Opportunity Information: Apply for FR 6800 N 19
The Self-Help Homeownership Opportunity Program (SHOP) is a U.S. Department of Housing and Urban Development (HUD) discretionary grant program (CFDA 14.247) designed to expand affordable homeownership by supporting self-help housing models that rely heavily on homeowner participation and community volunteer labor. For FY 2024, HUD is making $12,000,000 available through this Notice of Funding Opportunity (NOFO) to national and regional nonprofit organizations, including eligible consortia of nonprofits, that can carry out or support self-help homeownership programs on a broad, geographically diverse basis. A key program expectation is reach across state lines: applicants must propose to use a significant portion of SHOP funds in at least two states, reflecting HUD's intent to fund organizations that operate beyond a single local market.
Funding is limited to specific pre-development and site-related costs that help make affordable home construction possible. SHOP grant dollars may be used for land acquisition and infrastructure improvements, along with reasonable and necessary planning and administrative expenses, but administrative and planning costs are capped at 10 percent of the grant award. Importantly, SHOP funds cannot pay for the actual construction or rehabilitation of the homes; those costs must be covered through leveraged resources, meaning the applicant must bring in other public and private funding sources to finance building or rehab work. The program also includes a per-unit cost control: the average SHOP expenditure for the combined costs of land acquisition plus infrastructure improvements may not exceed $25,000 per SHOP unit. This requirement pushes grantees to use the federal dollars efficiently and to stretch funds across as many units as feasible.
Homes produced under SHOP must meet basic standards and affordability goals. The units must be decent, safe, and sanitary non-luxury dwellings that comply with applicable state and local building codes, ordinances, and zoning requirements. They also must be sold to eligible homebuyers at prices below prevailing market prices, reinforcing that the program is meant to create genuinely affordable ownership opportunities rather than subsidize market-rate development.
The target beneficiaries are low-income homebuyers who actively help build their own homes through "sweat equity." Each homebuyer must contribute a significant amount of sweat equity toward development of the unit, and volunteer labor is also required as part of the program model. A notable consumer protection is included: the homebuyer’s sweat equity contribution cannot be mortgaged or otherwise restricted upon a future sale of the home, meaning the buyer is not supposed to lose the value of that effort through later financing conditions or resale restrictions tied specifically to their sweat equity contribution.
SHOP is structured to allow national or regional organizations to operate through local partners. A SHOP grantee may pass SHOP funds to local nonprofit affiliate organizations to carry out program activities, as long as those affiliates are located within the grantee’s service area. Whether the work is performed directly by the grantee or through affiliates, there must be written agreements in place, and the applicant must demonstrate the capacity and experience needed to facilitate self-help homeownership at a national or regional scale. The NOFO’s terminology clarifies that "you" refers to the applicant (including all consortium members), "consortium" refers to the group of member organizations applying together, "grantee" refers to any successful applicant (including consortium members) that receives an award, and "affiliate" refers to an eligible nonprofit that partners under the grantee’s program umbrella.
Eligibility is limited to qualified nonprofit entities. Eligible applicants include public or private nonprofit organizations and consortia of such organizations, generally including 501(c)(3) nonprofits (as indicated in the opportunity data). Individuals are explicitly not eligible to apply, and the NOFO also excludes foreign entities and sole proprietorships from competing for or receiving awards. The opportunity is listed under HUD, with an original application closing date of 2024-12-17. HUD anticipates making around 7 awards, and the listed award ceiling is $12,000,000, reflecting the total funding available under this announcement rather than a guaranteed amount per applicant.Apply for FR 6800 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 2024-10-16.
- Applicants must submit their applications by 2024-12-17. (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 $12,000,000.00 in funding.
- The number of recipients for this funding is limited to 7 candidate(s).
- Eligible applicants include: Nonprofits having a 501 (c) (3) status with the IRS, other than institutions of higher education, Others.
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Frequently Asked Questions (FAQs) - HUD Self-Help Homeownership Opportunity Program (SHOP) FY 2024
1. What is the Self-Help Homeownership Opportunity Program (SHOP)?
SHOP is a U.S. Department of Housing and Urban Development (HUD) discretionary grant program (CFDA 14.247) designed to expand affordable homeownership by supporting self-help housing models that rely heavily on homeowner participation and community volunteer labor.
2. How much funding is available under the FY 2024 SHOP NOFO?
HUD is making $12,000,000 available under the FY 2024 Notice of Funding Opportunity (NOFO).
3. Who can apply for SHOP funding?
Eligible applicants are qualified nonprofit entities, including public or private nonprofit organizations and consortia of such organizations (generally including 501(c)(3) nonprofits, as indicated in the opportunity data).
4. Can a consortium apply, and how is a consortium defined?
Yes. Consortia of eligible nonprofit organizations may apply. In the NOFO terminology, a "consortium" refers to the group of member organizations applying together.
5. Who is not eligible to apply?
Individuals are explicitly not eligible to apply. The NOFO also excludes foreign entities and sole proprietorships from competing for or receiving awards.
6. What types of organizations is HUD trying to fund with this NOFO?
HUD is targeting national and regional nonprofit organizations (including eligible consortia) that can carry out or support self-help homeownership programs on a broad, geographically diverse basis.
7. Is multi-state operation required?
Yes. A key expectation is that applicants propose to use a significant portion of SHOP funds in at least two states, reflecting HUD's intent to fund organizations operating beyond a single local market.
8. What can SHOP grant funds be used for?
SHOP funds are limited to specific pre-development and site-related costs that help make affordable home construction possible. Allowed uses include land acquisition and infrastructure improvements, along with reasonable and necessary planning and administrative expenses.
9. Can SHOP funds be used to pay for home construction or rehabilitation?
No. SHOP funds cannot pay for the actual construction or rehabilitation of the homes. Those costs must be covered through leveraged resources from other public and private funding sources.
10. What does "leveraged resources" mean in this program?
It means the applicant must bring in other public and private funding sources to finance the building or rehabilitation work, because SHOP dollars cannot cover construction or rehab costs.
11. Are there limits on administrative and planning costs?
Yes. Administrative and planning costs are capped at 10 percent of the grant award.
12. Is there a per-unit cap on certain SHOP costs?
Yes. The average SHOP expenditure for the combined costs of land acquisition plus infrastructure improvements may not exceed $25,000 per SHOP unit.
13. What is meant by a "SHOP unit" in the cost control requirement?
Based on the NOFO description, the $25,000 average cap applies per unit produced under SHOP when calculating the combined land acquisition and infrastructure improvement costs.
14. What standards must SHOP-assisted homes meet?
Homes must be decent, safe, and sanitary non-luxury dwellings. They must also comply with applicable state and local building codes, ordinances, and zoning requirements.
15. Do the homes have to be affordable relative to local market prices?
Yes. Homes must be sold to eligible homebuyers at prices below prevailing market prices, reinforcing affordability as a core program objective.
16. Who are the intended beneficiaries of SHOP-supported housing?
The intended beneficiaries are low-income homebuyers who actively help build their own homes through "sweat equity," supported by community volunteer labor.
17. What is "sweat equity" in the SHOP program?
"Sweat equity" refers to a significant contribution of labor by the homebuyer toward development of their unit as part of the self-help homeownership model.
18. Is volunteer labor required in addition to the homebuyer’s work?
Yes. The program model requires volunteer labor in addition to the homebuyer’s significant sweat equity contribution.
19. Can a homebuyer’s sweat equity contribution be mortgaged or restricted later?
No. A specific consumer protection applies: the homebuyer’s sweat equity contribution cannot be mortgaged or otherwise restricted upon a future sale of the home.
20. Can SHOP grantees work through local affiliates?
Yes. A SHOP grantee may pass SHOP funds to local nonprofit affiliate organizations to carry out program activities, as long as those affiliates are located within the grantee’s service area.
21. What is an "affiliate" under the NOFO terminology?
An "affiliate" refers to an eligible nonprofit that partners under the grantee’s program umbrella to carry out program activities.
22. Are written agreements required when working with affiliates?
Yes. Whether work is performed directly by the grantee or through affiliates, written agreements must be in place.
23. What does the NOFO mean when it says "you" and "grantee"?
In the NOFO terminology, "you" refers to the applicant (including all consortium members). "Grantee" refers to any successful applicant (including consortium members) that receives an award.
24. What is the application deadline listed for this opportunity?
The original application closing date listed for this opportunity is 2024-12-17.
25. How many awards does HUD anticipate making?
HUD anticipates making around 7 awards.
26. Is the listed $12,000,000 award ceiling the amount each applicant will receive?
No. The listed award ceiling of $12,000,000 reflects the total funding available under this announcement rather than a guaranteed amount per applicant.
27. What agency is offering this grant?
This opportunity is offered by the U.S. Department of Housing and Urban Development (HUD).
28. What is the primary purpose of limiting SHOP funding to pre-development and site-related costs?
Based on the NOFO description, the purpose is to help make affordable home construction possible by funding land acquisition and infrastructure improvements, while requiring construction and rehabilitation costs to be covered by other leveraged resources.
29. What capacity must applicants demonstrate?
Applicants must demonstrate the capacity and experience needed to facilitate self-help homeownership at a national or regional scale, whether operating directly or through affiliates.
30. Does SHOP focus on a single local market or broader coverage?
The NOFO is designed to fund organizations operating on a broad, geographically diverse basis, with an expectation of activity across state lines (at least two states using a significant portion of funds).
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