HUD News

Washington- The Department of Housing and Urban Development announced $13.5 million in grants to support non-profit self-help housing organizations to enable homeownership opportunities for hard-working, low-income families and individuals. By receiving the funds through HUD’s Self-Help Homeownership Opportunity Program (SHOP), four non-profit housing providers will be able to construct or rehabilitate 445 homes along with contributed labor from the homebuyers and volunteers which in turn will lower the cost of homeownership.

HUD Acting Secretary Adrianne Todman said, “HUD is committed to investing in homeownership and creating affordable options for Americans to buy their first home. The SHOP program provides a unique pathway for first-time homeowners to buy a home, with financial support from HUD and the help of volunteers, buyers contribute their sweat equity to make buying a home a reality.”

Marion McFadden, the Principal Deputy Assistant Secretary, announced the news at a Habitat for Humanity Build in Nashville, Tennessee where she was joined by a future homeowner who benefited from SHOP funding to make their home ownership a reality.

The main aim of the organizations receiving the SHOP funding is to help people and communities throughout the county by increasing access and availability to affordable homes.

Principal Deputy Assistant Secretary for Community Planning and Development Marion McFadden said, “Given the national need to build at least two million new homes, it’s a joy to provide millions of dollars enabling homeownership by people of modest means. There’s nothing more important to our well-being than waking up to face the day in a comfortable home.”

HUD’s Self-Help Homeownership Opportunity Program (SHOP)

The self-help homeownership program provides grants on a competitive basis to national and regional non-profit organizations experienced in administering self-help homeownership housing programs. The grants can only be used to purchase land and make infrastructure improvements which combined should not exceed an average SHOP investment of $25,000 per dwelling unit. The funds are only supposed to be used for the construction or rehabilitation of these homeownership units. Most of the homebuyers are either first-time homeowners and come from underserved groups.

Congress first appropriated SHOP funds in 1996 and from then till now, it has provided more than $457 Million in federal grants which along with leveraged funds and volunteer hours are transforming lives and neighborhoods by producing around 33,279 affordable, homeownership housing units.

The SHOP grants have been provided to the following:

• Habitat for Humanity International, Inc.
• Tierra Del Sol Housing Corporation
• Housing Assistance Council
• Community Frameworks

Significant equity is contributed by the homebuyers towards the development of their housing units or the housing units of other home buyers participating in the local self-help housing programs. A household of two or more persons needs to provide a minimum of 100 sweat equity hours. A household of one person needs to provide a minimum of 50 sweat equity hours. Besides this, community participation including volunteer labor contributions is also required. Sweat equity and voluntary labor include landscaping, foundation work, painting, drywall, roofing, carpentry, and siding for the housing. Reasonable accommodations should also be made for persons with disabilities.