Self-Help Homeownership Opportunity Program (SHOP)

The Self-Help Homeownership Opportunity Program (SHOP) under the U.S. Department of Housing and Urban Development (HUD) provides grants to national and regional nonprofit organizations for the acquisition of land and development of infrastructure required for self-help homeownership programs. These programs target low-income individuals and families who contribute sweat equity toward constructing or rehabilitating homes, significantly reducing the cost of homeownership. SHOP grants can only be used for land acquisition, infrastructure improvements, and associated planning and administrative costs. Approximately $12 million is available for FY2024, with expected grants ranging from $1,145,000 to the full available amount. Each grant supports the construction or rehabilitation of homes, with the cost of land and infrastructure capped at $25,000 per unit. Organizations are required to leverage additional funds for construction and other program costs. The period of performance for most SHOP projects is 24 months, but can extend to 36 months for projects involving five or more units. Grantees must complete and convey all units within this timeframe. Only public or private nonprofits with experience in providing self-help homeownership housing on a national or regional scale are eligible to apply. Applicants must operate in at least two states and demonstrate a track record of successfully completing at least 30 self-help homeownership units in the two years preceding the application. Grantees may work with local affiliates to carry out their projects, but the lead organization is accountable for compliance with all HUD requirements. SHOP-funded homes must be sold at prices below market value to low-income families who contribute sweat equity to the building process. Applications for this competitive funding are due by December 17, 2024, and must be submitted through Grants.gov. Applications will be evaluated on the applicant’s capacity, need for funds, project design, leveraging of resources, and performance monitoring plans. Grantees are also required to promote racial equity, fair housing, and environmental justice in their projects. Award announcements are expected in March 2025, with project implementation beginning soon after.