CHAPTER 180
MIGRANT HOUSING PROGRAMS (REPEALED)

Part I
Introduction

13VAC5-180-10. Introduction. (Repealed.)

In response to the findings and recommendations of the State Migrant and Seasonal Farmworker Board, and others which cited the severe inadequacies in housing for migrant farmworkers in the Commonwealth, the 1989 General Assembly appropriated funds for establishing the Migrant Housing Program. The General Assembly designated the Department of Housing and Community Development to administer this new state initiative, and further directed the department to allocate additional funds to implement the program. The program has the goal of increasing the number of decent and sanitary migrant farmworker housing units in the Commonwealth. The program provides grants for rehabilitation and new construction to growers who employ migrant farmworkers in conjunction with their agriculture operation. The grant funds may not exceed 50% of the total project cost and are only available to growers. Low interest loan and energy grants are also available under the program, and are available to nonprofit groups and governmental entities as well as growers. Energy grants may be used only for eligible energy-related improvements undertaken as part of a rehabilitation project.

The program is funded at $700,000 for the 1989-90 fiscal year. This includes $250,000 in grants, $350,000 in loans and $100,000 in energy grants. Interested growers, nonprofit organizations and government entities (including housing authorities) may apply to the department for funds.

Part II
Definitions

13VAC5-180-20. Definitions. (Repealed.)

The following words and terms, when used in this chapter shall have the following meaning unless the context clearly indicates otherwise:

"Application" means the request, on behalf of the applicant to the state, for a loan or grant fund reservation under the Migrant Housing Program.

"DHCD" means the Department of Housing and Community Development.

"Energy grant" means a grant, available as a result of federal energy litigation, which may be awarded to pay for certain energy-related improvements within the Migrant Housing Program.

"Energy-related improvements" means physical improvements to structures that are being rehabilitated, which contribute to fuel cost savings and less overall energy consumption, and which have been so designated by the department. They may include installation or replacement of storm doors and windows; caulking and weatherstripping; roof, floor and wall repair as associated with insulation improvements; and furnace repair.

"Grant" means a grant made available as a result of an appropriation from the 1989 General Assembly, under the Migrant Housing Program for new construction or rehabilitation of migrant housing. These grant funds are only available to growers.

"Grant agreement" means the agreement between DHCD and the project sponsor pertaining to the terms and conditions provided within the Migrant Housing Program.

"Grower" means a farmer, an owner of an agriculture-based business or associations of these businesses which employ or intend to employ migrant farmworkers for crop production or processing.

"Grantee" means a grant recipient under the Migrant Housing Program.

"Loan" means a loan made under the Migrant Housing Program.

"Loan note" means the agreement between DHCD and the program sponsor pertaining to the terms and conditions governing loans under in the Migrant Housing Program including repayment provisions.

"Locality" means a city or county.

"Migrant housing" means shelter which is provided to migrant farmworkers and their families during the term of their employment.

"Migrant farmworkers" means those employees of growers who establish residence temporarily in relation to agricultural labor demands.

"Program" means the Migrant Housing Program which is administered by DHCD.

"Project sponsor" means a nonprofit, incorporated organization, governmental entity, or grower that houses or intends to house migrant farmworkers.

"Rehabilitation" means substantial physical improvements/repairs to a facility which will secure it structurally, correct building, health or fire safety code related defects, increase energy efficiency and assure safe and sanitary operation.

Part III
Eligibility

13VAC5-180-30. Eligible applicants. (Repealed.)

A. Growers that operate farms or agriculture related businesses in the Commonwealth of Virginia.

B. Nonprofit organizations incorporated under Virginia law.

C. Units of local government (cities, counties, and towns) and other governmental entities including redevelopment and housing authorities.

13VAC5-180-40. Eligibility requirements. (Repealed.)

Individuals or entities wishing to apply for funds under this program must meet the following requirements:

1. Provide or intend to provide decent and sanitary housing for migrant farmworkers; and

2. Operate within the Commonwealth of Virginia.

13VAC5-180-50. Eligible activities. (Repealed.)

Project sponsors under this program may undertake any of the following activities:

1. New construction;

2. Rehabilitation, including energy improvements;

3. Acquisition of standard housing, resulting in new migrant units; and

4. Acquisition and rehabilitation of substandard housing.

13VAC5-180-60. Operational requirements. (Repealed.)

The following operational requirements pertain to projects funded under this initiative:

1. Shall provide migrant housing during term of loan or grant;

2. Shall maintain property during term of loan or grant, to qualify it for continued occupancy by migrant farmworkers;

3. Shall not charge rent to migrant residents;

4. Shall practice nondiscrimination in the provision of migrant housing, and in the provision of any support services; and

5. Shall operate a facility that is in compliance with applicable state and local health, building and fire safety codes, or agree to make necessary improvements/repairs for such code compliance on such schedule as DHCD shall determine.

Part IV
Distribution of Funds

13VAC5-180-70. Distribution of funds. (Repealed.)

A. Funding priority. There are no set asides although DHCD shall endeavor to fund both new construction and rehabilitation projects and to achieve equitable geographic distribution. General improvement grant funds will be available only to growers. Loan funds and energy grants will be made available to nonprofit organizations and governmental entities as well.

B. Competitive ranking. All initial applications will be competitively ranked by DHCD within the areas of program design, project readiness, need for migrant housing or expansion requirements, leveraging of other resources, and cost effectiveness. (Total 100 points available.) Further explanation of selection criteria is as follows:

1. Completeness of Application - (20 points). The thorough presentation of the proposed project, as it relates to description of labor and migrant housing needs, the acquisition or construction which will meet the needs, and commitment of additional funding sources.

2. Project Readiness - (30 points available). Firmness of any other funds required for the project, including documentation which indicates status of ownership and use permits, health department approval, building drawings, cost estimates, work write-ups and other appropriate factors which indicate that the project will move forward in a timely fashion if funded.

3. Need for migrant housing or expansion requirements - (10 points available). Based on current condition of existing housing or need for expansion of housing supply.

4. Leveraging - (20 points available). Documented amount of other monetary resources to be contributed to this project by the applicant.

5. Cost effectiveness - (20 points available). Comparison of total project cost to the numbers of migrant farmworkers and their families which will benefit from the project.

C. Noncompetitive round. If any funds remain following the expiration of the competitive round, the balance of the funds will be available on the first come - first serve basis.

D. Maximum amount per application. There is no maximum amount available per loan or grant application. Funding decisions will be based on project feasibility and need per selection criteria and subject to funds availability. Awards may be offered in amounts below request.

Part V
Loan and Grant Terms and Conditions

13VAC5-180-80. Loan and grant terms and conditions. (Repealed.)

A. Loans will have a 3.0% interest rate for a term of up to 15 years. Recipients will sign a note and deed of trust. Projects funded totally by loan funds shall be available to house migrant farmworkers and their families and shall be maintained suitable to migrant occupancy for the term of the loan.

B. Grants must be repaid to the Commonwealth during the first 10 years after the closing of the grant or grants if the property ceases to be occupied by migrant farmworkers and their families or if the property ceases to be maintained to post-rehab standards. The grants will be forgiven one-tenth per year.

C. Energy grants are forgiven after five years, with the same residency and property maintenance standards as migrant housing grants.

D. All loans and grants must be fully secured by a lien against the sponsor's property or other form of security acceptable to DHCD.

E. The Virginia Housing Development Authority (VHDA) will disburse funds and collect payments for loans on behalf of DHCD in accordance with such schedules as DHCD shall approve.

F. The loan or grant may be assumed provided the new borrower continues to comply with the requirements of the loan or grant agreement, and approval is given to DHCD.

G. Migrant housing loans may not be prepaid unless authorized by DHCD.