How to apply

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A CHDO must meet certain requirements pertaining to its:
• legal status
• organizational structure
• capacity and experience

Legal Status

  • Organized under state/local law: CHDOs must be organized under state and local law.
  • Purpose of organization: Provision of decent housing that is affordable to low and moderate-income persons must be among the purposes of the organization. This commitment must be evidenced in the CHDO's:
    1. charter;
    2. articles of incorporation;
    3. by laws; or
    4. a resolution of the CHDO's board of directors.
    • Clearly defined service area: A CHDO must have a clearly defined geographic service
      area. Members of the board must be from this service area.
    • Nonprofit status: CHDOs must have received a tax exempt ruling from the IRS under
      Section 501(c)(3) of the Internal Revenue Code of 1986 in order to be designated by
      the PJ as a CHDO. Permissible non-profit designations under HOME are:
      ? 501(c)(3) status - a charitable, non profit corporation;
      ? 501(c)(4) status - a community or civic organization;
      ? Section 905 status - a subordinate organization of a 501(c)(3) organization.

Organizational Structure

The CHDO is intended to respond to a particular community's needs. The structure of the CHDOs board of directors is viewed as the main indicator of community participation and control over the agency. Therefore the CHDOs board must compose of the following:

  • At least one third (1/3) must be representatives of the low income community.
  • No more than one third (1/3) may be representatives of the public sector.
  • The balance of the board is unrestricted.
  • Have no public or for profit entity control.

Low income input: The CHDO must provide a formal process to select 1/3 of the low-income persons as board members or to advise the CHDO on project needs. The process must be in writing, and must be included in the CHDOs By-laws or adopted by board resolution.

Experience and Capacity

Experience: The CHDO must demonstrate that it has, at a minimum, one year of experience serving the community where it intends to develop HOME assisted housing. Newly created organizations wishing to become CHDOs can meet this requirement if the parent or sponsoring organization is a nonprofit and has provided services to the community for a least two years.

Capacity: The CHDO must have qualified staff member employed to carry out the HOME assisted housing development activities they are planning.
The staff must be:

  • Experienced and have successfully completed projects similar to those
    proposed by the CHDO; or
  • Hire an experienced consultant with housing development expertise to assist with developing the project(s) and train the less experienced staff.
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