Community Housing Development Organizations (CHDO)

The HOME Investment Partnerships (HOME) Program was established under Title II of the National Affordable Housing Act. The purpose of HOME funding is:

1) To expand the supply of decent, affordable housing and nonprofit housing providers

2) To strengthen the ability of state and local governments to provide housing and public-private partnership

The HOME program is administered through the U.S. Department of Housing and Urban Development (HUD). Manatee County, as a participating jurisdiction (PJ), receives funds under the HOME Program. HUD HOME regulations require PJs to set aside 15% of their HOME allocation for Community Housing Development Organizations (CHDOs). The CHDO funds can be obtained by non-profit organizations that have been certified as a CHDO and have a qualified project without match requirements.

Purpose of a CHDO

A CHDO is a private, non-profit, community based organization whose primary purpose is to develop affordable housing for the community it serves. The CHDO either has staff or has a contract with an organization that has staff with the capacity to develop affordable housing. The contracted organization must have a written plan for training the CHDO’s staff.

 

A certified CHDO must be an owner, developer or sponsor of a HOME-eligible project to use CHDO set-aside funds. A CHDO may serve in one of these roles or in a combination of roles, such as being owner and developer.

 

CHDO as Owner: As owner, the CHDO holds valid legal title or has a long-term leasehold investment to the property (99 year minimum). The CHDO may be an owner with one or more individuals, corporations, partnerships or other legal entities. However, the CHDO must be the managing general partner with effective control (decision making authority) of the property.

 

CHDO as Developer: A CHDO is a developer when the CHDO owns the property and develops the project or has contractual obligations to the property owner to develop the project.

 

CHDO as Sponsor: CHDOs may sponsor HOME-assisted rental housing or homebuyer projects.
 

Eligible Uses of CHDO Set-Aside Funds

Eligible Activities – Owners, Sponsors, and Developers: A CHDO acting as owner, sponsor or developer may use the 15 percent CHDO set-aside for the following activities:

 

  • Acquisition and/or rehabilitation of rental or homebuyer property;
  • New construction of rental or homebuyer property; and
  • Direct financial assistance to homebuyers of HOME-assisted property developed or sponsored by the CHDO.

CHDO set-aside HOME funds must be used during the construction or rehabilitation of the property.