San Mateo County updates farm labor housing loan: higher caps, shorter aligned terms
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Summary
County housing staff told the Agriculture Advisory Committee the relaunched farm labor housing loan will raise Phase 1 maximums (to $150,000 for single-unit projects and $250,000 for properties with two or more units), shorten and align loan terms, allow partial prepayment, and will start executing loans in spring after outreach drew interest from local operators.
Alejandro Segura of the San Mateo County Department of Housing presented design changes and a progress report on the relaunch of the county's farm labor housing loan program, telling the Agriculture Advisory Committee that the updates aim to address barriers operators raised during outreach.
"The program essentially or it provides a 0 interest loan to farmers and agricultural land owners, in order to provide housing for very low income farm workers within San Mateo County," Segura said, summarizing the program's purpose.
Why it matters: County officials said a shortage of affordable housing for essential farm workers and aging housing stock are limiting farm operations. The program is intended to help retain workers by financing rehabilitation now (Phase 1) and construction later (Phase 2).
Key changes presented: Phase 1 maximums for rehabilitation were raised from $100,000 to $150,000 for properties addressing a single unit; properties addressing two or more units can now seek up to $250,000. Loan terms were shortened and aligned with affordability restrictions: borrowers can choose a 20- to 30-year term rather than the prior default 30 years, and restrictions on tenant eligibility and rent limits now expire with the loan term. Partial prepayment is allowed, but Segura said total reductions in term/restrictions cannot exceed 50% of the original agreement.
Segura said monitoring will be annual and tied to the loan agreement to confirm tenants meet the farm labor eligibility test (20 hours per week in agricultural work and income limits tied to 50% AMI). "On an annual basis, once we engage in a loan agreement, that is something that's checked annually," he told the committee.
Progress: County staff reported outreach and early interest metrics: about 250 people were reached through presentations and marketing; 12 operators contacted staff to begin the application process, seven scheduled preliminary meetings, six completed that step, and five submitted letters of interest and moved into site visits. No loans had been executed by the meeting date; staff said they aim to execute the first loan in early–late spring.
Questions from the committee focused on enforcement and long-term occupancy. A member asked how the county would ensure units remain occupied by eligible farm laborers; Segura said the requirement is written into the loan and monitored annually, and that sale or transfer of a property requires notification and, if the new owner cannot meet eligibility, loan repayment would be required.
The committee asked to receive a progress report in the coming months; Segura said he would provide an update to members on implementation milestones.
Looking ahead: Staff urged operators and interested parties to visit the county housing webpage for details and to contact the Department of Housing directly; the program remains in Phase 1 (rehab) while outreach and site visits continue.
