How to become a CHDO

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Becoming a Community Housing Development Organization (CHDO) involves meeting specific certification requirements and demonstrating the capacity to own, develop, or sponsor housing projects. This includes being a nonprofit organization, having tax-exempt status, conforming to financial accountability standards, and having a history of serving the community. CHDOs play a vital role in affordable housing initiatives, with set-asides in programs like the HOME Investment Partnerships Program.

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How to become a CHDO

CHDO HOME Investment Partnerships Program HUD Program 24 CFR 92

CHDO Community Housing Development Organization

24 CFR 92.300(a) The Fund must reserve not less than 15 percent of the HOME allocation for investment only in housing to be owned, developed or sponsored by CHDOs.

24 CFR 92.300(a) The Fund must certify the organization as meeting the definition of community housing development organization and must document that the organization has capacity to own, develop, or sponsor housing each time it commits funds to the organization.

2018 HOME Award $5,172,848 and $780,000 is in the CHDO set-aside

Certification Reqments Nonprofit organization organized under State laws No part of net earning inures to the benefit of any member, founder, contributor, or individual

Certification Reqments Is tax exempt Has among its purposes the provision of decent housing that is affordable to low- income people

Certification Reqments Conforms to the financial accountability standards of 24 CFR 84.21 Has demonstrated capacity for carrying out activities with HOME funds

Certification Reqments Has a history of serving the community where housing to be assisted with HOME funds will be produced

Certification Reqments Tri-part Board

Certification Reqments Maintains at least one-third of its governing board s membership for residents of low-income neighborhoods, other low-income community residents, or elected representative of low-income neighborhood organizations

Certification Reqments Has no more than one- third of its governing board s membership as public employees or publicly-appointed

Certification Reqments Provides a formal process for low- income, program beneficiaries to advise the organization in all of its decisions regarding the design, siting, development, and management of all HOME-assisted affordable housing projects

Certification Reqments Organization whose primary purpose is to provide and develop affordable housing

Certification Reqments Must have West Virginia office with staff and operating hours Must have specific service area not the entire state

Certification Information https://www.wvhdf.com/wp- content/uploads/2011/02/CHD O-Certification-Application- Form-CHDO-A_0.pdf

24 CFR 92.250(b)(2) For all developers, CHDO or otherwise, the Fund s underwriting includes

24 CFR 92.250(b)(2) An assessment, at minimum, of the current market demand in the neighborhood in which the project will be located, the experience of the developer, the financial capacity of the developer, and firm written financial commitments for the project.

CHDO Operating Expense Grant HOME eligible activities per 24 CFR 92.205(a)(1)

CHDO Operating Expense Grant . . . to provide for the payment of operating expenses of community housing development organizations. The housing must be permanent or transitional housing.

24 CFR 92.208 Eligible community housing development organization (CHDO) operating expense

24 CFR 92.208(a) Up to 5 % of the Fund s fiscal year HOME allocation may be used for the operating expenses of CHDOs. This amount is in addition to amounts set aside for housing projects that are owned, developed, or sponsored by CHDOs as described in 92.300(a).

24 CFR 92.208(a) These funds may not be used to pay operating expenses incurred by a CHDO acting as a subrecipient or contractor under the HOME Program.

24 CFR 92.208(a) Operating expenses means reasonable and necessary costs for the operation of the community housing development organization.

24 CFR 92.208(a) Such costs include salaries, wages, and other employee compensation and benefits; employee education, training, and travel; rent; utilities; communication costs; taxes; insurance; equipment; materials; and supplies.

2018 HOME Award $5,172,848 and $250,000 is earmarked for CHDO Operating Expense Grants

CHDO Operating Expense Grant RFAs issued annually, usually summer Current RFA permits grant request up to $50,000

24 CFR 92.208(a) . . . the agreement must provide that the community housing development organization is expected to receive funds for a project within 24 months of the date of receiving the funds for operating expenses . . .

RFA Highlights Does your organization currently have an active project(s) funded with CHDO funds? Does your organization anticipate the submission of an application within the next 24 months?

RFA Highlights The Applicant must demonstrate a current and specific need for Grant Program funds in order to mitigate obstacles that interfere with the CHDO's ability to attain its affordable housing development goals.

RFA Highlights Since HOME CHDO Operating Expense Grant funds are not guaranteed from year to year, describe your organizational plan to eliminate the need for CHDO Operating Expense Grant funds over the next 24 months.