Opportunity Information: Apply for FR 5800 N 14

  • The Department of Housing and Urban Development in the housing sector is offering a public funding opportunity titled "Self Help Homeownership Opportunity Program (SHOP)" and is now available to receive applicants.
  • Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 14.247 Self Help Homeownership Opportunity Program.
  • This funding opportunity was created on Jul 14, 2014 and posted on Jul 14, 2014.
  • Applicants must submit their applications by Sep 4, 2014 Electronically submitted applications must be submitted no later than 115959 p.m., ET, on the listed application due date.. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
  • The funding agency has allocated a total of $10,000,000.00 to eligible and selected applicants.
  • Each selected applicant is eligible to receive up to $10,000,000.00 in funding.
  • The number of recipients for this funding is limited to 4 candidate(s).
  • Eligible applicants include: Others (see text field entitled Additional Information on Eligibility for clarification).
  • You must be a public or private non profit organization, or a consortium of public or private non profit organizations, that has the capacity and experience to provide or facilitate self help homeownership housing opportunities on a national or regional basis. You must propose to undertake eligible SHOP activities directly and/or to enter into a written agreement with one or more non profit affiliate organizations to carry out your eligible SHOP activities. Individuals, foreign entities, and sole proprietorship organizations are not eligible to compete for, or receive, awards made under this announcement.
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Opportunity Summary:

The Self Help Homeownership Opportunity Program (SHOP) is a discretionary grant program run by the U.S. Department of Housing and Urban Development (HUD) that funds national and regional nonprofit organizations (and nonprofit consortia) to expand affordable homeownership through self-help housing models. The central idea is to support housing opportunities in a way that is geographically broad and replicable, using a “sweat equity” approach where future homeowners actively help build their own homes alongside volunteer labor. By design, SHOP is not a direct-to-individual assistance program; it funds capable intermediary organizations that can manage multi-site programs and work through local nonprofit affiliates.

Eligible applicants must be public or private nonprofit organizations, or consortia of such nonprofits, with demonstrated capacity and experience to provide or facilitate self-help homeownership housing on a national or regional basis. The program expects grantees to operate across state lines: a significant portion of grant funds must be used in at least two states, reinforcing HUD’s goal of national or geographically diverse impact. Applicants can carry out SHOP activities directly or through formal written agreements with one or more local nonprofit affiliate organizations, as long as those affiliates are located within the grantee’s service area. Individuals, foreign entities, and sole proprietorships are explicitly ineligible.

SHOP funds have a narrow and specific set of allowable uses. Grant dollars can be used for land acquisition and infrastructure improvements that support the development of the SHOP units, as well as reasonable and necessary planning, administration, and management costs, capped at 20 percent of the grant. The program draws a firm line between “site and program enablement” and “vertical construction”: the actual construction or rehabilitation costs for each unit must be paid for with other leveraged funding sources, including public and private funds. In addition, SHOP imposes a per-unit cost discipline requirement: the average SHOP grant expenditure for the combined costs of land acquisition plus infrastructure improvements must not exceed $15,000 per unit. In practice, that means applicants need a strong pipeline of leveraged financing and partnerships so that SHOP dollars fill targeted gaps rather than funding the full build.

A defining feature of SHOP is the requirement that assisted homebuyers be low-income and contribute a significant amount of sweat equity toward the development of the units. Volunteer labor is also required, reinforcing the self-help model and helping to reduce overall development costs while building homeowner investment in the property and community. The housing produced must be “decent, safe, and sanitary” and must be non-luxury, while also complying with applicable state and local building codes, ordinances, and zoning requirements. SHOP also includes programmatic requirements related to energy efficiency and water conservation, so grantees must ensure the final homes meet those standards as part of compliance.

Affordability and resale treatment are also core to the program. SHOP units must be sold to eligible homebuyers at prices below the prevailing market price, reflecting the program’s affordable homeownership purpose. At the same time, the program protects the homeowner’s labor contribution by requiring that the value of the homebuyer’s sweat equity not be mortgaged or otherwise restricted upon a future sale of the unit. This is an important consumer-protection and equity-building provision: it ensures that sweat equity is treated as a real investment by the homeowner rather than something that can be encumbered or clawed back later through program restrictions tied to that labor contribution.

From the funding notice details provided, this opportunity was issued under Funding Opportunity Number FR 5800 N 14, CFDA 14.247. HUD anticipated making around 4 awards, with an estimated total funding amount of $10,000,000. The award ceiling is listed as $10,000,000 and the award floor as $0. The listing indicates a cost sharing or matching requirement, which aligns with the broader expectation that construction and rehabilitation be financed through leveraged sources rather than SHOP grant dollars alone. The posting date was July 14, 2014, with an application deadline of September 4, 2014 (electronically submitted applications due by 11:59:59 p.m. ET). The opportunity is archived as of February 13, 2015. For program-specific questions, the notice references Martha Murray, SHOP Program Manager in HUD’s Office of Affordable Housing Programs, at (202) 402-4410, and points to HUD’s funding availability page for the full announcement and updates.

Self Help Homeownership Opportunity Program (SHOP) - FAQs

What is the Self Help Homeownership Opportunity Program (SHOP)?

SHOP is a discretionary grant program run by the U.S. Department of Housing and Urban Development (HUD). It funds national and regional nonprofit organizations (and nonprofit consortia) to expand affordable homeownership through self-help housing models that rely on sweat equity and volunteer labor.

Does SHOP provide grants directly to individual homebuyers?

No. SHOP is not a direct-to-individual assistance program. Funding is awarded to capable intermediary nonprofit organizations that can manage multi-site programs and work through local nonprofit affiliates.

Who is eligible to apply for SHOP funding?

Eligible applicants must be public or private nonprofit organizations, or consortia of such nonprofits, with demonstrated capacity and experience to provide or facilitate self-help homeownership housing on a national or regional basis.

Are for-profit organizations eligible to apply?

Only nonprofit organizations (or nonprofit consortia) are described as eligible in the provided opportunity information.

Are individuals eligible to apply?

No. Individuals are explicitly ineligible.

Are foreign entities eligible to apply?

No. Foreign entities are explicitly ineligible.

Are sole proprietorships eligible to apply?

No. Sole proprietorships are explicitly ineligible.

What does HUD mean by national or regional capacity?

SHOP expects grantees to operate across state lines. A significant portion of grant funds must be used in at least two states, reflecting HUD’s emphasis on national or geographically diverse impact.

Does a SHOP grantee have to work in more than one state?

Yes. The program expects multi-state activity: a significant portion of grant funds must be used in at least two states.

Can applicants carry out SHOP activities through local partners?

Yes. Applicants can carry out SHOP activities directly or through formal written agreements with one or more local nonprofit affiliate organizations, as long as those affiliates are located within the grantee’s service area.

What kinds of costs can SHOP grant funds pay for?

SHOP grant dollars can be used for land acquisition and infrastructure improvements that support the development of SHOP units, as well as reasonable and necessary planning, administration, and management costs (with limits described in the notice summary).

Is there a cap on planning, administration, and management costs?

Yes. Planning, administration, and management costs are capped at 20 percent of the grant.

Can SHOP funds be used to pay for building or rehab construction costs?

No. SHOP draws a firm line between site and program enablement and vertical construction. The actual construction or rehabilitation costs for each unit must be paid for with other leveraged funding sources, including public and private funds.

What is meant by "leveraged" funding sources under SHOP?

Leveraged sources refer to other public and private funds used to cover costs that SHOP funds cannot cover (including construction or rehabilitation). The program description emphasizes that SHOP dollars are meant to fill targeted gaps rather than fund the full build.

Is there a limit on how much SHOP funding can be spent per home?

Yes. The average SHOP grant expenditure for the combined costs of land acquisition plus infrastructure improvements must not exceed $15,000 per unit.

How does the $15,000 per-unit limit work?

The limit applies to the average SHOP grant spending across units for land acquisition plus infrastructure improvements. It is described as an average cap for those combined categories, not a construction budget for the full home.

What is "sweat equity" in SHOP?

Sweat equity is a required feature of SHOP. Future homeowners must actively help build their own homes alongside volunteer labor.

Is volunteer labor required in SHOP projects?

Yes. Volunteer labor is required, reinforcing the self-help model and helping reduce overall development costs.

Who can purchase homes produced with SHOP assistance?

Homes must be sold to eligible homebuyers who are low-income and who contribute a significant amount of sweat equity toward development of the units.

What housing quality standards apply to SHOP-assisted homes?

The housing produced must be decent, safe, and sanitary, and must be non-luxury.

Do SHOP-assisted homes have to comply with local rules and codes?

Yes. Homes must comply with applicable state and local building codes, ordinances, and zoning requirements.

Are there energy efficiency and water conservation requirements?

Yes. SHOP includes programmatic requirements related to energy efficiency and water conservation, and grantees must ensure the final homes meet those standards for compliance.

Do SHOP homes have to be sold below market price?

Yes. SHOP units must be sold to eligible homebuyers at prices below the prevailing market price to support affordable homeownership.

How does SHOP treat a homeowner’s sweat equity when the home is resold?

The program requires that the value of the homebuyer’s sweat equity not be mortgaged or otherwise restricted upon a future sale of the unit. This is intended to protect the homeowner’s labor contribution as a real investment.

Is there a cost sharing or matching requirement?

Yes. The listing indicates a cost sharing or matching requirement, consistent with the expectation that construction and rehabilitation be financed through leveraged sources rather than SHOP grant dollars alone.

What is the Funding Opportunity Number for this SHOP notice?

The Funding Opportunity Number provided is FR 5800 N 14.

What is the CFDA number for this opportunity?

The CFDA number provided is 14.247.

How many awards did HUD anticipate making under this notice?

HUD anticipated making around 4 awards.

What was the estimated total funding amount?

The estimated total funding amount was $10,000,000.

What were the award ceiling and award floor?

The award ceiling was listed as $10,000,000 and the award floor as $0.

When was the opportunity posted and when were applications due?

The posting date was July 14, 2014. The application deadline was September 4, 2014, with electronically submitted applications due by 11:59:59 p.m. ET.

Is this funding opportunity still open?

No. The opportunity is archived as of February 13, 2015.

Who is the HUD contact for program-specific questions?

The notice references Martha Murray, SHOP Program Manager in HUD’s Office of Affordable Housing Programs, at (202) 402-4410.

Where can applicants find the full announcement and any updates?

The notice points to HUD’s funding availability page for the full announcement and updates.

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