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HUD No. 14-148
Shantae Goodloe
(202) 708-0685
FOR RELEASE
Wednesday
December 3, 2014

HUD ANNOUNCES $10 MILLION IN “SWEAT EQUITY” GRANTS
SHOP grants + elbow grease = homeownership for 540 families

WASHINGTON – U.S. Department of Housing and Urban Development (HUD) Secretary Julián Castro today awarded $10 million in “sweat equity” grants to four non-profit self-help housing organizations which will create at least 540 affordable homes for hard-working, low-income families and individuals.  Funded through HUD’s Self-Help Homeownership Opportunity Program (SHOP), the funding awarded today, along with the labor contributed by the homebuyers and numerous volunteers, will significantly lower the cost of homeownership. 

“These grants will make owning a home a reality for hundreds of working families,” said HUD Secretary Castro. “These families will become homeowners not only because of our public investments, but because of their own contributions. Our job is to support sustainable homeownership and these self-help programs do exactly that.”

The following organizations will receive SHOP funds (see individual descriptions below): 

Organization

Grant Amount

Community Frameworks

$540,000

Habitat for Humanity International

$6,211,368

Housing Assistance Council

$1,566,000

Tierra del Sol (Western States Housing Consortium)

$1,682,632

TOTAL

$10,000,000

 
 
The SHOP program provides federal grants on a competitive basis to national and regional non-profit organizations and consortia that have experience in administering self-help homeownership housing programs.  The SHOP grants must be used to purchase land and make necessary infrastructure improvements, which together may not exceed an average SHOP investment of $15,000 per dwelling unit.  Leveraged funds must be used for the construction or rehabilitation of these homeownership units.

All newly constructed units will receive certification as ENERGY STAR qualified units.  All appliances, products or features that 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 will contribute significant sweat equity toward the development of their units and/or the units of other homebuyers participating in the local self-help housing programs.  These sweat equity contributions reduce the purchase price of the SHOP units and make these units affordable for low-income homebuyers.  A minimum of 100 sweat equity hours is required from a household of two or more persons.  A minimum of 50 sweat equity hours is required from a household of one person.  Community participation consisting of volunteer labor contributions is also required.  Sweat equity and volunteer labor may include, but are not limited to, landscaping, foundation work, painting, carpentry, trim work, drywall, roofing and siding for the housing.  Reasonable accommodations must be made for persons with disabilities. 

Grantees may carry out activities directly and/or distribute SHOP funds to local non-profit 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.  The grantees ensure that the new homebuyers can afford their homes at the time of purchase and for the long term.  Many of the SHOP homebuyers are first-time homeowners and come from underserved groups.

Since 1996, when Congress first appropriated SHOP funds, the SHOP program has provided more than $396 million in federal grants that, together with significant leveraged funds and numerous volunteer hours, are transforming lives and neighborhoods through the production of over 28,500 units of affordable, homeownership housing. 
 

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 Fiscal Year 2014 SHOP Grantees

Community Frameworks (CF) is a regional non-profit self-help housing organization that serves the states of Idaho, Montana, Oregon and Washington.  Community Frameworks will make SHOP funds available to 16 affiliates to purchase land and make necessary infrastructure improvements that support new construction and rehabilitation of the SHOP units.  Each affiliate has flexibility to design a program that meets the needs of its community.  Funds will also be used for administration of the grant.  All newly constructed units will receive certification as ENERGY STAR qualified units.  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 29 SHOP housing units.   Contact:  Christine Mejia, SHOP Program Manager, (360) 377-7738.

Habitat for Humanity International (HFHI) is a national non-profit self-help housing 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 that support new construction and rehabilitation of the SHOP units.  Funds will also be used for administration of the grant.  All newly constructed units will receive certification as ENERGY STAR qualified units.  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 331 SHOP housing units.   Contact: Donna Golden, Director of Government Grants and Lending Resources, (229) 410-7514.

The Housing Assistance Council (HAC) is a national non-profit self-help housing 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 to purchase land and make necessary infrastructure improvements that support the new construction and rehabilitation of SHOP units.  Funds will also be used for administration of the grant.  All newly constructed units will receive certification as ENERGY STAR qualified units.  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 88 SHOP housing units.  Contact Karin Klusmann, Loan Fund Director, (202) 842-8600 ext. 118.

Tierra del Sol Housing Corporation (TDS), located in New Mexico, is the lead agency representing the Western States Housing Consortium which also includes Community Resources and Housing Development Corporation located in Alamosa County, Colorado, Comite de Bien Estar located in Yuma County, Arizona, Chicanos Por la Causa located in Pima County, Arizona, and Guadalupe Community Development Corporation located in Maricopa County, Arizona.  SHOP funds will be used to purchase land and make necessary infrastructure improvements that support the new construction of the SHOP units.  Funds will also be used for administration of the grant.  All newly constructed units will receive certification as ENERGY STAR qualified units.  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 92 SHOP housing units.  Contact Rose Garcia, Executive Director, (575) 541-0477.