HUD Increases Funding to Strengthen Affordable Housing Projects

HUD Grants

The U.S. Department of Housing and Urban Development (HUD) has allocated more than $22 million through its Self-Help Homeowners Opportunity Program (SHOP) and Rural Capacity Building Grants (RCBG) to promote affordable housing and homeownership initiatives.

HUD Secretary Marcia Fudge expressed the importance of these investments in expanding access to affordable housing and supporting homeownership in rural communities. The SHOP program offers a distinctive pathway for first-time homeowners and underserved groups to achieve homeownership. It provides funding to national and regional non-profit organizations with experience in administering self-help homeownership housing programs. These grants cover land purchases and essential infrastructure improvements, with an average SHOP investment of $15,000 per dwelling unit. Most SHOP homebuyers are first-time homeowners from underserved communities.

Four organizations across three states and the District of Columbia have been awarded a total of $12.5 million under the SHOP program. HUD emphasizes that SHOP homebuyers contribute significant sweat equity, either toward the development of their own units or other participating homebuyers’ units. These sweat equity contributions reduce the purchase price of the SHOP units, making them affordable for low-income homebuyers. A minimum of 100 sweat equity hours is required from households of two or more persons, while households of one person must contribute a minimum of 50 sweat equity hours. Additionally, community participation through volunteer labor contributions is also mandatory.

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The RCBG program provides support to local governments, Native American tribes, housing development organizations, rural community development corporations, and rural community housing development organizations. Its goal is to facilitate community development and affordable housing activities benefiting low- and moderate-income families and individuals in rural areas.

Five organizations across three states and the District of Columbia have been granted a total of $10 million under the RCBG program.

HUD Deputy Secretary Adrianne Todman highlights the commitment of the Biden-Harris administration to ensure that residents of rural communities have access to quality affordable housing, whether through renting or homeownership. Through these grants, HUD and its partners aim to construct and repair homes while creating housing solutions tailored to the unique needs of rural neighborhoods.

Christopher Charles spent 6 years in the mortgage industry before moving into the world of digital media. He's helped thousands of families buy and refinance real estate at banks and mortgage companies and now continues that mission through industry-leading content. Chris is known for his expertise in the mortgage & real estate industry and continues to produce content all over the web.

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