Self-Help Homeownership Opportunity Program (SHOP) | FR 6700 N 19

Opportunity Information: Apply for FR 6700 N 19

The Self-Help Homeownership Opportunity Program (SHOP) is a discretionary grant opportunity from the U.S. Department of Housing and Urban Development (HUD) designed to expand affordable homeownership through self-help housing models. Under this Notice of Funding Opportunity (NOFO), HUD makes available $12,500,000 in FY2022 SHOP funds to support national and regional nonprofit organizations, including consortia, that can operate across a broad and geographically diverse footprint. A key program expectation is multi-state impact: applicants must propose using a significant portion of SHOP funds in at least two states, reinforcing that this funding is aimed at organizations with the capacity to implement or coordinate programs beyond a single local market. Individuals are not eligible to apply.

Funding is tightly focused on early-stage, enabling costs that make housing development possible but do not pay for the actual building or rehab work. SHOP grant dollars may be used for land acquisition and infrastructure improvements, along with reasonable and necessary planning and administrative expenses, but administrative and planning costs are capped at 10 percent of the grant. Construction or rehabilitation of each housing unit must be paid for with leveraged funds from other public or private sources, meaning awardees need a viable financing strategy and partnerships to cover vertical construction costs. The program also sets a cost control benchmark: the average SHOP expenditure for the combined costs of land acquisition and infrastructure improvements may not exceed $25,000 per SHOP unit, which encourages efficiency and ensures funds are spread across more homes.

The homes produced under SHOP must meet basic quality and compliance standards. Units must be decent, safe, and sanitary, classified as non-luxury dwellings, and must comply with applicable state and local codes, ordinances, and zoning requirements. Affordability is central to the program model: the resulting SHOP units must be sold to homebuyers at prices below the prevailing market price, supporting access to homeownership for households who otherwise might be priced out.

Eligibility of the eventual buyers is also clearly defined. Homebuyers must be low-income and must contribute a significant amount of sweat equity toward developing the SHOP homes, a hallmark of self-help housing programs where buyers help build their own homes (often alongside other participating families). In addition to sweat equity from the homebuyers, volunteer labor is required as part of the program structure. The NOFO also clarifies a consumer protection principle related to sweat equity: the value of a homebuyer’s sweat equity contribution cannot be mortgaged or otherwise restricted upon a future sale of the SHOP unit, helping ensure that participation does not create hidden long-term encumbrances tied to that labor contribution.

From an implementation standpoint, SHOP awardees can carry out projects directly or pass funds through to local nonprofit affiliate organizations that operate within the grantee’s service area. This allows national or regional nonprofits to use affiliates to deliver projects on the ground while maintaining overall program accountability and geographic alignment with the grantee’s defined footprint.

Administratively, the opportunity is listed as Funding Opportunity Number FR 6700 N 19 under CFDA 14.247 (Housing). Eligible applicants include 501(c)(3) nonprofits (other than institutions of higher education) and other entities as described in the NOFO’s additional eligibility language. HUD anticipated making about 7 awards, with an award ceiling of $13,500,000. The NOFO record shows a creation date of October 2, 2023, and an original application closing date of December 4, 2023, with submissions due by 11:59:59 PM Eastern Time.

• The US 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.
• This funding opportunity was created on Oct 02, 2023.
• Applicants must submit their applications by Dec 04, 2023 The application deadline is 115959 PM Eastern time on. (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 $13,500,000.00 in funding.
• The number of recipients for this funding is limited to 7 candidate(s).
• Eligible applicants include: Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education, Others (see text field entitled Additional Information on Eligibility for clarification).

Apply for FR 6700 N 19

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