HUD Archives: News Releases

BUSH ADMINISTRATION AWARDS $22 MILLION IN SELF-HELP GRANTS TO HELP LOW-INCOME FAMILIES BECOME HOMEOWNERS
'Sweat equity grants' will create thousands of affordable homes

WASHINGTON - More than 2,000 low-income families will become homeowners because of $22 million in "sweat equity grants" announced today by Housing and Urban Development Secretary Mel Martinez. Five national or regional organizations will be awarded these grants to help families build or rehabilitate their own homes.

The funding announced today is provided through HUD's Self-Help Homeownership Opportunity Program (SHOP) that employs the power of volunteerism, the experience of tradesmen and the hard work of applicant families to increase homeownership. President Bush is proposing to nearly triple funding of HUD's SHOP program next year to $65 million, signaling his commitment to increase minority homeownership by 5.5 million families by the end of the decade.

"President Bush and I have worked side-by-side with families who have experienced the thrill of becoming first-time homeowners," said Martinez. "With a little elbow grease, private sector help and the funding we are announcing today will open the doors of the American Dream to thousands of families."

The following organizations have been awarded HUD SHOP grants:

SHOP grants are used to purchase land and make infrastructure improvements, primarily to build new homes. By contributing time and their own labor, families join volunteers and contractors to construct or rehabilitate their homes.

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

Last week, President Bush hosted a White House conference to advance his goal of increasing minority homeownership in America. Census data indicates that while nearly 75 percent of white households are homeowners, less than half of African-American and Hispanic families own their own home. Joining hundreds of public and private sector housing experts, the President and Secretary Martinez released The Blueprint for the American Dream, an ambitious plan to close this "homeownership gap." Get more information on the Bush plan to increase minority homeownership.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities, creating affordable housing opportunities for low-income Americans, supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet.

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SUMMARY OF SELF-HELP HOMEOWNERSHIP
OPPORTUNITY PROGRAM (SHOP) AWARDS

Habitat for Humanity International $10,809,000

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 the provision of 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. Completed properties will be transferred to homebuyers who, along with other volunteer help, contribute a significant amount of sweat equity toward the construction of the house. HFHI will produce a minimum of 1,081 housing units.

Housing Assistance Council $ 6,861,000

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. A portion of the SHOP award will be used for administration, planning and management development. 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 house. HAC will produce a minimum of 638 housing units.

PPEP Microbusiness and Housing Development Corporation $ 2,356,000

PPEP Microbusiness and Housing Development Corporation (PPEP) is the lead agency for a regional consortium covering the states of Arizona, Colorado, Hawaii, and New Mexico. PPEP will receive SHOP funds for distribution to four consortium members. Five affiliate organizations in Arizona will also receive SHOP funds. SHOP funds will be used for land acquisition and infrastructure improvements that support new construction of self-help housing. A portion of the SHOP award 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 the SHOP requirements. Completed properties will be sold to low-income homebuyers who contribute a significant amount of sweat equity toward construction of the house. PPEP will produce a minimum of 196 housing units.

Northwest Regional Facilitators $1,623,000

Northwest Regional Facilitators (NRF) is a regional nonprofit organization located in Spokane, Washington, serving primarily the states of Washington, Idaho, Oregon, and Montana. NRF and 15 local participating affiliates will buy land and make necessary infrastructure improvements for construction of new housing. A portion of this SHOP award 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 140 housing units.

ACORN Housing Corporation $ 351,000

ACORN Housing Corporation (ACORN) is a national nonprofit organization that will use SHOP funds in Chicago, Illinois, New York City, New York, Phoenix, Arizona, Pine Bluff, Arkansas, and other cities to be identified. SHOP funds will be used for land acquisition and infrastructure improvements that support new construction and rehabilitation. A portion of the SHOP award will be used for administration, planning and management development. Completed properties will be sold to low- and very low-income homebuyers who contribute a significant amount of sweat equity toward construction of the house. ACORN will produce a minimum of 30 housing units.

Content Archived: April 9, 2010