HUD Awards $13.5 Million In Grants To Expand Access To Homeownership Opportunities

By HUD

Photos: HUD

WASHINGTON – Today, the U.S. Department of Housing and Urban Development (HUD) awarded $13.5 million in “sweat equity grants” to support non-profit, self-help housing organizations that enable homeownership opportunities for hard-working, low-income families and individuals. Funded through HUD’s Self-Help Homeownership Opportunity Program (SHOP), four non-profit housing providers will use HUD’s grants to construct or rehabilitate 445 homes along with contributed labor from the homebuyers and volunteers that, will significantly lower the cost of homeownership.

“HUD is committed to investing in homeownership and creating affordable options for Americans to buy their first home,” said HUD Acting Secretary Adrianne Todman. “The SHOP program provides a unique pathway for first-time homeowners to buy a home, with financial support from HUD and the help of volunteers, buyers contribute their sweat equity to make buying a home a reality.”

Principal Deputy Assistant Secretary Marion McFadden made the announcement during a Habitat for Humanity Build in Nashville, Tennessee where she stood alongside a future homeowner who used funding from SHOP to help make this happen.

Organizations receive SHOP funding to help people and communities throughout the country by increasing access and availability to affordable homes.

“Given the national needs to build at least two million new homes, it’s a joy to provide millions of dollars enabling homeownership by people of modest means,” said Principal Deputy Assistant Secretary for Community Planning and Development Marion McFadden. “There’s nothing more important to our wellbeing than waking up to face the day in a comfortable home.”

HUD’s Self-Help Homeownership Opportunity Program (SHOP)

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. The SHOP grants must be used to purchase land and make necessary infrastructure improvements, which together may not exceed an average SHOP investment of $25,000 per dwelling unit. Leveraged funds must be used for the construction or rehabilitation of these homeownership units. Many of the SHOP homebuyers are first-time homeowners and come from underserved groups.

Since 1996, when Congress first appropriated SHOP funds, the SHOP program has provided more than $457 million in federal grants that, together with significant leveraged funds and numerous volunteer hours, are transforming lives and neighborhoods through the production of over 33,279 units of affordable, homeownership housing.

Homebuyers will contribute significant sweat equity toward the development of their units and/or the units of other homebuyers participating in the local self-help housing programs. These sweat equity contributions reduce the purchase price of the SHOP units and make these units affordable for low-income homebuyers. A minimum of 100 sweat equity hours is required from a household of two or more persons. A minimum of 50 sweat equity hours is required from a household of one person. Community participation consisting of volunteer labor contributions is also required. Sweat equity and volunteer labor may include, but are not limited to, landscaping, foundation work, painting, carpentry, trim work, drywall, roofing and siding for the housing. Reasonable accommodations must be made for persons with disabilities.

FY 2023 Self-Help Homeownership Opportunity Program (SHOP)
Link to grant summaries here.

HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. More information about HUD and its programs is available at www.hud.gov and https://espanol.hud.gov. You can also connect with HUD on social media or sign up for news alerts on HUD’s Email List. HUD COVID-19 Resources and Fact Sheets Learn More About HUD’s Property Appraisal and Valuation Equity Work