Door County Housing Symposium February 5, 2019 Rural Development - - PowerPoint PPT Presentation

Door County Housing Symposium February 5, 2019

• Housing Programs – single family home loans and repairs, multi-

family rental assistance, farm labor housing

• Business Programs – loans, loan guarantees, revolving loan funds,

business incubator buildings, technical assistance, renewable energy, energy efficiency, value added producer grants

• Utility Programs – electric loans, broadband loans, distance learning

and telemedicine, and telecommunications

• Community Programs – Water and Environmental Program and

Community Facilities

Rural Development (RD) Programs

• Section 515 Properties
• Four existing properties in Door County
• Bay Hill Apartments
• Bayview Terrace Apartments
• Williamstown Bay Apartments
• Velkommen (Washington Island)

Currently no funding for new Section 515 properties

Multifamily Housing Programs (MFH)

• Section 538 Guaranteed Rural Rental Housing
• Program is Lender driven
• No loan limits
• New construction and Rehab
• Up to 40 year amortization
• USDA Rural Development provides 90% loan guarantee
• Initial occupancy up to 115% of AMI
• Works will with LIHTC and Sec 8 properties

Multifamily Housing Programs (MFH)

Farm Labor Housing Programs – General Info

• 33 year loan/amortization, 1% interest rate, Restrictive Use
• 5 stages of Farm labor, from raising/growing commodity to market

(wholesale or retail market) and between (i.e. harvest, transportation, processing, packaging)

• Eligible tenants:
• Very Low, Low, & Moderate income households-farm laborer
• Retired laborers
• Disabled laborers
• H2A workers

Multifamily Housing Programs (MFH)

Farm Labor Housing Program – On Farm Labor Housing

• Owned by the farm owner
• Workers may only work on this one farm
• No rent charged to tenant- part of their

compensation/benefit package

• Operate on nonprofit basis

Multifamily Housing Programs (MFH)

Farm Labor Housing Program – Off Farm Labor Housing

• Broad based nonprofit organization; or
• Agency or political subdivision of State or Local government; or
• Indian Tribes; or
• Limited partnerships which have a nonprofit entity as their sole

general partner (LP’s are not eligible for grants) Workers may work on any farm Rental Assistance option Operating Assistance (option for migrant/seasonal)

Multifamily Housing Programs (MFH)

USDA Rural Development is the only national source of construction funds dedicated to farm labor housing.

Today’s Farm Worker Housing

• Public Improvements necessary for the orderly development of

a community and services typically provided by public bodies.

• 20,000 population or less served
• Public Body, Not-for- Profit, Indian Tribes
• Interest rate is currently 4.25%, term will depend on type of

entity and type of project financing or state statutes.

• Guarantees available with lender
• Grants are limited and must meet criteria.

Community Facilities (CF)

• Public Safety - Fire & Rescue-Fire Stations, Fire Trucks,

Ambulances; Police Facilities; Jails, etc.

• Public Services – City/Village/Town Halls, Libraries, Adult

and Child Daycare; Domestic Violence Shelters; Mental and Behavioral Health Facilities; Municipal buildings, Street/Roads

• Other – Food Pantry, other non-profit activities that are

essential community services

CF Project Examples

• Water and Environmental Programs (WEP) provides loans,

grants, and loan guarantees for drinking water, sanitary sewer, solid waste and storm drainage facilities in rural areas and cities and towns of 10,000 or less to public bodies.

• 40 year term for loan; grants based on MHI and other factors.
• Current Interest rates are 2.5 – 4.25% depending on MHI and if

any health and sanitary issues.

• Example projects – Replacement of water and sewer lines,

wastewater treatment facility, wells, tower, lift stations – capital items

Water and Environmental Programs (WEP)

USDA is an equal opportunity provider, employer and lender.

Julie Felhofer, Multifamily Housing Specialist

Rural Development Shawano Area Office Julie.Felhofer@usda.gov Office: 715.524.8522 ext. 125

Jennifer Engel, Community Programs Specialist

Rural Development Shawano Area Office Jennifer.Engel@usda.gov Office: 715.524.8522 ext. 109 www.rd.usda.gov