Self-Help Homeownership Opportunity Program (SHOP)

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. SHOP funds must be used for eligible expenses to develop decent, safe and sanitary non-luxury 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 or rehabilitation of their homes.

SHOP is authorized by the Housing Opportunity Program Extension Act of 1996, Section 11, and is subject to other Federal crosscutting requirements. No separate program regulations exist. All program requirements are listed in the applicable SHOP Notice of Funding Availability (NOFA).

Eligible Applicants

National and regional nonprofit organizations or consortia with experience in using homebuyer and volunteer labor to build housing may apply for SHOP grants. Applicants must have completed at least 30 units of self-help homeownership housing within the last 24 months. Eligible homebuyers must apply to participate in the SHOP program through a current SHOP grantee or one of their affiliates.

Application

SHOP grant funds are made available through HUD's annual SHOP NOFA competition. The SHOP NOFA is published on HUD's e-grant portal. Once the NOFA is published, eligible applicants may apply through this e-grant portal.

Eligible Activities

SHOP grant funds can only be used for land acquisition, infrastructure improvements, and administrative costs. Total land acquisition and infrastructure improvement costs cannot exceed an average of $15,000 in SHOP assistance per unit. Administrative costs cannot exceed 20% of the SHOP grant amount. SHOP grantees must leverage other funds for the new construction or rehabilitation of their SHOP units.

Technical Guidance

The Office of Rural Housing and Economic Development in HUD's Office of Community Planning and Development (CPD) administers the SHOP program. Questions about SHOP requirements should be directed to the Office of Rural Housing and Economic Development at 1-877-787-2526 or 202-708-2290. Persons with hearing or speech impairments may access this number via TTY by calling the Federal Information Relay service at 1-800-877-8339.

Fiscal Year 2016 SHOP Grantees

Community Frameworks (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 the flexibility to design a program that meets the needs of its community. Funds will also be used for the administration of the grant. Approximately fifty-two percent of all newly constructed units will receive certification as ENERGY STAR qualified units. The number of Green and/or energy efficient units is projected to be 100% of total combined new construction and rehab units. Community Frameworks will produce a minimum of 89 SHOP housing units. Contact: Heather Weagan, (360) 377-7738.

Habitat for Humanity International (HFHI) is a national non-profit self-help housing organization that will use SHOP funds in rural, metropolitan, and urban communities. Local affiliates will compete for SHOP funding from HFHI. Each affiliate has 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 new construction and rehabilitation of the SHOP units. Funds will also be used for the administration of the grant. HFHI’s affiliates will construct ENERGY STAR-compliant units and install ENERGY STAR-labeled products and appliances and WaterSense-labeled products in all homes. HFHI affiliates are strongly encouraged, but not required, to comply with the ENGERGY STAR Certified New Homes standard. HFHI will produce a minimum of 315 SHOP housing units. Contact: Donna Golden, (229) 410-7514.

The Housing Assistance Council (HAC) is a national non-profit self-help housing organization that will use its SHOP funds in primarily rural areas. 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 units. Funds will also be used for administration of the grant. HAC will require that at least 50 percent of FY 2016 SHOP funded units be constructed according to a comprehensive, industry-recognized or regionally-recognized green building standards. At least 20 percent of the units will meet Green Building, Healthy Home, and Universal Design standards. HAC will produce a minimum of 64 SHOP housing units. Contact: Karin Klusmann, Loan Fund Director, (202) 842-8600 ext. 118.

Tierra del Sol Housing Corporation is the lead agency representing the Western States Housing Consortium (WSHC) which also includes Comite de Bien Estar located in Yuma County, Arizona; Guadalupe Community Development Corporation located in Maricopa County, Arizona; Community Resources and Housing Development Corporations located in Alamosa County, Colorado; and Chicanos Por la Causa located in Pima County, Arizona. SHOP funds will be used to purchase land and make necessary infrastructure improvements that support the new construction. Funds will also be used for the administration of the grant. Eighty-one percent of the SHOP units constructed will meet the ENERGY STAR or Enterprise or National Green Building standards. WSHC will produce a minimum of 71 SHOP housing units. Contact: Rose Garcia, Executive Director, (575) 541-0477.