Written by Federal Title | 25 February 2010

The U.S. Department of Housing and Urban Development awarded $9.1 million in "sweat equity" grants to the Housing Assistance Council in the District of Columbia to produce affordable homes for low income individuals and families. The funding awarded Thursday through HUD's Self-Help Homeownership Opportunity Program along with the labor contributed by these households will significantly lower the cost of homeownership.

View the press release

SHOP grants will be provided to national and regional nonprofit organizations and consortia that have experience in administering self-help housing programs. The funds must be used to purchase land and install or improve infrastructure, which together may not exceed an average investment of $15,000 per dwelling. Grantees may carry out activities directly and/or propose to distribute SHOP funds to local nonprofit affiliates that will acquire and prepare the land for construction, select homebuyers, coordinate the homebuyer sweat equity and volunteer efforts, and assist in the arrangement of interim and permanent financing for the homebuyers.

Homebuyers must contribute a minimum of 100 hours of sweat equity on the construction of their homes and/or the homes of other homebuyers participating in the local self-help housing program. Self-help housing or sweat equity involves the homebuyer's participation in the construction of the housing, which can include, but is not limited to, assisting in the painting, carpentry, trim work, drywall, roofing and siding for the housing. All newly constructed units must receive certification as an ENERGY STAR Qualified New Home and all appliances and products or features which are replaced in rehabilitated units must be ENERGY STAR qualified.