§1484 Insurance of loans for housing and related facilities for domestic farm labor

Summary

The Secretary may insure loans from private lenders so farmers, tribes, states, nonprofit groups, limited partnerships with a nonprofit general partner, or farmworker organizations can build or fix housing and nearby facilities for domestic farm labor anywhere in the State where there is a need. Loans must follow the normal farm-loan rules but with limits: the insured amount cannot exceed the farm’s value minus existing liens for an individual owner or the estimated value of the buildings for other borrowers; the interest rate generally cannot be more than 1 percent per year (unless the Secretary allows a waiver when nonprofit sponsors are not available, in which case the loan rate must be at least one‑eighth of 1 percent above a stated benchmark); the Secretary must keep a charge of at least one‑half of 1 percent per year from interest payments and at least that one‑half of 1 percent goes into the insurance fund while the rest goes to the Treasury for administration; the Secretary can take or hold mortgages for the benefit of the fund, use the fund to pay taxes, insurance, liens, or buy foreclosed property, and treat acquired notes and property as part of the fund. Insurance contracts are obligations of the United States and cannot be attacked except for fraud or known misrepresentation. The Secretary must judge need based only on farm labor housing demand and may allow other eligible tenants if farm labor need ends. New and rehabbed housing must have carbon monoxide alarms that meet the 2018 International Fire Code chapters 9 and 11 or later standards adopted with HUD, and must have qualifying smoke alarms installed per ICC or NFPA codes and NFPA 72. For units built before December 29, 2022 (and not substantially rehabiitated after that date), a qualifying smoke alarm must be hardwired or use sealed, tamper‑resistant, 10‑year nonrechargeable batteries with silencing and hearing‑loss notification; for units built or substantially rehabilitated after December 29, 2022, alarms must be hardwired. Definitions: “Housing” = new or rehabbed dwelling units and furnishings for farm labor. “Related facilities” = dining halls, community rooms, infirmaries, other needed service buildings, and land for the site. “Domestic farm labor” = a person (and family) who earns a large part of income from growing, handling, or processing agricultural or aquacultural products, who is a U.S. citizen or authorized to live and work in the U.S.; it also includes retirees or disabled people who were farm laborers, with vacant units given priority first to active farm laborers, then to retired/disabled former local farm laborers, then to other retired/disabled farm laborers.