FY 2019 Self-Help Homeownership Opportunity Program (SHOP) NOFA

The Self-Help Homeownership Opportunity Program (SHOP) awards grant funds to eligible national and regional non-profit organizations and consortia to purchase home sites and develop or improve the infrastructure needed to set the stage for sweat equity and volunteer-based homeownership programs for low-income persons and families. Through this NOFA, HUD is making $10,000,000 of FY2019 Self-Help Homeownership Opportunity Program (SHOP) grant funds available to national and regional non-profit organizations and consortia. SHOP funds must be used for eligible expenses to develop decent, safe and sanitary non-luxury housing for low-income persons and families who otherwise would not be able to afford to become homeowners. SHOP units must be decent, safe, and sanitary non-luxury dwellings that comply with state and local codes, ordinances, and zoning requirements, and with all other SHOP requirements.

Only national and regional non-profit organizations and consortia with experience facilitating innovative homeownership opportunities through the provision of self-help homeownership housing programs are eligible to apply. Applicants must propose to use a significant amount of SHOP grant funds in at least two states. Individuals are not eligible applicants for SHOP grant funds. Applications received from individuals will not be reviewed by HUD.

Land acquisition, infrastructure improvements, and reasonable and necessary planning and administration costs (not to exceed 20 percent) are the only eligible uses for SHOP grant funds. The average SHOP expenditure for the combined costs of land acquisition and infrastructure improvements cannot exceed $15,000 per SHOP unit. Successful applicants must leverage other public and private funds to pay for the construction or rehabilitation costs of each SHOP unit and for any other program costs that are not assisted with SHOP grant funds.

The SHOP units must be sold to homebuyers at prices below the prevailing market price. Homebuyers must be low-income and must contribute a significant amount of sweat equity towards the development of the SHOP units.  Reasonable accommodations must be permitted for individuals with disabilities in order for such individuals to meet hourly sweat equity requirements. A homebuyer’s sweat equity contribution cannot be mortgaged or otherwise restricted upon future sale of the SHOP unit. Volunteer labor is also required.

SHOP Grantees may award SHOP grant funds to local non-profit affiliate organizations to carry out the Grantee’s SHOP program. These affiliate organizations must be located within the Grantee’s service area.

The FY 2019 SHOP NOFA includes changes to the following:

Preference Points Under V.A.2, Other Factors

HUD encourages activities in Opportunity Zones (OZ) and activities in collaboration with HBCUs.  HUD may award two (2) points for qualified activities supporting either or both initiative(s).  In no case will HUD award more than two preference points for these activities.   

(1) Opportunity Zones (OZ) 

HUD encourages activities in Opportunity Zones (OZ) communities. HUD will award two (2) points for qualified activities within a designated zone or area.  Applicants must specify the impact that they intend to have in an Opportunity Zone.  For example, “The proposed home sites and the development or improvement for infrastructure will be done in an Opportunity Zone.  This includes the construction of decent, safe, and sanitary non-luxury housing for low-income persons and families who otherwise would not be able to become homeowners."

(2) Historically Black Colleges and Universities (HBCU)

Applicants partnering with a Historically Black College or University will receive two (2) HBCU preference points when their applications include a letter of Commitment certifying that an HBCU Partnership is in place and signed by an authorizing official of the HBCU and documentation of the college or university’s status as a HBCU.  Applicants designated by the U.S. Department of Education as Historically Black College or University HBCUs are not eligible to apply for grant funds or receive points under this NOFA.

Funding of up to $10,000,000 is available through this NOFA.  HUD expects to make approximately 4 awards from the funds available under this NOFA.

Funding Opportunity Number: FR-6300-N-19
Opportunity Title: Self-Help Homeownership Opportunity Program (SHOP)
Competition ID: FR-6300-N-19
CFDA No: 14.247
Closing Date: September 10, 2019

Contact Information:  Questions regarding this NOFA should be directed to Thann Young, Senior CPD Specialist at 1-877-787-2526 or email Jackie.Williams@hud.gov.   Persons with hearing or speech impairments may access this number via TTY by calling the toll-free Federal Relay Service at 800-877-8339. Please note that HUD staff cannot assist applicants in preparing their applications