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Tierra Del Sol Housing Corporation in Anthony Receives $600,000 Sweat Equity Grant to Build Single Family Homes for Low-Income Families

Press Release

By:
Date:
Location: Washington, DC

The U.S. Department of Housing and Urban Development today awarded $13.5 million in "sweat equity" grants to produce at least 741 affordable homes for low-income working families and individuals. Funded through HUD's Self-Help Homeownership Opportunity Program (SHOP), the grants awarded today, along with the labor contributed by these families, will significantly lower the cost of homeownership.

"These grants are about families devoting their own sweat and labor into their American Dream," said HUD Secretary Shaun Donovan. "With the help of these organizations and armies of volunteers, families are able to see that dream become reality brick by brick."

HUD's SHOP program provides federal grants on a competitive basis to national and regional nonprofit organizations and consortia that have experience in administering self-help homeownership housing programs. The SHOP grants must be used to purchase land and make necessary infrastructure improvements, which may not exceed an average $15,000 per dwelling unit. Leveraged funds must be used for the construction or rehabilitation of these homeownership units. Grantees may carry out activities directly and/or distribute SHOP funds to local nonprofit affiliates that will develop the SHOP units, select homebuyers, coordinate the homebuyer sweat equity and volunteer efforts, and assist in the arrangement of interim and permanent financing for the homebuyers.

All newly constructed units will receive certification as an ENERGY STAR Qualified New Home and all appliances and products or features which are installed or replaced will be ENERGY STAR qualified. Water usage products will bear the WaterSense label. Many units will also have "Green", "Healthy Homes" and "Universal Design" features.

Homebuyer households of two or more persons 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. Single person households must contribute a minimum of 50 hours of sweat equity. Reasonable accommodations are made for homebuyers with disabilities. Sweat equity involves 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. Labor is also contributed by community volunteers. The sweat equity and labor contributions by the homebuyers and volunteers significantly reduce the cost of the housing.

Most of the families who benefit from SHOP homes are first-time homeowners so the new home fulfills a lifelong dream. The organizations that receive the SHOP grants also ensure the new homeowners can afford to stay in their homes for the long term to provide a safe, healthy, stable environment to raise children, access jobs and build community.

Since 1996, the SHOP program has provided more than $373 million in federal grants that, together with significant leveraged funds and numerous volunteer hours, are transforming lives and neighborhoods through the production of over 28,000 units of affordable, homeownership housing.

Fiscal Year 2012 SHOP Grantees

Community Frameworks (CF) is a regional nonprofit self-help housing organization that serves the states of Idaho, Montana, Oregon and Washington. Community Frameworks will make SHOP funds available to 16 affiliates to purchase land and make necessary infrastructure improvements that support new construction and rehabilitation of the SHOP units. Funds will also be used for administration of the grant. The units will be single-family detached and attached dwellings. Ownership will be fee simple or community land trust. Completed units will be sold to low-income homebuyers who have contributed a significant amount of sweat equity toward the construction of their homes. Volunteer labor will also be used. Community Frameworks will produce a minimum of 102 SHOP housing units. Contact: Linda Hugo, 360-377-7738.

Habitat for Humanity International (HFHI) is a national nonprofit self-help housing organization that will use SHOP funds in rural, metropolitan, and urban communities to facilitate and encourage innovative homeownership opportunities through the provision of self-help housing. Local affiliates will compete for SHOP funding from HFHI. Each affiliate has flexibility to design a program that meets the needs of its community. SHOP funds will be used to purchase land and make necessary infrastructure improvements that support primarily new construction of the SHOP units. Funds will also be used for administration of the grant. The units will be single-family detached and attached dwellings. Ownership will be fee simple or condominium. Completed units will be sold to low-income homebuyers who have contributed a significant amount of sweat equity toward the construction of their homes. Volunteer labor will also be used. HFHI will produce a minimum of 358 SHOP housing units. Contact: Dona Golden, 229-410-7514.

The Housing Assistance Council (HAC) is a national nonprofit self-help housing organization that will use its SHOP funds in primarily rural areas to facilitate and encourage innovative homeownership opportunities through the provision of self-help housing. Local affiliates will compete for SHOP funding from HAC. Each affiliate has flexibility to design a program that meets the needs of its community. SHOP funds will be used to purchase land and make necessary infrastructure improvements that support new construction and rehabilitation of the SHOP units. Funds will also be used for administration of the grant. The units will be single family detached and attached dwellings. Ownership will be fee simple. Completed units will be sold to low-income homebuyers who have contributed a significant amount of sweat equity toward the construction of their homes. Volunteer labor will also be used. HAC will produce a minimum of 244 SHOP housing units. Contact: Karin Klusmann, 202-842-8600 ext 118.

Tierra del Sol Housing Corporation, located in New Mexico, is the lead agency representing the Western States Housing Consortium which includes Chicanos por la Causa located in Tucson, Arizona and the Colorado Rural Housing Development Corporation located in Westminster, Colorado. SHOP funds will be used to purchase land and make necessary infrastructure improvements that support the new construction of the SHOP units. Funds will also be used for administration of the grant. The units will be single-family detached dwellings. Ownership will be fee-simple. Completed units will be sold to low-income homebuyers who have contributed a significant amount of sweat equity toward the construction of their homes. Volunteer labor will also be used. The Western States Housing Consortium will produce a minimum of 37 SHOP housing units. Contact: Rosa Garcia, 575-882-3554


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