Opportunity Information: Apply for FR 6100 N 19
The Self-Help Homeownership Opportunity Program (SHOP) is a U.S. Department of Housing and Urban Development (HUD) discretionary grant opportunity designed to expand affordable homeownership through self-help housing models. For FY2017, HUD made available a total of $10,000,000 under this notice of funding opportunity (NOFA), with an expectation of about four awards. The program is meant to support national and regional nonprofit organizations, including consortia, that can deliver homeownership opportunities across a broad geographic footprint rather than in a single local area.
Eligibility is limited to nonprofit organizations with IRS 501(c)(3) status (excluding institutions of higher education). The program is not open to individuals. A key threshold requirement is multi-state impact: applicants must propose to use a significant portion of SHOP funds in at least two states, reinforcing that this funding is intended for organizations operating at scale across state lines or through a coordinated network.
SHOP funds are narrowly targeted to cover specific pre-construction and site-related costs. Grant dollars may be used for land acquisition and infrastructure improvements, along with reasonable and necessary planning, administration, and management expenses, but those soft costs are capped at 20 percent of the grant. SHOP funds cannot pay for the actual construction or rehabilitation of the homes; instead, each housing unit must be built or rehabbed using leveraged public and private financing. HUD also sets a per-unit cost control: the average SHOP grant spending for the combined land acquisition and infrastructure improvements cannot exceed $15,000 per unit across the portfolio.
The housing produced under SHOP must meet clear affordability and quality standards. Units must be decent, safe, sanitary, and non-luxury, and they must comply with all applicable state and local building codes, ordinances, and zoning rules. In addition, the units must satisfy SHOP requirements related to energy efficiency, water conservation, and accessibility. Finished homes must be sold to homebuyers at prices below the prevailing market price, ensuring that the program creates below-market homeownership opportunities rather than subsidizing market-rate development.
A defining feature of SHOP is the self-help requirement. Homebuyers must be low-income and are expected to contribute a significant amount of "sweat equity" toward developing the homes, meaning meaningful personal labor invested in construction-related activities consistent with the self-help model. Volunteer labor is also required as part of the program structure. Importantly, the homebuyer’s sweat equity contribution cannot be mortgaged or otherwise restricted if the home is later sold, which protects the homeowner from having that equity treated as a lien-like obligation in the future.
Finally, the program is structured to allow national or regional grantees to work through local partners. SHOP grantees may subaward grant funds to local nonprofit affiliate organizations to carry out the self-help program on the ground, as long as those affiliates are located within the grantee’s defined service area. Administratively, this NOFA was posted October 25, 2017, with an original application deadline of January 25, 2018, and electronically submitted applications were required to be filed by 11:59 p.m. Eastern Time on the due date.Apply for FR 6100 N 19
- The Department of Housing and Urban Development in the housing sector is offering a public funding opportunity titled "Self-Help Homeownership Opportunity Program (SHOP)" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 14.247.
- This funding opportunity was created on Oct 25, 2017.
- Applicants must submit their applications by Jan 25, 2018 Electronically submitted applications must be submitted no later than 1159 p.m., ET, on the listed application due date.. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- Each selected applicant is eligible to receive up to $10,000,000.00 in funding.
- The number of recipients for this funding is limited to 4 candidate(s).
- Eligible applicants include: Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education.
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SHOP (Self-Help Homeownership Opportunity Program) FY2017 FAQs
What is the Self-Help Homeownership Opportunity Program (SHOP)?
SHOP is a discretionary grant opportunity from the U.S. Department of Housing and Urban Development (HUD) designed to expand affordable homeownership using self-help housing models. The program supports organizations that can deliver below-market homeownership opportunities and meet specific affordability, quality, and self-help participation requirements.
How much funding was available under the FY2017 SHOP NOFA?
HUD made available a total of $10,000,000 under the FY2017 SHOP notice of funding opportunity (NOFA).
How many awards did HUD expect to make under this NOFA?
HUD expected to make about four awards.
Who is eligible to apply for SHOP funding?
Eligibility is limited to nonprofit organizations with IRS 501(c)(3) status. Institutions of higher education are excluded. The NOFA is aimed at national and regional nonprofit organizations, including consortia, that can operate across a broad geographic footprint.
Can individuals apply for SHOP funding?
No. The program is not open to individuals.
Does SHOP require a multi-state service area?
Yes. A key threshold requirement is multi-state impact. Applicants must propose to use a significant portion of SHOP funds in at least two states.
Is SHOP intended for a single local area program?
No. The program is intended for national and regional organizations (including consortia) that can deliver homeownership opportunities across a broad geographic footprint rather than in one local area.
What types of costs can SHOP grant funds pay for?
SHOP funds are narrowly targeted for pre-construction and site-related costs. Grant dollars may be used for land acquisition and infrastructure improvements. They may also be used for reasonable and necessary planning, administration, and management expenses, subject to a cap.
Is there a cap on planning, administration, and management costs?
Yes. Planning, administration, and management (soft) costs are capped at 20 percent of the grant.
Can SHOP funds be used to build or rehabilitate the homes?
No. SHOP funds cannot pay for the actual construction or rehabilitation of the homes. Each unit must be built or rehabbed using leveraged public and private financing.
Does SHOP require leveraged financing for the housing units?
Yes. Since SHOP funds cannot pay for construction or rehabilitation, each unit must be built or rehabbed using leveraged public and private financing.
Is there a per-unit limit on SHOP spending for land and infrastructure?
Yes. The average SHOP grant spending for the combined land acquisition and infrastructure improvements cannot exceed $15,000 per unit across the portfolio.
What affordability requirements apply to homes produced under SHOP?
Finished homes must be sold to homebuyers at prices below the prevailing market price. This requirement is intended to ensure SHOP creates below-market homeownership opportunities rather than subsidizing market-rate development.
What quality standards must SHOP homes meet?
Units must be decent, safe, sanitary, and non-luxury. They must also comply with applicable state and local building codes, ordinances, and zoning rules.
Are there energy, water, and accessibility requirements under SHOP?
Yes. Units must satisfy SHOP requirements related to energy efficiency, water conservation, and accessibility.
What is the "self-help" requirement in SHOP?
A defining feature of SHOP is the self-help model. Homebuyers are expected to contribute a significant amount of "sweat equity," meaning meaningful personal labor invested in construction-related activities consistent with the self-help approach.
Who are the intended homebuyers under SHOP?
Homebuyers must be low-income and must participate in the self-help model by contributing sweat equity.
Is volunteer labor required under SHOP?
Yes. Volunteer labor is required as part of the program structure.
Can a homebuyer’s sweat equity be mortgaged or restricted if the home is later sold?
No. The homebuyer’s sweat equity contribution cannot be mortgaged or otherwise restricted if the home is later sold.
Can SHOP grantees work through local partner organizations?
Yes. National or regional grantees may work through local partners. SHOP grantees may subaward grant funds to local nonprofit affiliate organizations to carry out the self-help program on the ground, as long as those affiliates are located within the grantee’s defined service area.
When was the FY2017 SHOP NOFA posted?
The NOFA was posted on October 25, 2017.
What was the application deadline for the FY2017 SHOP NOFA?
The original application deadline was January 25, 2018.
How were applications required to be submitted, and by what time?
Applications were required to be submitted electronically by 11:59 p.m. Eastern Time on the due date.
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