
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-400 Section 2]
[CITE: 42USC1486]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
       CHAPTER 8A--SLUM CLEARANCE, URBAN RENEWAL, AND FARM HOUSING
 
                      SUBCHAPTER III--FARM HOUSING
 
Sec. 1486. Financial assistance to provide low-rent housing for 
        domestic farm labor
        

(a) Application; considerations

    Upon the application of any State or political subdivision thereof, 
or any Indian tribe, or any broad-based public or private nonprofit 
organization incorporated within the State, or any nonprofit 
organization of farmworkers incorporated within the State, the Secretary 
is authorized to provide financial assistance for the provision of low-
rent housing and related facilities (which may be located any place 
within the State) for domestic farm labor, if he finds that--
        (1) the housing and related facilities for which financial 
    assistance is requested will fulfill a pressing need in the area in 
    which such housing and facilities will be located, and there is 
    reasonable doubt that the same can be provided without financial 
    assistance under this section;
        (2) the applicant will contribute, from its own resources or 
    from funds borrowed under section 1484 of this title or elsewhere, 
    at least 10 per centum of the total development cost;
        (3) the types of housing and related facilities to be provided 
    are most practicable, giving due consideration to the purposes to be 
    served thereby and the needs of the occupants thereof, and such 
    housing and facilities shall be durable and suitable for year-around 
    occupancy or use, unless the Secretary finds that there is no need 
    for such year-around occupancy or use in that area; and
        (4) the construction will be undertaken in an economical manner, 
    and the housing and related facilities will not be of elaborate or 
    extravagant design or material.

(b) Maximum amount of assistance

    The amount of any financial assistance provided under this section 
for low-rent housing and related facilities shall not exceed 90 per 
centum of the total development cost thereof, as determined by the 
Secretary, less such amount as the Secretary determines can be 
practicably obtained from other sources (including a loan under section 
1484 of this title).

(c) Prerequisite agreements; rentals; safety and sanitation standards; 
        priority of domestic farm labor

    No financial assistance for low-rent housing and related facilities 
shall be made available under this section unless, to any extent and for 
any periods required by the Secretary, the applicant agrees--
        (1) that the rentals charged domestic farm labor shall not 
    exceed such amounts as may be approved by the Secretary, giving due 
    consideration to the income and earning capacity of the tenants, and 
    the necessary costs of operating and maintaining such housing;
        (2) that such housing shall be maintained at all times in a safe 
    and sanitary condition in accordance with such standards as may be 
    prescribed by State or local law, or, in the absence of such 
    standards, in accordance with such minimum requirements as the 
    Secretary shall prescribe; and
        (3) an absolute priority will be given at all times in granting 
    occupancy of such housing and facilities to domestic farm labor.

(d) Payments; contracts to specify uses of housing

    The Secretary may make payments pursuant to any contract for 
financial assistance under this section at such times and in such 
manner, as may be specified in the contract. In each contract, the 
Secretary shall include such covenants, conditions, or provisions as he 
deems necessary to insure that the housing and related facilities, for 
which financial assistance is made available, be used only in conformity 
with the provisions of this section.

(e) Regulations for prevention of waste

    The Secretary shall prescribe regulations to insure that Federal 
funds expended under this section are not wasted or dissipated. The 
Secretary shall not give priority for funding under this section to any 
one of the groups listed in subsection (a) of this section over any of 
the others so listed.

(f) Wages; labor standards; waiver; authority and functions of Secretary

    All laborers and mechanics employed by contractors or subcontractors 
on projects assisted by the Secretary which are undertaken by approved 
applicants under this section shall be paid wages at rates not less than 
those prevailing on similar construction in the locality, as determined 
by the Secretary of Labor in accordance with the Davis-Bacon Act, as 
amended (40 U.S.C. 276a--276a-5). The Secretary shall not extend any 
financial assistance under this section for any project without first 
obtaining adequate assurance that these labor standards will be 
maintained on the construction work; except that compliance with such 
standards may be waived by the Secretary in cases or classes of cases 
where laborers or mechanics, not otherwise employed at any time on the 
project, voluntarily donate their services without compensation for the 
purpose of lowering the costs of construction and the Secretary 
determines that any amounts thereby saved are fully credited to the 
person, corporation, association, organization, or other entity, 
undertaking the project. The Secretary of Labor shall have, with respect 
to the labor standards specified in this section, the authority and 
functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 
3176; 64 Stat. 1267), and section 276c of title 40.

(g) Definitions

    As used in this section--
        (1) the term ``low-rent housing'' means rental housing within 
    the financial reach of families of low income consisting of (A) new 
    structures (including household furnishings) suitable for dwelling 
    use by domestic farm labor, and (B) existing structures (including 
    household furnishings) which can be made suitable for dwelling use 
    by domestic farm labor by rehabilitation, alteration, conversion, or 
    improvement;
        (2) the terms ``related facilities'' and ``domestic farm labor'' 
    shall have the meaning assigned to them in section 1484(f) of this 
    title;
        (3) the term ``development cost'' shall have the meaning 
    assigned to it in section 1485(d)(4) \1\ of this title; and
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    \1\ See References in Text note below.
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        (4) the term ``domestic farm labor'' has the meaning given such 
    term in section 1484(f)(3) of this title.

(h) Migrant farmworker housing

    Notwithstanding the provisions of subsection (a)(3) of this section, 
the Secretary may, upon a finding of persistent need for migrant 
farmworker housing in any area, provide assistance to eligible 
applicants for 90 per centum of the development costs of such housing in 
such area to be used solely by migrant farmworkers while they are away 
from their residence. Such housing shall be constructed in such a manner 
as to be safe and weatherproof for the time it is to be occupied, be 
equipped with potable water and modern sanitation facilities (including 
a kitchen sink, toilet, and bathing facilities), and meet such other 
requirements as the Secretary may prescribe.

(i) Farm labor housing

    The Secretary shall utilize not more than 10 per centum of the 
amounts available for any fiscal year for purposes of this section for 
financial assistance to eligible private and public nonprofit agencies 
to encourage the development of domestic and migrant farm labor housing 
projects under this subchapter.

(j) Domestic farm labor housing available for other families

    Housing and related facilities constructed with grants under this 
section may be used for tenants eligible for occupancy under section 
1485 of this title if the Secretary determines that--
        (1) there is no longer a need in the area for farm labor 
    housing; or
        (2) the need for such housing in the area has diminished to the 
    extent that the purpose of the grant, providing housing for domestic 
    farm labor, can no longer be met.

(k) Housing for rural homeless and migrant farmworkers

                           (1) In general

        The Secretary may provide financial assistance for providing 
    affordable rental housing and related facilities for migrant 
    farmworkers and homeless individuals (and the families of such 
    individuals) to applicants as provided in this subsection.

                       (2) Types of assistance

        (A) In general

            The Secretary may provide the following assistance for 
        housing under this subsection:
                (i) An advance, in an amount not to exceed $400,000, of 
            the cost of acquisition, substantial rehabilitation, or 
            acquisition and rehabilitation of an existing structure or 
            construction of a new structure for use in the provision of 
            housing under this subsection. The repayment of any 
            outstanding debt owed on a loan made to purchase an existing 
            structure shall be considered to be a cost of acquisition 
            eligible for an advance under this subparagraph if the 
            structure was not used for the purposes under this 
            subsection prior to the receipt of assistance.
                (ii) A grant, in an amount not to exceed $400,000, for 
            moderate rehabilitation of an existing structure for use in 
            the provision of housing under this subsection.
                (iii) Annual payments for operating costs of such 
            housing (without regard to whether the housing is an 
            existing structure), not to exceed 75 percent of the annual 
            operating costs of such housing.

        (B) Available assistance

            A recipient may receive assistance under both clauses (i) 
        and (ii) of subparagraph (A). The Secretary may increase the 
        limit contained in such clauses to $800,000 in areas which the 
        Secretary finds have high acquisition and rehabilitation costs.

        (C) Repayment of advance

            Any advance provided under subparagraph (A)(i) shall be 
        repaid on such terms as may be prescribed by the Secretary when 
        the project ceases to be used as housing in accordance with the 
        provisions of this subsection. Recipients shall be required to 
        repay 100 percent of the advance if the housing is used for 
        purposes under this subsection for fewer than 10 years following 
        initial occupancy. If the housing is used for such purposes for 
        more than 10 years, the percentage of the amount that shall be 
        required to be repaid shall be reduced by 10 percentage points 
        for each year in excess of 10 that the property is so used.

        (D) Prevention of undue benefits

            Upon any sale or other disposition of housing acquired or 
        rehabilitated with assistance under this subsection prior to the 
        close of 20 years after the housing is placed in service, other 
        than a sale or other disposition resulting in the use of the 
        project for the direct benefit of low income persons or where 
        all of the proceeds are used to provide housing for migrant 
        farmworkers and homeless individuals (and the families of such 
        individuals), the recipient shall comply with such terms and 
        conditions as the Secretary may prescribe to prevent the 
        recipient from unduly benefiting from the sale or other 
        disposition of the project.

                      (3) Program requirements

        (A) Applications

            (i) Applications for assistance under this subsection shall 
        be submitted by an applicant in such form and in accordance with 
        such procedures as the Secretary shall establish.
            (ii) The Secretary shall require that applications contain 
        at a minimum (I) a description of the proposed housing, (II) a 
        description of the size and characteristics of the population 
        that would occupy the housing, (III) a description of any public 
        and private resources that are expected to be made available in 
        connection with the housing, (IV) a description of the housing 
        needs for migrant farmworkers and homeless individuals (and the 
        families of such individuals) in the area to be served by the 
        housing, and (V) assurances satisfactory to the Secretary that 
        the housing assisted will be operated for not less than 10 years 
        for the purpose specified in the application.
            (iii) The Secretary shall require that an application 
        furnish reasonable assurances that the housing will be available 
        for occupancy by homeless individuals (and the families of such 
        individuals) only on an emergency and temporary basis during the 
        offseason and shall be otherwise available for occupancy by 
        migrant farmworkers (and their families).
            (iv) The Secretary shall require that an application furnish 
        reasonable assurances that the applicant will own or have 
        control of a site for the proposed housing not later than 6 
        months after notification of an award for grant assistance. An 
        applicant may obtain ownership or control of a suitable site 
        different from the site specified in the application. If an 
        applicant fails to obtain ownership or control of the site 
        within 1 year after notification of an award for grant 
        assistance, the grant shall be recaptured and reallocated.

        (B) Selection criteria

            The Secretary shall establish selection criteria for a 
        national competition for assistance under this subsection, which 
        shall include--
                (i) the ability of the applicant to develop and operate 
            the housing;
                (ii) the feasibility of the proposal in providing the 
            housing;
                (iii) the need for such housing in the area to be 
            served;
                (iv) the cost effectiveness of the proposed housing;
                (v) the extent to which the project would meet the needs 
            of migrant farmworkers and homeless individuals (and the 
            families of such individuals) in the State;
                (vi) the extent to which the applicant has control of 
            the site of the proposed housing; and
                (vii) such other factors as the Secretary determines to 
            be appropriate for purposes of this subsection.

        (C) Required agreements

            The Secretary may not approve assistance for any housing 
        under this subsection unless the applicant agrees--
                (i) to operate the proposed project as housing for 
            migrant farmworkers and homeless individuals (and the 
            families of such individuals) in compliance with the 
            provisions of this subsection and the application approved 
            by the Secretary;
                (ii) to monitor and report to the Secretary on the 
            progress of the housing; and
                (iii) to comply with such other terms and conditions as 
            the Secretary may establish for purposes of this subsection.

        (D) Occupant rent

            Each migrant farmworker and homeless individual residing in 
        a facility assisted under this subsection shall pay as rent an 
        amount determined in accordance with the provisions of section 
        1437a(a) of this title.

                           (4) Guidelines

        (A) Regulations

            Not later than 120 days after November 28, 1990, the 
        Secretary shall by notice establish such requirements as may be 
        necessary to carry out the provisions of this subsection.

        (B) Limitation on use of funds

            No assistance received under this subsection (or any State 
        or local government funds used to supplement such assistance) 
        may be used to replace other public funds previously used, or 
        designated for use, to assist homeless individuals (and the 
        families of such individuals) or migrant farmworkers.

              (5) Limitation on administrative expenses

        No recipient may use more than 5 percent of an advance or grant 
    received under this subsection for administrative purposes.

                       (6) Reports to Congress

        The Secretary shall submit annually to the Congress a report 
    summarizing the activities carried out under this subsection and 
    setting forth the findings, conclusions, and recommendations of the 
    Secretary as a result of the activities. The report shall be 
    submitted not later than 3 months after the end of each fiscal year.

                           (7) Definitions

        For purposes of this subsection:
            (A) The term ``applicant'' means a State, political 
        subdivision thereof, Indian tribe, any private nonprofit 
        organization incorporated within the State that has applied for 
        a grant under this subsection.
            (B) The term ``homeless individual'' has the same meaning 
        given the term under section 11302 of this title.
            (C) The term ``migrant farmworker''--
                (i) means any person (and the family of such person) who 
            (I) receives a substantial portion of his or her income from 
            primary production of agricultural or aquacultural 
            commodities, the handling of such commodities in the 
            unprocessed stage, or the processing of such commodities, 
            without respect to the source of employment, and (II) 
            establishes residence in a location on a seasonal or 
            temporary basis, in an attempt to receive an income as 
            described in subclause (I); and
                (ii) includes any person (and the family of such person) 
            who is retired or disabled, but who met the requirements of 
            clause (i) at the time of retirement or becoming disabled.

            (D) The term ``operating costs'' means expenses incurred by 
        a recipient providing housing under this subsection with respect 
        to the administration, maintenance, repair, and security of such 
        housing and utilities, fuel, furnishings, and equipment for such 
        housing.

(July 15, 1949, ch. 338, title V, Sec. 516, as added Pub. L. 88-560, 
title V, Sec. 503(a), Sept. 2, 1964, 78 Stat. 796; amended Pub. L. 91-
609, title VIII, Sec. 801(c), (d), Dec. 31, 1970, 84 Stat. 1806; Pub. L. 
95-557, title V, Sec. 505, Oct. 31, 1978, 92 Stat. 2112; Pub. L. 96-153, 
title V, Sec. 509, Dec. 21, 1979, 93 Stat. 1136; Pub. L. 96-399, title 
V, Sec. 507(d), Oct. 8, 1980, 94 Stat. 1670; Pub. L. 98-181, title V, 
Sec. 513, Nov. 30, 1983, 97 Stat. 1247; Pub. L. 100-242, title III, 
Sec. 305(b), Feb. 5, 1988, 101 Stat. 1895; Pub. L. 100-628, title X, 
Sec. 1043(b), Nov. 7, 1988, 102 Stat. 3273; Pub. L. 101-625, title VII, 
Sec. 714(a), Nov. 28, 1990, 104 Stat. 4292.)

                       References in Text

    The Davis-Bacon Act, as amended, referred to in subsec. (f), is act 
Mar. 3, 1931, ch. 411, 46 Stat. 1494, as amended, which is classified 
generally to sections 276a to 276a-5 of Title 40, Public Buildings, 
Property, and Works. For complete classification of this Act to the 
Code, see Short Title note set out under section 276a of Title 40 and 
Tables.
    Reorganization Plan Numbered 14 of 1950, referred to in subsec. (f), 
is set out in the Appendix to Title 5, Government Organization and 
Employees.
    Section 1485(d)(4) of this title, referred to in subsec. (g)(3), was 
redesignated section 1485(e)(4) of this title by Pub. L. 100-242, title 
II, Sec. 242(1), Feb. 5, 1988, 101 Stat. 1890.


                               Amendments

    1990--Subsec. (k). Pub. L. 101-625 added subsec. (k).
    1988--Subsec. (g)(4). Pub. L. 100-242 added par. (4).
    Subsec. (j). Pub. L. 100-628 added subsec. (j).
    1983--Subsec. (i). Pub. L. 98-181 added subsec. (i).
    1980--Subsec. (a). Pub. L. 96-399 inserted reference to Indian tribe 
in provisions preceding par. (1).
    1979--Subsec. (h). Pub. L. 96-153 added subsec. (h).
    1978--Subsec. (e). Pub. L. 95-557 inserted ``The Secretary shall not 
give priority for funding under this section to any one of the groups 
listed in subsection (a) of this section over any of the others so 
listed''.
    1970--Subsec. (a). Pub. L. 91-609, Sec. 801(d)(1), authorized 
financial assistance for broad-based nonprofit organizations 
incorporated within the State and nonprofit organizations of farmworkers 
incorporated within the State and provided for low-rent housing and 
related facilities ``(which may be located within the State)''.
    Subsec. (a)(2). Pub. L. 91-609, Sec. 801(d)(2), substituted ``10 per 
centum'' for ``one-third''.
    Subsec. (a)(3). Pub. L. 91-609, Sec. 801(d)(3), inserted ``, and 
such housing and facilities shall be durable and suitable for year-
around occupancy or use, unless the Secretary finds that there is no 
need for such year-around occupancy or use in that area;''.
    Subsec. (b). Pub. L. 91-609, Sec. 801(d)(4), substituted ``90 per 
centum'' for ``two-thirds''.
    Subsec. (g)(1). Pub. L. 91-609, Sec. 801(c), substituted 
``structures (including household furnishings)'' for ``structures'' in 
cls. (A) and (B).

                  Section Referred to in Other Sections

    This section is referred to in sections 1483, 1484, 1490a, 4851b, 
8011 of this title; title 7 section 2204f; title 20 section 244.
