SHOP provides funds for nonprofit 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 hookups and connections, including water, electric, gas, telephone, and sewage lines; wells and waste disposal systems; impact and building fees; streets, streetlights, curbs, roads, and sidewalks; surveys, engineering fees; environmental testing; and site preparation, including grading, razing, hazardous waste cleanup 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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