Recently, the U.S. Department of Housing and Urban Development (HUD) announced the availability of $12 million to expand access to affordable housing and homeownership opportunities for Americans in rural and urban communities across the country.
Grant funding awarded to organizations through HUD’s Self-Help Homeownership Opportunity Program (SHOP) allows eligible organizations to purchase land, improve infrastructure, and develop housing.
“These funds will help make dreams come true. Many families want to buy a home, but can’t find one they can afford,” HUD Agency Head Adrianne Todman said in the release. “Working with our partners, HUD will support the creation of new homes to purchase, while also helping families navigate the homeownership process.”
Organizations can use SHOP grant funds to construct new homes or rebuild existing structures. This includes land acquisition, infrastructure improvements, and reasonable and necessary planning and administration costs. The average SHOP expenditure for the combined cost of land acquisition and infrastructure improvements cannot exceed $25,000 per SHOP unit. SHOP units must be sold to homebuyers at prices below the prevailing market price and prospective homeowners must leverage other public and private funds to pay for the remainder of construction or rehabilitation costs, HUD stated.
“I have traveled around the country and seen the transformative impact of SHOP funds firsthand,” Marion McFadden, principal deputy assistant secretary for Community Planning and Development, said. “SHOP helps transform people’s lives by making homeownership opportunities more accessible to low-income families in rural and underserved communities.”
Only national and regional non-profit organizations and consortia with experience providing self-help homeownership housing programs are eligible to apply. Applicants must propose to use a significant amount of SHOP grant funds in at least two states. Individuals are not eligible applicants for SHOP grant funds.
SHOP grantees may sub-award SHOP grant funds to local non-profit affiliate organizations to carry out the grantee’s SHOP program. The affiliate organizations must be located within the grantee’s service area.