What is a CHDO?
The HOME Investment Partnerships Program (HOME) was created under Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990. The Act’s objectives include (1) promoting partnerships among states, units of local government, and not-for-profit organizations, and (2) expanding the capacity of not-for-profit organizations to develop and manage safe, decent, and affordable housing. Indiana Housing and Community Development Authority (IHCDA) receives a yearly allocation of HOME funds from the U.S. Department of Housing and Urban Development (HUD) as a participating jurisdiction (PJ).
In order to achieve its objectives, the Act requires that PJs “set-aside“ a minimum of 15% of its annual HOME allocation exclusively for qualified, eligible CHDO projects. A Community Housing Development Organization (CHDO) is a private, community-based nonprofit organization whose primary purpose is to develop affordable housing for the community it serves. To be recognized as a CHDO, an organization must meet the requirements pertaining to their legal status, organizational structure, capacity, and experience as set forth in 24 CFR 92.2, and be certified by IHCDA as a CHDO.
Advantages to Being an IHCDA CHDO
CHDO set-aside funds allow community-based organizations to build their capacity in order to serve a broad range of affordable housing needs. The CHDO may accomplish this with the acquisition, new construction, and/or rehabilitation of rental housing or homebuyer property. The CHDO must be the owner, developer, or sponsor of the affordable housing in the community or communities that they serve. If an organization becomes a certified CHDO it is eligible to take advantage of the HOME funds set-aside exclusively for CHDOs. Additionally, certified CHDOs have access to many benefits that are not available to non-CHDO applicants. These benefits include:
- Seed Money and Site Control Predevelopment Loans
- Loans that can be used to cover project costs necessary to determine project feasibility and gain site control or to cover pre-construction costs for a specific project.
- CHDO Operating Supplement Funds
- Funding, not to exceed $50,000, that may be used to cover operating costs for CHDOs, including staff salaries, training, and travel.
- Use of HOME Project Proceeds
- Points in HOME Applications to Increase Project Competitiveness
- Increased Maximum HOME Award Request
- Capacity-Building Assistance
IHCDA uses HOME funds to provide special assistance to CHDOs and eligible entities seeking to become CHDOs. This assistance includes:
- Project predevelopment loans;
- Supplemental operating funds;
- Use of HOME project proceeds; and
- Capacity-building assistance.
How to be an IHCDA CHDO
The CHDO certification application is submitted in conjunction with a HOME application. At the time an organization receives certification from IHCDA as a CHDO, it is assessed on all the eligibility criteria for funding under the HOME regulations. While CHDO certification is a prerequisite to receiving funds designated specifically for CHDOs, becoming eligible does not guarantee funding.
Prospective CHDOs should complete all sections of IHCDA’s CHDO Application Workbook and provide all required attachments. The CHDO Application Workbook should be submitted with the applicant’s HOME application or, if applying for precertification, by the precertification deadline listed in the HOME Rental Policy.
Applicants should contact the IHCDA Real Estate Coordinator to arrange for the upload of the CHDO Application Workbook and supporting documentation. Physical copies of the application and supporting documentation should not be submitted to IHCDA.
Application and Forms
- 2018 CHDO Webinar
- 2019 CHDO Application Workbook
- Block Group Data - Updated November 19, 2019
- HOME CHDO Predevelopment Fund Policy
- HOME CHDO Predevelopment Fund Application Forms
Access a listing of Production and Compliance Real Estate contacts.