Self-Help Homeownership Opportunity Program (SHOP)

SHOP Grant funds are awarded to national and regional non-profit organizations and consortia to facilitate and encourage innovative homeownership opportunities on a national, geographically diverse basis through the provision of self-help homeownership housing programs. SHOP Grantees must use a significant amount of SHOP Grant funds in at least two states. SHOP Grant funds must be used for land acquisition, infrastructure improvements, and for reasonable and necessary planning, administration and management costs (not to exceed 20 percent). The construction or rehabilitation costs of each SHOP unit must be funded with other leveraged public and private funds. The average SHOP Grant expenditure for the combined costs of land acquisition and infrastructure improvements must not exceed $15,000 per SHOP unit. Eligible low-income homebuyers must contribute a significant amount of sweat equity towards the development of the SHOP units. Volunteer labor is also required. Assisted units must be decent, safe, and sanitary non-luxury dwellings that comply with state and local codes, ordinances, and zoning requirements, and with the SHOP requirements (including requirements for energy-efficiency and water conservation). The SHOP units must be sold to homebuyers at prices below the prevailing market price. A homebuyer’s sweat equity contribution must not be mortgaged or otherwise restricted upon future sale of the SHOP unit. SHOP Grantees may award SHOP Grant funds to local non-profit affiliate organizations to carry out the Grantee’s SHOP program. These affiliate organizations must be located within the Grantee’s service area.