News Release

PRESTON ANNOUNCES $26.5 MILLION IN ‘SWEAT EQUITY GRANTS’
Three housing providers to produce at least 1,540 homes for first-time homebuyers

WASHINGTON - U.S. Housing and Urban Development Secretary Steve Preston today awarded $26.5 million in "sweat equity grants" to produce at least 1,540 homes for lower income first-time homebuyers. Three non-profit housing providers will use HUD's grants to construct or rehabilitate homes along with contributed labor from the homebuyers and volunteers.

"Even during these hard times, sustainable and responsible homeownership can be within reach for many families," said Preston. "With HUD's support, and the sweat equity provided by these homebuyers and volunteers, we can help make this American Dream come true."

The grants announced today are provided through HUD's Self-Help Homeownership Opportunity Program (SHOP). The following nonprofit organizations are receiving grants (see attached for more detailed summary):

SHOP grants are provided to national and regional nonprofit organizations that have experience in providing self-help housing. These funds are used to purchase land and install or improve infrastructure, which together may not exceed an average investment of $15,000 per dwelling. These non-profit organizations propose to distribute SHOP funds to several hundred local affiliates that will acquire and prepare the land for construction, select homebuyers, coordinate the homebuyer sweat equity and volunteer efforts, and assist in the arrangement of interim and permanent financing for the homebuyers.

Homebuyers contribute a minimum of 100 hours of sweat equity on the construction of their homes and/or the homes of other homebuyers participating in the local self-help housing program. Self-help housing or sweat equity involves the homebuyer's participation in the construction of the housing, which can include, but is not limited to, assisting in the painting, carpentry, trim work, drywall, roofing and siding for the housing.

Labor contributed by volunteers also helps buyers who are unable to perform their sweat equity tasks due to disabilities. Frequently persons with disabilities are able to substitute tasks by performing administrative tasks. The sweat equity and labor contributions by the homebuyers and volunteers significantly reduce the cost of the housing.

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HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

FY 2008 SHOP AWARDS

Habitat for Humanity International
$13,250,000

Habitat for Humanity International (HFHI) is a national nonprofit organization that will use SHOP funds in rural, metropolitan, and urban communities to facilitate and encourage innovative homeownership opportunities through the provision of self-help housing. SHOP funds will be used to purchase land and make necessary infrastructure improvements, primarily in support of new construction. A portion of the SHOP award will be used for administration, planning, and management development. Local affiliates will compete for SHOP funding from HFHI on a national basis and will build single-family detached units, multi-family units and condominiums. Completed housing units will be transferred to homebuyers who contribute a significant amount of sweat equity, in addition to other volunteer labor, toward the construction of the unit. HFHI will produce a minimum of 762 housing units.

For more information, contact: Elizabeth Blake 1 (800) 422-4828

Housing Assistance Council
$6,625,000

Housing Assistance Council (HAC) is a national nonprofit organization that will use SHOP funds in primarily rural areas to facilitate and encourage innovative homeownership opportunities through the provision of self-help housing. SHOP funds will be used for land acquisition and infrastructure improvements that support new construction. A portion of the SHOP award will be used for administration, planning, and management development. To achieve a national distribution of funds, local self-help housing organizations from five service regions will compete for SHOP funding from HAC. Completed properties will be sold to homebuyers who contribute a significant amount of sweat equity toward the construction of their own homes in addition to other volunteer labor. Each local organization is permitted to custom design how it will use the funds in compliance with SHOP requirements. All units will be new construction, single-family, detached homes, with fee-simple ownership. HAC will produce a minimum of 402 housing units.

For more information, contact: Moises Loza (202) 842-8600

Community Frameworks
$6,625,000

Community Frameworks is a regional nonprofit organization serving the states of Washington, Oregon, Idaho, and Montana. SHOP funds will be used by 25 affiliates, including Community Frameworks’ HomeStarts self-help housing program, to buy land and make necessary infrastructure improvements that support new construction and rehabilitation. A portion of this SHOP award will be used for administration, planning and management development. Each local organization is permitted to custom design how it will use the funds in compliance with SHOP requirements. The majority of homes will be single-family detached dwellings with fee-simple ownership. Some affiliates will develop self-help condominium projects or administer self-help acquisition/rehabilitation programs and use ownership models such as community land trusts or cooperative/condominium ownership. Completed properties are sold to low-income homebuyers who contribute a significant amount of sweat equity toward the construction of the unit, in addition to other volunteer labor. Community Frameworks will produce a minimum of 376 housing units.

For more information, contact: Linda Hugo (360) 377-7738