Opportunity Information: Apply for FR 5300 N 13

  • 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 Sep 11, 2009 and posted on Jul 13, 2009.
  • Applicants must submit their applications by Sep 28, 2009 Closed date changed due to Technical Corrections.. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
  • The funding agency has allocated a total of $26,500,000.00 to eligible and selected applicants.
  • Eligible applicants include: Others (see text field entitled Additional Information on Eligibility for clarification).
  • Individuals and local nonprofit organizations are not eligible to apply for funding under this competitive SHOP NOFA. You must be a national or regional nonprofit public or private organization or consortium that has the capacity and experience to provide or facilitate self help housing homeownership opportunities. Your organization or consortium must undertake eligible SHOP activities directly and/or provide funding assistance to your local affiliates to carry out SHOP activities. You must propose in your application to use a significant amount of SHOP funds in at least two states. Affiliates must be located within the regional organization s or consortium s service area.
Apply for FR 5300 N 13

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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 is designed to expand affordable homeownership through self-help housing models. The core idea is to support homeownership opportunities that rely on a significant "sweat equity" contribution from the homebuyer, meaning the future homeowner must put substantial labor into building or rehabilitating the home. The program emphasizes innovation and a nationally and geographically diverse reach, so it is not meant to fund isolated, single-location efforts, but rather broader initiatives that can operate across multiple areas.

SHOP grant funds have a very specific and narrow allowable use. The money can only be spent on land acquisition and on infrastructure improvements that make the housing development feasible, such as basic site work and related improvements needed to serve the homes. Importantly, SHOP does not pay for the actual construction of the homes themselves. The dwelling construction costs must be covered by other leveraged resources, which can include other public funds and private financing. In practice, SHOP is intended to fill a critical gap at the early stage of a project by helping organizations secure land and prepare it for housing, while other funding sources cover vertical construction.

Homes produced using SHOP assistance must meet clear affordability and quality expectations. They must be "decent, safe, and sanitary" and must be non-luxury dwellings, reinforcing that this is an affordable housing program rather than a subsidy for higher-end development. In addition, the resulting homes must be sold to eligible homebuyers at prices below prevailing market prices, ensuring that the public investment translates into real affordability for participating households.

Eligibility to apply is limited and geared toward organizations capable of managing or supporting multi-state self-help housing efforts. Individuals and local nonprofit organizations are explicitly not eligible to apply under this competitive Notice of Funding Availability. Applicants must be national or regional nonprofit public or private organizations, or consortia, with the demonstrated capacity and experience to provide or facilitate self-help homeownership opportunities. The applicant organization must either carry out eligible SHOP activities directly or pass funds through to local affiliates that will carry out those activities. The application must propose using a significant amount of SHOP funds in at least two states, and any affiliates involved must be located within the service area of the regional organization or consortium. This structure reflects HUD's intent that SHOP awards support scalable networks and systems that can operate across multiple jurisdictions rather than stand-alone local projects.

For the specific funding opportunity referenced (Funding Opportunity Number FR 5300 N 13; CFDA 14.247), HUD estimated total funding at $26.5 million. The funding instrument is a grant, and there is no cost-sharing or matching requirement stated. The opportunity was posted on July 13, 2009, with the closing date revised from September 14, 2009 to September 28, 2009 due to technical corrections, and an archive date of October 3, 2009. Assistance with accessing the announcement was provided through HUD's Office of Affordable Housing Programs, with a listed contact person (Ms. Lou Thompson) and phone number (202-402-4594).

Self Help Homeownership Opportunity Program (SHOP) - Frequently Asked Questions

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

The Self Help Homeownership Opportunity Program (SHOP) is a discretionary grant program run by the U.S. Department of Housing and Urban Development (HUD). It is designed to expand affordable homeownership through self-help housing models that rely on a significant "sweat equity" contribution from the homebuyer.

What does "sweat equity" mean in the context of SHOP?

In SHOP, "sweat equity" means the future homeowner must contribute substantial labor toward building or rehabilitating the home. The program is built around the idea that homeownership can be made more affordable when households help produce the housing through significant hands-on work.

What is the main purpose of SHOP grant funding?

SHOP is intended to help expand affordable homeownership by supporting early-stage development needs that enable self-help housing. It is specifically meant to help organizations secure land and prepare sites so that housing can be developed, while other funding sources cover the actual construction.

What are SHOP grant funds allowed to pay for?

SHOP funds have a narrow allowable use: they can only be used for land acquisition and infrastructure improvements that make the housing development feasible, such as basic site work and related improvements needed to serve the homes.

What are SHOP grant funds not allowed to pay for?

SHOP does not pay for the actual construction of the homes. Vertical construction costs must be covered by other leveraged resources, such as other public funds and private financing.

If SHOP does not fund construction, how are the homes actually built?

The dwelling construction costs must be supported by leveraged resources outside of SHOP. The information provided indicates these resources can include other public funds and private financing.

Does SHOP require matching funds or cost-sharing?

For this specific funding opportunity, there is no cost-sharing or matching requirement stated.

Who is eligible to apply for SHOP under this Notice of Funding Availability?

Eligibility is limited to national or regional nonprofit public or private organizations, or consortia, with demonstrated capacity and experience to provide or facilitate self-help homeownership opportunities.

Are individuals eligible to apply for SHOP funding?

No. Individuals are explicitly not eligible to apply under this competitive Notice of Funding Availability.

Are local nonprofit organizations eligible to apply directly?

No. Local nonprofit organizations are explicitly not eligible to apply under this competitive Notice of Funding Availability.

What does HUD mean by emphasizing innovation and national and geographic diversity?

The program emphasizes innovation and a nationally and geographically diverse reach. It is not meant to fund isolated, single-location efforts, but rather broader initiatives that can operate across multiple areas.

Do applicants have to operate in more than one state?

Yes. The application must propose using a significant amount of SHOP funds in at least two states.

Can a national or regional organization pass SHOP funds to local affiliates?

Yes. The applicant organization must either carry out eligible SHOP activities directly or pass funds through to local affiliates that will carry out those activities.

Are there geographic limitations on which affiliates can participate?

Yes. Any affiliates involved must be located within the service area of the regional organization or consortium.

What types of housing must be produced with SHOP assistance?

Homes produced using SHOP assistance must be "decent, safe, and sanitary" and must be non-luxury dwellings. They must also be sold to eligible homebuyers at prices below prevailing market prices.

What does "non-luxury dwelling" mean for SHOP-funded housing?

The information provided states that SHOP-assisted homes must be non-luxury dwellings, reinforcing that SHOP is an affordable housing program rather than a subsidy for higher-end development.

How does SHOP ensure affordability for homebuyers?

SHOP requires that the resulting homes be sold to eligible homebuyers at prices below prevailing market prices, ensuring the public investment translates into real affordability for participating households.

What is the funding opportunity number and CFDA number for this SHOP announcement?

The Funding Opportunity Number is FR 5300 N 13, and the CFDA number is 14.247.

How much total funding did HUD estimate for this opportunity?

HUD estimated total funding at $26.5 million for this funding opportunity.

What type of funding instrument is used for SHOP?

The funding instrument is a grant.

When was this funding opportunity posted and when did it close?

The opportunity was posted on July 13, 2009. The closing date was revised from September 14, 2009 to September 28, 2009 due to technical corrections.

What is the archive date for this funding opportunity?

The archive date is October 3, 2009.

Who can be contacted for help accessing the announcement?

Assistance with accessing the announcement was provided through HUD's Office of Affordable Housing Programs. The listed contact person is Ms. Lou Thompson at (202) 402-4594.

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