SHOP grant funds are awarded to national and regional non-profit organizations and consortia to facilitate and encourage innovative homeownership opportunities on a national, geographically diverse basis through the provision of self-help homeownership housing programs.
Applicants must propose
to use a significant amount of SHOP funds in at least two states.
SHOP funds must be used for land acquisition, infrastructure improvements, and for reasonable and necessary planning, administration and management costs (not to exceed 20 percent).
The construction or rehabilitation costs of each SHOP unit must be funded with other leveraged public and private funds.
The average SHOP expenditure for the combined costs of land and infrastructure must not exceed $15,000 per SHOP unit.
Eligible low-income homebuyers must contribute a significant amount of sweat equity towards the development of the SHOP units.
Donated volunteer labor is also required.
Assisted units must be decent, safe, and sanitary non-luxury dwellings that comply with local building and safety codes and standards, and with the SHOP requirements.
The SHOP units must be sold to the homebuyers at prices below the prevailing market price.
The homebuyers sweat equity contribution must not be mortgaged or otherwise restricted upon future sale of the SHOP unit.
SHOP grantees may award SHOP funds to affiliates to carry out the grantees SHOP program.
These affiliates must be located within the grantees service area.