DONOVAN ANNOUNCES $27 MILLION IN “SWEAT EQUITY” GRANTS

SHOP funding employs the power of elbow grease to help 1,500 families become homeowners

WASHINGTON, DC – June 16, 2011 – (RealEstateRama) — The U.S. Department of Housing and Urban Development today awarded $26.7 million in “sweat equity” grants to produce at least 1,500 affordable homes for low-income individuals and families.  Funded through HUD’s Self-Help Homeownership Opportunity Program (SHOP), the funding awarded today, along with the labor contributed by these households, will significantly lower the cost of homeownership.

“These grants are about rolling up your sleeves and getting the job done,” said HUD Secretary Shaun Donovan.  “With a little investment and a lot of elbow grease, these organizations, volunteers and the families work side-by-side to build their homes from the ground up.”

The following organizations will receive SHOP funds:

The SHOP program provides federal grants on a competitive basis to national and regional nonprofit organizations and consortia that have experience in administering self-help housing programs. The funds must be used to purchase land and install or improve infrastructure, which together may not exceed an average investment of $15,000 per dwelling.  Grantees may carry out activities directly and/or propose to distribute SHOP funds to local nonprofit affiliates that will acquire and prepare the land for construction, select homebuyers, coordinate the homebuyer sweat equity and volunteer efforts, and assist in the arrangement of interim and permanent financing for the homebuyers.

Homebuyers must contribute a minimum of 100 hours of sweat equity on the construction of their homes and/or the homes of other homebuyers participating in the local self-help housing program.  Self-help housing or sweat equity involves the homebuyer’s participation in the construction of the housing, which can include, but is not limited to, assisting in the painting, carpentry, trim work, drywall, roofing and siding for the housing.  All newly constructed units must receive certification as an ENERGY STAR Qualified New Home and all appliances and products or features which are replaced in rehabilitated units must be ENERGY STAR qualified.

Labor contributed by volunteers also helps buyers who are unable to perform their sweat equity tasks due to disabilities.  The sweat equity and labor contributions by the homebuyers and volunteers significantly reduce the cost of the housing.

Most of the families who benefit from SHOP homes are first-time homeowners so the new home fulfills a lifelong dream.  The organizations that receive the SHOP grants also ensure the new homeowners can afford to stay in their homes for the long term to provide a safe, healthy, stable environment to raise children, access jobs and build community.

Since 1996, when Congress first appropriated SHOP funds, the program and numerous volunteers has provided more than $360 million in federal grants to create more than 23,000 units of affordable, homeownership housing that have transformed lives and neighborhoods.

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HUD is the nation’s housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

 Fiscal Year 2010 SHOP Grantees

Community Frameworks is a regional nonprofit self-help housing organization that serves the states of Idaho, Montana, Oregon and Washington.  Community Frameworks will make SHOP funds available to 22 affiliates to buy land and build or make necessary infrastructure improvements that support new construction and rehabilitation of the SHOP units.  Funds will also be used for administration of the grant.  The units will be single-family detached and multifamily dwellings.  Ownership will be fee simple, condominium or land trust.  Completed units will be sold to low-income homebuyers who have contributed a significant amount of sweat equity toward the construction of their homes.  Volunteer labor will also be used.  Community Frameworks will produce a minimum of 393 SHOP housing units.  Contact:   Linda Hugo,  360-377-7738 ext. 25.

Habitat for Humanity International (HFHI) is a national nonprofit organization that will use SHOP funds in rural, metropolitan, and urban communities to facilitate and encourage innovative homeownership opportunities through the provision of self-help housing.  Local affiliates will compete for SHOP funding from HFHI on a national basis.  Each affiliate has flexibility to design a program that meets the needs of its community.  SHOP funds will be used to purchase land and make necessary infrastructure improvements, primarily in support of new construction.  Funds will also be used for administration of the grant.  The units will be single-family detached and multi-family dwellings.  Ownership will be fee simple, condominium or land trust.  Completed units will be sold to low-income homebuyers who have contributed a significant amount of sweat equity toward the construction of their homes. Volunteer labor will also be used.  HFHI will produce a minimum of 829 SHOP housing units.  Contact: Dona Golden, 229-410-7514.

The Housing Assistance Council (HAC) is a national nonprofit organization that will use its SHOP funds in primarily rural areas to facilitate and encourage innovative homeownership opportunities through the provision of self-help housing.  To achieve a national distribution of funds, local self-help housing affiliate organizations will compete for SHOP funding from HAC.  SHOP funds will be used for land acquisition and infrastructure improvements that support new construction and rehabilitation of the SHOP units.  Funds will also be used for administration of the grant. The units will be primarily single family detached dwellings.  Ownership will be fee simple.  Completed units will be sold to low-income homebuyers who have contributed a significant amount of sweat equity toward the construction of their homes.  Volunteer labor will also be used.   HAC will produce a minimum of 182 SHOP housing units.  Contact:  Karin Klusmann, 202-842-8600 ext 118.

Tierra del Sol Housing Corporation, located in New Mexico, is the lead agency representing the Western States Housing Consortium which includes Chicanos por la Causa located in Tucson, Arizona; Colorado Rural Housing Development Corporation located in Westminster, Colorado; Housing America Corporation located in Somerton, Arizona; and Old Pueblo Community Foundation located in Tucson, Arizona.  SHOP funds will be used to acquire lots and build or make necessary infrastructure improvements that support the new construction of the SHOP units.  Funds will also be used for administration of the grant.  The units will be single-family detached dwellings.  Ownership will be fee-simple.  Completed units will be sold to low-income homebuyers who have contributed a significant amount of sweat equity toward the construction of their homes.  Volunteer labor will also be used.  The Western States Housing Consortium will produce a minimum of 49 SHOP housing units.  Contact: Rosa Garcia, 575-882-3554.

Contact:
Donna White
(202) 708-0685