Community Housing Development Organizations (CHDOs) are eligible for certain set-aside funding from the U.S. Department of Housing and Urban Development’s (HUD) Home Investment Partnerships (HOME) Program (which is governed by federal regulations at 24 C.F.R. Part 92).
In order to use CHDO set-aside funds, CHDOs must be certified as owners, developers, or sponsors of HOME-assisted affordable housing.
The District of Columbia CHDO certification and funding processes are administered by DHCD.
Why Form a CHDO?
CHDOs are established solely to provide access to a certain set-aside of federal HOME program funds. Federal regulations require the participating jurisdiction (PJ) to set aside 15 percent of each fiscal year’s HOME fund allocation specifically for CHDO development-related activities. The HOME Regulations permit the PJ to spend up to 5 percent of its fiscal year’s HOME fund allocation on operating expenses for qualified CHDOs; however, this is not mandatory.
CHDO funding may be available for the following types of activities:
- Development projects: Including new construction or acquisition and/or rehabilitation of rental housing, transitional housing units or single-family homes for homeownership opportunities (including project-specific down payment/closing cost assistance)
- Operating funds: In conjunction with a development project.
How to Become a CHDO?
CHDO certification applications may be submitted anytime throughout the year. DHCD reserves the right to amend its policies and application process at any time.
A CHDO certification does not guarantee that an entity will receive funds; it simply makes them eligible to apply and if funded, receive funding from the special CHDO set aside. Certification as a CHDO allows a CHDO to apply for other funding resources outside of DHCD. Potential CHDOs will not be eligible to receive funding from the CHDO set-aside until they have met all CHDO requirements.
How to Get More Information?
Questions regarding the CHDO certification process should be referred to DHCD Program Analyst Johnette Powell at (202) 442-7232 or [email protected].