interior, through area offices.

FINANCING. The program is financed by annual fixed appropriations from general revenues of the Treasury.

MAJOR ELIGIBILITY CONDITIONS.-To be eligible for the program, families must be Indians living on reservations or on trust lands operating under some dgree of Federal responsibility, who are in need of housing assistance and who are unable to obtain such assistance under any other Federal program. Among eligible families, preference is given to those with the greatest need and in the most crowded conditions.

INCOME TEST

1

Income limits.-To be eligible for grants to repair or renovate existing substandard housing, or provide new housing, families must meet income limits for continued occupancy in public housing and must be determined by the BIA agency superintendent to be living in substandard housing and to have insufficient resources to accomplish the housing improvements without assistance. To be eligible for grants to reduce the amount of housing loans needed, families must be determined by the BIA agency superintendent to be otherwise unable to obtain them because of low income and limited financial resources. To

1 New housing is that which constitutes more adequate shelter but does not meet the full standards for families living in unrepaired houses until they can obtain adequate housing.

46-032 0-75- -18

be eligible for original occupancy of newly constructed permanent housing, families must meet the income limits for public assistance in the area in which they live.

[For definition of income, treatment of earned income, treatment of unearned income, and accounting period, see sections on "Public Housing” and “Public Assistance."]

ASSETS TEST.-A family must have insufficient resources to accomplish housing improvements or to obtain new housing. The maximum amount of resources allowed is determined by the local BIA agency superintendent.

OTHER CONDITIONS

Work requirements.-There are none.

Acceptance of training or rehabilitation.-There is no requirement. However, materials and technical assistance may be provided for persons who are able to provide their own labor or labor may be provided in conjunction with a tribal work experience program.

Citizenship. The requirements of Indian descent and residence on a reservation imply a citizenship requirement.

Lien, recovery, or assignment. There is no requirement except with newly constructed permanent housing, the ownership of which must be turned over to the tribe or a tribal organization.

Residence requirement.—To be eligible, Indians must reside on reservations.

BENEFITS AND SERVICES

CASH BENEFITS.-There are none.

IN-KIND BENEFITS

Nature of benefit.-The benefits of the program are in the form of grants to repair or renovate existing housing, to provide new housing, or to reduce the amounts of housing loans.

Cash value of benefit.-Grants to temporarily repair substandard housing may not exceed $2,000 per dwelling unit; grants to repair or renovate existing housing, or to reduce the amounts of housing loans may not exceed $10,000 per dwelling; grants to provide a downpayment to obtain a loan may not exceed $5,000; and grants to provide new permanent housing may not exceed $25,000 per dwelling.

Relationship of benefit amount to family size.—Among eligible families, preference is given to those with the greatest need and in the most crowded conditions.

Relationship of benefit amount to place of residence. The program is available only to Indians residing on reservations or on trust lands operating under some degree of Federal responsibility.

2 Based on proposed regulations scheduled for implementation prior to Jan. 1, 1975.

HOUSING: NON-INCOME-TESTED

HOUSING ASSISTANCE FOR VETERANS1

BASIC PROGRAM INFORMATION

Legislative OBJECTIVE.—To assist veterans in purchasing, constructing, altering, improving, or repairing residential dwellings, with special grants given to certain disabled veterans.

DATE ENACTED AND MAJOR CHANGES SINCE ENACTMENT.-The first housing program for veterans was enacted in 1944. The present law was enacted in 1958 and codified in title 38, United States Code. An amendment in 1966 extended eligibility for loan benefits to veterans of service after January 31, 1955. An amendment in 1967 increased the maximum direct loan amount from a maximum of $17,500 to a maximum of $25,000. An amendment in 1968 increased the home loan entitlement to $12,500; changed the function of Veterans Administration appraisals to a control on the loan amount, rather than on the purchase price; and removed the statutory ceiling on the interest rate for the loan. A 1970 amendment revived unused, expired loan guaranty entitlements of World War II and Korean veterans, made all loan guarantee entitlement available until used, and authorized the mobile home loan program. Amendments in 1974 codified and expanded the conditions under which veteran loan entitlement could be restored after it has been used up by the veteran. Previous to this, loan entitlements could be restored only under comparatively limited circumstances, including situations difficult to administer where there were "compelling reasons devoid of a fault." Among other things, new amendments also permit nonsupervised lenders (e.g., consumer credit companies) to process loans on an "automatically guaranteed" basis; permit veterans to pay mortgage discounts or points under certain circumstances; liberalize VA's authority to guarantee loans for residential condominiums; increase the maximum home loan guarantee entitlement to $17,500 and revise VA mobile home maximum loans and mortgage maturities.

ADMINISTERING AGENCY.-The program is administered by the Veterans Administration, Department of Veterans' Benefits, through regional offices.

FINANCING. Funds for grants to eligible disabled veterans for specially adapted housing are provided by appropriations from general revenues of the U.S. Treasury. The costs of the guaranteed and insured loan program are met from a loan guarantee revolving fund, plus appropriations from general revenues. The costs of the direct loan program are met from a direct loan revolving fund.

1 Programs included under Housing Assistance for Veterans are as follows: (1) Specially adapted housing for disabled veterans; (2) guaranteed and insured loans; (3) direct loans; (4) direct loans for disabled veterans; and (5) mobile home loans.