Organizational Structure

Information by State  Print version   Want More Information?   Learn ways the community requirement may be fulfilled.   Learn who is considered a representative of the public sector.   Learn how CHDOs may be sponsored by other entities.   CHDO Board Composition Table for a summary of these and other HOME requirements related to CHDO boards. How to Become a CHDO   Characteristics   Roles and funding   Special assistance   Use of funds CHDO Characteristics   Legal Status   Organizational Structure   Experience, Capacity and Financial Accountability

The HOME Program establishes requirements for the organizational structure of a CHDO to ensure that the governing body of the organization is controlled by the community it serves. These requirements are designed to ensure that the CHDO is capable of decisions and actions that address the community’s needs without undue influence from external agendas.

There are four specific requirements related to the organization’s board which must be evidenced in the organization’s by-laws, charter, or articles of incorporation. These are:

1. At least 1/3 of the organization’s board must be representatives of the low-income community served by the CHDO.
   
   
2. No more than 1/3 of the organization’s board may be representatives of the public sector, including any employees of the PJ.
   
   
3. If a CHDO is sponsored by a for-profit entity, the for-profit may not appoint ore than 1/3 of the board. The board members appointed by the for-profit may not appoint the remaining 2/3 of the board members.
   
   
4. States or local governments who charter CHDOs may not appoint more than 1/3 of the board, and the board members appointed by the state or local government may not appoint the remaining 2/3 of the board members.