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HUD To Give $13.5 Million In Funds To Expand Access To Affordable Homeownership

HUD strives to help people become homeowners who have not had the opportunity to become one. 

October 4, 2023

The Department of Housing and Urban Development (HUD) is giving $13.5 Million in funds via the Self-help Homeownership Opportunity Program (SHOP) to eligible national and regional non-profit organizations that have experience providing self-help housing opportunities. 

These funds aim to develop decent, safe, and sanitary housing for low-income people and their families who do not have the opportunity to become homeowners. This partnership with local communities and organizations will help to rebuild and revitalize neighborhoods and improve residents’ lives by expanding access to affordable housing opportunities. 

HUD Secretary Marcia L. Fudge said, “Owning a home can help a family maintain stability and build generational wealth, but homeownership remains out of reach for far too many people, especially low-income households. This funding opportunity through the Self-Help Homeownership Opportunity Program will help our partners address current barriers to homeownership and allow more families access to its wealth-building opportunities.”

The funds granted via SHOP can be used to purchase home sites and develop the needed infrastructure to set the stage for volunteer-based homeownership programs for low-income people and their families. The SHOP units must be sold below the market prices. 

National and regional non-profit organizations having prior experience in providing self-help homeownership are eligible to apply. The applicants need to make use of SHOP funds in at least two states. 

SHOP grants cover expenses related to land acquisition, infrastructure improvements, and planning/administration costs (up to 20 percent) with a cap of $25,000 per unit for land and infrastructure costs. Grantees are required to secure additional public and private funds to cover construction or rehabilitation costs and any other expenses not covered by the SHOP grant.

SHOP grantees can sub-award funds to local non-profit organizations to further carry out the SHOP program. The only condition is that the affiliate organizations must be located within the grantee’s service area. 

The applications for the SHOP program are due on December 4, 2023.

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The content provided in this article draws inspiration and includes quotes from various reputable sources, including news articles, government data, and interviews. Affordable Housing 411 strives to ensure accuracy and credibility, but the information presented may be based on some external sources. We encourage readers to refer to the referenced materials for more in-depth insights and verification.

Department of Housing and Urban Development. “HUD Announces $13.5 Million Funding Opportunity to Expand Access to Affordable Homeownership”. Department of Housing and Urban Development, October 2, 2023, 

HUD Announces $13.5 Million Funding Opportunity to Expand Access to Affordable Homeownership | HUD.gov / U.S. Department of Housing and Urban Development (HUD)

 

Last Updated: September 20, 2021