SUMMIT REPORT. MET MAFO Farmworker Housing Summit. April 12 April 13, 2017 Prepared by Kathy Tyler

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1 SUMMIT REPORT MET MAFO Farmworker Housing Summit April 12 April 13, 2017 Prepared by Kathy Tyler

2 Table of Contents MET MAFO Farmworker Housing Summit Contents Page Thank you to sponsors, supporters, presenters 3 List of Persons Attending Summit 4 Agenda 6 Summit Report 7 Welcome and Introductions 7 Description of Texas Migrant Housing 8 Migrant Housing: Where do migrant farmworkers live when away from home? inspections, licensing 10 Counting the Numbers of Farmworkers in Texas 12 Using RD Resources for Farmworker Housing 16 Who are the Farmworkers, How do we serve them? 21 Update on Legislative proposals that might influence farmworker housing 25 Rural and Farmworker Housing Preservation - Preservation of Existing Facilities and Rental Assistance 27 Finding Solutions - Small Group Discussions 33 Attachments 38 2

3 MET MAFO Farmworker Housing Summit MAFO Conference, April 12-13, 2017, Hyatt Riverwalk, San Antonio TX Thanks for the help of our supporters and participants!! USDA RURAL DEVELOPMENT MAFO National Farmworkers Conference Texas State Affordable Housing Corporation Tom Hatch hatch + ulland owen architects Texas Low Income Housing & Information Service Texas RioGrande Legal Aid Texas Department of Housing and Community Affairs Texas State Affordable Housing Corporation Texas Workforce Commission NIOSH-Southwest Center for Ag Health University of Texas San Antonio, Institute for Economic Development USDA National Statistical Service US DOL Wage & Hour Enterprise Community Partners Guadalupe Economic Services Motivation Education & Training, Inc. & DOL National Farmworker Jobs Program, Housing Services Ginger McGuire Leslie Murphy 3

4 First Name Last Name Organization 1 Pedro Albiter WI Department of Workforce Development 2 Susan Anderson Enterprise Community Partners 3 Martha Anderson Amerigroup 4 Cynthia Arzola Motivation Education & Training Inc 5 John Ballejo Motivation Education & Training Inc 6 Jonathan Bell USDA Rural Development State Office 7 Linda Berlanga Amerigroup 8 Rick Camarillo Motivation Education & Training Inc 9 Stephanie Cardenas Dell Childrens Hospital 10 Vanessa Casanova Univ of Texas Health Science Center 11 Carla Casares Hidalgo County Housing Authority 12 Gloria Casas Community Advocate Financial Ed 13 Iris Castanedo AZ Department of Economic Security 14 Meliza Castillo Motivation Education & Training Inc 15 Maria Castillo Hidalgo County Housing Authority 16 Francisco Cerda Texas Workforce Commission 17 Kellie Coffey Fanie Mae DC 18 David Danenfelzer Texas State Affordable Housing Corporation 19 Daniela Dwyer Texas RioGrande Legal Aid 20 Sal Estrada Tierra del Sol Housing Development 21 Beatriz Farias Motivation Education & Training Inc 22 Rose Garcia Tierra del Sol Housing Development 23 Linda Garcia Lorenzo Housing Authority 24 Delia Garcia Motivation Education & Training Inc 25 Bill Grigg Texas RioGrande Legal Aid 26 Lisa Guzman MCNA Dental 27 Amelia Haney CO Department of Labor and Employement 28 JoAnna Harvey volunteer 29 Tom Hatch huo architects 30 Elías Hernandez South Texas College 31 Marni Holloway Texas Department of Housing & Community Affairs 32 Kristen Lee OK Economic Security Commission 33 Cyndie Lopez AZ Department of Economic Security 34 Ricardo Lowe USDA National Agricultural Statistics Service 35 Frank Martinez Apt Finance 36 Jesse Martinez UMOS 37 Dave Mauch Texas RioGrande Legal Aid 38 Ginger McGuire Austin Stone LLC 39 Mayte Mendez Motivation Education & Training Inc 40 Enrique Montalvo Motivation Education & Training Inc 41 John Newkirk AR Department of Workforce Services 42 Rosa Ortega WI Department of Workforce Development 43 Rebecca Pennington Motivation Education & Training Inc 44 Maria Peristeris Amerigroup 45 Emily Perlmeter Federal Reserve of Dallas 4

5 Attended MET MAFO Farmworker Summit (continued) First Name Last Name Organization 46 Tracey Prince BDT Housing Services 47 Josue Ramirez Texas Low Income Housing & Info Service 48 Edén Ramirez Department of Labor Wage & Hour 49 Brittany Reum Univ of Texas at San Antonio 50 Mirna Reyes Bible Rural Development, Washington DC 51 Sheryllynnn Roberts Univ of Texas at San Antonio 52 Rachel Salazar Motivation Education & Training Inc 53 Elizabeth Saldivar Hidalgo County Housing Authority 54 Maria Del Carmen Salinas Motivation Education & Training Inc 55 Fralain Sendejo Motivation Education & Training Inc 56 Jeanne Shaw Tierra del Sol Housing Development 57 George Sierra Fanie Mae 58 Stacey Taylor Motivation Education & Training Inc 59 Kathy Tyler Motivation Education & Training Inc 60 Rosa Blanca Villalba Motivation Education & Training Inc 61 Michael Wilt Texas State Affordable Housing Corporation 62 Stacey Wire Texas Workforce Commission 5

6 AGENDA MET-MAFO Farmworker Housing Summit April Held in conjunction with the MAFO National Farmworker Conference April in San Antonio TX Wednesday April :00 PM 1:00 Welcome and Introductions Kathy Tyler, Enrique Montalvo, Lupe Martinez 1:30 Description of Texas Migrant Housing Daniela Dwyer, TRLA-Weslaco, Farmworker Division Director 2:00 Migrant Housing: Where do migrant farmworkers live when away from home? inspections, licensing Daniela Dwyer, TRLA-Weslaco Francisco Cerda, Texas Workforce Commission, Monitor Advocate Edén Ramirez, DOL Wage and Hour 3:00 Counting the Numbers of Farmworkers in Texas Ricardo Lowe, USDA National Agricultural Statistics Service Dr Sheryllynnn Roberts & Brittany Reum, UT San Antonio, Institute for Economic Development Vanessa Casanova, IOSH Southwest Center for Agricultural Health 4:00 Using RD Resources for Farmworker Housing Rose Garcia & Jeanne Shaw, Tierra del Sol Housing Development Diana Lopez, Guadalupe Economic Services Mirna Reyes-Bible, National RD Marni Holloway, TDHCA Multifamily Housing Director David Danenfelzer, TSAHC, Senior Director Jonathan Bell, USDA Texas Rural Development Thursday April 13, 8:00-Noon 8:00 Who are the Farmworkers, How do we serve them? MET Representatives, including: Maria del Carmen Salinas, Workforce Development Coordinator, Rio Grande Valley region Elías Hernandez, Project Coordinator, South Texas College, McAllen, Beatriz Farias, Housing Services Coordinator, Rio Grande Valley region Frailan Sendejo, Workforce Development Coordinator, Winter Garden region Mrs Blanca Rosa Villalba, Farmworker Participant, Winter Garden region 8:30 Update on Legislative proposals that might influence farmworker housing David Mauch, TRLA-San Antonio 9:00 Rural and Farmworker Housing Preservation - Preservation of Existing Facilities and Rental Assistance Susan Anderson, Enterprise Community Partners Emily Ryder Perlmeter, Federal Reserve Bank of Dallas Michael Wilt, TSAHC Ginger McGuire, Austin Stone Mirna Reyes-Bible, USDA National Rural Development Marni Holloway, TDHCA Multifamily Housing Director 10:00 Finding Solutions - Small Group Discussions Supporting migrant housing Kathy Tyler, facilitator Increasing farmworker housing and preserving our current housing Susan Anderson, facilitator 11:15 - Noon Conclusion and Next Steps Kathy Tyler 6

7 MET-MAFO Farmworker Housing Summit Motivation Education & Training, Inc th Annual Farmworker Housing Summit April 11-12, 2017 Summit Report Welcome and Introductions Kathy Tyler, Housing Services Director, and Enrique Montalvo, Motivation Education & Training, Inc. (MET Inc.) Board Chairperson, welcomed summit participants, thanking all those who were setting time apart to join the farmworker housing discussion. She took time to thank the partnerships that brought the summit to fruition. This is the second time MET has partnered with MAFO s National Farmworker Conference, following up with the good experience last April. Kathy also thanked the sponsors and partners, listed on page 3, for monetary contributions, time, and presentations to this two-day event. The following sponsors and partners were thanked: MAFO National Farmworkers Conference USDA Rural Development Enterprise Community Partners Tom Hatch, hatch + ulland owen architects Guadalupe Economic Services Ginger McGuire Motivation Education & Training, Inc. Leslie Murphys Texas Department of Housing and Community Affairs Texas Low Income Housing & Information Service Texas RioGrande Legal Aid Texas State Affordable Housing Corporation Texas Workforce Commission University of Texas Health Science Center at Tyler, NIOSH-Southwest Center for Ag Health University of Texas San Antonio, Institute for Economic Development US DOL National Farmworker Jobs Program Housing Services USDA National Statistical Service US DOL Wage and Hour Enrique Montalvo welcomed participants, on behalf of the MET governing board. He is grateful for all the partnerships that came together for a creative learning experience over these two days. Kathy briefly described parts of the agenda, including discussion groups that will be held in the morning. She mentioned that MET has assistance available to farmworkers for temporary housing, while migrating for work, or if hardship situations have caused homelessness or housing loss. She asked participants to let MET staff know if they run into farmworkers with that situation. This is MET s 11 th statewide summit since the first summit was offered in November Regional summits in areas around Texas were held in years when no statewide summit was held. The purpose of MET s summits are to gather a broad-based group of people to share information and become better educated around farmworker housing. The gathering provides an opportunity to gather ideas, solve problems, and craft new ideas and solutions to improve farmworker housing.

8 Description of Texas Migrant Housing Daniela Dwyer, Farmworker Division Director, Texas RioGrande Legal Aid (TRLA). TRLA provides free legal services in civil matters to people with low incomes. Every state has a legal aid organization, and nearly every state has a farmworker legal services component, each funded by the federal government through the Legal Services Corporation (LSC). The funding is roughly tied to the numbers of migrant workers based upon US Department of Labor (DOL) statistics. Texas has the third largest farmworker legal aid grant from LSC because that data shows Texas has the third largest farmworker population in the nation, with California having the largest and Florida following. TRLA represents farmworkers in issues that specifically relate to their being a farmworker, ie wages, employment discrimination, sexual harassment, discrimination due to national origin, language, disability or occupational safety and health, housing, etc. Most farmworkers, whatever their complaint, have some sort of claim or injury related to housing. The housing situations may be employer-provided, or rented independently. Farmworkers are often homeless or live in overcrowded homes. Daniela spoke about who in Texas is housing them, what are the conditions of their housing, and areas of improvement. To describe who are farmworkers, Daniela handed out MET s overview of Texas Farmworker Housing, The economic impact of the food and fiber sector brings more than $100 billion into the state annually. Texas agricultural products are varied, for example, ranching, dairy, citrus, melons, blueberries, food processing and packaging, and many others. Re-packaging products brought in along the super-highway from Mexico are also prevalent. The industry has put no collective money toward housing. No one likes being landlords, and that includes growers, even though housing may be key to attracting farmworkers. Several agencies in Texas are tasked with licensing and inspecting agricultural housing under certain contexts. The Texas Department of Housing and Community Affairs (TDHCA), specifically the Manufactured Housing Division (MHD), received the obligation to do this from the Texas Legislature roughly ten years ago. During this ten year period, the number of facilities that are licensed decreased, and last year only 34 facilities were on the list. TDHCA interpreted their obligation as accepting applications, conducting preoccupancy inspections, and issuing licenses. Last year in March, the Austin American Statesman newspaper published an expose, called Unlivable, which said that nine out of ten farmworkers are living in places that have not been licensed or inspected, and conditions are very bad. Daniela explained that because TDHCA was only doing pre-occupancy inspections (ie before farmworkers arrived), the TDHCA inspectors never returned during the life of the permit to verify whether proper conditions were being maintained once inhabited. Moreover, TDHCA inspected only places where licenses were requested; no effort was made to find farmworker housing 8

9 beyond those who self-identify and follow the law to voluntarily seek a permit. Daniela has yet to speak to a farmworker who knew farmworkers had the right in Texas to live in a place that had been licensed and inspected, irrespective of who provides the housing. As the Statesman article explains, there are at least 400,000 farmworkers and family members in Texas. Yet, with respect to USDA-financed facilities, Texas has only 17 facilities with 1,120 units. Thus the housing that we do have in which the federal government invested, and which generally stays in decent condition due to maintenance requirements is aging and not nearly keeping up with demand. This USDA-financed housing is also located in very few Texas counties. Farmworkers, however, are being housed everywhere where there is agriculture, which is all over Texas. Daniela described poor housing conditions she has seen while representing Texas farmworkers. Through TRLA s education and outreach, farmworkers learn their rights and how to use tools to confront their legal problems while they are experiencing them. For example, TRLA attempts to train farmworkers before they migrate how to take photos of the housing where they live, to include dates and other photo details that will provide good documentation and evidence. She described one of the worst things for farmworkers, who go to hell and back as they migrate, happens when they testify and describe conditions to Texas juries. These juries might not give credibility to farmworkers testimony without photos, no matter how compelling their stories are to me. As with all law offices, TRLA s advocates are bound by attorney-client privilege. Thus, unless workers or others living in the camp give TRLA permission, TRLA cannot report conditions on farmworkers behalf. This means that absent permission from workers or inhabitants, TRLA does not report dangerous conditions unless it threatens the life of a child and makes TRLA obligated to report it. After no one lives there, clients are more likely to allow TRLA to report the condition. However, those privacy requirements make it very difficult for advocates to address camp condition problems immediately. Due to lax state inspections, workers are put in the difficult situation of weighing their valid fears of retaliation against remaining silent and enduring dangerous conditions. Daniela explained some of the bad conditions she has seen. In a recent H-2A Visa (foreign guest) workers situation near Ft Davis, growers were obligated to provide housing, but workers were given only tarps and camping equipment; no bathrooms existed. In a case near Eagle Pass, a landlord provided housing next to the Rio Grande River. The front door would not close or lock. The workers traveled with their families, including small children. Children had to stay in these conditions unattended while the adults worked unless a worker volunteered to give up a day s work to stand guard. They had to push the dresser up against the door since there was no lock. Besides the dresser, the minimally required furniture was not provided. Workers complained of bed bugs on property near Monahans, which looked like a man camp provided to oil industry workers. Near Pearland, workers were staying in a barn. The friendly farm labor contractor provided TRLA staff with access to the housing. Otherwise they would not have been able to locate the housing because the entrance is tucked inside the processing facility. Daniela also described a situation where shipping containers were used for housing farmworkers. These shipping containers had not been cleaned since they were used for raising ostriches. She described 9

10 barracks with overcrowded sleeping quarters. A doorframe (with a doorknob in the middle) resting on a truck tire was used as a bed since workers were not provided enough bed frames. The dairy industry has settled out, and to find employees homes, TRLA staff must go through the community knocking on doors in trailer camps. She implored those in the group who see the conditions and where farmworkers are living, to report them and refer them to TRLA. Even if farmworkers do not pay for housing provided by employers, they are tenants with tenants rights. Texas is not the only state that finds farmworkers living in poor conditions, other states have similar situations. In Daniela s experience with many other states, Texas is not unique. On a positive note, many states are seeking to improve. Ohio s Legislature passed legislation mandating flush toilets in farmworker housing, probably the first state to require this. Where Do Farmworkers Live When Migrating? Inspections and Licensing of Migrant Housing As moderator of the panel, Daniela introduced the panelists. Daniela emphasized that Texas is a home state or base state for farmworkers who then travel all over the country, so the agencies need to coordinate with other states and sometimes other countries. Edén Ramirez, Ag Enforcement Regional Coordinator, DOL Wage and Hour Division, is stationed in Dallas and serves a region that covers eleven states. Edén s role is to enforce the Migrant and Seasonal Workers Protection Act, called MSPA. This law established minimum federal standards, including housing, for migrant workers. If employers provide housing for workers, the housing must comply with the MSPA housing standards. Wage and Hour staff have the right to investigate on site and in agricultural fields. If workers are migrant or seasonal workers, the employer must comply with the MSPA. The law covers the fields, transportation, and where workers stay. Sometimes the employer controls where farmworker stay; sometimes workers are responsible for finding a place to stay. Where H-2A Visa (foreign guest) workers are employed, adequate housing is required to be provided by the employer; and the housing must include a preoccupancy inspection. The Texas Workforce Commission conducts these H-2A preoccupancy inspections for DOL. If employers violate H-2A program conditions, they may be barred from the program and no longer eligible to bring in foreign workers. Edén anticipates an increase in requests for foreign workers in the future. When a farmer decides to take part in the program, it requires a process to apply. The farmer must demonstrate that there are no qualified US workers willing to work for that duration. Francisco Cerda, State Monitor Advocate, Texas Workforce Commission (TWC), explained that the TWC conducted 374 H-2A housing inspections in Texas for fiscal year To ensure compliance, TWC staff also then conducts field checks and provides outreach directly to workers. Francisco noted that any domestic or refugee worker who works on a farm or plant, while doing the same job as the H-2A workers, must be afforded the same benefits as the H-2A workers, including housing and pay levels; the TWC will monitor conditions for them as well. The National Farmworkers Job Program (NFJP) agency is brought in when services are needed and other referrals are made for other needed supportive services. 10

11 TWC has an agreement with DOL Wage and Hour to share information. Complaints are filed across states, so TWC can pursue any complaint filed in another state if it pertains to a Texan worker. Francisco addressed the irony that farm labor involves a great deal of skill though it is billed as non-skilled labor. Even so, H-2A job orders often contain 35 pages of job requirements for the so-call unskilled laborer. Edén mentioned some states are doing well at checking on the housing. There is a safety net for those workers. He noted the challenge of piecing together information and reconstructing evidence for investigations after workers have left the work and scattered. This is often when complaints are filed, after there is less chance of retribution. In response to a question about whether conditions are getting better, Edén cited the difficulty to measure improvements and Daniela emphasized the importance of economics. She said housing improves when it costs the employer more to have bad housing and pay fines or penalties or to be sued, than it costs to provide adequate housing. For each person who gets investigated, fined, or sued, that housing improves. She cited several multi-billion dollar companies that do not provide housing. Workers learn to avoid the worst situations. She hears workers say I ll never go back to that employer, even though the pay is good. The housing was bad and it was too hard on my kids. She also hears workers say I ll always to back to that employer, even if the pay is not as good. They gave us a house with a lock. There is a certainty there and that is better than going someplace where I don t know if I can find good housing. Francisco talked about the cost of housing versus the cost of sick workers. It costs the employer to have sick workers because of bad housing or poor water. He quoted the American Public Health Association saying that farmworker housing presents a public health threat. He also quoted Bobbie Ryder from the National Center for Farmworker Health, who cited the problem of heat stress. Francisco noted that if a worker does not get the rest or sleep and then goes out to work in the heat, that worker will not be productive and will become sick. If you live in a cardboard box or in your car, you are not going to sleep well. So, from a health perspective, it is unbearable. Health issues such as diabetes will rise, everything will become exacerbated. It may become a disability. It is critical to the farmworker lifestyle to have decent housing. Daniela said most growers who now provide housing are providing barrack-style housing for single workers. That is part of why domestic farmworkers who travel with their families are having a harder time getting jobs. The grower will say there is no family housing. Legal Aid has tried to address this through fair housing and nondiscrimination laws, which prohibit discrimination against families with children, but more work remains. 11

12 It was noted that housing financed by USDA Rural Development is not allowed to serve H-2A workers. The leaseholder must be a citizen or permanent resident. Daniela said USDA officials often complain that the housing is underutilized, which is a shame given deplorable conditions may exist nearby. TRLA has had the least complaints about nonprofit-run housing, and Daniela said she is grateful for those who do a good job with this housing. As a wrap up, Daniela described a handout that outlines what agencies have jurisdiction for enforcing what aspects of farmworker housing in Texas. She mentioned several bills pending in the Texas Legislature to address improvements and close loopholes. One of the proposals is trying to streamline one agency to inspect farmworker housing from pre-occupancy, through occupancy, and to the end of the season. Counting the numbers of Farmworkers in Texas Because it is difficult to know how many farmworkers live in Texas, this panel s charge is to help participants understand the statistics that are available. Ricardo Lowe, USDA National Agricultural Statistical Service (NASS) works as a Survey Statistician in Austin, and was just accepted at UTSA as a doctoral student. NASS collects data and publishes statistics related to almost every aspect of agriculture. The Census of Agriculture is conducted every five years. The most recent reports reflect 2012 data. Preparations are underway for the 2017 census, with data and reports expected to be available in Every agricultural operation on NASS list is surveyed. Farm operations can sign up to be included at A farm is defined as a place from which $1,000 of agricultural products were produced or sold. NASS provides official statistics for agriculture production, inventory, value, and demographics and includes information about land use, production practices, income and expenses, and other topics. After data is collected and analyzed, the findings provide the most comprehensive source of data about agriculture. Some data is presented on a county level. Analyses are published in 400 reports annually and cover 120 crops and 45 types of livestock. The number of farms in the US fluctuates, but a chart showed the highest number since 1982 was in 1982, 2.8 million. The lowest, 2.1 million, was in Acres in farms has also fluctuated, 12

13 mostly dropping over time. The population of farm operators is growing more diverse, according to national and ethnic origins of the principle operator. Hispanic operators trended upwards by 21%. Farm labor surveys ask about the number of hired farm or ranch workers, including paid family members and office workers who worked less than 150 days or worked 150 days or more on the operation the year of the survey (excluding contract labor). A question also asks the number of foreign and domestic migrant workers (defined as those whose employment required travel that prevent the migrant worker from returning to his/her permanent place of residence the same day, including both hired and contract workers). There is no way from the survey to separate the number of foreign workers from the number of the domestic workers. Ricardo showed two maps that reflect the clustering of temporary workers and more permanent workers across the US. Temporary workers cluster around the eastern part of the Midwest. Permanent workers are prevalent in California, Arizona, and West Texas. Table 7. Hired Farm Labor Workers and Payroll charts, showing both the number of farms and the number of workers, and is one of the most useful data sources for determining the number of workers in a county or state. It denotes workers by days worked (more than or less than 150 days), the total number of migrant workers, and the total number of unpaid workers. Quarterly farm labor surveys are much more descriptive than what is on the survey and ask more questions of the farmer. Farm labor releases provide interesting facts. For example, the November 17, 2016 release found that hired workers decreased 5%, and wage rates increased 3% from the previous year. The next national release will be published May

14 Dr Sheryllynnn Roberts and Brittany Reum, University of Texas San Antonio, Institute for Economic Development (IED) Using Data to Build Homes: A Tool That Assists Farm Worker Housing Development Brittany is a business economic research associate at UTSA who has been working on a statistical way to track where farmworkers live. She found this interesting having grown up in a migrant farmworker family. She described the current state of farmworker housing there are few houses, and those that do exist are far in the distance. Past studies have used the formula of number acres times the number of farmworkers it takes to work an acre, to arrive at the total number of farmworkers. The variability of factors is not considered, like seasonality, difficulty of working different crops, and postproduction work. The outcome is a shortage of affordable housing where it is needed, overcrowded and subpar housing, and people living in cars, RVs, tents, and terrible conditions, all which lead to health risks. The Institute for Economic Development is building a statistical model based on economic indicators that can predict where and when farmworker housing needs to be built. They want to make the model easy to use. The statistical model would support data-driven housing development, ensuring housing is placed in areas of where it is needed. The numbers will advise the most probable places to develop the homes. In the long-run, the goal is that farmworkers have a place to live. Brittany explained the spatio-temporal model, spatio relating to space, tomporal relating to time. Many factors to be taken into consideration are the farmworker population, seasonality, and the labor required unique to specific crops. She described Ellen Pollock s dynamic model of bovine tuberculosis spread and control in Great Britain, 1 showing that the statistical model s prediction was a good predictor of the actual spread of disease. She described also some data issues, originating from both housing data and worker data (ie the missing migrant worker undercounts of an at-risk population). The Institute is still searching partners, grants, and funding. 1 Publishing Group, Source: Brooks-Pollock, Ellen, Gareth O. Roberts, and Matt J. Keeling. "A Dynamic Model of Bovine Tuberculosis Spread and Control in Great Britain." Nature News. Nature 02 July Web. 29 Mar

15 Sheryllynn continued the discussion and provided handouts that included a copy of the Power Point slides. Behind the slides is a list of data sources and two papers: Statistical Policy Directive #1, and Evidence Capacity that explains what data is and how do to use it. The Institute started this research upon Rose Garcia s request, and they are using 5 states to develop a prototype. They have metadata on the supply and demand side, and are interested in photos, videos, and all other data types. Two other things not handed out are research formulas used, and stage one prototype output. One final paper is a White House Task Force report regarding resettled refugees that touches on occupational material with meat packagers, an excellent document with applicable programs and information. Sheryllynn ended by reiterating a request for partners and funding. Vanessa Casanova, University of Texas Health Science Center at Tyler, NIOSH-Center for Agricultural Health (swagcenter). Vanessa is an assistant professor of occupational health and safety at the University of Texas Health Science Center at Tyler. She also works at the Southwest Center for Agricultural Health, Injury Prevention, and Education, located in Tyler. The Center conducts research, and intervention and education projects for ag workers in five states. It is funded by the National Institute on Occupational Safety and Health. In its work with farmworkers, the Center provides a range of trainings and information around topics such as heat stress, Bites, Stings, & Venomous Things, dairy work, animal handling, sun protection, and pesticide exposures. The need for enumeration of farmworkers is important to researchers, health workers, and housing providers. Undercounting farmworkers may mean that programs and services are under-sourced. Overcounting will dilute the issue. For example, fatality rates are underestimated if the total number of workers is overcounted. Vanessa talked about the work of Alice Larson, who conducted farmworker enumeration research in about 20 states for the federal government. The Southwest Ag Center, to plan for future activities, asked Dr. Larson to conduct an enumeration study. Her response was you can t afford it! So alternatively, the Center and Larson decided to document her methodology and aim for future training. The Center is now supporting the creation of an enumeration training curriculum based on Larson s tested, robust 15

16 methodology. It envisions a three-phase approach. First, a report describing her methodology is complete. Second, a national advisory group of experts will inform this work, and Vanessa encouraged anyone with interest and knowledge to put their name forward. The final phase will be training a new generation of researchers, public health scholars, and outreach professionals in this enumeration method. Vanessa is working with a to-bedeveloped School of Rural Public Health, offering a Masters of Public Health. Hopefully the enumeration studies will be part of the curriculum and future graduate students will keep farmworker enumeration studies current. Using Rural Development Resources for Farmworker Housing David Danenfelzer, Texas State Affordable Housing Corporation (TSAHC), Senior Director introduced the panel which will give information on resources and experience at both the state and federal levels. Mirna Reyes-Bible, US Department of Agriculture (USDA) Rural Development, (RD), Senior Financial Analyst, Multi-Family Housing Programs, Washington DC, was introduced as the guru of Section in her role of managing the national 514/516 program (farm labor housing). Each year, competition for program funds is announced with a Notice of Solicitation Notice in the Federal Register (last year s NOSA). The NOSA is issued conditional upon the funding received by USDA. Mirna described that applicants send their proposals to the State Office, where Jonathan (and each state s multifamily housing director) reviews them and ensure they meet all the required qualifications. If yes, he will forward it to Mirna with his recommendation. Mirna does a secondary review, and if she agrees with Jonathan s recommendation, she will determine which get proposals are funded. Loans (Section 514) and grants (Section 516) are both available. Eligible residents must be citizens or permanent residents. The units are not available to foreign guest workers (H-2A workers). Managers are required to review legal documents of the lease signer, but should not be checking documents of other household members. Retired and disabled farmworkers (no matter what state farm work was performed) are eligible to live in farm labor housing. The definition of farmworker was expanded by law in 2008, and now includes truck drivers (domestic trucks delivering within the US only), workers in canneries, fisheries, and many other types of ag-based work. Tierra del Sol (represented on the panel by Rose and Jeanne) was selected as a technical assistance (TA) provider for both the Central States and the Eastern Region to help organizations submit applications for 16

17 514/516 funding. Colorado Resources and Housing Development Corporation (CRHDC) was selected to provide technical assistance to the Pacific Region. Mirna emphasized that TA providers are required to give help only around those areas that are required in their agreements with RD. The assistance is only for application assistance; they cannot help once USDA signs off on the project and the units are built. They cannot help with finding tenants or developing the budget. Jonathan Bell, US Department of Agriculture (USDA) Rural Development, (RD), Texas Multi-Family Housing Director, Temple, TX, oversees the direct 515, the 514/516, and the 538 guaranteed programs. In Texas, there are projects and 17 farm labor housing units, so 680 projects when counted together, the largest in the nation. The 538 loans add another 36 facilities in Texas, with 22 under construction or just funded. Altogether the grand total is 737 facilities with over 26,000 units of affordable housing. Day to day Jonathan oversees the operations of these facilities. He and his staff conduct a physical inspection of each facility every 3 years and they review compliance with all rules and regulations. The 17 facilities of farm labor housing are primarily in the Panhandle, the Lower Rio Grande Valley, and West Texas. Applicants are given an opportunity to apply for funds to construct or repair farm labor housing units each year when the NOSA comes out. When applications come in, Jonathan and his staff review and underwrite the applications, and once approved, monitor the construction. Over the past several years, Texas has received one or two applications each year. The struggle has not been the lack of outreach, program, or funding, it has been the lack of willing developers. In Texas, only off-farm labor housing has been financed. The on-farm housing program has not been utilized in Texas. Funding is available if there is an interest. Mirna chimed in that the onfarm labor housing is for farmers who wants workers to come work. Typically, the housing is for 2 to 3 workers, and housing is provided as a benefit. Pay may be reduced, but the farmer cannot be paid rent for RD-financed housing. RD provides loans of 1% for 33 years. She 17

18 mentioned that nationwide the program is not widely publicized. In some areas like Arkansas, the program has been widely used. Marni Holloway, Texas Department of Housing and Community Affairs (TDHCA), Multifamily Finance Division, leads a group responsible for application receipt, review, and working with the underwriting division to award funding recommendations to the TDHCA board of directors. Last year about $1 billion was recommended for debt and equity (counting the full value of tax credits). The division is responsible for 9% Low Income Housing Tax Credits (LIHTC), the 4% LIHTC and bond financing program, and the direct loan program. The cap on 9% credits this year is about $65 million, and will likely extend to awards to developments all over the state. Evidencing the extreme nature of competition, the program attracted 437 pre-applications in January. The 9% program includes of a number of set-asides. One is the USDA setaside, with which TDHCA works with Jonathan and his group. At 5% of the total cap, about $3.3 million is available this year. Usually these are smaller acquisition-rehab deals. The USDA set-aside is within the At-Risk set-aside for preservation deals. All the USDA deals can compete within the USDA set-aside. Remaining funds are divided within 13 regions, each divided with a rural and urban region, so a total of 26 subregions. Rural subregions are guaranteed $0.5 million each, usually resulting in one award. Sometimes rural regions only attract one application. The 4% credits, covering about a third of equity needs, are paired with tax-exempt bond financing. TDHCA, TSAHC, or any other entity can be the issuer of the bonds. Bonds generally need to be larger transactions, and they can be used for scattered-site projects. Rural Rental Housing Association members are contemplating going in together for multiple sites for rehabilitation. The 4% credits are not competitive. The HOME program, funded with federal resources, is the source of direct loans. Loan repayments from the Tax Credit Assistance Program Repayment funds (TCAP-RF), are repaid funds originating from the stimulus act (ARRA or the American Recovery and Reinvestment Act of 2009). Since TDHCA issued ARRA funds as loans, the repayments continue to fund projects. Not yet available are National Housing Trust Fund dollars through HUD. A Notice of Funding Opportunity (NOFA), due August 2017, is currently out that started at $32 million. These can be used only outside of participating jurisdictions, and are undersubscribed, especially for Community Housing Development Organizations (CHDOs). Marni passed out a handout, one side explaining multifamily programs, and the back side explaining LIHTC basics (see attached). She invited folks to come talk with TDHCA staff about a project before it gets to the application stage. Rose Garcia (Executive Director) and Jeanne Shaw (Farm Labor Technical Assistance Provider), Tierra del Sol Housing Development Corporation (TdS). Rose started with a presentation of TdS s history as a nonprofit organization created in 1973 with a volunteer board and 28 staff members. She described TdS as being advocates first, developers second. Through the years, TdS has developed single family, self- 18

19 help housing, rehab, multifamily, and issued small business loans. She showed photos of some of these developments. TdS has a contract with USDA-RD to assist nonprofit organizations apply for Section 514/516 farm labor housing. Rose announced the various types of assistance that TdS will provide to groups as they prepare pre- and final applications. TdS can help with evaluating appropriate sites, determining land development needs, meeting environmental requirements, ensuring local government approvals, planning for utilities and infrastructure installations, meeting construction design requirements, negotiating contracts with architects, leveraging with tax credit investments, offering affirmative fair housing, substantiating the market demand, and obtaining a market study. She further emphasized guaranteeing a strong market to the government and investors, and noted the challenge. The projects usually require supportive services plans, with services from the sponsor agency or others. Strong construction management will be required. Rose encouraged participants to use the TdS technical assistance to provide in-depth support for any organizations that are interested in applying. The farm labor housing program is a nationally renowned program but many people do not know about it. The program benefits employers, as well as workers; housing helps stabilize both employees and the farm or producer business. Jeanne picked up the presentation by discussing the performance standards and the affordability of the loans to finance the construction and development. When a facility gets to the end of its loan term or if renovation is needed, an owner can refinance the project and secure additional capital. An owner can layer the loan with Rental Assistance (Section 521) for farmworkers so they pay only 30 percent of their income for rent and utilities. It is an affordable way for farmworkers to acquire good housing, and for a committed nonprofit housing developer to serve communities and farmworker s. The funding may be used to buy, build, or renovate housing for seasonal, migrant, or full-time workers, depending on who is in the community. Jeanne has seen projects start with a dormitory serving migrant workers, then add a second phase for year-round farmworkers, and a third phase provided homeownership opportunities for those farmworkers. The program is a good way to plan and implement long term strategy to serve farmworkers. The funding can also be used to purchase land, install site improvements, and develop infrastructure. If it helps meet the farmworkers needs, other facilities can be included, like community rooms, cafeterias or dining areas. One facility includes a dining facility that is rented to a restaurant which provides affordable to-go lunches or an evening meal for worker-residents. Funds can be used to furnish the units as well. So, the funding can cover the gamut of needs a sponsor may encounter. When David asked whether new construction or renovation is more important, panelist found it hard to choose without studying the circumstances, the market demand, the specific region, and the inventory. 19

20 Both new construction and renovation are important. Mirna commented that preservation is getting attention across the country right now. RD is getting requests for renovation of older farmworker housing that has deteriorated and in need of repair. Instead of renovating these units, perhaps, build something new. She believes tenants will go to the new projects. Jonathan talked about the difficulty in bringing new funds within the Texas farm labor housing inventory. Six facilities have requested waivers so tenants who do not qualify as farmworkers can reside in some units. David s second question asked about a preference for rental assistance or direct grants/equity. Jeanne opted for rental assistance when serving farmworkers, since affordability is so important. Yet, the property owner will still need to cover expenses from rents. Rose concurred that rental assistance is of more benefit to tenants. Mirna concurred since RD s Rental Assistance stays with the project. Jonathan noted that from the Agency s point of view, equity to construct a facility from LIHTC or a private source is required. Rental Assistance is considered every year by Congress and was upwards of $1.4 billion, a sought-after budget item. With equity, the need for rental assistance is less necessary to make a deal work. Marni described that TDHCA underwrites the equity, and equity is vital. In LIHTC, equity is relied upon during the first 15 years of the project and to maintain compliance. To serve tenants at 30% of median family income, and with those tenants paying 30% of their income, rents will not support a project. A grant on its own for those very low income units, if made without rental assistance, would be irresponsible. investments, and those have additional oversight. When asked about performance, Jonathan said facilities within the farm labor housing portfolio are all in good standing. They make their payments and are wellmaintained. In Texas and across the nation, the rural portfolio delinquencies are very low, at 4-5%. Many have LIHTCs In response to questions about participation in LIHTC, Marni responded that participation with a forprofit developer is not required. She recommends seeking an experienced LIHTC developer to play the developer role if considering applying for 9% LIHTCs. The fee is $30 per door for both the pre- and full application. Along with that fee, a market study, appraisal, phase one, drawings, and investments in other parts of the application will be the primary expenses to apply. Marni confirmed that TDHCA s direct loan can be used in conjunction with Section 538 funding in areas of the state that do not have participating jurisdictions. The 2016 LIHTC awards are struggling since tax reform proposals may reduce the corporate rate of investments. The uncertainty has LIHTC investors pulling out of small transactions. Under the open NOFA, applications are being accepted to supplement the LIHTC awards. Kathy noted that studies have shown not many farmworkers live in LIHTC facilities or other subsidized housing across the state. No one knows exactly where farmworkers are living. Yet some of the farm labor housing facilities are requesting that some units be granted waivers so they may rent to nonfarmworkers. The issues seem to be complex maybe there are not the right bedroom mix, maybe units are old and not desirable. Two questions: Are there ways to better utilize the state money for farmworker housing? And are there ways to better utilize the existing farm labor housing inventory to benefit farmworkers? 20

21 Regarding state resources, if creating new housing, the market study drives underwriting decisions. Rose recommends conferring with the school districts who will be counting farmworker children to bring in additional funds. Having managers who will go out to find farmworkers is important since people will not come until a confidence is built. Rose often employs a survey to interview farmworkers and only pursue a new construction project if you have a three to one ratio of farmworkers wanting to live in the apartments compared to apartments planned. Remembering the expanded definition of farmworker achieved in 2008, as well as disabled and retired farmworkers, should also help when marketing. When providing outreach, make sure to include the definition since it broader than what people identify as farm work. Mirna stressed that even with waivers granted, farmworkers have priority to rent units over nonfarmworkers. Getting a waiver does not mean a manager can continue to house non-farmworkers if there is farmworker willing to rent a unit. Carla Mancha from the Rio Grande Valley area described the broad marketing efforts they have conducted, but they cannot fill all the units with farmworkers. A market study was performed and an application made for a diminished need, but it has not been acted upon for the past three years. Mirna cautioned that getting a diminished need waivers may result in Congress allocating less funding for the program. Carla talked about the lure of newer apartments with swimming pools or other amenities. Mirna referenced photos of renovated facilities that are very desirable places to live. Since farm labor housing can be built in either rural or urban locations, even in downtown San Antonio, for example. The key is to build where people want to live. Who Are the Farmworkers and How Do We Serve Them? Beatriz Farias, Motivation Education & Training, Inc (MET), Housing Services Coordinator for the Lower Rio Grande Valley region, Weslaco Texas office, welcomed participants. MET s housing program is funded by the Department of Labor s NFJP Housing Assistance to assist low income migrant and seasonal farmworkers. MET s Housing Program offers temporary and permanent housing. With MET s permanent housing program, home repairs are provided to lowincome farmworkers that have lived in and owned their home at least one year prior to applying. MET s Weslaco housing office serves Hidalgo, Cameron, Willacy, and Starr Counties. MET also offers permanent housing in the Winter Garden area that is being served by Rick Camarrillo from MET s Crystal City Office. With temporary housing assistance, MET helps farmworkers in the migrant stream with emergency shelter in Texas and Louisiana. 21

22 Most farmworker homes are dilapidated and unlivable. Some lack water and sewer, and electrical systems often need updating. Most families build their own homes and they need help with construction. Homes in the colonias are often substandard and don t enjoy enforcement of codes like cities provide. Bea talked about collaborating with several agencies to offer a more complete program. In several cases, MET partners with agencies, including USDA, TSAHC, and TDHCA, which are attending the summit. TSAHC helps with critical repairs. Local weatherization programs are another important partner. Bea encouraged partnerships to better serve clients and noted that collaborations allow MET to tackle homes that are so far gone that MET s funding alone will not resolve all the needs. Most recently MET has partnered with TSAHC to target the housing needs of low income families. For the past seven years, TSAHC has helped with funding for critical repairs to farmworker homeowners. MET also partners with TSAHC to provides rehabilitation to TSAHC s home purchased from foreclosure sales, then sell them to eligible low income families. MET partnered with TSAHC to rehab four of their foreclosure homes; the first home was donated to a veteran, and the other three were sold to low income families. These were typically brick, three-bedroom homes with central air that sold for roughly $50,000. Bea introduced her colleagues to expand on the partnership story used to complete TSAHC s foreclosure homes. Carmen Salinas, Motivation Education & Training, Inc (MET), Workforce Development Coordinator, Weslaco Texas, also focused on the importance of partnerships. With MET s employment and training, Carmen develops programs so farmworkers can gain skill sets and better jobs. Farmworkers face barriers, so the programs need to help overcome these before jobs can be obtained. MET has a very high job placement rate that translates into better jobs. When farmworkers come in, MET staff sit with them to work out an individualized plan. Carmen invited Elías Hernandez to showcase those types of programs and best practices, which customize training and address the barriers. Elías Hernandez, South Texas College (STC) in McAllen, Project Coordinator. STC has campuses from McAllen stretching all the way to Rio Grande City. Three campuses are in McAllen, one in Weslaco, and an interim campus is in La Joya. STC s partnership with MET is based on a shared vision, to provide a better quality of life for everybody, including multiple generations. Within the population STC serves, 30% have a high school education, and area education numbers are improving. STC programs offer different skills and multiple job options. Computer, forklift, CPR, and customer relation skills are taught along with construction training so someone is qualified to work at Lowes or as a material handler, for example, as well as in a traditional construction job. Bea, Carmen, and Elías described MET, STC, and TSAHC s partnership more in depth. TSAHC purchased 22

23 homes in foreclosure. With Carmen, MET s employment and training programs developed a training, offered by STC, that taught green construction techniques. The trainees got hands-on experience by rehabilitating TSAHC s foreclosed homes. In the classroom and onsite with the capstone (onsite training), trainees learned by installing solar panels, low-energy windows, fiberglass foam insulated doors, as well as a lot of caulking and weather-stripping, and radiant barrier decking. Also benefitting were low-income home purchasers, since the cost of labor for the renovating the homes was not added to the purchase price. Elías showed a photo of one of first homes after it was totally renovated, and Bea described the conditions before renovations. Another training used the eco-block green energy technique of building. A similar example, these homes were donated or sold. The homes that were replaced had damaged floors and walls from plumbing and roof leaks. Elías showed photos of students learning to insulate roofs, replace tile, install water heaters, as well as learning CPR, OSHA 10, and additional skill training. Graduation photos showed very proud trainees beaming with their success. Carmen said, the credit goes to the farmworkers. They have passion and motivation. They want to do something better for their lives and they are hungry for success. We hold the success stories up as examples. Not only do they get a job, but half have gone on to start their own business, becoming entrepreneurs. Elías shared that the success touches future generations. He told the story the pride expressed by an elementary school son because his father was a college student. Frailan Sendejo, Motivation Education & Training, Inc (MET), Workforce Development Coordinator, Crystal City Texas, works in the Winter Garden area which covers Crystal City, Eagle Pass, Carrizo Springs, Big Wells, and Batesville, a region with lots of farmworkers and very bad housing. Farmworkers are working people. They won t complain, they only want to work. For example, onion crop workers can spend six hours a day on their knees. Frailan tells his staff to provide good services since farmworkers generally do not know what services are available. They work hard, they are paid little, and it is hard to raise families on their earnings. Frailan showed photos of the next home that MET plans to renovate. In this case, MET will engage the local college to provide a construction class and the students will provide the labor on the house. The students are farmworkers that MET will enroll in the construction class. MET will pay the college tuition and a stipend to the trainees. The class will take place in the home and provide the labor for housing improvements. Frailan talked about how easy it is to take hot water for granted. Many of the homes do not have hot water. He remembered a 9-year-old who impressed Frailan with how grateful he was for a hot shower. 23

24 Frailan explained that MET contracts with the college to provide the classroom training. MET and the college sign a classroom training agreement. MET pays the farmworker students tuition and pays each student $7.25 an hour for 12 weeks while they take the class. They spend the first two weeks in the classroom and 10 weeks working on a house. All the skills they learn help to get a new job, and since most farmworkers build their own homes, it also helps their own housing situations. Frailan showed some photos with before and after conditions. For example, nobody has central air, but they don t complain. Each of the homes showed were in colonias. He showed coal being burned inside the home for heat. Batesville, only 90 miles from San Antonio, has thousands of homes that need repair and most of the residents are farmworkers. Many homes are riddled with mold. Children live in almost all the homes. Frailan introduced Mrs. Rosa Blanca Villalba (MET farmworker client), who came to share her experience as a farmworker whose home was rehabilitated by MET. She shared that she is a migrant worker who applied to MET because her home lacked a finished kitchen with running and hot water or a completed roof. It had poor electrical wiring, and many other dangerous features. She and her husband had built the home, but it was never finished. The leaking roof and exposed electrical wires presented a fire hazard. Frailan simultaneously showed before and after photos. Now the home is complete. She has a beautiful yellow kitchen like she always wanted. Her entire family, all migrant workers, are now comfortable living here. Rick said the remodeling job, with labor completed by farmworker students enrolled in the college construction class, cost MET about $16,000 to complete. The cost included hiring an electrician to rewire the entire house. On this home, MET used a grant from HUD s Rural Innovations Fund program. Mrs. Villalba had the property for ten years, and she had paid off a contract of deed, but she did not have papers documenting ownership other than a final receipt of payment. MET, which uses the state s Contract for Deed Conversion program, in conjunction with the University of St Mary s Law Clinic, completed the legal work to convert the contract to a Deed of Trust. Now she has all the papers properly filed that document she is the owner. 24

25 Frailan ended his presentation showing several homes in very poor condition that MET hopes to rehabilitate in the future. Update on Legislative proposals that might influence Texas farmworker housing Dave Mauch, Farmworker Division Attorney, Texas RioGrande Legal Aid (TRLA). Dave started remarks by saying anything he says about legislation is his personal opinion, not that of TRLA. In her remarks yesterday, Daniela referenced a series of articles by Jeremy Schwartz published in the Austin American Statesman in March 2016 ( Unlivable ). Dave encouraged folks to look up the articles that describe farmworker housing conditions, and show photos as well as important information. Dave spoke about federal regulations that cover facilities that are offered for migrant farmworkers. The federal law does not require licensing, but Texas has a state law with some stricter requirements than the federal law. The state law requires that anyone in the state operating housing for three or more migrant workers must be licensed to operate that housing before it is occupied each season. Theoretically all who provide housing should have a preoccupancy inspection, a license from the state, and a set of rules they must follow. The Statesman report found that 90% of the farmworker housing in the state is unlicensed. Dave thinks the estimate is conservative. The capacity of licensed facilities is around 4,000 workers, and more than half of that capacity is offered in the Rio Grande Valley. If mapped, Texas migrant population is in West Texas and all over the state. Far West, Central, and East Texas have no licensed facilities. Farmworker bills presented during press conference at the State Capitol March 6, The investigation found that TDHCA (the Manufactured Housing Division of TDHCA enforces the licensing of Migrant Labor Housing) spends $2,500 a year on the program and does very little to ensure the law is followed. TRLA found TDHCA unresponsive when TRLA made inquiries. in several cases, TRLA called to inform the Division about providers who were likely providing unsafe and unlicensed housing in violation of the law, but TDHCA was unable to follow up. 25

26 Another problem is the lack of enforcement. TDHCA does not want to drive willing employers away from providing housing. In the ten years that TDHCA has operated the licensing program, the Division has not levied a single enforcement action against any housing operator for lack of a license of for poor quality housing. The Statesman quoted TDHCA saying they did not think there were unlicensed operators in the state. After the Statesman articles were published, Senator Jose Rodriguez worked with TRLA to put together a working group. Dave encouraged anyone interested in participating to contact him (dmauch@trla.org), Kathy, or Daniela). The group is working on research, outreach, enforcement, and encouraging development by nonprofits and growers. The working group, which began meeting last year, started with ways to enforce the law. One problem is the lack of funding. The program was originally transferred to TDHCA ten years ago when the Manufactured Housing inspectors had excess capacity. They no longer have excess capacity, and farmworkers are not a priority. Dave handed out a list of legislative proposals. Referred to as the omnibus bill, SB 1025, offered by Senator Rodriguez (and HB 2365 offered by Representative Romero), formalizes the licensing process. It requires a stricter licensing, inspection, and enforcement process and more documentation and coordination by state regulators. Regulators must inspect the facility prior to occupancy, visit during the season, and talk directly to workers. If a worker has a complaint, they can call the state. Someone should be able to respond in Spanish. It requires that the state send someone out to investigate complaints, document the situation, create a report, and determine whether there was a violation. The bill ramps up the enforcement of the law. It assuages TDHCA s reluctance to enforce the law for fear of driving workers out of housing by requiring growers to provide alternative housing if the license is revoked midseason. The workers can bring their own lawsuits instead of relying on the state agency. The proposed law also changes the penalty provisions. It removes the statutory cap on enforcement penalties. It changes the $200 per violation per day flat penalty to at least $50 per person per violation per day. The State must take annual actions to educate workers and housing providers, and to search for unlicensed housing providers and bring them into the licensing process. HB 1879, introduced by Representative Romero requires the state to update a study about farmworker populations and housing needs. A study was completed in 2005 that needs updating. HB 2677 is a penalty bill, introduced by Representative Bernal. It takes the penalty provisions from the omnibus bill and puts them into a stand-alone bill. The penalties are twice as strict as the omnibus bill. Representative Bernal s father was a farmworker; he pushed for harsher treatment of violators. SB 2029 by Senator Rodriguez opens TDHCA and TDA programs for farmworker housing inclusion. The bill allows a tax credit set-aside for farmworker housing using Section 514 and 516 funding. It creates a state funding safety net to increase the use of farmworker programs. It would create a task force so 26

27 state representatives would be working on increasing incentives and helping farmworker housing production. Kathy mentioned that since it is late in the session, Senator Rodriguez may strip out the provisions that are drawing opposition and leave only the task force provision. Dave reviewed the legislative process through which each bill must go, and where each of these bills stand. House bills were assigned to the Urban Affairs Committee while the Senate bills were assigned to the Agriculture and Livestock Committee. There was some movement on the House bills and hearings are expected. To follow or advocate for the bills, contact Dave; he keeps information updated for the workgroup s list-serve.2 Rural and Farmworker Housing Preservation Preservation of Existing Facilities and Rental Assistance Susan Anderson, Enterprise Community Partners, Senior Program Director introduced Enterprise as a national nonprofit working on housing and community development through policy, research, financing, and working with partners to explore solutions. She introduced the panelists, who have been working as a group to address the threat of loss of rural rental housing. Texas is facing one the largest losses of rental units in the nation. 2 Ultimately, none of the farmworker housing bills passed in the 2017 session, but more legislative activity is expected in the interim and the bills are expected to be re-filed in the 2019 session. A budget rider was included in the approved state budget that instructs TDHCA to use $10,250 in fiscal year 2018 for inspections and enforcement of the migrant labor housing program. Before the rider, these funds, collected from licensing and inspection fees for the migrant labor housing program, were returned to the General Revenue Fund. 27

28 Ginger McGuire, Rental Rural Housing Association of Texas, (RRHA-TX), consultant and principal at Austin Stone described the RRHA as owners of 515 properties and farm labor housing. There are nearly 700 properties in Texas, about 22,000 units and 33,000 residents, with Section 515 and 514 loans. Properties were typically built 20 to 40 years ago, so they are getting old. The people who built them, the owners, are also aging. Some are passing the business to sons and daughters: already some are second and third generation owners and managers. Owners will face tax liabilities if they sell, because the units were built long ago and have fully depreciated. There is a substantial cash advance needed to address several layers. USDA-RD oversees annual budgets, rent levels, and affordability, and RD approves only limited increases. Profits are capped at 8% and money for rehabilitation is limited. Together these restrictions create challenges to preserve the properties. Among the RRHA-TX membership, the most common method of preservation is using the 9% LIHTC; TDHCA s set-aside for USDA is 5% of the total annual allocation, about $3.25 million, which will preserve between 8 and 11 properties each year. Another option is the recapitalization of 4% LIHTCs and bonds, which may be the future for preservation. It allows the financing of multiple properties at a time and accommodates nonprofits. USDA-RD also has nominal assistance nationwide. Included in RRHA-TX s membership are almost all (if not all) of the farm labor housing nonprofit and housing authority owners. The Section 515 owners are mostly for-profit entities, many who own multiple facilities. Michael Wilt, Texas State Affordable Housing Corporation (TSAHC), Manager of External Relations, presented several preservation examples. He mentioned that the group that includes Kathy, Ginger, Susan, Emily, Dave, and Michael, that has been meeting since the farmworker housing summit held last year to make sure these Texas properties are not lost or move to market. Minnesota set up the Greater Minnesota Interagency Stabilization Group (ISG), comprised state agencies and nonprofits, has one of the most robust way to handle preservation. They meet monthly and apprise properties that may be at risk of losing rental assistance, experiencing delinquencies, or in danger of foreclosure. They evaluate the list of properties then reach out to owners. They help owners pair with potential new partners with expertise in redevelopment. In one example, units were saved after they helped a new owner tap LIHTCs, obtain extended HUD rental assistance, and USDA reamortized the mortgage. In the aggregate, it becomes very significant. Minnesota has a Rural Rehab Deferred Loan Program for up to $300,000 at zero percent interest. Minnesota dedicates a portion of LIHTC for rural preservation and rehabilitation. Affordable housing lenders and funders have a consolidated RFP process. The ISG prioritizes properties according to critical conditions, capacity of owners, or properties in danger of conversion. Oregon s Rural Rehabilitation Loan Program (ORR), explicitly used for farmworker housing, was initially funded by a transfer of funds from the Oregon Commission of State Lands. Loans up to $100,000 are offered for up to 10 years at a 1% interest rate to nonprofits and 3% to for-profits. 28

29 Georgia made changes to its LIHTC Qualified Allocation Plan to enhance scoring for rural rehabilitation projects. Georgia s QAP allows: a waiver of properties transferred as part of an aggregated portfolio, a 130% boost to projects applying for 4% LIHTCs; more than 80 units can apply under one bond deal; and it acknowledges that USDA does not allow rental receipts to go to onsite services. Michael acknowledged that any QAP tweaks that benefit rural projects may be the detriment of other competing interests, which would be an issue in Texas. Kentucky has also had success with 4% credits and bonds, according to Ginger. She noted challenges to any of these solutions, but the need to push forward on a solution. Emily Ryder Perlmeter, Federal Reserve Bank of Dallas, Community Development (Dallas Fed), Analyst, presented a mapping tool she s been developing that shows the stock of maturing mortgages. Texas is over represented in the number of units affected by loans maturing and exiting the program. USDA, in partnership with Policy Link, placed data and maps online on a public tableau. The problem in viewing the Texas data on the map is that there are so many maturing units in Texas, it is difficult to look at the entire state and get a clear view. But with Texas large housing stock, a response is crucial and critical. So, Emily s charge was to create a more accessible map. Emily used online data to create maps to be useful to Texas advocates. The Federal Reserve hopes to further develop the maps and use the data to prepare an article. The maps will allow advocates to view properties by Congressional Districts, or other helpful criteria that can be identified. The maps show the properties with mortgages that mature by 2020, which means the units will no longer be part of the program and Rental Assistance will be lost to the state and to tenants 29

30 soon. Pull-out data shows the estimated age of the property, assuming older units are an indicator for needing rehabilitation. Emily showed two screen shots, the first showed Section 515 loans with larger dots reflecting more units in the property and smaller dots indicating properties with fewer units. A second map, showed both Section 515 and 514/516 loans. The property pulled out in the example shows a facility along the border, Crystal City Housing Authority, which is slated to leave the program this year. Mirna Reyes-Bible, US Department of Agriculture (USDA) Rural Development, (RD), Senior Financial Analyst, Multi-Family Housing Programs, Washington DC, started her presentation with a slide showing the number of farms in several states. Compared to other states in the nation, Texas has the most farms, an indication that there should be many agricultural workers qualified to live in farm labor housing. Mirna mentioned Diana Lopez, director of Guadalupe Economic Services Corporation (GESC), attempted several times to access LIHTCs but was unsuccessful. Mirna helped her to access additional farm labor housing grants instead of using LIHTCs. Mirna stated that legislation only allows Section 515 to pair with LIHTCs and there is nothing in the law that allows 514 to marry with LIHTCs. Kathy challenged that statement. She said Texas had posed a problem for the nation in 2007 when it said that LIHTC for farm labor housing violated the IRS general public use rule (section 42). In 2008, Congress passed legislation specifically allowing the use of LIHTCs 30

31 with farm labor housing. The general partner in a LIHTC deal must be a nonprofit to qualify as a farm labor housing owner. Mirna said RD s lawyers are not in agreement with Kathy s statement and Mirna recommends not using LIHTCs with farm labor housing. She said the only state that has managed to use LIHTCs with farm labor housing is California. Mirna showed slides of some exemplary farm labor housing in California and emphasized that farm labor housing facilities do not have to be built in rural areas (the only RD program that allow development in urban areas). Often cities will fight farm labor housing facilities. She cited an example where the city helped to ensure that the facility was not an eye sore. She showed photos of facilities for both year-round and migrant workers. Migrant workers often return to these same units each year. She showed photos of facility in Oxnard California built with net zero energy conservation features. Mirna often encourages tear downs so new construction can be exemplary. She will work with owners or prospective owners on their individual requests and needs. Mirna highlighted the definition of those who can live in farm labor housing. Tenants must be income eligible, and receive a portion of their income from farm labor. The list of eligible types of work is very extensive, and was expanded in 2008, as shown in a slide of examples of eligible labor types. Tenants must be a US citizen or permanent resident; those admitted under temporary visas are not permitted to live in the housing. She stressed that requests for waivers under diminished need for farm labor poses a threat to keeping or expanding federal funding. Kathy and Mirna explained that USDA-RD allows Rental Assistance as operating assistance for the entire project (each tenant does not have be tested as individually qualified), if migrants live seasonally in the units. That way the project continues to get rental assistance year-round to operate units that are closed during the off-seasons. Funding NOSAs allow for new construction or to rehabilitate a nonprogram property and turn it into farm labor housing. Mirna expects the NOSA to be announced in the Federal Register at the end of the month. It is expected to mirror last year s, with two exceptions: It will not allow points in the scoring system for migrants and will allow 30 days for response (last year s NOSA allowed 60 days). As in the past, no state will be allowed to get more than one-third of the funding. She encouraged applicants to call her if they are interested in applying. 31

32 Marni Holloway, Texas Department of Housing and Community Affairs (TDHCA), Multifamily Finance Division Director, followed up on yesterday s presentations about TDHCA s 9% and 4% LIHTCs, bonds, and direct loan programs. She touched on issues brought up by the panel and TDHCA s discussions about these issues. For the past year, monthly meetings were held with stakeholders about the Qualified Allocation Plan (QAP) for informal discourse about the rules. A different approach to opportunity, taken in 2016, separates rural and urban tracks. Moving forward, the USDA set-aside is being discussed. In the Legislature, HB 2405 would make all properties in the USDA set-aside rural (many rural areas have urbanized since properties were built), to increase the ability to win credits. From the last Legislative session, a facility can request rural designation. A separate scoring structure was discussed in meeting with RRHA s membership recently for all preservation deals that emphasis community need, age of the property, and other measures not a part of opportunity index measures. There is a recognition that preservation deals have a different structure than new construction. There is currently a request for 9% LIHTCs for a portfolio of seventeen USDA properties. Some of the properties will request 4% LIHTCs and bond funding, which is very doable. She noted the El Paso Housing Authority successfully completed 14 properties under a Rental Assistance Demonstration (RAD) deal. Marni emphasized that staff will take requests for waivers to the TDHCA s board of directors if the deal makes sense. For example, waivers may be needed to exceed the 80-unit limitation. There is a boost rural properties for 9% LIHTC for flexibility, but Marni would need more information to see how it would apply on 4% LIHTCs. If rule changes, not waivers, are needed, then early input is needed. Input is needed well in advance of the September publication of the draft QAP and Chapter 10, which establishes threshold criterion for the 9% LIHTC competition. She offered to conduct separate meetings around rural housing, to make sure good input is gathered. TDHCA s Rental Assistance programs are run through other divisions. Section 8 certificates are available through TDHCA only in areas not covered by local housing authorities. The wait list is currently closed. Project Access is a new program and will allow Section 8 certificates for individuals transitioning out of nursing homes, prisons, and other institutions. Section 811 is a hybrid project-based and tenant-based rental assistance available for tenants with specific issues. Addiction, colonias residences, persons with disabilities, victims of domestic violence, persons with HIV-Aids, homeless veterans, and farmworkers are all targeted populations under 811, which is available under coordination with agencies providing 32

33 assistance in restricted geographic areas. Tenant Based Rental Assistance (TBRA) from federal HOME funds is available outside of a participating jurisdiction under a reservation system or with a contract. Rental assistance is available for up to 24 months for qualifying households. Rose requested that TDHCA not ask farmworker housing applicants to LIHTCs not be required to request Section 811 because rental assistance comes with RD financing. Marni explained that Section 811 is included in Chapter 10. Section 811 is an eligibility threshold requirement so the box should be checked, and further down on the form there is a box that allows an applicant to say Section 811 will not be needed and the reason why. It is always applicable (do not state not applicable ). A second phase was proposed by Guadalupe Economic Services to develop 28 more units in Dalhart Texas. Because of dairies and new cheese plants, it is a strong agricultural area. Diana Lopez, the director of GES, was unable to get the state representative s letter of support for her LIHTC application. Marni clarified the letter is not required, but it is 8- point scoring item. Unless only one application is received in a subregion, not having a representative s letter means an application will not score high enough in the competition. There are several bills introduced in the Legislative session that might influence the Legislator s letter. There are strong voices to take the letter out and strong voices asking to keep the letter as part of the application. Rose noted that obtaining letters of support is a good way to introduce the project to local leaders and get their support. In the case of the letter that Diana was unable to get, the state representative had a perception that farmworker housing was negative and an eye sore. Mirna asked if the support letter guaranteed the project and Marni clarified it is only for support. Marni again brought up 4% LIHTCs, which only require a letter of nonobjection from the local representative. Without competition in the % LIHTC route, TDHCA staff can sit down and discuss the project. Michael reminded Rose that TSAHC, which provided financing to Guadalupe Economic Services in its first phase, continues its lending program if GES is interested in talking with TSAHC about another loan. Susan thanked the panelists, and put in a plug to continue the conversations during the break out discussions sessions. She talked about the proposed preservation academy and invited interested folks to let her know and continue that discussion. 33

34 Summary of Discussions by Small Groups Thursday, April 12, 2017 Participants divided into two groups to discuss farmworker housing issues and the preservation of farmworker and rural rental housing inventory. Farmworker Housing small group discussion notes Leader: Kathy Tyler Attending: Jeanne Shaw, Amelia Haney, Bill Grigg, Blanca Villalba, Rose Garcia, Rick Camarillo, Meliza Castillo, Mayte Mendez, Beatriz Farias, Marni Holloway, Mirna Reyes- Bible, Elizabeth Saldivar Go-round of what participants are interested in discussing: How to determine if there is a need for farm labor housing in the areas where you live or serve. Migrant workers are having an impact when migrant into CO communities Enforcement of federal and Texas state migrant housing conditions laws Working group in Texas regarding farmworker housing is considering development and litigation Tierra del Sol provides technical assistance and is seeking nonprofit organizations willing to sponsor farm labor housing. TDS will package and help them with the process all the way through Given the vast ag economy, the workforce is important to the industry Mobile homes are prevalent and sometimes impossible to repair. Need replacements. Temporary housing assistance available from MET but need more participants Substandard housing is rampant. Substandard housing in the colonais (sometimes preferred to apartments) Multifamily housing available at TDHCA; also single family thoughts Need funding for mobile home replacements. Mobile homes, trailers are inexpensive so often purchased as soon as a family has a lot. Only solution to help the families is to replace the trailers with new construction or new trailer 514 on farm housing has not been used in Texas (on farm is employer-owned homes with loan to employer). Worker must work only for the employer that provides the housing off-farm housing provides grants and 33-year loans for farm labor housing. Can use for rehab or new construction. Can build where tenants will be happy. Can build in an urban area where amenities exist Difficulty with employer-owned abuses Ensure tenant rights are protected with on farm housing with USDA inspections and requirements Not trapped as with H2A workers because can have other jobs as well as work for grower Proposed Texas legislation in SB 2029 provided incentives to growers, included access to state programs and on-farm housing financing Additional issues identified with additional discussions, go-round: There is a PHA in Colorado threatening to close the FLH Hidalgo County Housing Authority is facing many issues with their FLH in Weslaco and McAllen Have promoted the to the community that have farmworker housing through the schools, city, county Valley is unique because of families are self-building their homes. The Housing Authority is losing families to these informal settlements outside the city. Need one-bedrooms (many retired farmworkers) difficulty to bring in additional funding including tax credits Because facilities had USDA grants when established, there are particular ownership structure requirements (broad based nonprofit) Hidalgo County has excess land which it could use for additional projects 34

35 For TDHCA, 9% credits is so competitive, maybe competitive credits are not the best option: look at 4% tax credits, bonds, direct loan products that might help with what will work on a particular project RD rules do not match TDHCA rules creates an issue that is difficult to resolve We need nonprofit organizations to sponsor aps this coming round TDS offers TA for those applying DACA applicants to FLH are not eligible to sign lease (exceptions provided for some federal programs but is not one of these) For USDA, lease-holder must be legal resident or citizen USDA may be able to give exceptions to regulation but cannot violate statutes USDA Handbook now covers 515 and Will separate out the handbooks in future to better distinguish what applies only to , and not confuse with 515. Farmworkers say paying 30% of income on rent is too high Issues on how to include tax credits to rehabilitate existing farm labor housing, because facilities had USDA grants when established, and USDA must approve the LLP structure and forgive or convey the grant Newer projects are luring tenants away from existing are stiff competition in some areas, more amenities, energy savings, beneficial tenants Need more nonprofit sponsors for farm labor housing Will Rural Development be moved to HUD? There is pressure because of the duplication of programs. HUD no longer has the direct programs that RD continues to have. A migrant cannot live in a USDA farm labor housing in the homebase and rent in another USDA farm labor housing as a migrant cannot live in two facilities, even if in different states. Many farmworkers are on their own when they migrate away from home, not provided employer-provided housing, they have to pay rents, sometimes very steep rents. Some employers will reimburse part of the rent. The farmworkers often have to arrange with others to share housing. Overcrowding of workers in motels breaks occupancy-maximum rules For some farmworkers 30% of income is still too expensive Can there be a change of the rules to accommodate farmworkers? Follow up items: Follow up with conference call: Tierra del Sol, USDA, TDHCA, MET, Hidalgo Co HA o difficulty to pare with LIHTC o 4% bonds o Direct loans o National Office now reviews applications rejected by the State o Sometime USDA-TDHCA rules conflict or do not match. Examples of housing following RD affirmative marketing statues, might not be meeting TDHCA s rules Follow up with conference call: Tierra del Sol, USDA, TDHCA, MET, Texas Association of Affordable Housing Providers, Texas Apartment Association, Texas Rural Rental Housing Association o Existing tax credits that could serve farmworkers in ag regions o Will usually have 50% AMI and 30% AMI units available o Can access other sources of rental assistance, outside of PJ, including HOME-TBRA (annual renewal process), and 811, and Section 8 35

36 o Barriers are year-long leases, application fees, credit checks, background checks. (Not regulated by TDHCA if these are barriers determined only by the owners) TDHCA properties website (a clearinghouse was suggested, then determined the TDHCA list of properties is the best way to accomplish this to coordinate with other housing providers and market existing affordable facilities to farmworkers when appropriate Look into the ap for farmworker services (see AgHelp Facebook page) and add housing resources (see also Feliciano Paredes, Animo! = yelp for farmworkers) Preservation of farmworker and rural rental housing inventory Group leader: Susan Anderson. Members: Tracey Prince, BDT Development; Tom Hatch, HUO Architects; Michael Wilt, TSAHC; Ginger McGuire, Austin Stone, LLC; & Emily Perimeter, Federal Reserve Bank of Dallas Preservation Group on Section and Section 515: Without quick action, Texas stands to lose much of its rural and farmworker affordable housing stock, including its units with rental assistance (RA). Rural Development s provision of RA makes the units affordable to the low income occupants. Each year in both Rural Rental Housing and Farm Labor Housing portfolios, properties age out the program and new units are not coming online fast enough to keep pace. A review of the Rural Development Occupancy Report, issued each year, attests that the number of units in Texas is spiraling downward, despite efforts to preserve units and increase supply. The purpose of preservation efforts is to help acquire Rural Development properties and preserve their affordability. Identified areas for support in the preservation process include: 1. Assistance with property acquisition, including the identification of potential properties 2. Assistance in the development of the project proforma 3. Assistance identifying and assembling financial resources 4. Assistance navigating USDA s ownership transfer process Tracey Prince, a non-profit developer with experience acquiring and transferring 515 properties provided insights on what has made preservation successful and issues that made it untenable. 1. Often time the high balance of the mortgage and the cash flow of the property would not allow the project to take on any additional debt. However, many of the properties are aging and in need of significant rehab. Without any equity, it is not feasible to acquire the property. 2. A capital needs assessment (CNA) is a necessity upfront so that an organization has an accurate picture as much as possible about how much funding would be required for rehab. On average, RD properties need approximately $35,000 per unit due to the age and condition of the property. 3. Having a strong property manager is a critical especially given the often rural nature of the properties as well as significant distance between properties. Often a good strategy is to retain the existing owners as the property managers, especially if they are living on-site. 4. Pulling together the financial resources is often a challenge due to limited funding sources and the lack of coordination between the cycles of funding sources. 36

37 Preservation Strategy: USDA Preservation Academy One strategy under development to address the impending RD Housing crisis is the USDA 515 Preservation Academy. Motivation, Education, & Training, Inc. (MET), The Texas State Affordable Housing Corporation (TSAHC), The Federal Reserve Bank of Dallas, and Enterprise Community Partners are working together to bring a USDA Preservation Academy to the state of Texas. The USDA Preservation Academy is a series of technical assistance and peer learning sessions designed to help non-profits, housing authorities, and other rural housing providers acquire and preserve USDA housing in their respective communities. Over a five-month period, staff from MET, TSAHC, The Federal Reserve, and Enterprise will meet with representatives from selected organizations across the state of Texas to provide logistical support and best practices in project preservation from transfer process, to project financing to property management. The Preservation Academy anticipates selecting 4-7 teams from the state of TX to participate in this pilot launch of the program. Strong toolkit Teams include a potential mission driven owner (including nonprofit and for-profit organizations, and local housing authorities), a development partner (if the mission driven owner will not be serving in that role), a management partner, and any pertinent local service providers. In addition to technical assistance and curriculum delivery, the USDA Preservation Academy will work to gain a comprehensive understand of USDA properties in TX, identifying potential owners that are interested in exiting the program and matching participants in the academy up with these properties in order to preserve the affordability. After completing a five-month training program (kicking-off in January 2018) teams will be ready to apply for project funding within a 36-month period. Parallel efforts to the curriculum and technical assistance will be a comprehensive advocacy strategy to align funding and key stakeholder and organizations to be supportive of the Academy efforts. This strategy includes: Developing local and national USDA support Lifting up models from other states for preservation Advocating for funding streams (new and existing) to target preservation The USDA Preservation Academy is proposed to launch in January Applications for participation are anticipated to be released in November If you are interested in participating in the academy please contact Susan Anderson at susananderson@enterprsiecommunity.org In concluding the summit, Kathy thanked the participants and encouraged communications throughout the year to continue working on the issues prior to the next summit. Since next year the MAFO conference will be in another state, MET will partner with the Strengthening Rural Communities in June

38 List of Attachments (author) The following hand outs were distributed during the Summit: Texas Farmworker Housing (MET), page Texas Laws and Federal Laws (TRLA), page, Key Players Texas Migrant Farmworker Housing Regulations and Enforcement (TRLA), page Housing Tax Credit Basics (TDHCA), page 46 Multifamily Direct Loan Program (TDHCA), page 47 th Farmworker Housing Bills in Texas Legislature, 85P P Session, 2017 (TRLA), page 48 Included are other helpful items: Section Locations Texas map (USDA), page 49 Summit results from the 2017 MAFO Conference Findings & Evaluations (MAFO), page 50 For copies of entire presentations and other handouts, please contact MET at austin@metinc.org 38

39 Texas Farmworker Housing Motivation Education & Training, Inc Texas farmworkers live in the shadows without decent housing conditions. Over the years Motivation Education & Training, Inc. 1 (MET) and a consortium of stakeholders have worked to find housing solutions for agricultural laborers who work in the state and who call Texas home. MET s annual statewide farmworker housing summits have laid the groundwork and moved many issues forward. The significance of agriculture and its workers to the state economy are extraordinary. The economic impact of the food and fiber sector brings more than $100 billion into the state annually. Texas leads the nation in cattle, cotton, hay, goats, and mohair production. the U.S. (Texas Department of Agriculture s Ag Stats, accessed 2/10/17). Agricultural workers are a vital contributing asset to the Texas economy. Yet thousands, in fact 93% of farmworkers cannot access affordable housing in the state s rural communities with a sizable number of agricultural workers (TDHCA website, Bowen National Research, 2012). Poor housing conditions among farmworkers present the nation with a public health threat (American Public Health Association, 2011). As many as 400,000 agricultural workers and family members call Texas home and live along the Mexican border, the Panhandle and southern plains, as depicted on the map (courtesy of National Center for Farmworker Health, using data from US DHHS, Dr. Alice Larson). Texas farmworkers migrate to the far reaches of Texas and other states to perform agricultural labor. Many are immigrants and about half are legally documented workers (National Agricultural Workers Survey, US DOL). Texas inventory of farm labor housing, developed with USDA Rural Development 514 loan and 516 grant funds over the past decades includes 17 facilities with1,120 units of housing for farmworkers, as charted below (USDA annual occupancy reports, Texas RD office interviews, and These units are owned and managed by housing authorities and nonprofit organizations, and the facilities are required to stay compliant with RD rules and obligations. 1 Motivation Education & Training, Inc. is a private, nonprofit 501 (c)(3), organization supported by a variety of public and private awards and contributions. Headquartered in New Caney, Texas, MET was incorporated in 1967 and operates on a statewide basis in Texas, Louisiana, Minnesota, North Dakota, and Wyoming. The organization was founded for the purpose of providing academic and vocational training to migrant and seasonal farmworkers, with the objective of furthering economic self sufficiency for MET clients. Farmworkers are supported throughout Texas in ten offices providing employment and training services along the border and in the South Plains and Panhandle. In the early 1970s MET added housing for migrant and seasonal farmworkers to its work agenda, and its housing staff currently work out of Texas offices in Weslaco, Crystal City, Eagle Pass. While serving farmworkers remains a cornerstone of its mission, the organization s scope has expanded to low income and disadvantaged populations throughout the agency's service area. Head Start and Early Head Start services, employment training for seniors, and other social services balance MET s work throughout its five state service area.

40 Texas Farm Labor Housing Section 514/516 Inventory (avail to FWrs) # of Units Region Name of Project Owner Location County Panhandle/Plains Amistad Housing Amistad Housing Development Corp Hereford Deaf Smith 49 2 Azteca Economic Apartments Azteca Economic Development Corp Dimmitt Castro 64 3 Tumbleweed Apts (Muleshoe Labor Housing) Muleshoe Housing Auth Muleshoe Bailey 72 4 Windmill Village South Plains Regional Housing Auth Littlefield Lamb 20 5 Northpark Apartments Paducah Housing Auth Paducah Cottle 16 6 Morton Meadows South Plains Regional Housing Auth Morton Cochran 20 7 Plains East Apartments South Plains Regional Housing Auth Anton Hockley 14 8 Cottonwood Square Lorenzo Farm Housing Association, Inc Lorenzo Crosby 40 9 Vista Rita Blanca Apartments Guadalupe Economic Services, Inc Dalhart Dallam TransTexas Herbert Tio Cooper Apartments El Paso Housing Auth El Paso El Paso Presidio Delores Apartments Presidio Delores Apartments LP San Elizario El Paso Winter Garden Villas De Val Verde Del Rio Housing Auth Del Rio Val Verde Crystal City Farm Labor Housing Crystal City Housing Auth Crystal City Zavala Enrique Montalvo Riverside Manor Eagle Pass Housing Auth Eagle Pass Maverick Aldo Tatangelo Housing Laredo Housing Auth Laredo Webb Rio Grande Valley Memorial Apartments South Plains Regional Housing Auth McAllen Hidalgo Northside Apartments South Plains Regional Housing Auth Weslaco Hidalgo 289 Total Facilities 17 Total Units 1,120 89% farm labor housing units have Section 521 Rental Assistance (RA) available 1,005 There were 20 facilities with 1,464 units in the late 1980s. Even with additions of new facilities, Texas has experienced phenomenal net loss of farm labor housing units, demonstrating the importance of rehabilitation to preserve aging facilities and other preservation actions such as extending maturing loan terms. Housing for migrants living in temporary quarters while working must be licensed by Texas Department of Housing and Community Affairs (TDHCA) Manufactured Housing Division. A list of licensed facilities is maintained and kept on the TDHCA website. This list provided in February 2017 showed 46 licenses were active with private employers providing 901 units with capacity to house 3,756 workers, an 8% reduction in units since Within this inventory, 614 units are USDA financed (included in the above chart Section 514/516 units are among licensed facilities when units are rented to migrants). When these 614 units are removed from the count, private employers uniquely provide 287 units with a capacity to house 938 persons (71% of 2015 s capacity of 1,315). The reduction in units and capacity occurred despite a rise in the number of licensed facilities from 39 to 46. In summary, USDA funded properties for farmworkers total 1,120 units, as charted above. Employer provided homes not included in USDA funded properties total 287 units in Texas. Together, 1,407 units in the state are dedicated for farmworkers. The dip in employer provided housing follows national trends. The Housing Assistance Council reports that 13% of farmworker housing units are employer owned, down from 30% in Within these 13% of units provided by employers, farmworkers in 17% pay rent; the remainder are provided as part of a worker s wages. Nationally farmworker incomes are between $7,500 and $10,000 and 60% of US farmworkers live below the poverty level. Median weekly earnings of full time farmworkers are 59% of those for all wage and salary workers, although work weeks usually are upwards of 50 hours a week (USDA Profile of Hired Farmworkers). According to 2016 RD Occupancy Reports, Texas tenants renting within the 514/516 inventory have a median income of $12,670 ($10,348 if receiving Rental Assistance). This is only 43 to 52% of the poverty rate, although they are incomes of working families. Because of these meager wages, farmworkers lack the resources for adequate safe homes. The problem is compounded when household members are migrants, having to locate and pay for a work residence while in the migrant stream, while often still paying to maintain a year round residence back home.

41 Texas Law Federal Law Which housing providers must comply? Anyone who establishes, operates, or : maintains a facility "that is established, operated, or used for more than three days as living quarters for two or more seasonal, temporary, or migrant families or three or more seasonal, temporary, or migrant workers, whether rent is paid or reserved in connection with the use of the facility." 3 This includes apartment complexes, hotels, and rental properties. Anyone who "owns or controls" facilities used as migrant agricultural worker housing. 4 Does not include anyone who regularly provides housing Qn a commercial basis to the general public on the same terms. 1 Tex. Gov. Code (link: Texas Government Code) 2 29 U.S.C. 1802, 1823 (link: Migrant and Seasonal Agricultual Worker Protectiqn Act) 3 Tex. Gov. Code U.S.C. 1823(a) 5 Tex. Gov. Code U.S.C. 1823(b) 7 29 u.s.c U.S.C. 1823(b) 9 29 C.F.R (link: OSHA Temporary Labor Camp Standards) ' 0 20 C.F.R et seq. (link: ET A regulations) C.F.R (link: AWPAre&rulations)

42 Texas Law Federal Law Who enforces? Enforcement is not delegated to Migrant Housing Division. 14 TDHCA or worker can bring injunctive action. 15 Suit for civil monetary penalty must be brought by TX Attorney General or county attorney in the county where the violation occurred. 16 No private right of action exists under state law, but workers can enforce state standards through the Migrant and Seasonal Agricultural Worker Protection Act (AWPA). 17 Workens (through private right of actiop. in the AWPA), 18 U.S. Department of Labor Wage and Hour Division. ~,Jiiiit~~; Complaints TDHCA must investigate complaints. Can be made by phone or in writing, English or Spanish. 22 Division (all workers), Texas Monitor Advo~ate (through Job Service Complaint System, 23 H-2A workers and corre~ponding U.S. workers only) C.F.R (d) (link: H-2A program regulations) 13 Tex. Gov. Code Responsibility and Delegation Agreement between TDHCA and TDHCA MHD, section 4. (not available online) 15 Tex. Gov. Code (a). 16 Tex. Gov. Code (b) U.S.C. 1823, U.S.C Tex. Gov. Code (b) Tex. Adm. Code 90.6 (link: Texas Migrant Housing Code) U.S.C. 1854(c)(l) Tex. Adm. Code C.F.R

43 .\ ~y PLAYERS - Texas Migrant Farmworker Housing Regulation and Enforcement STATE LAW: Texas Dept. of Housing and Community Affairs (TDHCA) Contact: Michael Lyttle, Chief of External Affairs, michael. lyttle@tdhca.state. tx. us State agency with chief responsibility for regulating migrant labpr housing. 1 Promulgate regulations that govern standards for migrant labor housing 2. Contracts out inspection and licensing services to TDHCA's Manufactured Housing Division (MHD) Enforcement authority includes refusal to issue license, suspension or revocation of existing licenses 3, obtaining injunctions prohibiting growers frotn operating housing 4, and civil monetary penalties of $200/day5. This is carried out by TDiHCA's legal division. Budget: o Receives $125 per license, which goes to TDHCA's ge~ral budget. o Reimburses MHD from general budget for expenses related to inspection and licensing. o No specific budget earmarked for MHD's migrant labor housing program. Implement outreach strategies related to migrant labor housing. o Current outreach plans include working with growers, workers, and organizations that serve workers to raise awareness of the licensing program and remedies for inadequate housing. TX Dept. of Housing and Community Affairs - Manufactured Hoqsing Division (MHD) Joe Garcia, Executive Director I ioe.garcia@mail.tdhca;state.tx.us Contracts with TDHCA to provide inspection and licensing services (TX law only). Migrant Labor Housing program is funded by licensing fees (MHD keeps $125 per license, which goes to MHD's general budget) and reimbursem~nts from TDHCA. Employs 3 inspectors who work on migrant labor housing faciljties (in addition to their primary duties related to manufactured housing), and 1 staff m~mber who maintains the licensing function. Responsibilities delegated to MHD in agreement with TD HCA include pre-licensing inspections of migrant housing and inspection and other observation of facilities that may be unlicensed. 6 1 Tex. Gov. Code et seq. 2 Id., Id Id., Id., As delegated in the responsibility delegation agreement between TDHCA and MHD.

44 Provide information and data to TDHCA as needed to assist with outreach. Inform TDHCA if regulations governing housing need to be updated. Receives complaints about inadequate or unlicensed housing from workers and advocates at Maintains database of licensed migrant labor housing on its website, currently 34 licensed facilities as of 10/1/2016. Total spent on inspections (mileage reimbursements from TDHCA + inspector salary): : $1, : $1, : $1, : $1, : $2, Tex. Adm. Code 90.5

45 Federal Law Texas Workforce Commission- Office of Foreign Labor Contractillg (TWC) Contact: Francisco Cerda, Monitor Advocate Administer state Employment Service system which, among other things, is used to recruit U.S. workers for farmworker jobs, especially for jobs related to H-2A visas. o H-2A visas are temporary "guestworker" visas for agricultural workers. To participate, growers must advertise jobs to U.S. workers through the employment service system, which recruits workers at TWC field offices. o Growers participating in the H-2A program must hire any qualified workers and provide free housing that complies with state or federal 11egulations. 8 Coordinates with growers participating in the H-2A program to fulfill federal requirements to participate in the program, including advertisini and housing inspections. For worker-only H-2A housing (where federal standards apply) 1 TWC administers preoccupancy inspections to ensure that housing complies with fed~ral law (not state). o For rental/public accommodation housing (where local/state standards apply), TWC does not do pre-occupancy inspections. 9 Accepts complaints about housing and working conditions for ff-2a workers. U.S. Dept. of Labor Promulgate federal regulations governing migrant farmworker litousing (OSHA). Enforce federal housing regulations for agricultural workers covered by federal law, including H-2A guestworkers and corresponding U.S. workers. Enforcement is mostly complaint-driven; preoccupancy inspections for H-2A workers are handled by the Texas Workforce Commission C.F.R (d). Worker-only housing must meet federal standards. Rental 31ncl/or public accommodations, including hotels and motels, must meet local standards or, if there are no local standi:i,rds, must meet state standards. 9 For rental and public accommodations, employers are only required under federal lflw to attest under penalty of perjury that the housing meets local, state, or federal standards (whichever applies). this is the policy of the US Department of Labor - Office of Foreign Labor Certification.

46 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS HOUSING TAX CREDIT BASICS The Texas Department of Housing and Community Affairs' ("TDHCA") Housing Tax Credit ("HTC") program is one of the primary means of directing private capital toward the development and preservation of affordable rental housing for low-income households. The HTC program is designed to: Provide a source of equity financing for the development of affordable housing; Maximize the number of affordable units added to the state's housing supply; Ensure that the state's affordable housing supply is well maintained and operated, serving as a credit to the communities in which affordable housing is constructed and operated; and Prevent losses in the state's supply of affordable housing. How Housing Tax Credits Work Tax credits are awarded, using a competitive process detailed in statute and rule, to eligible participants to offset a portion of their federal tax liability in exchange for the production or preservation of affordable rental housing. The value associated with the tax credits allows residences in HTC developments to be leased to qualified households at below market rate rents. There are two types of HTCs: 9% HTC and 4% HTC. 9% HTC (Competitive) The 9% HTC program is highly competitive. The amount of HTC available in each region is determined through the Regional Allocation Formula ("RAF"); there are separate set-asides for "at risk" and US Department of Agriculture ("USDA") assisted developments. At least 10% of the allocation must be used for qualified non-profits. Applications are scored and ranked within their region or set-aside. Scoring criteria range from financial feasibility, various indicators of local support, size and quality of units, amenities and services to be provided to the tenants, economic health of the community, and more. Scoring reflects requirements found in state law and program rules; the program rules are known as the Qualified Allocation Plan ("QAP"). 4% HTC (Non-Competitive) 4% HTCs are awarded to developments that use tax-exempt bonds as a component of their financing. Applications are accepted throughout the year. 4% HTCs are available statewide; they are not subject to regional allocation. Funding Source U.S. Treasury Department via the Internal Revenue Code. Eligible Activities The development of affordable rental properties or the rehabilitation of existing properties that maintain affordable rents for an extended period of time. Eligible Applicants Private for-profit and nonprofit developers. Beneficiaries Tenants earning up to 60% of the area median family income ("AMFI"), which varies by area. For example, to qualify for a reduced rent in an HTCsupported property, the annual income of a Dallas family of four may not exceed $42,240, while the annual income for the same household living in Brownsville may not exceed $31,440. (These limits are subject to change as HUD releases new income limits and are available under the Featured Items drop menu on TDHCA's home page at Public Input Public comment is taken at all TDHCA board meetings and is accepted during the application review process. Regional public hearings are held to take public comment on 9% HTC applications (Applications for 4% HTC have hearings associated with their bond funding ; no separate hearing is held for the 4% HTCs.) Under the 9% HTC program, the following entities may affect an application's score by submitting comment reflecting support, neutrality, or opposition: a city council and/or county commissioner's court (through a resolution): neighborhood associations that contain all or a portion of the proposed development and that are registered with the state or county; and state representatives. Under the 4% HTC program, the local governing body (city council and/or commissioners' court) may submit a certified resolution to TDHCA expressing objection or no objection to the proposed development. Hearing schedules, TDHCA board meeting announcements, and other informational notices are posted on TDHCA's Website. Awards Final funding decisions on all HTC applications are made by TDHCA's Governing Board. The application "cycle" for 9% applications starts at the beginning of the year. Throughout the cycle different attributes of developments that are competing will be considered by the TDHCA board, such as appeals of terminations, scoring notices, requests for waivers, and third-party deficiencies. 9% HTC applications are recommended for final approval in July 4% HTC applications are considered for approval throughout the year Compliance TDHCA monitors and physically inspects all properties which have received tax credits and/or multifamily funds from any TDHCA program Property owners who don't keep their promises during the building process, who let their properties fall into disrepair, or who do not follow the program rules may be subject to certain actions designed to encourage compliance. These actions, if not promptly addressed, may lead to other, more serious actions such as the assessment of administrative penalties or, in extreme instances, debarment from the HTC program. TDHCA provides oversight authority for health, safety, and program compliance of funded properties for up to 40 years. More Information More HTC information can be found by visiting TDHCA's site at hovering over the Programs tab, selecting Multifamily Programs, and clicking Multifamily FAQs under the Resources option, or by calling Consumer Assistance Individuals may search for TDHCA-supported affordable rental properties in their area by visiting TDHCA at and clicking on the "Help for Texans" tab or by calling TDHCA's Housing Resource Center toll free at TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS 221 East 11th St.. Austin, TX PO Box 13941, Austin, TX Main Number Toll Free: H! info@tdhca.state.tx.us Web: Equal Opportunity Employer/Program. Auxiliary aids and services are available upon request to individuals with disabilities. Relay Texas: (TTY) and 711 (Voice). 01/11/16v2

47 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS MULTIFAMILY DIRECT LOAN PROGRAM The Texas Department of Housing and Community Affairs ( TDHCA ) offers financing in support of the new construction and rehabilitation of affordable rental housing for low income households. Loans are designed to expand the availability of safe, decent, and affordable multifamily rental housing in rural communities; a limited amount of funds are reserved for supportive housing. How Multifamily Direct Loans Work Eligible applicants receive funding in the form of a loan to assist with the new construction or rehabilitation of a multifamily rental development. A portion of the units must be leased to income eligible residents at restricted rents; in some instances, all units must be leased to income eligible households at restricted rents. Funding Source A reserved portion of the State s HOME Investment Partnerships Program ( HOME ) funds from the US Department of Housing and Urban Development ( HUD ) Loan repayments from the federal Tax Credit Assistance Program ( TCAP ) stimulus program. Distribution of Funds By state law, 95% of TDHCA s total federal annual HOME Program funding allocation is reserved for communities that do not receive HOME funding directly from the federal government; the remaining 5% must assist Persons with Disabilities ( PWD ) anywhere in the state. With the exception of HOME PWD funding, Multifamily Direct Loan funds are initially available by region in accordance with the Regional Allocation Formula ( RAF ). A limited amount of funds are reserved for supportive housing and units serving households at or below 30% of the Area Median Family Income ( AMFI ) without continuing rental support. Eligible Activities The acquisition, new construction, or rehabilitation of multifamily rental properties that maintain affordable rents for an extended period of time. Properties seeking funding for Persons with Disabilities ( PWD ) must follow integrated housing rules; developments restricted only to PWDs are not eligible for funding. Beneficiaries Households earning up to 60% AMFI as defined by HUD are the majority of tenants; this income varies by across the state. For example, to qualify for a reduced rent in a property supported by a direct loan, the annual income of a Dallas family of four may not exceed $42,240 while the annual income for the same household living in Brownsville may not exceed $31,440. (These limits are subject to change as HUD revises the income limits and are available under the Featured Items drop menu on TDHCA s home page at Eligible Applicants Units of local government Nonprofit organizations Public Housing Agencies For-profit entities Community Housing Development Organizations ( CHDOs ) Public Input Public hearings are held to gather input on the Notice of Funding Availability (NOFA ), program rules, etc. Public comment is taken at all TDHCA board meetings. Hearing schedules, TDHCA board meeting announcements, and other informational notices are posted on TDHCA s Website at Awards Multifamily Direct Loans are awarded to eligible applicants first through the RAF as funds may be available, then statewide on a first-come, first-served basis. Eligible Applicants may access funding through specific setasides within the regions or after these set-asides are collapsed into broader funds as specified by the Notice of Funding Availability ( NOFA ). The majority of Multifamily Direct Loan applications are layered with Housing Tax Credits ( HTCs ); funding for these applications is contingent upon an HTC award. Final funding decisions on all Multifamily Direct Loan applications are made by TDHCA s Governing Board. Compliance TDHCA monitors and inspects all properties which have received multifamily funds. The Department follows very specific requirements for monitoring, inspecting, and reporting. In Texas, property owners who don t keep their promises during the building process, let their properties fall into disrepair, or who do not follow the rules may be subject to certain actions designed to encourage compliance. TDHCA provides oversight authority for health, safety, and program compliance of funded properties for up to 40 years. Consumer Assistance Individuals may search for TDHCA-supported affordable rental properties in their area by visiting the Help for Texans section of the TDHCA website or by calling the TDHCA Housing Resource Center toll free at More Information More Multifamily Direct Loan information is available on TDHCA s website at by hovering over the Programs tab, selecting Multifamily Programs, and clicking the Multifamily Direct Loan Program option, or by calling East 11th St., Austin, TX PO Box 13941, Austin, TX TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS Main Number: Toll Free: info@tdhca.state.tx.us Web: Equal Opportunity Employer/Program. Auxiliary aids and services are available upon request to individuals with disabilities. Relay Texas: (TTY) and 711 (Voice). 01/11/16

48 Farmworker Housing Bills in Texas Legislature, g5th Session (2017) Omnibus bill (SB 1025 by Rodriguez, HB 2365 by Romero) The big picture: formalize a stricter licensing, inspection, and enforcement process that requires a more documented and coordinated effort from state regulators. Inspections: o In addition to the required preoccupancy inspection, adds a requirement that TDHCA visit the housing while workers are there and talk to workers. o Complaint-driven inspections must follow a formalized process and TDHCA must make a determination as to whether there has been a violation of the law. o Requires inspectors to have capacity for Spanish and other languages as needed. Enforcement: o Allows for immediate suspension of licenses for severe violations. o Removes TDHCA discretion to decide not to levy an enforcement penalty. o Removes statutory cap on enforcement penalties, changes $200 per violation per day flat penalty to at least $50 per person per violation per day. o Requires housing operators to provide housing to workers if license is revoked. o Allows workers to bring their own lawsuits instead ofrelying on the state agency. Outreach: o Requires TDHCA to educate workers and housing providers about the law. o Requires TDHCA to create targets to search for unlicensed housing. Study bill (HB 1879, by Romero) Would require the state to update its formal study of farmworker populations and housing needs. Penalty bill (HB 2677, by Bernal) Takes penalty provisions from omnibus bill - increases penalties, removes discretion to not assess fines, lets workers file their own lawsuits. Development bill (SB 2029, by Rodriguez) Provides tools and incentives to help ag employers and nonprofits develop new housing. Expands Rural Economic Development and Investment Program and Texas Rural Investment Fund to include farmworker housing. Allows TDHCA to set aside housing tax credits for migrant labor housing receiving USDA 514/516 housing. Allows TD HCA to commit funds to recipients of 514/516 funds, which increases their likelihood of success.

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