Opportunity Information: Apply for FR 6300 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 the FY2019 Notice of Funding Availability (NOFA), HUD made $10,000,000 available to support national and regional nonprofit organizations (including consortia) that can implement programs across a geographically diverse footprint. A core intent of the program is to encourage innovative pathways to homeownership by pairing affordable housing production with hands-on participation from the future homeowners themselves, using the well-known "sweat equity" approach where families contribute meaningful labor toward building their own homes.
Eligibility is limited to nonprofit organizations with IRS 501(c)(3) status (other than institutions of higher education). Individuals cannot apply. Because the program is structured to promote broad impact rather than isolated single-site projects, applicants are expected to propose using a significant portion of grant funds in at least two states. This multi-state requirement is central to the program's national and regional emphasis and is one of the practical features that distinguishes SHOP from many place-based housing grants.
SHOP funds are narrowly targeted to specific early-stage development costs that often create barriers for affordable housing deals. Grant dollars may be used for land acquisition and infrastructure improvements, along with reasonable and necessary planning and administrative expenses, but planning and administration are capped at 20 percent of the award. Importantly, SHOP does not pay for the vertical construction or rehabilitation of the homes themselves. Those costs must be covered through other leveraged sources, meaning applicants must bring together additional public and private financing to complete each unit. The program also places a per-unit cost control on SHOP-eligible activities: the average SHOP grant expenditure for the combined cost of land acquisition and infrastructure improvements cannot exceed $15,000 per unit across the assisted units in the grant.
The housing produced under SHOP must meet clear affordability and quality expectations. Units must be decent, safe, and sanitary non-luxury dwellings, and they must comply with applicable state and local building codes, ordinances, and zoning rules. Completed homes must be sold at prices below the prevailing market price, ensuring the assistance translates into real affordability rather than simply subsidizing market-rate ownership. Homebuyers must be low-income, aligning the program with households that typically face the greatest difficulty accumulating down payment resources or qualifying for conventional homeownership without structured support.
A defining requirement of SHOP is the sweat equity model. Low-income homebuyers must contribute a significant amount of their own labor toward the development of the SHOP units, and volunteer labor is also required as part of the program design. The NOFA also specifies an important consumer-protection-like feature: the value of the homebuyer’s sweat equity contribution cannot be mortgaged or otherwise restricted upon the future sale of the SHOP unit. In practical terms, this condition is meant to ensure the homeowner is not later prevented from realizing the benefit of their personal labor investment through special liens or constraints tied specifically to the sweat equity portion.
Administration and delivery can be structured through affiliates, which is common in national self-help housing networks. SHOP grantees are permitted to award SHOP funds to local nonprofit affiliate organizations to carry out the grantee’s program, but those affiliates must be located within the grantee’s service area. This setup allows larger regional or national nonprofits to coordinate compliance, financing, and reporting while local partners handle on-the-ground activities like site preparation coordination, homeowner recruitment and training, volunteer management, and construction scheduling.
From a competition and timing standpoint, this FY2019 opportunity anticipated making about 4 awards, with an award ceiling of $10,000,000. The funding opportunity number is FR 6300 N 19, the CFDA number is 14.247, and the activity category is housing. Applications were required to be submitted electronically by 11:59 p.m. Eastern Time on the listed due date (the original closing date shown is July 10, 2019). Overall, the grant is best understood as a catalyst for self-help homeownership pipelines: it helps nonprofits control land and prepare sites, while requiring them to leverage separate construction financing and to deliver below-market homes to low-income buyers who directly participate in building their homes alongside volunteers.Apply for FR 6300 N 19
- The US Department of Housing and Urban Development in the housing 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 Jul 09, 2019.
- Applicants must submit their applications by Jul 10, 2019 Electronically submitted applications must be submitted no later than 1159 p.m., ET, on the listed application due date.. (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) FY2019 - 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. A central feature is the use of "sweat equity," where future homeowners contribute meaningful labor toward building their own homes.
Which HUD funding cycle is described here?
The information provided describes the FY2019 Notice of Funding Availability (NOFA) for SHOP.
How much funding was available under this FY2019 SHOP opportunity?
HUD made $10,000,000 available under the FY2019 NOFA.
About how many awards were expected to be made?
The FY2019 opportunity anticipated making about 4 awards.
What is the maximum (ceiling) award amount?
The award ceiling listed is $10,000,000.
Who is eligible to apply for SHOP grants?
Eligibility is limited to nonprofit organizations with IRS 501(c)(3) status, other than institutions of higher education. The program is aimed at national and regional nonprofit organizations, including consortia.
Can individuals apply for SHOP funding?
No. Individuals cannot apply.
Are institutions of higher education eligible if they are 501(c)(3) organizations?
No. Eligibility is limited to 501(c)(3) nonprofit organizations other than institutions of higher education.
What kind of organizations is SHOP designed to support?
SHOP is designed to support national and regional nonprofit organizations (including consortia) that can implement programs across a geographically diverse footprint and deliver self-help homeownership pipelines.
Is there a multi-state requirement for applicants?
Yes. Applicants are expected to propose using a significant portion of grant funds in at least two states. This multi-state approach is a central practical feature of the program.
Is SHOP intended for single-site or isolated projects?
Not primarily. The program is structured to promote broad impact rather than isolated single-site projects, which is reinforced by the multi-state expectation.
What can SHOP grant funds be used for?
SHOP funds are targeted to early-stage development costs, specifically land acquisition and infrastructure improvements, plus reasonable and necessary planning and administrative expenses (subject to a cap).
Can SHOP funds be used for planning and administrative expenses?
Yes, but planning and administrative expenses are capped at 20 percent of the award.
Does SHOP pay for building (vertical construction) or rehabilitating the homes?
No. SHOP does not pay for the vertical construction or rehabilitation of the homes themselves. Those costs must be paid for through other leveraged sources.
What does it mean that SHOP requires leveraged sources?
It means applicants must bring together additional public and private financing to cover costs SHOP will not fund (including the construction or rehabilitation of the homes).
Is there a per-unit limit on SHOP-eligible costs?
Yes. The average SHOP grant expenditure for the combined cost of land acquisition and infrastructure improvements cannot exceed $15,000 per unit across the assisted units in the grant.
How is the $15,000 per-unit limit calculated?
Based on the information provided, the $15,000 figure is an average cap across the assisted units in the grant for the combined cost of land acquisition and infrastructure improvements funded by SHOP.
What kind of housing must be produced with SHOP assistance?
The housing produced must be decent, safe, and sanitary non-luxury dwellings.
Do SHOP-assisted homes have to comply with local requirements?
Yes. Units must comply with applicable state and local building codes, ordinances, and zoning rules.
Do SHOP homes have to be sold below market price?
Yes. Completed homes must be sold at prices below the prevailing market price.
Who can buy a home produced under SHOP?
Homebuyers must be low-income.
What is the sweat equity requirement in SHOP?
Low-income homebuyers must contribute a significant amount of their own labor toward the development of the SHOP units. Volunteer labor is also required as part of the program design.
Is volunteer labor required in addition to homebuyer labor?
Yes. The program requires volunteer labor as part of the overall self-help model, in addition to the homebuyers' sweat equity contributions.
Can the value of a homebuyer’s sweat equity be mortgaged or restricted later?
No. The NOFA specifies that the value of the homebuyer’s sweat equity contribution cannot be mortgaged or otherwise restricted upon the future sale of the SHOP unit.
Why does SHOP prohibit mortgaging or restricting the sweat equity value?
Based on the information provided, this condition functions like a consumer-protection feature to ensure the homeowner is not later prevented from realizing the benefit of their personal labor investment through liens or constraints tied specifically to the sweat equity portion.
Can SHOP grantees work through local affiliates?
Yes. SHOP grantees are permitted to award SHOP funds to local nonprofit affiliate organizations to carry out the grantee’s program.
Are there location rules for affiliate organizations receiving SHOP funds?
Yes. Affiliates must be located within the grantee’s service area.
What kinds of responsibilities might affiliates handle under SHOP?
Based on the information provided, local affiliates may handle on-the-ground activities such as site preparation coordination, homeowner recruitment and training, volunteer management, and construction scheduling, while the larger grantee coordinates compliance, financing, and reporting.
What is the funding opportunity number for this SHOP NOFA?
The funding opportunity number is FR 6300 N 19.
What is the CFDA number for SHOP?
The CFDA number is 14.247.
What is the activity category for this grant?
The activity category is housing.
How were applications required to be submitted?
Applications were required to be submitted electronically.
What was the application deadline for the FY2019 closing date listed?
Applications were due by 11:59 p.m. Eastern Time on the listed due date. The original closing date shown is July 10, 2019.
In plain terms, what role does SHOP funding play in a homeownership project?
SHOP is best understood as a catalyst for self-help homeownership pipelines: it helps nonprofits control land and prepare sites (through land acquisition and infrastructure improvements), while requiring separate financing for construction and requiring the delivery of below-market homes to low-income buyers who participate in building their homes alongside volunteers.
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| Funding Opportunity |
|---|
| Jobs Plus Initiative Apply for FR 6300 N 14 Funding Number: FR 6300 N 14 Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: $3,700,000 |
| FY19 Choice Neighborhoods Implementation Grant Program Apply for FR 6300 N 34 Funding Number: FR 6300 N 34 Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: $35,000,000 |
| FY19 NOFA Housing Counseling Training Grant Apply for FR 6300 N 30 Funding Number: FR 6300 N 30 Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: $2,500,000 |
| Project Rental Assistance Program of Section 811 Supportive Housing for Persons with Disabilities Apply for FR 6300 N 53 Funding Number: FR 6300 N 53 Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: $7,000,000 |
| Section 811 Supportive Housing for Persons with Disabilities (Capital Advance) Apply for FR 6300 N 49 Funding Number: FR 6300 N 49 Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: $2,500,000 |
| 2019 Family Unification Program Notice of Funding Availability Apply for FR 6300 N 41 Funding Number: FR 6300 N 41 Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: $1,200,000 |
| Fair Housing Initiative Program - Education and Outreach Initiative Apply for FR 6300 N 21 A Funding Number: FR 6300 N 21 A Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: $1,000,000 |
| Fair Housing Initiatives Program - Private Enforcement Initiative Apply for FR 6300 N 21 C Funding Number: FR 6300 N 21 C Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: $300,000 |
| Fair Housing Initiative Program - Fair Housing Organization Initiative Apply for FR 6300 N 21 B Funding Number: FR 6300 N 21 B Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: $250,000 |
| Lead and Healthy Homes Technical Studies (LHHTS) Grant Program Pre- and Full Application Apply for FR 6400 N 15 Funding Number: FR 6400 N 15 Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: $1,000,000 |
| Estimating the Prevalence and Probability of Homeless Youth Apply for FR 6400 N 59 Funding Number: FR 6400 N 59 Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: $2,000,000 |
| Impact of RAD on Children in HUD Assisted Households Apply for FR 6400 N 66 Funding Number: FR 6400 N 66 Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: $750,000 |
| Notice of Funding Availability (NOFA) for the Department's Fiscal Year 2020 Supplemental Comprehensive Apply for FR 6400 N 33 Funding Number: FR 6400 N 33 Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: $3,000,000 |
| Examining Long-Term Outcomes Following Exit from HUD-Assisted Housing Apply for FR 6400 N 58 Funding Number: FR 6400 N 58 Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: $362,000 |
| Alternative Methods For Calculating Fair Market Rents (FMRs) in Rental Markets With Rapidly Rising Rents Apply for FR 6400 N 60 Funding Number: FR 6400 N 60 Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: $500,000 |
| Social and Economic Impacts of the CDBG and HOME Programs Apply for FR 6400 N 57 Funding Number: FR 6400 N 57 Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: $300,000 |
| Choice Neighborhoods Planning Grants NOFA Apply for FR 6400 N 38 Funding Number: FR 6400 N 38 Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: $450,000 |
| 2020 Family Self-Sufficiency – Renewal NOFA Apply for FR 6400 N 04 Funding Number: FR 6400 N 04 Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: Case Dependent |
| Lead Hazard Reduction Grant Program Apply for FR 6400 N 13 Funding Number: FR 6400 N 13 Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: $9,000,000 |
| HUD's FY 2020 and FY 2021 Community Compass Technical Assistance and Capacity Building Program Notice of Funding Availability (NOFA) Apply for FR 6400 N 06 Funding Number: FR 6400 N 06 Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: $20,000,000 |
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