Operating Expenses

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Certified CHDOs may receive funds from PJs to be used for operating expenses.

PJs have the option of allocating up to 5 percent of their HOME allocations to provide CHDO operating expenses. This allocation does not count towards the required 15 percent CHDO set-aside funds that are to be used by CHDOs for projects.

Eligible operating expenses for which CHDOs may use the funds allocated by PJs include:

	Salaries, wages, benefits, and other employee compensation
	Employee education, training and travel
	Rent and utilities
	Communication costs
	Taxes and insurance
	Equipment, materials and supplies

NOTE: HOME assistance for operating expenses in each fiscal year may not exceed $50,000 or 50% of the CHDO’s total annual operating expenses for that year, whichever is greater.

Funds Included in the CHDO Operating Expenses Cap

A PJ may elect to give operating funds to eligible CHDOs. However, HOME assistance for CHDO’s operating expenses in each fiscal year may not exceed $50,000 or 50% of the CHDO’s total annual operating expenses for that year, whichever is greater. The following types of funds are included as part of the maximum $50,000/50% rule a PJ is allowed to give to a CHDO.

	Funds awarded to the CHDO by the PJ for operating expenses. (Under 24 CFR Part 92.208.)
	Funds provided to the CHDO by HUD through intermediaries for organization support and housing education. (24 CFR Part 92.302)
	Capacity building funds committed to the CHDO in the first 24 months of the PJ’s participation in the program