Exhibit A-1 to Subpart D of Part 1944 - Information To Be Submitted by Organizations and Associations of Farmers for Labor Housing Loan or Grant

I. Information to be submitted with SF 424.2 (for pre-application submission). a. eligibility.

1. Financial Statement—A current, dated, and signed financial statement showing assets and liabilities with information on the repayment schedule and status of all debts. If the applicant is an association of farmers, a current financial statement will also be required from each member who holds an interest in the association in excess of 10 percent. If the applicant is a limited partnership, financial statements are required from each general partner who holds an interest in the organization, and from each limited partner who will have 10 percent or more ownership. The financial statement must reflect sufficient financial capacity to meet the initial operating capital requirements. Loan or grant funds may be used to provide the required initial operating capital for nonprofit entities and State or local public agencies. If the applicant is a limited partnership, the financial statement must also demonstrate sufficient capacity to meet the applicant's equity contribution.

2. All applicants, except State and local public agencies, must provide evidence that they are unable to obtain credit from other sources. Letters from credit institutions who normally provide real estate loans in the area should be obtained and these letters should indicate the rates and terms upon which a loan might be provided.

3. If a Labor Housing (LH) grant is requested, the applicant should provide a statement on their projected use of Rental Assistance (RA) and their need for a LH grant. This statement should include preliminary estimates of the rents required with and without a grant and the relative need for a grant if RA is provided to supplement market rents for eligible farmworkers. [LH grants and RA are not available to associations of farmers; LH grants are not available to limited partnerships.]

4. A statement of the applicant's experience in operating LH or other rental housing. If the applicant's experience is limited, additional information should be provided to indicate how the applicant plans to compensate for this limited experience. (i.e., obtaining assistance and advice of a management firm, non-profit group, public agency, or other organization which is experienced in rental management and will be available on a continuous basis).

5. A brief statement explaining the applicant's proposed method of operation and management. This does not have to be a full-fledged management plan, as outlined by exhibit B of this subpart; however, it should generally explain how the applicant proposes to operate the facility. (i.e., on-site manager, contracting for management services, etc.).

6. Applicants must provide a copy of or an accurate citation to the special provisions of State law under which the applicant is or is to be organized, a copy of the applicant's charter, Articles of Incorporation, bylaws, and other basic authorizing documents; names, occupations, and addresses of the applicant's members, directors, and officers; and, if a member or subsidiary of another organization, its name, address, and principal business.

b. need and demand.

A preliminary survey should be conducted to identify the supply and demand for LH in the market area. The market area must be clearly identified and may include only the area from which tenants can reasonably be drawn for the proposed project. The applicant must provide documentation to justify need within the intended market area. The market survey should address or include the following items:

1. The annual income level of farmworker families in the area and the probable income of those farmworkers who are most apt to occupy the proposed unit.

2. A realistic estimate of the number of farmworkers who are home-based in the area and the number of farmworkers who normally migrate into the area. Information on migratory workers should indicate the average number of months the migrants reside in the area and an indication of what type of family groups are represented by the migrants (i.e., single individuals as opposed to families). Much of this information may be available from the local office of the Rural Manpower Services section of the Department of Employment Services.

3. General information concerning the type of labor intensive crops grown in the area and prospects for continued demand for farm laborers (i.e., prospects for mechanization, etc.). Information may be available from the local U.S. Department of Agriculture (USDA) Cooperative, State, Research, Education and Extension Service office or from the Farm Service Agency.

4. The overall occupancy rate for comparable rental units in the area and rents charged and customary rental practices for these units (i.e., will they rent to large families, do they require annual leases, etc.). This information may be available from census data, local planning organizations, or local housing authorities.

5. The number, condition, adequacy, ownership and rental rates for units currently used or available to farmworkers. This information may be available from local farmworker advocacy groups, Rural Manpower Services, or social service agencies.

6. A description of the units proposed, including number, type, size, rental rates, amenities such as carpets and drapes, related facilities such as a laundry room or community room and other facilities providing supportive services in connection with the housing and the needs of the prospective tenants such as a health clinic or day care facility; estimated development timeline; estimated total development cost and applicant contribution. If the application includes leveraged funds, include documentation of the dollar amount, source, and commitment status.

Note:

The market survey is one of the most important determinates of the overall feasibility of the proposed project. Therefore, the applicant may wish to do a more detailed study of the market in accordance with item II J below. Endorsement of the proposal by community leaders will not be required.

c. environmental information.

The applicant will complete Form RD 1940-20, “Request for Environmental Information,” along with a description of anticipated environmental issues or concerns.

d. affirmative fair housing marketing plan.

Each applicant will prepare and submit HUD 935.2, “Affirmative Fair Housing Marketing Plan,” where they propose developing five (5) or more units. The plan will reflect that occupancy is not limited to their employees and they will not discriminate on the basis of race, color, sex, age, handicap, marital or familial status or National origin in regard to the occupancy or use of these units.

e. additional information.

1. Evidence of site control such as an option or sales contract; a map and description of the proposed site, including the availability of water, sewer, and utilities, and proximity to community facilities and services such as shopping, schools, transportation, doctors, dentists, and hospitals.

2. Preliminary plans and specifications, including plot plans, building layouts, and type of construction and materials.

3. A supportive services plan describing services that will be provided on-site or made available to tenants through cooperative agreements with service providers in the community, such as a health clinic or day care facility. Off-site services must be accessible and affordable to farmworkers and their families. Letters of intent from service providers are acceptable documentation at the preapplication stage.

II. Information to be submitted with SF 424.2 (for application submission).

A. After the applicant has received the signed SF 424.2 authorizing the applicant to proceed to develop a final application, the applicant and the applicant's architect should meet with the FmHA or its successor agency under Public Law 103-354 architect/engineer and other officials responsible for loan processing. During this preprocessing meeting, FmHA or its successor agency under Public Law 103-354 will discuss the services which the applicant's architect will be expected to provide and will also explain the items needed to complete the final application such as Form FmHA or its successor agency under Public Law 103-354 1940-20, “Request for Environmental Information,” if not previously submitted in the pre-application stage.

If after the preprocessing meeting the applicant believes that the Labor Housing (LH) project can be developed within the guidelines required by FmHA or its successor agency under Public Law 103-354, the following information should be submitted with SF 424.2:

B. If applicable, evidence of compliance with 7 CFR part 3015 subpart V, “Intergovernmental Review of Department of Agriculture Programs and Activities.” See FmHA Instruction 1940-J, available in any FmHA or its successor agency under Public Law 103-354 office.

C. Proposed contracts for architectural, engineering, and legal services as applicable. FmHA or its successor agency under Public Law 103-354 approval of these contracts should be obtained before execution of the contract.

D. A plot plan and detailed preliminary drawings and specifications prepared in accordance with subpart A of part 1924 of this chapter. Exhibit A-3 provides FmHA or its successor agency under Public Law 103-354's general philosophy and standards concerning the construction of LH facilities.

E. A detailed cost breakdown of the project for items such as land purchase, right-of-ways, building construction, equipment, utility connections, on-site improvements, architectural and/or engineering services, and legal services. Also, if applicable, the cost breakdown should include the costs incurred for the development and packaging of its own application. These costs may range from 2 to 4 percent of total development cost (excluding initial operating and capital expenses) and should reflect costs that are reasonable and typical for the area. Costs in excess of 4 percent will not be reimbursed. If an LH grant is proposed, construction will be subject to the provisions of the Davis-Bacon and related Acts. LH grant applications should, therefore, obtain a copy of the Department of Labor regulations (29 CFR part 5), which contain the applicable labor standards provisions.

F. Satisfactory evidence of review and approval of the proposed housing, including compliance with zoning requirements by State and local officials, as required by applicable State or local laws, ordinances, or regulations.

G. If not already provided in the pre-application submittal, a map of the proposed site showing the location of the site in relation to available facilities such as schools, shopping, churches, hospitals, etc. In addition, supporting information should be provided indicating that essential utilities such as sewer, water, electricity, etc., will be available to the project. (See exhibit A-3 for FmHA or its successor agency under Public Law 103-354's general requirements for location of LH facilities).

H. A description of and justification for any related facilities such as community or multi-purpose type buildings, cafeterias, dining halls, infirmaries, child care facilities, etc. To be included for funding by FmHA or its successor agency under Public Law 103-354, the facilities should not be of extravagant design and their size must be commensurate with the needs of the farmworkers who will occupy the housing facility. Any long-term agreements which are contemplated with other agencies for services such as manpower training, migrant health services, child care, and education programs should be explained and included as justification for the related facilities.

I. A detailed market analysis addressing in detail the pre-application information required under item I B above, “Need and Demand,” should be conducted in accordance with the following:

1. The market area (i.e., the area from which tenants can reasonably be drawn for the project) should be clearly identified.

2. Adequate existing units which are currently available or which could become available should be surveyed and information obtained and recorded in a format similar to exhibit A-4.

3. Individual farmworkers and farmworker groups should be contacted and their ideas obtained concerning the type of housing which would gain the greatest acceptance. (This information may not seem important at the outset of the loan if there is a pressing need for LH, however, to assure a long-term demand for the project, consideration should be given to the views of the prospective tenants).

4. The above items should then be correlated to arrive at a realistic estimate of the total need for units, type of units, estimated occupancy, maximum rental rates which can be charged for the units, and the type of amenities or related facilities which should be provided.

J. Proposed, detailed operating budgets for: (1) The first year of operation, and (2) a typical year's operation. The overall percentage of occupancy should be based upon the data collected in the market analysis. Operating costs should be realistic and should reflect somewhat higher than normal maintenance costs and an allowance for the establishment of a reserve as required by the loan agreement. The budget should be prepared in a format similar to exhibit A-5.

K. A management plan which includes the applicable items of exhibit B.

L. When the loan is to be secured by a junior real estate lien, certain agreements will be required from prior lien holders. The local or State FmHA or its successor agency under Public Law 103-354 Official will provide the applicable agreements.

M. An option to purchase or other evidence of ability to purchase or evidence of ownership for the proposed site.

III. Submission of final application.

When the final application is assembled it should be submitted to the local FmHA or its successor agency under Public Law 103-354 District Office for review and submission to the State Office. As soon as a final decision to approve the loan is reached, the applicant will be notified and advised to proceed with the preparation of final plans and specifications, contract documents, and other items needed to close the loan. The applicant should not proceed with bid advertisement or contract awards until advised to proceed by FmHA or its successor agency under Public Law 103-354.