Self-help Homeownership Opportunity Program (SHOP)

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Summary:

SHOP provides funds for eligible non-profit organizations 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. SHOP is authorized by the Housing Opportunity Program Extension Act of 1996, Section 11, and is subject to other Federal crosscutting requirements.

Purpose:

SHOP funds are used for eligible expenses to develop decent, safe and sanitary nonluxury housing for low-income persons and families who otherwise would not become homeowners. Homebuyers must be willing to contribute significant amounts of their own sweat equity toward the construction of the housing units.

Type of Assistance:

HUD awards grants to nonprofit organizations for self-help housing projects of at least 30 homes.

Eligible Grantees:

National and regional nonprofit organizations or consortia with experience in using volunteer labor to build housing may apply. The current Grantees are:

	ACORN Housing Corporation Contact: Martin Shalloo Telephone: (312) 939-1611
	Habitat for Humanity International Contact: Donna Golden Telephone: (229) 924-6935 x2408
	Housing Assistance Council Contact: Joe Belden Telephone: (202) 842-8600
	Northwest Regional Facilitators Contact: Linda Hugo Telephone: (360) 337-7738
	PPEP Microbusiness and Housing Development Corporation Contact: Jeanne V. Shaw Telephone: (520) 806-9513
	Wisconsin Association of Self-Help Executive Directors, Inc. Contact: Angela Ramirez Telephone: (608) 257-6773

Eligible Customers:

Eligible homebuyers are low-income families that cannot afford to buy homes at market rates but will provide a significant amount of sweat equity or volunteer labor to build one. Eligible homebuyers must apply through the local affiliate of the national or regional nonprofit organization.

Eligible Activities:

The only eligible expenses for SHOP funds are land acquisition and infrastructure improvements that, taken together, may not exceed an average of $10,000 in assistance per home. Administration, planning and management development costs are eligible expenses, but may not exceed 20% of the grant amount.

Application:

Nonprofit organizations apply for funding through HUD's SuperNOFA process announced annually in the Federal Register. Once the notice is published, prospective applicants may obtain a copy by contacting Community Connections at 1-800-998-9999.

Funding Status:

Fiscal year (FY) 1996, $40 million; FY 1998, $16,700,000; FY 1999, $20 million; FY 2000, $20 million; FY 2001, $19,956,000; FY 2002, $22 million; and FY 2003, $25 million.

Technical Guidance:

No separate program regulations exist. The Office of Affordable Housing Programs at HUD's Office of Community Planning and Development (CPD) administers the program. For information you may call (202) 708-2684. Hearing-impaired users may call the Federal Information Relay Service at 1-800-877-8339.