U.S. Department of Housing and Urban Development: Self-Help Homeownership Opportunity Program (SHOP)
The Self-Help Homeownership Opportunity Program (SHOP) awards grant funds to eligible national and regional non-profit organizations and consortia to purchase home sites and develop or improve the infrastructure needed to set the stage for sweat equity and volunteer-based homeownership programs for low-income persons and families. SHOP funds must be used for eligible expenses to develop decent, safe, and sanitary non-luxury housing for low-income persons and families who otherwise would not be able to afford to become homeowners. SHOP units must comply with state and local codes, ordinances, and zoning requirements, and with all other SHOP requirements.
Applicants must propose to use a significant amount of SHOP grant funds in at least two states. Successful applicants must leverage other public and private funds to pay for the construction or rehabilitation costs of each SHOP unit and for any other program costs that are not assisted with SHOP grant funds. 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. Reasonable accommodations must be permitted for individuals with disabilities in order for such individuals to meet hourly sweat equity requirements. 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: Approximately $10,000,000 is available to make up to four awards ranging from $1,145,000-$10,000,000.
The grantee must complete a minimum of 30 SHOP units. The maximum average SHOP investment for land acquisition and infrastructure improvements cannot exceed $15,000 per unit. In addition, up to 20 percent may be approved for reasonable and necessary planning and administration costs.
Eligibility: Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education, including national and regional non-profit organizations and consortia with experience facilitating innovative homeownership opportunities through the provision of self-help homeownership housing programs.
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