HUD Doles Out $10 Million in Hopes of Building 538 Affordable Homes

Federal agency says SHOP grant funding empowers non-profit partners to help 538 families and individuals become homeowners

In an effort that the U.S. Department of Housing and Urban Development (HUD) says will help more working families become homeowners, the federal agency has awarded $10 million in grants to four non-profit housing organizations, which will create at least 538 affordable homes for low-income families and individuals.

Funded through HUD’s Self-Help Homeownership Opportunity Program (SHOP), these grants, along with the labor contributions from homebuyers and volunteers, will “significantly lower the cost of construction, thus making homeownership a reality for families who otherwise would not be able to afford to buy a home,” according to a news release issued this week.

“These non-profits receiving grants are making a positive impact in communities across the country through the strong partnerships they have formed between the public and private sector,” David C. Woll, Jr., HUD’s Principal Deputy Assistant Secretary for Community Planning and Development, said in the release. “These grants, in conjunction with volunteer work and private donations, will help make the dream of homeownership a reality for more families.”

The following organizations will receive SHOP funds, and were awarded two Opportunity Zone preference points each during the FY2019 SHOP Competition:

About the SHOP Program (from the news release)

The SHOP program provides federal grants on a competitive basis to national and regional non-profit organizations and consortia that have experience in administering self-help homeownership housing programs. The SHOP grants must be used to purchase land and make necessary infrastructure improvements, which together may not exceed an average SHOP investment of $15,000 per dwelling unit. Leveraged funds must be used for the construction or rehabilitation of these homeownership units.

Newly constructed units will receive certification as ENERGY STAR qualified units. All appliances, products or features that are installed or replaced will be ENERGY STAR qualified. Water usage products will bear the WaterSense label. Many units will also have “Green,” “Healthy Homes,” and “Universal Design” features.

Homebuyers will contribute significant sweat equity toward the development of their units and/or the units of other homebuyers participating in the local self-help housing programs. These sweat equity contributions reduce the purchase price of the SHOP units and make these units affordable for low-income homebuyers. A minimum of 100 sweat equity hours is required from a household of two or more persons. A minimum of 50 sweat equity hours is required from a household of one person. Community participation consisting of volunteer labor contributions is also required. Sweat equity and volunteer labor may include, but are not limited to, landscaping, foundation work, painting, carpentry, trim work, drywall, roofing and siding for the housing. Reasonable accommodations must be made for persons with disabilities.

Grantees may carry out activities directly and/or distribute SHOP funds to local non-profit affiliates that will develop the SHOP units, select homebuyers, coordinate the homebuyer sweat equity and volunteer efforts, and assist in the arrangement of interim and permanent financing for the homebuyers. The grantees ensure that the new homebuyers can afford their homes at the time of purchase and for the long term. Many of the SHOP homebuyers are first-time homeowners and come from underserved groups.

FY 2019 Self-Help Homeownership Opportunity Program Grants
Project Summaries

Habitat for Humanity International, Inc. (HFHI) will receive a Self-Help Homeownership Opportunity Program grant award in the amount of $5,421,011. HFHI is a private, non-profit, ecumenical Christian organization that has assisted Habitat affiliates in building and rehabilitating more than 100,000 self-help homeownership housing units in partnership with low-income people in the United States since 1976. Habitat’s mission is carried out locally by approximately 1,251 subordinate self-help homeownership housing organizations within a specific geographic service area. This grant award will be used to complete a minimum of 289 SHOP units. Competed units will be sold to low-income homebuyers who have contributed a significant amount of sweat equity toward the construction of their homes. Contact Person: Donna Golden, 229- 410-7514.

Housing Assistance Council (HAC) will receive a Self-Help Homeownership Opportunity Program grant award in the amount of $1,307,014. HAC is a national non-profit self-help housing organization that will use its SHOP funds in primarily rural areas to facilitate and encourage innovative homeownership opportunities through the provision of self-help housing. Local affiliates will compete for SHOP funding from HAC. Each affiliate has the flexibility to design a program that meets the needs of its community. SHOP funds will be used to purchase land and make necessary infrastructure improvements that support the new construction of SHOP housing units. Completed units will be sold to low-income homebuyers who have contributed a significant amount of sweat equity toward the construction of their homes. The grant award will be used to complete a minimum of 70 SHOP housing units. Contact Person: Eileen Neely, 202 842-8600 ext. 119.

Community Frameworks (CF) will receive a Self-Help Homeownership Opportunity Program grant award in the amount of $1,121,868. CF is a regional non-profit self-help housing organization that serves the states of Idaho, Montana, Oregon, and Washington. CF will make SHOP funds available to 16 affiliates to purchase land and make necessary infrastructure improvements that support new construction and rehabilitation of the SHOP units. Each affiliate has flexibility to design a program that meets the needs of its community. Grant award funds will be used to complete a minimum of 60 SHOP housing units. Contact Person: Heather Megan, (360) 377-7738.

Tierra del Sol Housing Corporation (TDS) will receive a Self-Help Homeownership Opportunity Program grant award in the amount of $2,150,107. TDS is a regional housing community development corporation with the purpose of improving the quality of life and economic conditions of low-income persons residing in distressed and underserved communities, by providing affordable housing and community development through construction activities, lending, training and employment opportunities. The grant award will be used to complete a minimum of 119 SHOP units. Contact Person: Rose Garcia, (575) 541-0477