HUD awards $13.5 million in Self-Help homeownership grants

    
 

Friday, Jun 15 2012 3:45PM

The U.S. Department of Housing and Urban Development (HUD) has awarded $13.5 million in grants to produce more affordable housing for low-income working families and individuals.

The U.S. Department of Housing and Urban Development (HUD) has awarded $13.5 million in grants to produce more affordable housing for low-income working families and individuals.

The U.S. Department of Housing and Urban Development (HUD) has awarded $13.5 million in grants to produce more affordable housing for low-income working families and individuals.

Funded through HUD's Self-Help Homeownership Opportunity Program (SHOP) the "sweat equity" grants will help lower the cost of homeownership.

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

The program provides federal grants to nonprofit organizations that have experience in administering self-help homeownership programs. These grants must be used to purchase land and make infrastructure improvements. Leveraged funds are designated for the construction or rehabilitation of these homeownership units.

Households are required to contribute a minimum of 50 to 100 hours of sweat equity, depending on the number of people living in the house, on the construction of their homes or the homes of other buyers who are participating in the self-help program.

One group to receive a SHOP grant is the Tierra del Sol Western States Housing Consortium, which was provided with a $653,000 grant.

Many foreclosed homeowners, particularly in some western states, may benefit from SHOP. Foreclosures led to housing difficulties for millions of Americans during the foreclosure crisis. The HUD program would provide some residents with much-needed affordable housing.

For further information, check out this source: U.S. Department of Housing and Urban Development

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