CUOMO AWARDS $20 MILLION TO HELP LOW-INCOME FAMILIES BECOME HOMEOWNERS THROUGH SWEAT EQUITY PROGRAMS

WASHINGTON - Nearly 2,000 low-income families willing to help build or rehabilitate homes with their own hands will get the opportunity to buy the homes at reduced cost, Housing Secretary Andrew Cuomo said today in announcing $20 million in grants for the program.

The Self-Help Homeownership Opportunity Program (SHOP) enables families to become homeowners with an investment of "sweat equity" - contributing their own labor to help with such tasks as painting, landscaping, carpentry and roofing. Department of Housing and Urban Development grants will provide subsidies averaging $10,000 to lower the price of each home.

"This program expands homeownership by rewarding hard work," Cuomo said. "It empowers people in low-wage jobs to build better lives and brighter futures for their families with the strength of their own labor."

Families unable to afford a home and having incomes below 80 percent of the area median income are eligible to receive HUD assistance under SHOP. The grants will go to the following groups, which will distribute the funds to homebuyers:

• Habitat for Humanity - $12,465,000. The national organization expects to help an estimated 1,250 homeowners in urban, suburban and rural areas around the country.
• Housing Assistance Council of Washington, DC - $6 million. The group will distribute funds primarily to people in rural areas around the country, helping an estimated 600 homeowners.
• Northwest Regional Facilitators of Spokane, WA - $785,000. The group will primarily serve people in Washington State, Idaho, Oregon and Montana, helping an estimated 60 homeowners.
• ACORN Housing Corporation of Chicago - $750,000. The group will distribute funds to more than 70 homebuyers in: Chicago, Little Rock, AR; New York City; and Phoenix.

Content Archived: January 20, 2009