Community Frameworks’ SHOP program uses a Housing and Urban Development SHOP grant as core funding to make loans to affiliate self-help homeownership programs in Washington, Oregon, Idaho and Montana. We provide zero-interest, forgivable loans (currently at an average of $15,000 per house) to nonprofit and public agency affiliates. The affiliates use loan funds to acquire and develop infrastructure for lots upon which to build homes that will be purchased by low-income homebuyers.

When the local affiliate sells the home they may use the SHOP funds to provide deferred second mortgages to buyers to further lower their house payments. If that is not necessary, they may establish a local revolving fund and recycle SHOP funds to buy more land and develop infrastructure for additional homes.

In addition to SHOP funds, Community Frameworks offers development and program management technical assistance, training workshops, and access to a resource and communication website to all affiliates. Because of the funding and technical support we provide, our affiliates are able to operate more effective and efficient programs. These programs can then generate more affordable high quality homes for purchase by low income buyers.

The self-help program model is designed to provide a means by which low income households can become successful homeowners who are actively involved in the betterment of their family’s prospects. SHOP affiliate programs build groups of homes at a time, creating an instant community as the families contribute sweat equity labor, working alongside their new neighbors to complete all the homes in the group.

SHOP homebuyers are households with incomes at or below 80% of the area median income. Because of income, credit, or some other barrier, they would otherwise be unlikely to attain homeownership. In addition to affordable homes and a support network of neighbors they know, buyers receive financial literacy and other types of homebuyer education.

SHOP
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