HUD Grants More Than $22 Million To Expand Access To Affordable Housing Opportunities
HUD awards $12.5 Million in self-help homeownership opportunity (SHOP) and $10 Million grants in rural capacity building.
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Washington- The U.S. Department of Housing and Urban Development (HUD) awarded $12 Million in federal funding to extend support to self-help housing organizations to look for homeownership opportunities for low-income families and individuals. The funds provided by the HUD’s self-help homeownership opportunity program (SHOP) aim to decrease the costs of homeownership.
In addition to this, HUD also awarded $10 Million as a grant for Rural Capacity Building (RCB). The main purpose of the RCB program is to augment the ability of rural housing development organizations, Community Development Corporations, rural local governments, and Indian tribes so that they can easily carry out affordable housing and community development activities in rural areas for benefitting low and moderate-income families.
HUD is investing in homeownership and expanding access to rural communities so that they can also afford decent housing for themselves and their families. The SHOP program is a lucrative opportunity for low-income individuals and families to buy a home. HUD also cares about rural America and the capacity-building grants extended by HUD to the rural communities confirm the same.
The organizations, upon receiving funds from RCB and SHOP, partner with local beneficiaries to assist people by increasing access to affordable homes throughout the country.
HUD’s Self-help Homeownership opportunity program (SHOP)
The SHOP program provides federal grants to national and regional non-profit organizations that have experience in administering self-help homeownership programs on a competitive basis. The organizations can make use of grants to purchase land and make required improvements in infrastructure which should not exceed an average investment of $15,000 per dwelling. The leveraged funds should be used for the construction of the homeownership units.
Most of the program’s home buyers must be buying a home for the first time and come from low-income families or groups. The SHOP program has provided more than $396 Million in federal grants since 1996 which in turn has transformed lives and neighborhoods. At present, there are over 28,500 affordable housing units and all due to the SHOP program.
With the help of local self-help housing assistance programs, the homeowners will contribute significant sweat equity towards the development of their units or the housing units of other homebuyers. The sweat equity contributions aim to reduce SHOP units purchase price and make these housing units affordable for low-income homebuyers. A household of two or more persons is required to give a minimum of 100 sweat equity hours. If a household consists of one person, then the minimum equity hours are 50. Not only this, community participation such as voluntary labor contributions is also required. Sweat equity and volunteer labor are not limited to painting, carpentry, trim work, drywall, roofing, landscaping, and foundation work and can include a variety of other things. Persons with physical or mental disability are also entitled to reasonable accommodations.
HUD’s rural capacity building
The RCB program aims at enhancing the capacity and ability of local governments, Indian tribes, and housing development organizations to enable them to carry out community development and affordable housing activities for helping low-income communities and also people residing in rural areas.
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Department of Housing and Urban Development. “HUD Awards More Than $22 Million To Expand Access To Affordable Housing; Homeownership”. HUD, May 11, 2023, HUD Awards More than $22 Million to Expand Access to Affordable Housing; Homeownership | HUD.gov / U.S. Department of Housing and Urban Development (HUD)
Last Updated: September 20, 2021