Opportunity Information: Apply for FR 5600 N 05

  • 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 Feb 27, 2012 and posted on Feb 27, 2012.
  • Applicants must submit their applications by Apr 30, 2012. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
  • The funding agency has allocated a total of $13,500,000.00 to eligible and selected applicants.
  • Eligible applicants include: Others (see text field entitled Additional Information on Eligibility for clarification).
  • Individuals and local non profit organizations are not eligible to apply for funding under this competitive SHOP NOFA. Applicants must be a national or regional public or private non profit organization (or a consortium of public or private non profit organizations) which has the capacity and experience to provide or facilitate self help homeownership housing opportunities on a national or regional basis. Applicants must have successfully completed at least 30 self help homeownership housing units in a national or regional area within the 24 month period immediately preceding the publication of this SHOP NOFA.
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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) designed to expand affordable homeownership through “self-help” housing models. In practice, this means supporting programs where low-income families help build their own homes (and often the homes of others in their group) by contributing substantial sweat equity, alongside donated volunteer labor. The goal is to create decent, safe, sanitary, non-luxury homes that meet local building and safety codes, while also being sold to participating homebuyers at prices below the prevailing market rate.

SHOP funding is awarded competitively to national or regional nonprofit organizations, including consortia of nonprofits, that can demonstrate the experience and operational capacity to run or facilitate self-help homeownership opportunities across a broad geographic area. Individuals and local nonprofits are explicitly not eligible to apply under this particular Notice of Funding Availability (NOFA). A key threshold requirement is a proven track record: applicants must have successfully completed at least 30 self-help homeownership housing units within the 24 months immediately before the NOFA was published. Another core program expectation is geographic reach. Applicants must propose to use a significant portion of SHOP funds in at least two states, reinforcing that the program is meant to operate on a national or regionally multi-state basis rather than serving only one local market.

The allowed uses of SHOP funds are narrowly defined and focus on up-front “site” costs that enable housing development rather than paying for the vertical construction itself. Grant funds may be used for land acquisition and infrastructure improvements (for example, preparing lots and installing or improving necessary site infrastructure), as well as for reasonable and necessary planning, administration, and management expenses. However, administrative-type costs are capped and cannot exceed 20 percent of the SHOP award. In addition, there is a strict per-unit limitation: the average SHOP expenditure for the combined cost of land and infrastructure across the assisted units cannot exceed $15,000 per unit. This requirement pushes grantees to keep site costs controlled and to structure projects that remain efficient and scalable.

Construction or rehabilitation costs for each SHOP-assisted unit must be covered by other leveraged resources rather than SHOP dollars. That means applicants need to bring a financing plan that blends public and private funds from outside sources (such as other government programs, local subsidies, philanthropy, lenders, and related partners) to pay for building or rehab. In other words, SHOP is intended to fill a specific gap (land and infrastructure) while the actual construction budget is expected to be assembled from non-SHOP funding.

On the homebuyer side, the program is centered on sweat equity as both a cost-saving mechanism and a pathway to ownership. Eligible low-income homebuyers must contribute a significant amount of sweat equity toward developing the SHOP units, and volunteer labor must also be part of the effort. A notable consumer protection feature is that the value of the homebuyer’s sweat equity contribution cannot be mortgaged or otherwise restricted when the homeowner later sells the property. This is meant to prevent sweat equity from becoming a tool for adding debt or imposing continuing limitations that would undermine long-term homeowner mobility.

The program also permits an implementation structure where a national or regional grantee can pass SHOP funds to affiliates to carry out the program, as long as those affiliates operate within the grantee’s service area. This is important for large nonprofit networks that work through local chapters or partner organizations, allowing them to combine national capacity with local execution while keeping the program within the geographic footprint proposed in the application.

For the specific funding notice referenced (Funding Opportunity Number FR 5600 N 05; CFDA 14.247), HUD listed an estimated total funding amount of $13,500,000. The opportunity was posted February 27, 2012, with an application closing date of April 30, 2012, and it was archived May 8, 2012. There was no cost-sharing or matching requirement stated as a formal condition of eligibility, but the program design effectively requires substantial leverage because SHOP does not pay for construction or rehabilitation. Applicants needing help accessing the full announcement were directed to contact Ginger Macomber in HUD’s Office of Affordable Housing Programs at (202) 402-4605, and application materials were to be accessed through the CFDA number via HUD’s application and instructions page.

SHOP (Self Help Homeownership Opportunity Program) Grant 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) to expand affordable homeownership through "self-help" housing models. It supports programs where low-income families contribute substantial sweat equity to help build their own homes (and often homes of others in their group), alongside donated volunteer labor.

What kind of homes does SHOP aim to produce?

The program’s goal is to create decent, safe, sanitary, non-luxury homes that meet local building and safety codes, and that are sold to participating homebuyers at prices below the prevailing market rate.

Who can apply for SHOP funding under this NOFA?

SHOP funding is awarded competitively to national or regional nonprofit organizations, including consortia of nonprofits, that can demonstrate the experience and operational capacity to run or facilitate self-help homeownership opportunities across a broad geographic area.

Who is not eligible to apply under this Notice of Funding Availability (NOFA)?

Individuals and local nonprofits are explicitly not eligible to apply under this particular NOFA.

Is there a minimum performance track record required to apply?

Yes. A key threshold requirement is that applicants must have successfully completed at least 30 self-help homeownership housing units within the 24 months immediately before the NOFA was published.

Does SHOP require applicants to operate in more than one state?

Yes. Applicants must propose to use a significant portion of SHOP funds in at least two states. This reinforces that SHOP is intended for national or regionally multi-state operations rather than a single local market.

What are SHOP funds allowed to pay for?

Allowable uses are narrowly defined and focus on up-front site costs that enable housing development. SHOP funds may be used for land acquisition and infrastructure improvements (such as preparing lots and installing or improving necessary site infrastructure), as well as for reasonable and necessary planning, administration, and management expenses.

What does SHOP not pay for?

SHOP does not pay for vertical construction or rehabilitation costs for each assisted housing unit. Construction or rehabilitation must be funded through other leveraged resources outside of SHOP.

Is there a cap on administrative, planning, or management expenses?

Yes. Administrative-type costs are capped and cannot exceed 20 percent of the SHOP award.

Is there a per-unit limit on how much SHOP can spend?

Yes. There is a strict per-unit limitation: the average SHOP expenditure for the combined cost of land and infrastructure across the assisted units cannot exceed $15,000 per unit.

How are construction or rehabilitation costs expected to be covered if SHOP cannot pay for them?

Applicants are expected to bring a financing plan that leverages non-SHOP resources. The description notes these resources may include other government programs, local subsidies, philanthropy, lenders, and related partners.

What is "sweat equity" in the context of SHOP?

Sweat equity is a core feature of the program where eligible low-income homebuyers contribute a significant amount of labor toward developing the SHOP-assisted units. Volunteer labor must also be part of the effort.

Are there protections related to the value of a homebuyer’s sweat equity?

Yes. A consumer protection feature described is that the value of the homebuyer’s sweat equity contribution cannot be mortgaged or otherwise restricted when the homeowner later sells the property. This is intended to prevent sweat equity from being used to add debt or impose continuing limitations that could undermine long-term homeowner mobility.

Can a national or regional grantee pass SHOP funds to affiliates?

Yes. The program permits a structure where a national or regional grantee can pass SHOP funds to affiliates to carry out the program, as long as those affiliates operate within the grantee’s service area.

Why does SHOP emphasize multi-state reach and affiliate implementation?

Based on the description, SHOP is designed to be national or regionally multi-state in scope. Allowing a grantee to fund affiliates supports large nonprofit networks that combine national capacity with local execution, while staying within the geographic footprint proposed in the application.

What was the estimated total funding amount for the referenced funding notice?

HUD listed an estimated total funding amount of $13,500,000 for the referenced opportunity.

What are the identifying numbers for this funding opportunity?

The information provided lists Funding Opportunity Number FR 5600 N 05 and CFDA 14.247.

When was the opportunity posted and when were applications due?

The opportunity was posted on February 27, 2012, and the application closing date was April 30, 2012.

What does it mean that the opportunity was "archived"?

The notice indicates the opportunity was archived on May 8, 2012, meaning it was no longer active for accepting applications under that posting.

Is cost sharing or a match required?

No formal cost-sharing or matching requirement was stated as a condition of eligibility in the information provided. However, the program design effectively requires substantial leverage because SHOP does not fund construction or rehabilitation costs.

Who was listed as a point of contact for help accessing the full announcement?

Applicants needing help accessing the full announcement were directed to contact Ginger Macomber in HUD’s Office of Affordable Housing Programs at (202) 402-4605.

How were applicants instructed to access application materials?

The information states that application materials were to be accessed through the CFDA number via HUD’s application and instructions page.

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