Exhibit K to Subpart D of Part 1944 - Loan Agreement

(lh insured loan to farm borrowers to provide housing for the farm borrower's farming operations)

A. General provisions:

1. This agreement is entered into

________ (Date).

2. This agreement is between ______

(borrower's name whether one or more), whose mailing address is ______, and the United States of America, acting through the Farmers Home Administration or its successor agency under Public Law 103-354, United States Department of Agriculture (the Government).

3. This agreement is made in return

for receiving Labor Housing (LH) loan assistance from the Government totaling $______ as evidenced by a Promissory Note dated ______. This assistance is made with the understanding that housing is to be provided to Domestic Farm Laborers on a rent free basis. Any rents collected without the written consent of the Government are the responsibility of the borrower and shall be refunded by the borrower to the tenants.

4. The borrower agrees to comply with Government regulations governing the LH loan program.

5. This agreement is in addition to any other agreements entered into with the Government, such as any promissory note, mortgage or deed of trust, loan approval requirements, etc.

B. Rent and Occupancy.

Occupancy of the housing will be limited to domestic farmworkers or migrant farmworkers as defined by the Government, unless the Government gives prior written approval for other occupancy, except that in no case will a member of the borrower's immediate family occupy the housing.

The borrower agrees:

1. To meet the LH loan objectives by providing decent, safe, and sanitary housing for eligible tenants;

2. To provide the housing rent free to eligible farmworker tenants;

3. To get the Government's prior approval before collecting utility charges (i.e. electricity, fuel, water, waste disposal, etc.) or requiring a refundable damage deposit or cleaning fee from tenants;

4. To get the Government's prior approval if there is a need to permit occupancy by tenants who are not working in the borrower's farming operation or not normally eligible to occupy the housing unit; and

5. To get the Government's prior approval if there is a need to charge rent to tenants or change any existing rents. To provide a management plan, which meets requirements set out in Government regulations, whenever rents are charged to tenants. The management plan will describe how the housing operation will be conducted.

C. Recordkeeping.

The borrower agrees:

1. To provide the Government financial information as required by Government regulations;

2. To provide annual verification of employment of eligible tenants as occupancy changes, not less than once per year; and

3. To keep information required by Government regulations and make the information available for Government inspection, to include tenant nonrent affidavits.

D. Compliance with Federal, State, and Local Laws and Regulations.

The borrower agrees to comply with applicable Federal, State, and local laws and regulations, including but not limited to, the following:

1. To provide equal housing opportunities to tenants;

2. To operate the housing in a safe environment;

3. To maintain comprehensive property insurance on the property taken as security;

4. To pay taxes and assessments on the property taken as security; and

5. To make the security property available for inspection by the Government.

E. Disposition of LH Security Property.

The borrower agrees:

1. Not to sell or otherwise dispose of property taken as security for the LH loan without the Government's prior written approval;

2. Not to sell or enter into any business arrangement which may potentially or actually place the housing operation under the management or control of another party without the prior approval of the Government; and

3. To prohibit any liens to be taken on the security property without the prior approval of the Government.

F. Enforcement Considerations.

The. borrower understands that any violation of the terms of this agreement may enable the Government to declare the note immediately due and payable and may adversely affect the borrower's ability to obtain other Government loans or grants.

G. General Provisions.

This agreement may be cited in the

security instrument and other Instruments or agreements as the “Loan Agreement of ______ 19_.” (date of this instrument)

H. Signature(s).

Signature of Borrower Witness Signature of Borrower Witness