March 26, 2021 – Today marks the 25th anniversary of the Department of Housing and Urban Development’s Self-Help Homeownership Opportunity Program (SHOP). In the last quarter century, SHOP has helped tens of thousands of families achieve the dream of homeownership. The SHOP program funds the construction of self-help housing nationwide. Under the self-help model, families help build their home to earn “sweat equity” instead of making a traditional cash down-payment. This makes the new home more affordable and makes homeownership accessible to low- and very low-income households typically left out of the for-sale housing market.
Over the last 25 years, the Housing Assistance Council has received and invested over $120 million through SHOP to build 9,896 self-help homes. We lend this money to local organizations that work with families to build self-help homes across rural America. If the organization meets its targets, our loans are up to 90% forgivable, which allows the organization to provide additional homebuyer subsidies or create additional self-help units. As the only national SHOP grantee with a specific focus on rural homes, we’re proud of the difference our SHOP investments make in rural America. So, to celebrate SHOP’s 25th anniversary, we wanted to highlight the impact of one of our SHOP grantees: Northwest Regional Housing Authority (NWRHA) in Harrison, Arkansas, who we’ve partnered with since 2006.
Operating in 12 counties in northwest Arkansas, NWRHA’s self-help program has helped over 150 families in the pursuit of homeownership. Each family contributes an average of 650 hours of labor building their home. This not only keeps costs down, it provides participants with instant equity in their home and the skills to maintain it. One of the biggest challenges NWRHA faces is finding affordable, buildable lots. With rapidly rising property values, the price of a lot suitable for self-help construction in northwest Arkansas has soared to over $20,000. Luckily, our loans provide NWRHA with the capital to purchase land sooner, which keeps prices down.
To understand the impact of NWRHA’s self-help program, you could take a drive across rural Arkansas to see the dozens of homes self-help families have built. Or, you could ask Ana Castro-Beard, NWRHA’s Self-Help Specialist. She tells the story of a single father and his kids, who did not have stable housing until they came to NWRHA. After they moved into the home they built, Ana received a postcard from the family: it was a picture of their first Christmas in their new home.
Photo courtesy of NWRHA.
Homes are more than just shelter from the elements. They’re where kids are raised, holidays are celebrated, and dinners are shared. They’re the backbone of financial stability and a gateway to economic opportunity.
In his speech before the House of Representatives supporting the bill that funded SHOP, former New York Congressman Rick Lazio promised that the new program would “boost homeownership levels…where we need it desperately.” Twenty-five years later, that dream is a reality. Thanks to the dedicated service of organizations like Northwest Regional Housing Authority, thousands of families—urban and rural—now have a safe, stable place to call home. Their home.