Property ManagementMarket Conditions
U.S. Housing and Urban Development Secretary Steve Preston today awarded $26.5 million in "sweat equity grants" to produce at least 1,540 homes for lower income first-time homebuyers. Three non-profit housing providers will use HUD"s grants to construct or rehabilitate homes along with contributed labor from the homebuyers and volunteers.
"Even during these hard times, sustainable and responsible homeownership can be within reach for many families," said Preston. "With HUD"s support, and the sweat equity provided by these homebuyers and volunteers, we can help make this American Dream come true."
SHOP grants are provided to national and regional nonprofit organizations that have experience in providing self-help housing. These funds are used to purchase land and install or improve infrastructure, which together may not exceed an average investment of $15,000 per dwelling. These non-profit organizations propose to distribute SHOP funds to several hundred local affiliates that will acquire and prepare the land for construction, select homebuyers, coordinate the homebuyer sweat equity and volunteer efforts, and assist in the arrangement of interim and permanent financing for the homebuyers.
Homebuyers 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. Self-help housing or sweat equity involves the homebuyer"s 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 contributed by volunteers also helps buyers who are unable to perform their sweat equity tasks due to disabilities. Frequently persons with disabilities are able to substitute tasks by performing administrative tasks. The sweat equity and labor contributions by the homebuyers and volunteers significantly reduce the cost of the housing.
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