Through its Self-Help Homeowners Opportunity Program (SHOP) and Rural Capacity Building Grants (RCBG), the U.S. Department of Housing and Urban Development (HUD) awarded more than $22 million to further affordable housing goals and homeownership.
“Today, we are investing in homeownership and expanding access to affordable housing to rural communities,” HUD Secretary Marcia Fudge said in a release. “The SHOP program provides a unique pathway for first-time homeowners and underserved groups to buy a home. At HUD, we care about rural America and these capacity building grants are further evidence of our commitment.”
SHOP is a competitive program for national and regional non-profit organizations that have experience in administering self-help homeownership housing programs. These grants fund land purchases and necessary infrastructure improvements, which together cannot exceed an average SHOP investment of $15,000 per dwelling unit. Most SHOP homebuyers are first-time homeowners and come from underserved groups, HUD stated.
Four groups in three states and the District of Columbia received $12.5 million under SHOP.
“Homebuyers will contribute significant sweat equity toward the development of their units and/or the units of other homebuyers participating in the local self-help housing programs,” HUD stated. “These sweat equity contributions reduce the purchase price of the SHOP units and make these units affordable for low-income homebuyers. A minimum of 100 sweat equity hours is required from a household of two or more persons. A minimum of 50 sweat equity hours is required from a household of one person. Community participation consisting of volunteer labor contributions is also required.”
The RCBG program gives local governments, Native American tribes, housing development organizations, rural community development corporations, and rural community housing development organizations support to carry out community development and affordable housing activities to benefit low- and moderate- income families and persons in rural areas.
Five groups in three states and the District of Columbia received $10 million.
“The Biden-Harris administration is committed to helping Americans who live in rural communities get access to quality affordable housing, to rent and to own,” HUD Deputy Secretary Adrianne Todman said. “Through these grants, HUD and our partners will build and repair homes, and create housing solutions that match the unique needs of rural neighborhoods.”
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