The U.S. Department of Housing and Urban Development (HUD) is injecting $12 million into affordable housing initiatives in an attempt to boost homeownership opportunities for Americans in rural and urban areas alike.
Through its Self-Help Homeownership Opportunity Program (SHOP), HUD aids eligible organizations to acquire land, upgrade infrastructure, and develop homes, a move that aligns with the Biden-Harris Administration’s ongoing effort to make housing more affordable.
“These funds will help make dreams come true. Many families want to buy a home, but can’t find one they can afford,” said HUD Agency Head Adrianne Todman. “Working with our partners, HUD will support the creation of new homes to purchase, while also helping families navigate the homeownership process. This is another demonstration of the Biden-Harris Administration’s commitment to housing."
Organizations receiving SHOP grant funds can use them to build new homes or renovate existing ones. This funding covers land acquisition, infrastructure upgrades, and necessary planning and administrative expenses.
The average SHOP expenditure for the combined cost of land acquisition and infrastructure improvements cannot exceed $25,000 per SHOP unit. Homes developed under this program must be sold to buyers below the market rate, and prospective homeowners are required to secure additional public or private funding to cover the remaining construction or renovation costs.
“I have traveled around the country and seen the transformative impact of SHOP funds firsthand,” said Marion McFadden, Principal Deputy Assistant Secretary for Community Planning and Development. “SHOP helps transform people’s lives by making homeownership opportunities more accessible to low-income families in rural and underserved communities.”
Only national and regional non-profit organizations and consortia with experience in self-help homeownership programs are eligible to apply for SHOP funds, which must be used in at least two states. Individuals are not eligible, HUD's press release stated.
Grantees may sub-award funds to local affiliates within their service area. The 2024 SHOP funding gives preference to projects focused on climate change, environmental justice, Minority Serving Institutions, Promise Zones, and the Rural Partners Network.
