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.
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