Programs of HUD: Major Mortgage, Grant, Assistance, and Regulatory Programs 2018, The Department of Housing and Urban Development (HUD)
Programs of HUD: Major Mortgage, Grant, Assistance, and Regulatory Programs 2018
Self-Help Homeownership Opportunity Program (SHOP)
Grants for self-help homeownership housing.
Nature of Program: Under the SHOP program, HUD awards competitive grants to national and regional nonprofit organizations and consortia that have the capacity and experience in providing or facilitating self-help homeownership housing opportunities. Grants must be used by the
grantee or its affiliates for eligible expenses related to developing non-luxury housing for families and persons who otherwise would be unable to afford to purchase a home. Homebuyers must be low-income. Eligible uses of grant funds are limited to land acquisition (including financing and closing costs), infrastructure improvements (installing, extending, constructing, rehabilitating, or otherwise improving utilities and other infrastructure), and planning and administration costs (up to 20 percent of the grant amount). Total land acquisition and infrastructure improvement costs cannot exceed an average of $15,000 in SHOP grant funds per unit. Homebuyers must contribute a significant amount of sweat equity toward the construction or rehabilitation of their homes. SHOP also requires community participation through volunteers who assist the homebuyers on the construction or rehabilitation of the homes. Assisted units must be decent, safe, and sanitary non-luxury dwellings that comply with all state and local codes, ordinances and zoning requirements, as well as Federal accessibility requirements. These units must be sold to eligible low-income homebuyers at prices below the prevailing market price.
Applicant Eligibility: National and regional nonprofit organizations and consortia with experience in providing or facilitating self-help homeownership housing, involving a significant contribution of homebuyer sweat equity and volunteer labor, may apply. Applicants must have completed at least 30 units of self-help homeownership housing within the last 24 months in an area consisting of at least two states.
Legal Authority: Section 11 of the Housing Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note).
Information Sources: Assistant Secretary for Community Planning and Development.