San Mateo County relaunches farm labor housing loan program 

To qualify for the loans, farmworkers on the agricultural property must earn below 50% of the area median income, and rents offered to the farmworkers must not exceed 30% of the household’s income, Hodges said. 

Speaking in support of the relaunched loan program, Tony Serrano, who works with farmworker families on the coastside, said too many farmworkers are living in unideal conditions. 

“These are the same individuals who work our field, harvest our crops, and sustain our local food supply,” Serrano said during public comment. “This program is more than financial assistance, it’s about restoring a sense of safety, dignity and peace in the lives of those who feed our communities.”

The $2 million will be issued in a phased implementation to first preserve the current affordable housing stock before investing in new units, Hodges said. After a year, leftover available funds will then go toward establishing new units on properties. 

During the first phase, loans will be granted for improvements to replace existing dilapidated units that were identified as needing in the Farmwork Housing Compliance Task Force report that was released early this year. Owners will be able to apply up to $100,000 in loans per property, regardless of the amount of units on-site. 

The investigation into the state of currently provided farmworker housing found that 33% of housing units required updates to meet basic livability standards.

Skeptical of how far $2 million will go, Supervisor Ray Mueller said he hopes there will be remaining funds available for the second phase of the program, which would provide loans for new unit developments. 

“There is work that needs to be done, so I would hate that we use this $2 million and not get those people out of those circumstances,” Mueller said. 

For new units developed, farm owners and operators may apply for up to $250,000 per unit for the first two, and up to $200,000 for each additional unit. 

The loans awarded would require equal-payments over the 30-year loan term. To incentivize affordable rental rates, if a farm owner or operator charges rent lower than the maximum that they are allowed, credit will go toward their loan payments, Hodges said. 

The Farm Labor Housing Loan Program was initially offered in 2014, and between its implementation and early 2023, the program granted nearly $3 million in loans to fund the rehabilitation and construction of 16 farmworker housing units. 

The supervisors approved the loan program unanimously, and the Department of Housing will reach out to farm owners and operators with information on the program.

“No one who feeds this county should be left behind when it comes to housing or health,” Serrano said.