U.S. Department of Housing and Urban Development: Self-Help Homeownership Opportunity Program (SHOP)
Self-Help Homeownership Opportunity Programs (SHOP) seek to facilitate and encourage innovative homeownership opportunities on a national, geographically diverse basis through the provision of self-help homeownership housing programs. Grant funds must be used for land acquisition, infrastructure improvements, and for reasonable and necessary planning, administration, and management costs (not to exceed 20 percent). The construction or rehabilitation costs of each SHOP unit must be funded with other leveraged public and private funds. The average SHOP Grant expenditure for the combined costs of land acquisition and infrastructure improvements must not exceed $15,000 per SHOP unit.
SHOP units must be decent, safe, and sanitary non-luxury dwellings that comply with state and local codes, ordinances, and zoning requirements, and with all other SHOP requirements, including but not limited to, the requirements for energy-efficiency, water conservation, and accessibility. The SHOP units must be sold to homebuyers at prices below the prevailing market price. Homebuyers must be low-income and must contribute a significant amount of sweat equity towards the development of the SHOP units. A homebuyer’s sweat equity contribution cannot be mortgaged or otherwise restricted upon future sale of the SHOP unit. Volunteer labor is also required.
SHOP grantees may award SHOP grant funds to local non-profit affiliate organizations to carry out the Grantee’s SHOP program. These affiliate organizations must be located within the Grantee’s service area.
Amount: A total of $10,000,000 is available to make up to 4 grants, ranging from $450,000-$10,000,000 per project period. The project period is for 36 months.
Eligibility: National and regional non-profit organizations and consortia with experience facilitating innovative homeownership opportunities through the provision of self-help homeownership housing programs are eligible to apply. Applicants must propose to use a significant amount of SHOP grant funds in at least two states. Specifically, eligible applicants are defined as:
- National Organizations: A public or private nonprofit organization that carries out self-help homeownership housing activities or funds affiliates that carry out self-help homeownership housing activities on a national scale.
- Regional Organizations: A public or private nonprofit organization that carries out self-help homeownership housing activities or funds affiliates that carry out self-help homeownership housing activities on a regional scale. A regional area is a geographic area such as the southwest or northeast that includes at least two states. The states in the region need not be contiguous, and the service area of the organization need not precisely conform to state boundaries.
- Consortium: Two or more public or private nonprofit organizations located in at least two states that enter into an agreement to submit a single application for SHOP grant funds to carry out self-help homeownership housing activities on a national or regional basis.
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