Opportunity Information: Apply for FR 6200 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 FY2018 Notice of Funding Availability (NOFA), HUD made $10,000,000 available to support national and regional nonprofit organizations, including consortia, that can implement self-help homeownership programs across a geographically diverse footprint. A key expectation is that applicants operate at a multi-state level: proposals must plan to use a significant portion of SHOP funds in at least two states. Individuals are not eligible to apply, and eligibility is limited to nonprofits with 501(c)(3) status (excluding institutions of higher education). HUD anticipated making around four awards, with an overall award ceiling of $10,000,000.
SHOP funding is narrowly targeted to specific early-stage and enabling costs that make homeownership development feasible. Grant dollars may be used for land acquisition and infrastructure improvements, along with reasonable and necessary planning, administration, and management expenses, but administrative-type costs are capped at 20 percent of the grant. Importantly, SHOP does not pay for the core vertical construction or rehabilitation work on the homes themselves; those costs must be covered through leveraged public and private resources brought in by the grantee and its partners. In addition, HUD limits the average SHOP investment for land plus infrastructure to no more than $15,000 per housing unit, reinforcing that SHOP is intended to fill critical gaps rather than fully fund development.
The homes produced under SHOP must meet clear affordability and quality requirements. Units must be decent, safe, sanitary, and non-luxury, and they must comply with state and local building codes, ordinances, and zoning rules. They must also satisfy SHOP-specific standards, including requirements related to energy efficiency, water conservation, and accessibility. Affordability is addressed both through who is served and how the homes are priced: the units must be sold to low-income homebuyers and sold at prices below the prevailing market price.
A defining feature of SHOP is the self-help requirement, which means homebuyers must contribute a significant amount of sweat equity toward development of their homes (typically through labor on their own homes and/or the homes of others in the program). Volunteer labor is also required as part of the broader effort. HUD also specifies that a homebuyer’s sweat equity contribution cannot be mortgaged or otherwise restricted when the home is sold in the future, helping ensure that the value of that contribution is not later encumbered as a financial instrument.
From an implementation standpoint, HUD allows grantees to pass SHOP funds through to local nonprofit affiliate organizations that carry out the on-the-ground work, as long as those affiliates are located within the grantee’s service area. This structure supports national and regional organizations that operate through networks of local partners while maintaining geographic and programmatic accountability.
Administrative details for this NOFA include the funding opportunity number FR 6200 N 19, CFDA number 14.247, and a posting date of September 10, 2018. Applications had to be submitted electronically by 11:59 p.m. Eastern Time on the closing date of November 12, 2018.Apply for FR 6200 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 Sep 10, 2018.
- Applicants must submit their applications by Nov 12, 2018 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) - FAQs (FY2018 NOFA)
What is the Self-Help Homeownership Opportunity Program (SHOP)?
The Self-Help Homeownership Opportunity Program (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. The program supports early-stage and enabling costs that help make self-help homeownership development feasible.
Which federal agency administers SHOP?
SHOP is administered by the U.S. Department of Housing and Urban Development (HUD).
How much funding was available under the FY2018 NOFA?
Under the FY2018 Notice of Funding Availability (NOFA), HUD made $10,000,000 available for SHOP.
How many awards did HUD expect to make?
HUD anticipated making around four awards under this NOFA.
What was the maximum award amount (award ceiling)?
The overall award ceiling for this opportunity was $10,000,000.
Who was eligible to apply for SHOP funding?
Eligibility was limited to nonprofit organizations with 501(c)(3) status. Institutions of higher education were excluded from eligibility.
Can individuals apply for SHOP?
No. Individuals were not eligible to apply.
Are consortia allowed to apply?
Yes. HUD allowed national and regional nonprofit organizations to apply, including consortia.
Is SHOP intended for local organizations operating in a single community?
This NOFA emphasized multi-state operations. A key expectation was that applicants operate at a multi-state level and plan to use a significant portion of SHOP funds in at least two states.
What does it mean that SHOP applicants must operate at a multi-state level?
For this NOFA, proposals had to plan to use a significant portion of SHOP funds in at least two states. This reflects HUD's expectation that grantees have a geographically diverse footprint rather than operating in only one state.
What types of costs can SHOP grant funds be used for?
SHOP funds may be used for land acquisition and infrastructure improvements, along with reasonable and necessary planning, administration, and management expenses. The funding is narrowly targeted to early-stage and enabling costs that help make homeownership development possible.
Can SHOP funds be used for constructing or rehabilitating the homes?
No. SHOP does not pay for the core vertical construction or rehabilitation work on the homes themselves. Those costs must be covered through leveraged public and private resources provided by the grantee and its partners.
What is meant by "leveraged" resources for construction/rehabilitation?
Because SHOP does not fund the vertical construction or rehabilitation, grantees and their partners are expected to bring in other public and private funding sources to cover those development costs.
Is there a cap on administrative-type costs?
Yes. Administrative-type costs are capped at 20 percent of the grant.
Is there a per-unit limit on how much SHOP can invest?
Yes. HUD limits the average SHOP investment for land plus infrastructure to no more than $15,000 per housing unit.
Does the $15,000 per-unit limit apply to all SHOP spending?
The stated limit applies to the average SHOP investment for land plus infrastructure. Other eligible costs such as planning, administration, and management are addressed separately, including the 20 percent cap on administrative-type costs.
What is the purpose of limiting SHOP funding to early-stage costs?
The limits reinforce that SHOP is intended to fill critical gaps (such as land and infrastructure) rather than fully fund housing development from start to finish.
What requirements must the SHOP-assisted homes meet?
Homes produced under SHOP must be decent, safe, sanitary, and non-luxury. They must comply with state and local building codes, ordinances, and zoning rules, and they must meet SHOP-specific standards, including requirements related to energy efficiency, water conservation, and accessibility.
Are there affordability requirements for who can buy SHOP-assisted homes?
Yes. Units must be sold to low-income homebuyers.
Are there affordability requirements related to the sale price of SHOP-assisted homes?
Yes. SHOP-assisted units must be sold at prices below the prevailing market price.
What is the "self-help" requirement in SHOP?
A defining feature of SHOP is the self-help requirement. Homebuyers must contribute a significant amount of sweat equity toward development of their homes, typically by providing labor on their own homes and/or the homes of others in the program.
Is volunteer labor required in addition to homebuyer sweat equity?
Yes. Volunteer labor is also required as part of the broader self-help effort.
Can a homebuyer finance (mortgage) the value of their sweat equity contribution later?
No. HUD specifies that a homebuyer’s sweat equity contribution cannot be mortgaged or otherwise restricted when the home is sold in the future.
Can SHOP grantees pass funds to local affiliates or partners?
Yes. HUD allows grantees to pass SHOP funds through to local nonprofit affiliate organizations that carry out on-the-ground work, as long as those affiliates are located within the grantee’s service area.
Why does SHOP allow pass-through funding to local affiliates?
This structure supports national and regional organizations that operate through networks of local partners while maintaining geographic and programmatic accountability.
What is the funding opportunity number for this NOFA?
The funding opportunity number is FR 6200 N 19.
What is the CFDA number for SHOP in this opportunity?
The CFDA number is 14.247.
When was this NOFA posted?
The posting date was September 10, 2018.
What was the application deadline and submission method?
Applications had to be submitted electronically by 11:59 p.m. Eastern Time on the closing date of November 12, 2018.
Does the information provided indicate whether late applications were accepted?
No. The information provided states the electronic submission deadline and time but does not describe any late-submission policy.
Does the information provided specify the exact amount of sweat equity required?
No. The information provided states that sweat equity must be significant and is typically contributed through labor on the homebuyer’s own home and/or the homes of others, but it does not give an exact hourly or percentage requirement.
Does the information provided describe specific energy efficiency, water conservation, or accessibility standards?
No. It states that SHOP includes standards related to energy efficiency, water conservation, and accessibility, but it does not list the specific technical standards in this summary.
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| Self-Help Homeownership Opportunity Program (SHOP) Apply for FR 6300 N 19 Funding Number: FR 6300 N 19 Agency: US Department of Housing and Urban Development Category: Housing Funding Amount: $10,000,000 |
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