Approximately $12 million will be made available by the U.S. Department of Housing and Urban Development (HUD) to increase Americans’ access to affordable housing and homeownership options in both urban and rural areas nationwide, according to a new release.
Organizations that qualify for grant money under HUD’s Self-Help Homeownership Opportunity Program (SHOP) can buy land, build more dwellings, and upgrade infrastructure. The Biden-Harris Administration’s dedication to bringing down housing costs and guaranteeing that Americans have access to affordable homes is demonstrated by this financing.
“These funds will help make dreams come true. Many families want to buy a home, but can’t find one they can afford,” said HUD Agency Head Adrianne Todman. “Working with our partners, HUD will support the creation of new homes to purchase, while also helping families navigate the homeownership process. This is another demonstration of the Biden-Harris Administration’s commitment to housing.”
Utilizing the Self-Help Homeownership Opportunity Program
Funds from SHOP grants can be used by organizations to rebuild existing buildings or build new homes. This covers the purchase of property, upgrades to the infrastructure, and appropriate and required planning and administrative expenses. The average SHOP investment for infrastructure improvements and land acquisition cannot be more than $25,000 per SHOP unit. Prospective homeowners must use additional public and private funding to cover the remaining building or renovation costs, and SHOP units must be offered to buyers at prices lower than the going market value.
“I have traveled around the country and seen the transformative impact of SHOP funds firsthand,” said Marion McFadden, Principal Deputy Assistant Secretary for Community Planning and Development. “SHOP helps transform people’s lives by making homeownership opportunities more accessible to low-income families in rural and underserved communities.”
Applications are only accepted from consortia and national and regional non-profit organizations who have expertise offering self-help homeownership housing programs. In at least two states, applicants must suggest using a sizable portion of SHOP grant monies. SHOP grant money are not available to individuals.
In order to implement their SHOP program, grantees may sub-award SHOP grant funding to nearby non-profit affiliate groups. The grantee’s service area must contain the associated organizations.
Preference points are available for initiatives that address environmental justice and climate change, Minority Serving Institutions, Promise Zones, the Rural Partners Network Community Network, and the Rural Partners Network, according to the Fiscal Year 2024 SHOP Notice of Funding Opportunity.
For additional information on the Fiscal Year 2024 SHOP Notice of Funding Opportunity, including eligibility requirements, and to apply, click here.
