WASHINGTON -The Department of Housing and Urban Development today announced $20 million in grants that will fund five organizations that offer homeownership opportunities. As a result of these grants, approximately 2,000 low-income families will have the opportunity to invest sweat equity toward building their own home.

The grants are part of HUD's Self-Help Homeownership Opportunity Program (SHOP) that will be used for land acquisition and infrastructure improvements primarily to build new homes. HUD Secretary Mel Martinez made the announcement today in Washington, DC while renovating a Habitat for Humanity home for a single mother and her children.

"There is nothing like the satisfaction of a job well done," said Martinez. "These programs help families realize the American dream of homeownership, not just through government assistance, but through their own hard work and sweat equity."

This year's grants were awarded to the following non-profit organizations:

• Habitat for Humanity International - $11,430,290. Habitat for Humanity International (HFHI) is a national nonprofit organization that will use SHOP funds in urban, suburban and rural areas to facilitate and encourage innovative homeownership opportunities through self-help housing. SHOP funds will be used to purchase land and make necessary infrastructure improvements, primarily in support of new construction. Local affiliates will compete for SHOP funding from HFHI on a national basis. HFHI will produce a minimum of 1,143 housing units.
  
• Housing Assistance Council - $4,668,710. Housing Assistance Council (HAC) is a national nonprofit organization that plans to use SHOP funds in primarily rural areas for land acquisition and infrastructure improvements that support new construction. Local organizations developing self-help housing will compete for SHOP funding from HAC on a regional basis in order to achieve a national distribution of funds. Each local organization is permitted to custom design how it will use the funds in compliance with SHOP requirements. The homebuyer must contribute a significant amount of sweat equity toward the construction of the home. HAC will produce a minimum of 467 housing units.
  
• Northwest Regional Facilitators - $2,461,000. Northwest Regional Facilitators (NRF) is a regional nonprofit organization located in Spokane, Washington, serving primarily the states of Washington, Idaho, Oregon and Montana. SHOP funds will be used by NRF and local affiliates to buy land and make necessary infrastructure improvements for the construction of new housing. A small portion of SHOP funds will be used for administration, planning and management development. Each local organization is permitted to custom design how it will use the funds in compliance with SHOP requirements. The homebuyer must contribute a significant amount of sweat equity toward the construction of the house. NRF will produce a minimum of 214 housing units.
  
• Wisconsin Association of Self-Help Housing Executive Directors - $1,080,000. Wisconsin Association of Self-Help Housing Executive Directors (WASHED), the lead nonprofit agency for the Wisconsin-Minnesota Regional SHOP Consortium, will receive SHOP funds for distribution to nine Consortium members located throughout the states of Wisconsin and Minnesota. SHOP funds will be used for land acquisition and infrastructure improvements that support new construction of self-help housing. A small portion of SHOP funds will be used for administration, planning and management development. Each Consortium member is permitted to custom design how it will use the funds in compliance with SHOP requirements. Completed properties will be sold to low-income homebuyers who contribute a significant amount of sweat equity. The Wisconsin-Minnesota Regional SHOP Consortium will produce a minimum of 90 housing units.
  
• ACORN Housing Corporation - $360,000. ACORN Housing Corporation (ACORN) is a national nonprofit organization that will use SHOP funds in Chicago, New York City, Phoenix and other cities to be identified. SHOP funds will be used for land acquisition and infrastructure improvements that support new construction and rehabilitation. Some SHOP funds will be used for administration, planning and management development. Completed properties will be sold to low- and very low-income homebuyers at below market rate. Homebuyers must contribute a significant amount of sweat equity. AHC will produce a minimum of 30 housing units.

HUD's SHOP grants are awarded based upon an organization's experience in managing a sweat-equity program. Other factors include identifying their community's needs, generating other sources of funding and the soundness of their program design.

SHOP grants were first awarded in 1996. During his commencement address at Notre Dame University earlier this year, President Bush made clear his intention to nearly triple funding for self-help homeownership programs from $22 million to $65 million.

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