SAMPLE SHOP LETTER OF SUPPORT PLEASE PUT ON LETTERHEAD by robpearson

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									SAMPLE SHOP FY 2006 MARKET SURVEY: PLEASE PUT ON LETTERHEAD
Instructions for completing the Market Survey Letter are noted in red bold italics and
should not be included in the submission letter. This letter is available for download in
Microsoft Word format from HAC’s website: www.ruralhome.org

Please note: organizations that intend to apply to HAC’s SHOP 2006 program, but do
not submit a completed survey letter, are not eligible to receive reimbursement for SHOP
eligible costs incurred prior to the date of the HUD SHOP FY 2006 Grant Agreement,
anticipated date of January 2007.


Date

Moises Loza
Executive Director
Housing Assistance Council
1025 Vermont Avenue, N.W.
Suite 606
Washington, DC 20005

RE: Participation in the Housing Assistance Council’s (HAC’s) FY 2006 SHOP Program

Dear Mr. Loza:

This letter is to confirm (insert name of organization)’s participation in the Housing Assistance
Council’s SHOP 2006 program. By providing zero-interest financing and the possibility of a grant
conversion, SHOP funds increase the affordability of our self-help projects for low-income people in
our community. In many cases, SHOP funds make projects possible by reducing overall
development costs. For example, in our service area the median sales price of a market rate, single-
family developed lot is currently $             ; the median sales price of a comparable market rate,
single-family unit is currently $        . SHOP funds combined with sweat equity result in a
significant reduction in housing costs for the self-help participant homebuyer.

(For current SHOP borrowers, please briefly describe SHOP’s impact on the housing needs of your
service area. Please specify the need for affordable housing and for SHOP funds in the community or
area in which your proposed project will be located.

In addition, please provide the following housing market data from the past year for the
communities served by your organization’s self-help program. The requested information may be
obtained from local data sources such as Consolidated Plans, comprehensive plans, local tax
assessor databases, or relevant realtor information.)

        Housing Market Data
        Number of homes sales
        Median home sales price                  $
        Homeownership rates                                     %
        Rental rates                                            %
        Vacancy rates                                           %
SHOP 2006 Letter of Support
Page 2




(If your organization has received previous rounds of SHOP funds through HAC and has constructed
and/or altered accessible and/or visitable units for disabled self-help participants, and/or
constructed energy efficient units for self-help program participants in general, please provide
information on the number of accessible units and energy efficient units constructed and the SHOP
fund round which supported development of those units, i.e., SHOP 1996, 1998, 1999, 2000, 2001, 2002,
2003, 2004.)

If applicable: As a previous recipient of SHOP funds through the Housing Assistance Council, we
have developed accessible and/or visitable (“accessible”) housing units for disabled homebuyers
participating in our Self-Help program:

        SHOP Round                      Number of Accessible Units
                                         Completed and Occupied




        TOTAL



(If your organization has constructed accessible units that have benefited from SHOP funding,
please describe the kinds of features incorporated in the design and construction of the homes to
make them physically accessible.)

If applicable: As a previous recipient of SHOP funds through the Housing Assistance Council, we
have constructed energy efficient/Energy Star rated or equivalent (“energy efficient”) housing units
as part of our Self-Help program:


        SHOP Round                    Number of Energy Efficient Units
                                         Completed and Occupied




        TOTAL



We would use a SHOP award to leverage significant additional resources for land acquisition, site
development and the actual construction of the proposed self-help units. Below is a summary of the
resources that will be leveraged for each SHOP-funded housing unit.

(Please list committed financing sources that will be participating in your SHOP 2006 proposed
project. For example, USDA RD 502, CDBG, HOME, other federal, State, local or private financing
and/or grants- construction to permanent financing; as well as donated land, construction materials
and/or fee waivers. Leveraged financing may not include anticipated SHOP 2006 funds or dollar
value of sweat equity. Leveraged financing may include use of revolved SHOP funds from previous
funding rounds. Please attach copies of commitment letters from these sources, if available.
SHOP 2006 Letter of Support
Page 3


  In order to assist with HAC’s application, leveraging commitment letters must be dated (within
  last six months) and include the following: reference to HAC’s SHOP FY 2006 application/Program;
  the name of the financing organization with its designation as a Federal, State, local or private
  source (must be spelled out); the proposed type of commitment; and the dollar value of the
  commitment. Letters of commitment may be contingent upon HAC’s receipt of SHOP FY 2006
  funding.)


Name of Sources of Financing     Type of Funding (Federal,     Amount    Status (Committed/Received)
                                    State, Local or Private)




Total Leveraged Financing
Total Funds Leveraged per unit



(Please note: this SHOP round is for three years of production for groups building five or more units
and two years for groups building four or fewer units. Please project your SHOP unit production
based on the appropriate number of years.)


Project Information
Name of proposed SHOP FY 06 funded project:
Project Location (Town/City, County, State):
Total number of units to be produced in SHOP FY 06 round:
Number of SHOP FY 06 units to be located in a RC/EZ/EC:
Name of RC/EZ/EC*:
Average sweat equity hours contributed by homebuyer household
on the construction of their own home (min. 100 hrs):
Total number of sweat equity hours required to be contributed by
buyer household:
Average sweat equity hours contributed per unit by volunteers:
Dollar value of sweat equity labor contribution                    $
(unit appraised value minus permanent mortgage amount):
Projected total cost per self-help unit:                           $
Average appraised value of completed self-help units:              $
Average market value of comparable unit:                           $
Number of persons expected to be assisted with SHOP FY 06 round
 (include all household members):

*If proposed SHOP FY 06 units will be located in an RC/EZ/ EC, please complete the Certification of
Consistency with the RC/EZ/EC-II’s Strategic Plan, form HUD-2990 (attached) and return with this
letter. A list of RC/EZ/EC-IIs can be obtained from HUD’s web page at
www.hud.gov/offices/adm/grants/fundsavail.cfm.
SHOP 2006 Letter of Support
Page 4



The technical assistance and training we provide to participant families is also leveraged by SHOP
funds. The primary source of administrative funding for our self-help program is (fill in
administrative funding source, USDA RD 523, or other federal, State or local sources, or commitment
of organizational funds). We expect approximately $__________ in administrative funding to
support our self-help program during the SHOP FY 2006 funding round. (Please attach a copy of the
commitment letter(s) for leveraged administrative funds)

We commend HAC’s efforts to provide additional SHOP funds in the future.

Sincerely,


Your signature
Your name
Your title

								
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