Community Housing Development Organization (CHDO) Qualifications

Definition of a Community Housing Development Organization (CHDO) (24 CFR 92.2)

1. Organized under state or local laws.
2. Not for profit (must have IRS 501(c)(3) or (4) status under the Internal Revenue Code of 1986).
3. Is not under the direction or control of individuals or entities seeking to profit from the organization. CHDOs may be sponsored or created by a for-profit entity, but:
   
4. Does not include a public body, including the participating jurisdiction. Nonprofits that have been sponsored by state- or locally-chartered organizations may qualify as a CHDO, however, the state or local government may not appoint more than one-third of the CHDOs governing board and that one-third may not appoint the remaining board members. Also, no more than one-third of the board members may be public officials
5. Has standards of financial accountability conforming to 24 CFR 84.21 Standards for Financial Management Systems.
6. Has among its purposes the provision of decent housing that is affordable to low- and moderate-income persons, as evidenced by its charter, articles of incorporation, resolutions, or by-laws.
7. Has a clearly defined geographic service area.
8. Maintains accountability to low-income community residents by:
9. Has demonstrated capacity for carrying out HOME-funded activities. An organization may satisfy this requirement by hiring experienced key staff, who have successfully completed similar projects, or a consultant with the same type of experience and a plan to train appropriate key staff members of the organization.
10. Can demonstrate that it has at least one year of experience serving the community where it intends to develop the HOME-assisted housing. However, a newly-created organization formed by local churches, service organizations, or neighborhood organizations may meet this requirement by demonstrating that its parent organization is a nonprofit and has at least one year of serving the community.