The Self-Help Homeownership Opportunity Program (SHOP) awards grant funds to eligible national and regional non-profit organizations and consortia to purchase home sites and develop or improve the infrastructure needed to set the stage for sweat equity and volunteer-based homeownership programs for low-income persons and families.
Donor Name: U.S. Department of Housing and Urban Development (HUD)
State: All States
County: All Counties
Type of Grant: Grant
Deadline: 12/17/2024
Size of the Grant: More than $1 million
Grant Duration: 3 Years
Details:
Land acquisition, infrastructure improvements, and reasonable and necessary planning and administration costs (not to exceed 20 percent) are the only eligible uses for SHOP grant funds. The average SHOP expenditure for the combined cost of land acquisition and infrastructure improvements cannot exceed $25,000 per SHOP unit. Successful applicants must leverage other public and private funds to pay for the construction or rehabilitation costs of each SHOP unit and for any other program costs that are not assisted with SHOP grant funds.
The SHOP units must be sold to homebuyers at prices below the prevailing market price. Homebuyers must be low-income and must contribute a significant amount of sweat equity towards the development of the SHOP units. Reasonable accommodations must be made, whenever necessary to afford individuals with disabilities with equal opportunity to use and enjoy a dwelling. This includes making reasonable accommodations with respect to the sweat equity requirement. A homebuyer’s sweat equity contribution cannot be mortgaged or otherwise restricted upon future sale of the SHOP unit. Volunteer labor is also required.
Applicable Goals and Objectives from HUD’s Strategic Plan
- Strategic Goal 1: Support Underserved Communities: Fortify support for underserved communities and support equitable community development for all people.
- 1A: Advance Housing Justice: Fortify support for vulnerable populations, underserved communities, and Fair Housing enforcement.
- 1B: Reduce Homelessness: Strengthen Federal, State, Tribal, and community implementation of the Housing First approach to reducing the prevalence of homelessness, with the ultimate goal of ending homelessness.
- 1C: Invest in the Success of Communities: Promote equitable community development that generates wealth-building for underserved communities, particularly for communities of color.
- Strategic Goal 2: Ensure Access to and Increase the Production of Affordable Housing: Ensure housing demand is matched by adequate production of new homes and equitable access to housing opportunities for all people.
- 2A: Increase the Supply of Housing: Enhance HUD’s programs that increase the production and supply of housing across the country.
- 2B: Improve Rental Assistance: Improve rental assistance to address the need for affordable housing.
- Strategic Goal 3: Promote Homeownership: Promote homeownership opportunities, equitable access to credit for purchase and improvements, and wealth-building in underserved communities.
- 3A: Advance Sustainable Homeownership: Advance the deployment of tools and capital that put sustainable homeownership within reach.
- 3A: Major Initiative: Expand Homeownership Opportunities: Promote financing for innovative ownership models to increase the availability of affordable housing.
- 3B: Create a More Accessible and Inclusive Housing Finance System: Advance new policy, programs, and modernization initiatives that support a more equitable housing finance system. Promote the preservation and creation of affordable housing stock.
- Strategic Goal 4: Advance Sustainable Communities: Advance sustainable communities by strengthening climate resilience and energy efficiency, promoting environmental justice, and recognizing housing’s role as essential to health.
- 4A: Guide Investment in Climate Resilience: Invest in climate resilience, energy efficiency, and renewable energy across HUD programs.
- 4B: Strengthen Environmental Justice: Reduce exposure to health risks, environmental hazards, and substandard housing, especially for low-income households and communities of color.
- 4C: Integrate Health and Housing: Advance policies that recognize housing’s role as essential to health.
Funding Information
- Estimated Total Program Funding: $12,000,000
- Award Ceiling: $12,000,000
- Award Floor: $1,145,000.
Grant Period
36-month project period and budget period.
Eligible SHOP Applicants
- National Organization. A national organization is a public or private non-profit organization that carries out self-help homeownership housing activities or funds affiliates that carry out self-help homeownership housing activities on a national scale.
- Regional Organization. A regional organization is a public or private non-profit organization that carries out self-help homeownership housing activities or funds affiliates that carry out self-help homeownership housing activities on a regional scale. A regional area is a geographic area, such as the Southwest or Northeast that includes at least two states. The states in the region need not be contiguous, and the service area of the organization need not precisely conform to state boundaries.
- Consortium. A consortium is two or more public or private non-profit organizations located in at least two states that enter into an agreement to submit a single application for SHOP grant funds to carry out self-help homeownership housing activities on a national or regional basis. Individual consortium members may carry out self-help homeownership housing activities or fund affiliates to carry out self-help homeownership housing activities. The consortium must designate one member as the lead entity to act on behalf of all consortium members. The lead entity must be responsible and accountable for the timely performance and compliance of all consortium members. The consortium must execute a new written agreement with each affiliate that is participating in the consortium’s FY2024 SHOP program. The consortium cannot amend a prior written agreement.
Affiliate Organization (“Affiliate”)
Applicants may undertake eligible SHOP activities directly and/or enter into a written agreement with one or more non-profit, affiliate organizations to carry out the SHOP activities.
If the applicant will use affiliate organizations, the affiliate must satisfy the following:
- Type of Organization: Your affiliates must be:
- Subordinate Organization. A local non-profit self-help homeownership housing organization that is a subordinate organization (i.e., chapter, local, post, or unit) of your central organization and covered by the group exemption issued to the central organization under section 501(c) (3) or 501(c)(4) of the Internal Revenue Code; or
- Organization with an Existing Relationship. A local non-profit self-help homeownership housing organization with which you have an existing relationship (e.g., you have provided technical assistance, mentoring or funding to the local self-help homeownership housing organization); or
- Organization with a Future Relationship. A local non-profit self-help homeownership housing organization with which you do not have an existing relationship, but to which you will provide technical assistance, mentoring or funding in accordance with your SHOP application.
- Service Area. Your affiliate must be located within your service area.
- Written Agreement. You must have a written agreement with each of your affiliates that incorporates the requirements of this NOFO. Your written agreement must describe the SHOP responsibilities of your affiliate. If you are a consortium, each of your affiliates must be linked to an individual consortium member by a written agreement. You must execute a new written agreement with each affiliate that is participating in your FY2024 SHOP program. You cannot amend a prior written agreement.
For more information, visit Grants.gov.
