Introduction

This HOME Front module will teach you the ins and outs of being a certified Community Housing Development Organization -- a CHDO. You will learn about:

• the characteristics of a CHDO;
• CHDO roles and funding resources;
• special assistance available to CHDOs; and
• eligible and ineligible uses of HOME funds by CHDOs.

nstructions and checklists are provided to help simplify your understanding of the certification process. The information available in this module will be helpful in your organization's decision to apply for CHDO certification.

Who is likely to be interested in this module?

1. Individuals, organizations, and institutions dedicated to providing decent, safe, and sanitary housing to low- and moderate-income people;
2. Organizations seeking additional opportunities and/or alternative funding sources to help meet their housing goals; and
3. Local government staff, community members, and anyone who wishes to learn more about CHDOs and their certification, roles, and responsibilities.

Let's start by answering two frequently asked questions about CHDOs.

What is a Community Housing Development Organization (CHDO)?

A CHDO (pronounced cho'do) is a private nonprofit, community-based service organization whose primary purpose is to provide and develop decent, affordable housing for the community it serves. Certified CHDOs receive certification from a PJ indicating that they meet certain HOME Program requirements and therefore are eligible for HOME funding.

The HOME Program definition of a CHDO is found at 24 CFR Part 92.2. This HOME Front module summarizes these requirements, and provides useful interpretation and guidance based upon the language and intent of the regulations.

Why should an organization apply for CHDO certification?

Funds are available through HOME PJs exclusively for qualified, eligible CHDO projects and operating expenses.

• If an organization becomes a certified CHDO, it is eligible to take advantage of the HOME funds set aside just for CHDOs, as well as additional special technical assistance from HUD.
• CHDO set-aside funds provide equity for community-based organizations to undertake projects, build their capacity to serve a broad range of affordable housing needs and provide guaranteed resources for affordable housing development.