HUD Secretary Marcia L. Fudge has announced a new initiative aimed at expanding homeownership opportunities for low-income families. The U.S. Department of Housing and Urban Development (HUD) will allocate $13.5 million through the Self-Help Homeownership Opportunity Program (SHOP) to eligible national and regional non-profit organizations and consortia with experience in facilitating self-help housing projects.
In a statement, Secretary Fudge highlighted the importance of homeownership, stating, "Owning a home can help a family maintain stability and build generational wealth, but homeownership remains out of reach for far too many people, especially low-income households." The goal of the funding is to break down barriers preventing families from owning homes.
The $13.5 million funding opportunity is part of the FY2022 SHOP Grant. According to HUD's Notice of Funding Opportunity (NOFO), $12.5 million of the total funds are designated for the SHOP Grant, which aims to foster innovative homeownership solutions through self-help homeownership housing programs. Applicants must plan to use a significant portion of these funds in at least two states.
There are several key stipulations for the utilization of the SHOP Grant funds. The funds should primarily be used for land acquisition, infrastructure enhancements, and essential planning and administration. Construction and rehabilitation costs must be financed by other public and private funds. The average grant expenditure for land acquisition and infrastructure should not exceed $25,000 per unit. All SHOP units must meet housing standards, be sold below market prices to low-income homebuyers, and incorporate volunteer labor.
Priority points will be given to initiatives related to Climate Change and Environmental Justice, Promise Zones, and Historically Black Colleges and Universities. The deadline for applications is December 4, 2023.
The HUD initiative seeks to provide low-income households with the opportunity to own homes, fostering stability and the accumulation of generational wealth. By allocating $13.5 million through the SHOP program, HUD aims to support non-profit organizations in facilitating self-help housing projects and breaking down the barriers preventing families from achieving homeownership.
