Self Help Homeownership Opportunity Program
Created in response to the growing number of families unable to afford a home, SHOP provides funding for nonprofit organizations who purchase home sites in order to develop safe and sanitary non-luxury housing for low-income families and individuals.
Am I eligible?
As a funding program designed to assist non-profit organizations, SHOP does have some requirements. In order to qualify, an organization must:
- Be a national or regional non-profit organization or consortia
- Have experience using homebuyer and volunteer labor to build housing
- Have completed a minimum of 30 units of self-help housing within the last 24 months
Just as organizations must fall within the above requirements, grants provided by SHOP must be used for specific purposes. SHOP funding must be used for:
- Land acquisition
- Home improvements
- Administrative costs (within 20% of the grant amount)
Total land acquisition and improvement costs may not exceed $15, 000 per home.
How does it work?
SHOP grants are made available through NOFA, a notice published by the Federal government annually in the Federal Register. Families or individuals who qualify for assistance through SHOP-funded regional or national non-profit organizations must provide significant amounts of sweat equity (personal time and effort) toward building or repairing the home lot purchased by the nonprofit organization. The sweat equity is offered by the homebuyer instead of monetary payments.
What are the alternatives?
Various government funded loans offering a low to zero downpayment and low mortgage rates are available for qualifying individuals and families, but if you are a low-income family unable to afford to purchase a home, it is recommended that you inquire at your local nonprofit organizations to see if they qualify for SHOP assistance.
Do I really need this type of funding?
Since SHOP is a program designed to assist nonprofit organizations, qualifying organizations with experience in organizing volunteer labor to build housing are encouraged to inquire about funding through SHOP. For families or individuals who are unable to purchase a home but have the means to provide the sweat equity required of a SHOP-built home, it may be in your nest interest to inquire at your local nonprofit organizations.
Can I afford it?
Nonprofit organizations are often in need of financial assistance, and if this is the case with your organization, it is recommended that you inquire about SHOP. If you are a part of a low-income household looking to purchase a home, it would be worthwhile to look into a SHOP-funded home lot.
