SHOP grants enable homeownership opportunities for 539 families

The U.S. Department of Housing and Urban Development (HUD) awarded $10 million in “sweat equity” grants to support four non-profit, self-help housing organizations that enable homeownership opportunities for hard-working, low-income families and individuals. Funded through HUD’s Self-Help Homeownership Opportunity Program (SHOP), the grants awarded today, along with the labor contributed by the homebuyers and numerous volunteers, will significantly lower the cost of homeownership.

“Advancing economic opportunity for low-income families is a top priority of mine at HUD, and one that the department is carrying out through terrific programs like SHOP,” said HUD Secretary Ben Carson. “These grants, along with the support of our partners, will enable homeownership opportunities for hundreds of deserving families.”

The following organizations will receive SHOP funds (see individual descriptions below):

Organization Grant Amount
Housing Assistance Council in Washington, DC $1,202,032
Community Frameworks in Spokane, Washington $1,338,071
Tierra Del Sol Housing Corporation (Consortium) Anthony, New Mexico $2,138,174
Habitat for Humanity International, Americus, GA $5,321,723
TOTAL $10,000,000

The SHOP program provides federal grants on a competitive basis to national and regional non-profit organizations and consortia that have experience in administering self-help homeownership housing programs. The SHOP grants must be used to purchase land and make necessary infrastructure improvements, which together may not exceed an average SHOP investment of $15,000 per dwelling unit. Leveraged funds must be used for the construction or rehabilitation of these homeownership units.

Homebuyers will contribute significant sweat equity toward the development of their units and/or the units of other homebuyers participating in the local self-help housing programs. These sweat equity contributions reduce the purchase price of the SHOP units and make these units affordable for low-income homebuyers. A minimum of 100 sweat equity hours is required from a household of two or more persons. A minimum of 50 sweat equity hours is required from a household of one person. Community participation consisting of volunteer labor contributions is also required. Sweat equity and volunteer labor may include, but are not limited to, landscaping, foundation work, painting, carpentry, trim work, drywall, roofing and siding for the housing. Reasonable accommodations must be made for persons with disabilities.

Grantees may carry out activities directly and/or distribute SHOP funds to local non-profit affiliates that will develop the SHOP units, select homebuyers, coordinate the homebuyer sweat equity and volunteer efforts, and assist in the arrangement of interim and permanent financing for the homebuyers. The grantees ensure that the new homebuyers can afford their homes at the time of purchase and for the long term. Many of the SHOP homebuyers are first-time homeowners and come from underserved groups

Since 1996, when Congress first appropriated SHOP funds, the SHOP program has provided more than $396 million in federal grants that, together with significant leveraged funds and numerous volunteer hours, are transforming lives and neighborhoods through the production of over 28,500 units of affordable, homeownership housing.

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Fiscal Year 2019 SHOP Grantees

Housing Assistance Council (HAC) will receive a Self-Help Homeownership Opportunity Program grant award in the amount of $1,202,032. HAC is a national non-profit self-help housing organization that will use its SHOP funds in primarily rural areas to facilitate and encourage innovative homeownership opportunities through the provision of self-help housing.  Local affiliates will compete for SHOP funding from HAC.  Each affiliate has the flexibility to design a program that meets the needs of its community. SHOP funds will be used to purchase land and make necessary infrastructure improvements that support the new construction of SHOP housing units.  Completed units will be sold to low-income homebuyers who have contributed a significant amount of sweat equity toward the construction of their homes. The grant award will be used to complete a minimum of 67 SHOP housing units.

Community Frameworks (CF) will receive a Self-Help Homeownership Opportunity Program grant award in the amount of $1,338,071. CF is a regional non-profit self-help housing organization that serves the states of Idaho, Montana, Oregon, and Washington. CF will make SHOP funds available to 16 affiliates to purchase land and make necessary infrastructure improvements that support new construction and rehabilitation of the SHOP units. Each affiliate has flexibility to design a program that meets the needs of its community. Grant award funds will be used to complete a minimum of 71 SHOP housing units.

Tierra del Sol Housing Corporation (TDS) will receive a Self-Help Homeownership Opportunity Program grant award in the amount of $2,138,174. TDS is a regional housing community development corporation with the purpose of improving the quality of life and economic conditions of low-income persons residing in distressed and underserved communities, by providing affordable housing and community development through construction activities, lending, training and employment opportunities.  The grant award will be used to complete a minimum of 117 SHOP units.

Habitat for Humanity International, Inc. (HFHI) will receive a Self-Help Homeownership Opportunity Program grant award in the amount of $5,321,723.   HFHI is a private, non-profit, ecumenical Christian organization that has assisted Habitat affiliates in building and rehabilitating more than 100,000 self-help homeownership housing units in partnership with low-income people in the United States since 1976. Habitat’s mission is carried out locally by approximately 1,251 subordinate self-help homeownership housing organizations within a specific geographic service area.  This grant award will be used to complete a minimum of 284 SHOP units. Competed units will be sold to low-income homebuyers who have contributed a significant amount of sweat equity toward the construction of their homes.

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