Opportunity Information: Apply for FR 6400 N 19
The Self-Help Homeownership Opportunity Program (SHOP) is a discretionary grant opportunity from the U.S. Department of Housing and Urban Development (HUD) designed to expand affordable homeownership through self-help housing models. Under this FY2020 Notice of Funding Availability (NOFA), HUD made $10,000,000 available to support national and regional nonprofit organizations, including eligible consortia, that can implement self-help homeownership programs across a geographically diverse footprint. A key program expectation is scale beyond a single location: applicants must plan to use a significant share of SHOP funds in at least two states, reinforcing the program's national or multi-state purpose rather than a purely local initiative.
Eligibility is limited to nonprofits with 501(c)(3) status (excluding institutions of higher education). Individuals are not eligible to apply. HUD anticipated making about four awards, with an award ceiling listed at $10,000,000, indicating that awards could be sizable and that strong organizational capacity is expected. The opportunity was posted June 17, 2020, with an application deadline of August 18, 2020 (11:59:59 PM Eastern). The program is associated with CFDA number 14.247 and is categorized under housing and opportunity zone benefits.
SHOP funding is tightly targeted to early, enabling costs that make housing development possible, rather than paying for the homes themselves. Grant funds may be used for land acquisition and infrastructure improvements, along with reasonable and necessary planning and administration expenses, though administrative and planning costs are capped at 20 percent of the grant. Importantly, the actual construction or rehabilitation of each housing unit must be paid for with leveraged resources from other public and private funding sources. In other words, SHOP is intended to fill specific financing gaps (land and infrastructure) while requiring grantees to bring in additional capital to complete the homes.
Cost controls are built into the program. Across the project portfolio, the average SHOP expenditure for the combined costs of land acquisition and infrastructure improvements cannot exceed $15,000 per SHOP unit. This requirement pushes applicants to show discipline in site selection, infrastructure scope, and deal structure, and to demonstrate that SHOP dollars will be stretched across a meaningful number of units rather than concentrated in a small set of expensive developments.
The homes produced must meet clear affordability and quality standards. SHOP units must be decent, safe, and sanitary, and they must be non-luxury dwellings that comply with applicable state and local codes, ordinances, and zoning requirements. The homes must be sold to buyers at prices below the prevailing market price, ensuring that the assistance translates into a real affordability benefit. The target beneficiaries are low-income homebuyers, and the program hinges on the self-help model: purchasers must contribute a significant amount of "sweat equity" toward development of the home. In addition to homeowner labor, volunteer labor is also required, reinforcing the community-based construction approach that distinguishes SHOP from traditional developer-driven production.
There are also consumer-protection style rules tied to the sweat equity requirement. A homebuyer's sweat equity contribution cannot be mortgaged or otherwise restricted upon the future sale of the SHOP unit, meaning the labor contribution cannot be turned into a lien-like obligation that follows the homeowner later. This helps keep the equity-building promise of the program intact and prevents sweat equity from becoming a hidden financial burden.
Finally, HUD allows grantees to operate through local delivery partners. SHOP grantees may award SHOP funds to local nonprofit affiliate organizations to carry out the grantee's program, as long as those affiliates operate within the grantee's service area. This structure supports national or regional organizations that rely on local affiliates for on-the-ground implementation, including site work, homeowner recruitment and training, sweat equity coordination, and project management. Overall, SHOP is structured to reward organizations that can combine land and infrastructure financing with strong leveraging, multi-state capacity, and a proven self-help homeownership model that produces safe, code-compliant, below-market homes for low-income families.Apply for FR 6400 N 19
- The US Department of Housing and Urban Development in the housing, opportunity zone benefits 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 Jun 17, 2020.
- Applicants must submit their applications by Aug 18, 2020 The application deadline is 115959 pm Eastern Standard time on. (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 $10,000,000.00 in funding.
- The number of recipients for this funding is limited to 4 candidate(s).
- Eligible applicants include: Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education.
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Self-Help Homeownership Opportunity Program (SHOP) FY2020 NOFA - FAQs
What is the Self-Help Homeownership Opportunity Program (SHOP)?
SHOP is a discretionary grant opportunity from the U.S. Department of Housing and Urban Development (HUD) intended to expand affordable homeownership through self-help housing models. It supports organizations that can run self-help homeownership programs and produce affordable homes for low-income buyers.
Who offered this grant opportunity?
The grant opportunity is offered by the U.S. Department of Housing and Urban Development (HUD).
How much funding was available under this FY2020 NOFA?
HUD made $10,000,000 available under the FY2020 Notice of Funding Availability (NOFA).
Who is eligible to apply?
Eligibility is limited to nonprofit organizations with 501(c)(3) status. Institutions of higher education are excluded. Individuals are not eligible to apply.
Are consortia eligible to apply?
Yes. The opportunity includes eligible consortia among the types of applicants HUD intended to support.
Is this grant intended for local, single-site programs?
No. A key expectation is that applicants scale beyond a single location. Applicants must plan to use a significant share of SHOP funds in at least two states, reflecting a national or multi-state purpose rather than a purely local initiative.
What kind of organizations was HUD targeting for awards?
HUD targeted national and regional nonprofit organizations that can implement self-help homeownership programs across a geographically diverse footprint, including the ability to operate across at least two states.
How many awards did HUD anticipate making?
HUD anticipated making about four awards.
What was the maximum (ceiling) award amount listed?
The award ceiling was listed at $10,000,000, indicating awards could be sizable and that strong organizational capacity is expected.
When was the opportunity posted and when was the application deadline?
The opportunity was posted on June 17, 2020. The application deadline was August 18, 2020 at 11:59:59 PM Eastern.
What is the CFDA number associated with this program?
The program is associated with CFDA number 14.247.
What category was this opportunity listed under?
It was categorized under housing and opportunity zone benefits.
What can SHOP grant funds be used for?
SHOP funds are targeted to early, enabling costs that make housing development possible. Funds may be used for land acquisition and infrastructure improvements, along with reasonable and necessary planning and administration expenses (subject to the program cap on planning and administrative costs).
Can SHOP funds pay for the construction or rehabilitation of homes?
No. The actual construction or rehabilitation of each housing unit must be paid for with leveraged resources from other public and private funding sources. SHOP is intended to fill specific financing gaps (such as land and infrastructure) rather than pay for the homes themselves.
Is leveraging other funding sources required?
Yes. Because SHOP does not fund unit construction or rehabilitation, grantees must leverage other public and private resources to complete the homes.
Is there a cap on planning and administrative costs?
Yes. Administrative and planning costs are capped at 20 percent of the grant.
Is there a limit on how much SHOP can spend per home on land and infrastructure?
Yes. Across the project portfolio, the average SHOP expenditure for the combined costs of land acquisition and infrastructure improvements cannot exceed $15,000 per SHOP unit.
Does the $15,000 limit apply to each individual unit?
The limit is expressed as an average across the overall project portfolio for combined land acquisition and infrastructure improvement costs per SHOP unit.
What does HUD mean by "self-help housing" in this program?
The program hinges on a self-help model where homebuyers contribute a significant amount of sweat equity toward development of the home. Volunteer labor is also required, reinforcing a community-based construction approach.
Are volunteers required in addition to homeowner sweat equity?
Yes. In addition to homebuyer labor, volunteer labor is required.
Who are the intended beneficiaries of SHOP-assisted homes?
The target beneficiaries are low-income homebuyers.
Do SHOP homes have to be sold at below-market prices?
Yes. The homes must be sold to buyers at prices below the prevailing market price to ensure the assistance translates into a real affordability benefit.
Are there quality and code requirements for SHOP units?
Yes. SHOP units must be decent, safe, and sanitary, and must be non-luxury dwellings. They must comply with applicable state and local codes, ordinances, and zoning requirements.
Can a homebuyer's sweat equity be mortgaged or restricted later?
No. A homebuyer's sweat equity contribution cannot be mortgaged or otherwise restricted upon the future sale of the SHOP unit. This prevents the labor contribution from becoming a lien-like obligation that follows the homeowner later.
Can SHOP grantees work through local partner organizations?
Yes. SHOP grantees may award SHOP funds to local nonprofit affiliate organizations to carry out the grantee's program, as long as those affiliates operate within the grantee's service area.
What activities might local nonprofit affiliates carry out under a grantee's program?
The structure is intended to support on-the-ground implementation functions such as site work, homeowner recruitment and training, sweat equity coordination, and project management.
Why does SHOP emphasize multi-state use of funds?
The NOFA reinforces SHOP's national or regional purpose. Applicants must plan to use a significant share of funds in at least two states, which signals that HUD expects grantees to have capacity and reach beyond a single community.
What is the overall purpose of SHOP funding within a housing deal?
SHOP is structured to cover specific early-stage costs (land and infrastructure) while requiring other capital sources to cover construction or rehabilitation. This design is meant to stretch SHOP dollars across more homes, control per-unit enabling costs, and support scalable self-help homeownership production.
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