HUD Announces $12 Million to Lower Housing Costs and Expand Access to Affordable Homeownership

HUD No. 24-284 HUD Public Affairs (202) 708-0685

FOR RELEASE Tuesday October 29, 2024

HUD Announces $12 Million to Lower Housing Costs and Expand Access to Affordable Homeownership

Funding will allow local organizations to develop affordable housing and create homeownership opportunities for low-income Americans

WASHINGTON - Today, the U.S. Department of Housing and Urban Development (HUD) announced the availability of $12 million to expand access to affordable housing and homeownership opportunities for Americans in rural and urban communities across the country.

Grant funding awarded to organizations through HUD's Self-Help Homeownership Opportunity Program (SHOP) allows eligible organizations to purchase land, improve infrastructure, and develop housing. This funding underscores the Biden-Harris Administration's commitment to lowering housing costs and ensuring Americans have access to homes they can afford.

"These funds will help make dreams come true. Many families want to buy a home, but can't find one they can afford," said HUD Agency Head Adrianne Todman. "Working with our partners, HUD will support the creation of new homes to purchase, while also helping families navigate the homeownership process. This is another demonstration of the Biden-Harris Administration's commitment to housing."

Organizations can use SHOP grant funds to construct new homes or rebuild existing structures. This includes land acquisition, infrastructure improvements, and reasonable and necessary planning and administration costs. The average SHOP expenditure for the combined cost of land acquisition and infrastructure improvements cannot exceed $25,000 per SHOP unit. SHOP units must be sold to homebuyers at prices below the prevailing market price and prospective homeowners must leverage other public and private funds to pay for the remainder of construction or rehabilitation costs.

"I have traveled around the country and seen the transformative impact of SHOP funds firsthand," said Marion McFadden, Principal Deputy Assistant Secretary for Community Planning and Development. "SHOP helps transform people's lives by making homeownership opportunities more accessible to low-income families in rural and underserved communities."

Only national and regional non-profit organizations and consortia with experience providing 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.

SHOP grantees may sub-award SHOP grant funds to local non-profit affiliate organizations to carry out the grantee's SHOP program. The affiliate organizations must be located within the grantee's service area.

The Fiscal Year 2024 SHOP Notice of Funding Opportunity offers preference points for projects that focus on climate change and environmental justice, Minority Serving Institutions, Promise Zones, the Rural Partners Network Community Network, and the Rural Partners Network.

For additional information on the Fiscal Year 2024 SHOP Notice of Funding Opportunity, including eligibility requirements, and to apply, visit grants.gov. Applications are due by 11:59 PM EST on December 17, 2024.