Opportunity Information: Apply for FR 5900 N 19
Apply for FR 5900 N 19
- The HUD 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.
- This funding opportunity was created on Nov 02, 2015 and posted on Nov 02, 2015.
- Applicants must submit their applications by Jan 04, 2016. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- Each selected applicant is eligible to receive up to $9,977,500.00 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).
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Opportunity Summary:
The Self-Help Homeownership Opportunity Program (SHOP) is a HUD discretionary grant opportunity designed to expand affordable homeownership through self-help housing models where future homeowners directly participate in building their homes. Under this FY2015 Notice of Funding Availability (NOFA), HUD made $10,000,000 available to support nationally and regionally focused efforts that create homeownership opportunities across a geographically diverse footprint. The intent is to encourage innovative self-help homeownership programs at scale rather than single-site or single-state initiatives.
Funding is targeted to national and regional nonprofit organizations, as well as consortia, that can implement a SHOP program across multiple locations. A key requirement is that applicants must propose to use a significant portion of SHOP funds in at least two states, reinforcing the program emphasis on broad reach. Individuals are not eligible to apply. Grantees are allowed to pass SHOP funds to local nonprofit affiliates to carry out the work on the ground, but those affiliates must operate within the grantee's defined service area.
SHOP funds have a narrow set of allowable uses. Grant dollars may be used for land acquisition and infrastructure improvements that make homeownership development feasible, along with reasonable and necessary planning, administration, and management costs. Administrative-type costs are capped and may not exceed 20 percent of the grant amount. Notably, SHOP funds may not pay for the vertical construction or rehabilitation costs of the homes themselves. Instead, each unit's construction or rehab must be financed through leveraged resources such as other public funding and private capital, which makes the program inherently partnership- and fundraising-driven.
The NOFA also places clear cost controls on the grant-funded portions of development. Across the project portfolio, the average SHOP expenditure for the combined costs of land acquisition and infrastructure improvements cannot exceed $15,000 per SHOP unit. This per-unit limitation is meant to keep SHOP funds focused on early-stage site and readiness costs while pushing the bulk of building costs into other leveraged sources.
Housing produced under SHOP must meet baseline quality and compliance standards. Units must be decent, safe, and sanitary non-luxury dwellings and must comply with applicable state and local codes, ordinances, and zoning requirements. In addition, the homes must meet all other SHOP requirements, including provisions related to energy efficiency, water conservation, and accessibility. The program is structured so that the finished homes are sold to eligible buyers at prices below the prevailing market price, supporting affordability and access to ownership.
A defining feature of SHOP is the sweat equity model. Homebuyers must be low-income and are required to contribute a significant amount of sweat equity toward the development of their units, typically through direct labor on their own home and/or other homes in the program. Volunteer labor is also required, emphasizing the community-based and participatory nature of the model. Importantly, the buyer's sweat equity contribution cannot be mortgaged or otherwise restricted upon a future sale of the unit, which helps ensure that the value of that labor does not become a separate encumbrance on the property.
From an awards and timing standpoint, the opportunity (Funding Opportunity Number FR 5900 N 19; CFDA 14.247) anticipated making a small number of larger grants. The expected number of awards was 4, with an award ceiling of $9,977,500. The posting date was November 2, 2015, and the application closing date was January 4, 2016. Overall, SHOP is aimed at organizations that can coordinate multi-state pipelines, assemble strong leverage for construction financing, and operate a compliant self-help homeownership program that delivers affordable homes through buyer participation and community volunteerism.
Self-Help Homeownership Opportunity Program (SHOP) - FAQs (FY2015 NOFA)
What is the Self-Help Homeownership Opportunity Program (SHOP)?
SHOP is a HUD discretionary grant opportunity designed to expand affordable homeownership using self-help housing models where future homeowners directly participate in building their homes (often called a "sweat equity" approach).
What is the main purpose of this FY2015 SHOP funding opportunity?
The intent is to support innovative self-help homeownership programs at scale, emphasizing nationally and regionally focused efforts rather than single-site or single-state initiatives, and to create homeownership opportunities across a geographically diverse footprint.
How much funding was made available under this NOFA?
HUD made $10,000,000 available under the FY2015 Notice of Funding Availability (NOFA).
Who is eligible to apply for SHOP funding?
Funding is targeted to national and regional nonprofit organizations, as well as consortia, that can implement a SHOP program across multiple locations.
Are individuals eligible to apply?
No. Individuals are not eligible to apply for this opportunity.
Does SHOP require a multi-state approach?
Yes. A key requirement is that applicants must propose to use a significant portion of SHOP funds in at least two states, reinforcing the program emphasis on broad reach.
Can a grantee pass SHOP funds to other organizations to carry out local work?
Yes. Grantees are allowed to pass SHOP funds to local nonprofit affiliates to carry out work on the ground, but those affiliates must operate within the grantee's defined service area.
What are the allowable uses of SHOP grant funds?
SHOP funds may be used for:
- Land acquisition
- Infrastructure improvements that make homeownership development feasible
- Reasonable and necessary planning, administration, and management costs (subject to a cap)
Is there a cap on administrative or administrative-type costs?
Yes. Administrative-type costs are capped and may not exceed 20 percent of the grant amount.
Can SHOP grant funds be used to pay for building the homes (vertical construction) or rehabilitating them?
No. SHOP funds may not pay for the vertical construction or rehabilitation costs of the homes themselves.
If SHOP funds cannot pay for construction or rehabilitation, how are those costs covered?
Each unit's construction or rehab must be financed through leveraged resources such as other public funding and private capital, making the program partnership- and fundraising-driven.
Is there a per-unit limit on SHOP-funded development costs?
Yes. Across the project portfolio, the average SHOP expenditure for the combined costs of land acquisition and infrastructure improvements cannot exceed $15,000 per SHOP unit.
Does the $15,000 per-unit limitation apply to each individual unit?
The limitation is described as an average across the project portfolio for combined land acquisition and infrastructure improvements, meaning it is applied at the portfolio level rather than stated as a strict cap on every individual unit.
What kind of housing must be produced under SHOP?
Units must be decent, safe, and sanitary non-luxury dwellings and must comply with applicable state and local codes, ordinances, and zoning requirements.
Are there additional requirements for the homes beyond basic code compliance?
Yes. The homes must meet all other SHOP requirements, including provisions related to energy efficiency, water conservation, and accessibility.
How does SHOP support affordability for homebuyers?
The program is structured so that finished homes are sold to eligible buyers at prices below the prevailing market price.
Who are the intended homebuyers in the SHOP model?
Homebuyers must be low-income and participate directly in developing their units through sweat equity.
What is "sweat equity" in the SHOP program?
Sweat equity refers to the requirement that buyers contribute a significant amount of labor toward development of their units, typically through direct work on their own home and/or other homes in the program.
Is volunteer labor part of the SHOP approach?
Yes. Volunteer labor is also required, emphasizing the community-based and participatory nature of the model.
Can the value of a buyer's sweat equity be mortgaged or restricted later?
No. The buyer's sweat equity contribution cannot be mortgaged or otherwise restricted upon a future sale of the unit, so it does not become a separate encumbrance on the property.
What Funding Opportunity Number and CFDA number apply to this SHOP NOFA?
The Funding Opportunity Number is FR 5900 N 19, and the CFDA number is 14.247.
How many awards were anticipated under this funding opportunity?
The NOFA anticipated a small number of larger grants, with an expected number of awards of 4.
What was the maximum (ceiling) award amount?
The award ceiling was $9,977,500.
When was this funding opportunity posted and when did it close?
The posting date was November 2, 2015, and the application closing date was January 4, 2016.
What types of organizations is SHOP best suited for based on this NOFA?
SHOP is aimed at organizations that can coordinate multi-state pipelines, assemble strong leveraged resources for construction financing, and operate a compliant self-help homeownership program that delivers affordable homes through buyer participation and community volunteerism.
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| Violence Against Women Act (VAWA) and Housing Opportunities for Persons With AIDS (HOPWA) Project Demonstration Apply for FR 5900 N 11B Funding Number: FR 5900 N 11B Agency: HUD Category: Housing Funding Amount: $1,300,000 |
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| Notice of Funding Availability (NOFA) for the Department's Fiscal Years 2016 and 2017 Comprehensive Housing Counseling Grant Program Apply for FR 6000 N 33 Funding Number: FR 6000 N 33 Agency: HUD Category: Housing Funding Amount: Case Dependent |
| Lead Hazard Reduction Demonstration (LHRD) Grant Program Apply for FR 6000 N 13 Funding Number: FR 6000 N 13 Agency: HUD Category: Housing Funding Amount: $3,000,000 |
| Lead-Based Paint Hazard Control (LBPHC) Grant Program Apply for FR 6000 N 12 Funding Number: FR 6000 N 12 Agency: HUD Category: Housing Funding Amount: $2,500,000 |
| Family Self-Sufficiency Program Apply for FR 6000 N 04 Funding Number: FR 6000 N 04 Agency: HUD Category: Housing Funding Amount: $69,000 |
| Resident Opportunity & Self-Sufficiency Program Apply for FR 6000 N 05 Funding Number: FR 6000 N 05 Agency: HUD Category: Housing Funding Amount: $738,000 |
| Research and Evaluation, Demonstration, and Data Analysis and Utilization Apply for FR 5900 N 29 Funding Number: FR 5900 N 29 Agency: HUD Category: Housing Funding Amount: $500,000 |
| Jobs Plus Initiative Apply for FR 6000 N 14 Funding Number: FR 6000 N 14 Agency: HUD Category: Housing Funding Amount: $3,000,000 |
| Fair Housing Initiatives Program - Private Enforcement Initiative Apply for FR 6000 N 21C Funding Number: FR 6000 N 21C Agency: HUD Category: Housing Funding Amount: $325,000 |
| Fair Housing Initiative Program - Education and Outreach Initiative Apply for FR 6000 N 21A Funding Number: FR 6000 N 21A Agency: HUD Category: Housing Funding Amount: $1,250,000 |
| Fair Housing Initiatives Program - Fair Housing Organizations Initiative Apply for FR 6000 N 21B Funding Number: FR 6000 N 21B Agency: HUD Category: Housing Funding Amount: $325,000 |
| Healthy Homes Technical Studies Grant Program Pre and Full Application Apply for FR 6000 N 15 Funding Number: FR 6000 N 15 Agency: HUD Category: Housing Funding Amount: $700,000 |
| HUD Community Compass Technical Assistance and Capacity Building Program Apply for FR 6000 N 06 Funding Number: FR 6000 N 06 Agency: HUD Category: Housing Funding Amount: $20,000,000 |
| VA Grant and Per Diem Program Special Need Renewal Apply for VA GPD 2016 SN Funding Number: VA GPD 2016 SN Agency: VA-HPGPDP Category: Housing Funding Amount: Case Dependent |
| Capacity Building for Community Development and Affordable Housing Grants (Section 4) Apply for FR 6000 N 07 Funding Number: FR 6000 N 07 Agency: HUD Category: Housing Funding Amount: $35,000,000 |
| FY2016 Continuum of Care Apply for FR 6000 N 25 Funding Number: FR 6000 N 25 Agency: Department of Housing and Urban Development Category: Housing Funding Amount: $1,500,000 |
| General Section to HUD's Fiscal Year 2017 Notice(s) of Funding Availability for Discretionary Programs (General Section) Apply for FR 6100 N 01 Funding Number: FR 6100 N 01 Agency: Department of Housing and Urban Development Category: Housing Funding Amount: Case Dependent |
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