WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) has allocated $13.5 million in grants to aid non-profit organizations that offer self-help housing programs for low-income families and individuals. These grants, part of HUD’s Self-Help Homeownership Opportunity Program (SHOP), will assist four non-profit housing providers in building or renovating 445 homes. The program enables homeownership at reduced costs through the labor contributions of the homebuyers and volunteers.
Adrianne Todman, the Acting Secretary of HUD, stated, “HUD’s commitment to facilitating affordable homeownership is steadfast. The SHOP program offers first-time buyers a practical way to own a home through financial support from HUD and labor from volunteers, encouraging them to contribute sweat equity.”
The announcement was made by Marion McFadden, Principal Deputy Assistant Secretary, at a Habitat for Humanity event in Nashville, Tennessee. She highlighted that SHOP funding is a critical component in increasing the availability of affordable housing across the country.
McFadden added, “Addressing the national demand for at least two million new homes, it’s gratifying to allocate funds that empower homeownership for individuals with limited income. Ensuring everyone has a comfortable home is vital for their wellbeing.”
The SHOP program awards federal grants competitively to experienced non-profits and consortia for purchasing land and making infrastructure improvements. The maximum investment per dwelling is capped at $25,000. Funds are also used to construct or rehabilitate homes, primarily benefiting first-time and underserved homebuyers.
Since its inception in 1996, SHOP has disbursed over $457 million, aiding in the development of more than 33,279 affordable homes through combined efforts of financial aid and volunteer work.
For the fiscal year 2023, notable recipients of SHOP funding include Community Frameworks in Washington with $5.25 million, Habitat for Humanity International in Georgia with $4.75 million, the Housing Assistance Council in Washington D.C. with $2.5 million, and the Tierra Del Sol Housing Corporation in Colorado with $1 million.
Participants in these programs contribute considerable sweat equity to their housing projects, which lowers the cost of the homes making them more affordable. Individuals or small household contributions start from 50 hours, while larger household contributions are a minimum of 100 hours. These efforts are supplemented by community volunteers and can range from landscaping to more skilled construction tasks. Accommodations are made to ensure inclusivity for persons with disabilities.
For more information, read the original press release from: https://www.hud.gov/press/press_releases_media_advisories/HUD_No_24_070