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SHOP (Self Help Homeownership Opportunity Program) Grant FAQs

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

The Self Help Homeownership Opportunity Program (SHOP) is a discretionary grant opportunity from the U.S. Department of Housing and Urban Development (HUD) that supports affordable homeownership through "self-help" housing models. The program is designed to expand affordable homeownership by funding programs where buyers contribute substantial "sweat equity" as part of obtaining a home at an affordable price.

What does "self-help" mean in the context of SHOP?

In SHOP, "self-help" refers to housing models where homebuyers actively participate in building or rehabilitating their own homes (and often help with other homes in the program) as a condition of receiving the affordable homeownership opportunity. The sweat equity requirement is a defining element of the program.

What is "sweat equity" under this program?

"Sweat equity" means meaningful labor contributed by homebuyers and volunteers to support the construction, rehabilitation, or other project efforts tied to the self-help model. SHOP is not structured as a purely financial subsidy; it requires hands-on involvement as part of the development process.

Who is the federal agency offering this grant?

The grant opportunity is offered by the U.S. Department of Housing and Urban Development (HUD).

Who can apply for SHOP funding?

SHOP funding is intended for national and regional nonprofit organizations, including consortia, that can demonstrate proven capacity and experience to run or facilitate self-help housing homeownership programs.

Does SHOP fund individual local projects directly?

No. SHOP does not primarily fund individual local projects directly. HUD routes SHOP resources through national and regional nonprofit intermediaries, which then carry out eligible activities themselves and/or provide financial assistance to affiliated local organizations.

Can applicants work with affiliate organizations?

Yes. Applicants may carry out activities themselves and/or provide financial assistance to affiliated local organizations, as long as any affiliates involved are within the applicant's defined service area.

Is there a multi-state expectation for SHOP proposals?

Yes. A key eligibility expectation is that the applicant proposes to use a significant portion of SHOP funds in at least two states.

Is there a cost-sharing or matching requirement?

No cost-sharing or matching requirement is listed for this opportunity.

Who are the intended beneficiaries of SHOP-supported housing?

The intended beneficiaries are low-income individuals and families with annual incomes at or below 80 percent of the area median income (AMI), as determined by HUD, who would otherwise be unable to purchase a home without the sweat equity model reducing costs and barriers.

What affordability requirement applies to the homes produced?

Homes supported with SHOP funds must be sold to eligible buyers at prices below prevailing market prices, supporting the goal of making homeownership realistically accessible for households priced out of the standard market.

Are there quality standards the housing must meet?

Yes. The housing produced must be "decent, safe, and sanitary" and cannot be luxury housing.

Does SHOP allow luxury housing development?

No. SHOP-assisted homes cannot be luxury housing.

What kinds of labor activities can count toward the self-help requirement?

The labor component can include direct construction work, rehabilitation activities, and other project efforts that engage homebuyers and volunteers and reinforce the self-help model.

What is the purpose of requiring sweat equity and volunteer labor?

Based on the program description, the labor requirement is intended to lower development costs, strengthen homeowner investment in the property and neighborhood, build community participation into development, and expand access to homeownership for families who can contribute time and effort even if they lack the income or savings typically needed to buy a home.

What is the Funding Opportunity Number for this SHOP notice?

The Funding Opportunity Number is FR 5200 N 23.

What is the CFDA number for this opportunity?

The CFDA number listed is 14.247.

What is the award ceiling listed for this opportunity?

The award ceiling listed is $26,500,000.

When was this opportunity posted and when did it close?

The opportunity was posted on May 4, 2008. The original closing date was July 11, 2008, and it was later extended to July 18, 2008.

Is this funding opportunity still active?

No. The listing indicates it was archived on July 19, 2008.

Was there any official correction or update noted for the notice?

Yes. The listing notes a technical correction published in the Federal Register, referenced in the downloadable instructions.

Who is the program contact for applicant support?

The program contact listed is Louise Thompson.

How can applicants contact the program office for help accessing the full announcement?

The posting lists a phone contact for Louise Thompson at 202-708-2684 for support related to accessing the full announcement.

Does the program emphasize any particular strategic priorities?

Yes. The program emphasizes innovation and geographic diversity, aiming to support projects across the country rather than concentrating resources in a single area.