SHOP provides funds for non-profit organizations to purchase home sites and develop or improve the infrastructure needed to set the stage for sweat equity and volunteer-based homeownership programs for low-income families.
Self-help building methods require families to contribute a significant amount of "sweat equity" toward the construction of their home. In many cases, this sweat equity replaces the need for a downpayment, and often lowers unit construction costs, allowing self-help builders to quickly build equity in their homes. Eligible infrastructure costs are utility hook-ups and connections, including water, electric, gas, telephone and sewage lines; wells and waste disposal systems; impact and building fees; street, streetlights, curbs, roads and sidewalks; surveys, engineering fees; environmental testing; and site preparation, including grading, razing, hazardous waste clean-up for future and other environmental cleanup cost.
SHOP is authorized by the Housing Opportunity Program Extension Act of 1996, Section 11, and is subject to other Federal crosscutting requirements.
SHOP helps low-income families that could not otherwise own homes become homeowners. Program funds help provide self-help housing, where the homebuyer contributes a significant amount of sweat equity toward the construction of the home.
Eligible Grantees:
National and regional nonprofit organizations or consortia with experience in using volunteer labor to build housing may apply. Current Grantees are:
- Habitat for Humanity International
- Housing Assistance Council
- Community Frameworks (States of Washington, Oregon, Idaho, and Montana)
- PPEP Microbusiness and Housing
Development Corporation (States of Arizona, Colorado and New
Mexico)
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