$12.5 Million is available to expand affordable housing through HUD’s Self-Help Homeownership Program. The grant is available for national and regional non-profits with experience making self-help homeownership possible. HUD hopes the funding opportunity helps develop decent, safe, and sanitary housing for low-income individuals. Through local partnerships and SHOP funding, leaders hope neighborhood revitalization will blossom.

Federal leaders say expanding access to affordable housing remains a priority of the Biden-Harris Administration.

With the funding HUD has made available, and with the support of our partners on the ground, more families will be able to realize the dream of homeownership – and the security and wealth creation that comes with it.

Marcia L. Fudge – Housing and Urban Development Secretary

Shop Funding: How can I use the grants?

Applicants who receive SHOP grant funds can use the dollars to buy site to build new homes on. Moreover, the funds can improve infrastructure that lays the groundwork for home construction. Only non-profits with experience in self-help homeownership can apply. However, organizations that do apply must propose to use a significant amount of the funding in at least two states. Individuals are not eligible to apply. An important note, since this program helps low-income families, homes built with the funds must be sold to buyers below prevailing market price.

Land acquisition, infrastructure improvements, and reasonable and necessary planning and administration costs are among limited eligible expenses. Grant recipients can’t use more than 20 percent of the funding for expenses.

SHOP grantees cannot spend more than $15,000 per SHOP unit on the combined costs of land acquisition and infrastructure improvements from its SHOP grant award. Successful grant recipients will combine SHOP funds with other public and private funds to pay for the construction and rehabilitation of each unit as well.

Finally, interested organizations must apply for the Self-Help Homeownership Opportunity Program by November 7, 2022.