Self-Help Homeownership Opportunity Program
About the program
Congress established the Self-Help Homeownership Opportunity Program, or SHOP, in the Housing Opportunity Program Extension Act of 1996, Section 11. The program’s purpose is to assist nonprofit organizations with the two costliest aspects of affordable housing development: acquiring land and making infrastructure improvements.
About the application process
SHOP funds are subject to the annual appropriations process for the federal budget. If Congress appropriates SHOP funds to the U.S. Department of Housing and Urban Development’s budget, HUD issues a Notice of Funding Availability, which allows regional and national nonprofit housing organizations to compete for funds. Congress has approved a new round of SHOP funding every year from 1996 to 2012.
Habitat for Humanity International has applied for — and has been awarded — more than $196.6 million in SHOP funding since the 1996 federal fiscal year.
Once HFHI is notified of an award, it then invites Habitat affiliates in the United States to compete for a portion of the funds.
What the funds are used for
SHOP funds assist Habitat affiliates with the costs needed for land acquisition and infrastructure improvements, such as utility connections, streets, sidewalks, curbs, impact fees and site preparation. They do not pay for any costs related to house construction or rehabilitation.
The grant requires that participating affiliates use SHOP funds as leverage to secure additional public or private funding that will pay for the balance of the acquisition and infrastructure costs as well as the costs to construct or rehab homes on the SHOP-assisted properties.