The U.S. Department of Housing and Urban Development (HUD) on Thursday announced a new series of affordable housing grants totaling $13.5 million, which will go to support the creation of homes for low-income, first-time homebuyers as part of HUD’s Self-Help Homeownership Opportunity Program (SHOP).
Announced by Marion McFadden, HUD principal assistant secretary for community planning, at a Habitat for Humanity event in Nashville, the $13.5 million in “sweat equity grants” will go to support four nonprofit housing providers.
The organizations will “use HUD’s grants to construct or rehabilitate 445 homes along with contributed labor from the homebuyers and volunteers that will significantly lower the cost of homeownership,” HUD explained.
“HUD is committed to investing in homeownership and creating affordable options for Americans to buy their first home,” Adrianne Todman, HUD acting secretary, said in a statement. “The SHOP program provides a unique pathway for first-time homeowners to buy a home, with financial support from HUD and the help of volunteers, buyers contribute their sweat equity to make buying a home a reality.”
McFadden said the funding is being offered to address affordable housing needs, an increasingly important topic among policymakers in Washington, D.C.
“Given the national needs to build at least two million new homes, it’s a joy to provide millions of dollars enabling homeownership by people of modest means,” McFadden said. “There’s nothing more important to our wellbeing than waking up to face the day in a comfortable home.”
The states of Washington, Georgia and Colorado, along with the District of Columbia, are the recipients of the grants. Washington state’s Community Frameworks organization is the biggest beneficiary of the funding, receiving $5.25 million. Georgia’s funding will go to the state’s Habitat for Humanity chapter ($4.75 million), while Washington, D.C.’s funding will go to the Housing Assistance Council ($2.5 million).
The Colorado recipient, Tierra Del Sol Housing Corp., will receive $1 million.
“Homebuyers will contribute significant sweat equity toward the development of their units and/or the units of other homebuyers participating in the local self-help housing programs,” HUD added. “These sweat equity contributions reduce the purchase price of the SHOP units and make these units affordable for low-income homebuyers.”