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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 Affordable Housing Programs in HUD's Office of Community Planning and Development (CPD) administers the SHOP program. Questions about SHOP requirements should be directed to the SHOP Program Manager at (202) 708-2684. Persons with hearing or speech impairments may access this number via TTY by calling the Federal Information Relay service at 1-800-877-8339.
Current SHOP Grantees:
To learn about a SHOP grantee’s program or how to participate, contact the grantee organization. To learn more about a SHOP grantee, visit the grantee’s web page.
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