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HUD   >   Press Room   >   Press Releases   >   2011   >   HUDNo.11-252

 

HUD No. 11-252
Brian Sullivan
(202) 708-0685
FOR RELEASE
Wednesday
October 19, 2011

HUD ANNOUNCES $27 MILLION IN “SWEAT EQUITY” GRANTS
SHOP funding employs the power of elbow grease to help 1,477 families become homeowners

WASHINGTON – The U.S. Department of Housing and Urban Development today awarded $26.6 million in “sweat equity” grants to produce at least 1,477 affordable homes for low-income individuals and families.  Funded through HUD’s Self-Help Homeownership Opportunity Program (SHOP), the funding awarded today, along with the labor contributed by these households, will significantly lower the cost of homeownership.

“These grants are about families devoting their own sweat and labor into their American Dream,” said HUD Secretary Shaun Donovan. “With the help of these organizations and volunteers, families are able to see that dream become reality brick by brick.”

The following organizations will receive SHOP funds: 


Recipient

 

Headquarters

Amount

 Community Frameworks

 Bremerton, Washington

$2,978,716

 Habitat for Humanity International

 Americus, Georgia

$14,664,239

 Housing Assistance Council

 Washington, DC

$8,333,535

 Tierra del Sol Corporation

 Anthony, New Mexico

$700,050

 

 TOTAL

$26,676,540

 
 
The SHOP program provides federal grants on a competitive basis to national and regional nonprofit organizations and consortia that have experience in administering self-help housing programs.  The SHOP grants must be used to purchase land and install or improve infrastructure, which together may not exceed an average investment of $15,000 per dwelling unit.  Leveraged funds must be used for the construction or rehabilitation of these homeownership units.  Grantees may carry out activities directly and/or distribute SHOP funds to local nonprofit affiliates that will develop the SHOP units, select homebuyers, coordinate the homebuyer sweat equity and volunteer efforts, and assist in the arrangement of interim and permanent financing for the homebuyers.

All newly constructed and gut rehabilitated units of 3 stories or less will receive certification as an ENERGY STAR Qualified New Home and all appliances and products or features which are installed or replaced will be ENERGY STAR qualified.  Water usage products will bear the WaterSense label.  Many units will also have “Green”, “Healthy Homes” and “Universal Design” features

Homebuyers must contribute a minimum of 100 hours of sweat equity on the construction of their homes and/or the homes of other homebuyers participating in the local self-help housing program.  Reasonable accommodations are made for homebuyers with disabilities.  Sweat equity involves participation in the construction of the housing, which can include, but is not limited to, assisting in the painting, carpentry, trim work, drywall, roofing and siding for the housing.  Labor is also contributed by community volunteers.  The sweat equity and labor contributions by the homebuyers and volunteers significantly reduce the cost of the housing.

Most of the families who benefit from SHOP homes are first-time homeowners so the new home fulfills a lifelong dream.  The organizations that receive the SHOP grants also ensure the new homeowners can afford to stay in their homes for the long term to provide a safe, healthy, stable environment to raise children, access jobs and build community.

Since 1996, when Congress first appropriated SHOP funds, the program and numerous volunteers has provided more than $360 million in federal grants to create more than 24,000 units of affordable, homeownership housing that have transformed lives and neighborhoods.

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Fiscal Year 2011 SHOP Grantees

Community FrameworksCommunity Frameworks (CF) is a regional nonprofit self-help housing organization that serves the states of Idaho, Montana, Oregon and Washington.  Community Frameworks will make SHOP funds available to 15 affiliates to buy land and build or make necessary infrastructure improvements that support new construction and rehabilitation of the SHOP units.  Funds will also be used for administration of the grant.  The units will be single-family detached and attached dwellings.  Ownership will be fee simple or land trust.  Completed units will be sold to low-income homebuyers who have contributed a significant amount of sweat equity toward the construction of their homes.  Volunteer labor will also be used.  Community Frameworks will produce a minimum of 159 SHOP housing units.   Contact:   Linda Hugo, 360-377-7738 ext. 25.

Habitat for Humanity International (HFHI)is a national nonprofit organization that will use SHOP funds in rural, metropolitan, and urban communities to facilitate and encourage innovative homeownership opportunities through the provision of self-help housing.  Local affiliates will compete for SHOP funding from HFHI.  Each affiliate has flexibility to design a program that meets the needs of its community.  SHOP funds will be used to purchase land and make necessary infrastructure improvements, primarily in support of new construction.  Funds will also be used for administration of the grant.  The units will be single-family detached and attached dwellings.  Ownership will be fee simple or condominium.  Completed units will be sold to low-income homebuyers who have contributed a significant amount of sweat equity toward the construction of their homes. Volunteer labor will also be used.  HFHI will produce a minimum of 787 SHOP housing units.   Contact: Dona Golden, 229-410-7514.

The Housing Assistance Council (HAC)is a national nonprofit organization that will use its SHOP funds in primarily rural areas to facilitate and encourage innovative homeownership opportunities through the provision of self-help housing.  Local affiliates will compete for SHOP funding from HAC.  Each affiliate has flexibility to design a program that meets the needs of its community.  SHOP funds will be used for land acquisition and infrastructure improvements that support new construction and gut rehabilitation of the SHOP units.  Funds will also be used for administration of the grant. The units will be single family detached and attached dwellings.  Ownership will be fee simple.  Completed units will be sold to low-income homebuyers who have contributed a significant amount of sweat equity toward the construction of their homes.  Volunteer labor will also be used.   HAC will produce a minimum of 492 SHOP housing units. Contact:  Karin Klusmann, 202-842-8600 ext 118.

Tierra del Sol Housing Corporation, located in New Mexico, is the lead agency representing the Western States Housing Consortium which includes Chicanos por la Causa located in Tucson, Arizona; Colorado Rural Housing Development Corporation located in Westminster, Colorado; and Housing America Corporation located in Somerton, Arizona.  SHOP funds will be used to acquire lots and build or make necessary infrastructure improvements that support the new construction of the SHOP units.  Funds will also be used for administration of the grant.  The units will be single-family detached dwellings.  Ownership will be fee-simple.  Completed units will be sold to low-income homebuyers who have contributed a significant amount of sweat equity toward the construction of their homes.  Volunteer labor will also be used.  The Western States Housing Consortium will produce a minimum of 39 SHOP housing units. Contact: Rosa Garcia, 575-882-3554.