WASHINGTON – U.S. Department of Housing and Urban Development (HUD) Secretary Julián Castro today awarded $10 million in “sweat equity” grants to four non-profit self-help housing organizations through HUD’s Self-Help Homeownership Opportunity Program (SHOP). This funding will create at least 539 affordable homes and significantly lower their purchase price for low-income buyers, who will contribute their own labor toward the construction or rehabilitation of these units.
“Our SHOP grants help advance a fundamental ideal: that every American deserves the chance to build a brighter future by combining opportunity with their own hard work,” said HUD Secretary Julián Castro. “We’re proud to help hundreds of families secure an enduring cornerstone of the American Dream.”
The following organizations will receive SHOP funds (see individual descriptions below):
| Organization | Grant Amount |
| Community Frameworks | $1,676,280 |
| Habitat for Humanity International | $5,898,895 |
| Housing Assistance Council | $1,145,625 |
| Tierra del Sol (Western States Housing Consortium) | $1,279,200 |
| Total | $10,000,000 |
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. Many SHOP homebuyers are first-time homeowners and come from underserved communities.
Homebuyers will provide significant sweat equity toward the development of their units and/or the units of other homebuyers. Sweat equity and volunteer labor may include, but are not limited to, landscaping, foundation work, painting, carpentry, trim work, and installing drywall, roofing or siding. A minimum of 50 sweat equity hours is required from a household of one person, while a minimum of 100 hours is required from a household of two or more. Community participation consisting of volunteer labor contributions is also required, and 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. Grantees ensure that new homebuyers can afford their homes at the time of purchase and for the long term.
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. All 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.
Since 1996, when Congress first appropriated SHOP funds, the SHOP program has provided more than $396 million in federal grants that, together with significant leveraged funds and numerous volunteer hours, are transforming lives and neighborhoods through the production of more than 28,500 units of affordable housing.