SHOP Funded by HUD
SHOP provides funds for eligible non-profit affordable housing development organizations to purchase home sites and develop or improve the infrastructure needed to set the stage for sweat equity and volunteer-based homeownership programs for low-income persons and families. SHOP funds are used for eligible expenses to develop decent, safe and sanitary non-luxury housing for low-income persons and families who otherwise would not become homeowners. Homebuyers must be willing to contribute significant amounts of their own sweat equity toward the construction of the housing units. SHOP funds are disbursed locally by Housing Assistance Council (HAC), a national intermediary, and by Community Frameworks, a regional non-profit intermediary serving WA, OR, ID and MT.
No separate program regulations exist for SHOP. All program requirements are listed annually in the SHOP NOFA
SHOP funds may be used for only land acquisition and infrastructure improvements. Total land acquisition and infrastructure improvement costs together may not exceed an average of $15,000 in SHOP assistance per home.
Community Frameworks' Self-Help Homeownership Opportunity Program (SHOP) provides 10-year, zero-interest, 100%-forgivableloans to nonprofit organizations and public agencies sponsoring self-help homeownership projects. Funds recaptured upon “take-out” may be revolved back to the local organization for use future self-help projects, or may be reconveyed to project homebuyers as second mortgages that increase the affordability of their homes. Households served by SHOP-funded programs must have incomes at or below 80% of Area Median Income. Eligible projects must have a substantial sweat equity and/or volunteer component. Current requirements are 100 hours for a 2-adult household and 50 hours for a 1-adult household. SHOP funds partner well with the USDA-RD Mutual Self-Help Program which requires a 65% labor contribution by home buyers.
In addition to SHOP funds, applicant organizations may also receive technical assistance in program and management development from Community Frameworks' SHOP staff. Small organizations working in very rural areas, organizations beginning their first self-help project, or organizations expanding into different areas such as urban self-help or self-help rehab programs can receive technical assistance and training to establish, strengthen or expand their programs.
Community Frameworks currently works with 30 local organization SHOP affiliate organizations throughout the Northwest. Community Frameworks sponsors an annual meeting for its SHOP affiliates that provides training in various aspects of self-help housing development, and a venue for project sponsors to share information and engage in mutual capacity building. This meeting is also open to organizations interested in developing new self-help programs and becoming affiliates of Community Frameworks' SHOP program.
www.communityframeworks.org/shop/shop_index.html |
