CHDO Sponsorship

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Nonprofits that have been sponsored by other nonprofits, charities, religious organizations, local or state government, public agencies, or for profit corporations may qualify as CHDOs, but the following additional requirements and board limitations apply:

	There are no limits on the proportion of the board that may be appointed by nonprofit or charity sponsors as long as the minimum 1/3 community representation is met.
	A one-year minimum history of service to the community by the sponsoring nonprofit or charity may help a new nonprofit to qualify as a CHDO.

Religious organizations cannot qualify as CHDOs under the HOME Program, but they may sponsor the creation of fully secular nonprofits. (See guidelines in Section 92.257 of the HOME regulations.)

	There are no limits on the proportion of the board that may be appointed by the religious organization, but it may not control the nonprofit and must meet the other representational requirements.
	The developed housing must be used exclusively for secular purposes and be made available to all regardless of religious affiliation or belief.

	A local or state government and/or public agency cannot qualify as a CHDO, but may sponsor the creation of CHDOs.
	Government officials and appointees of the government cannot exceed 1/3 of the members of the board.

A CHDO cannot be controlled by or be under the direction of for profit entities or individuals seeking profit from the organization.

A CHDO may be sponsored or organized by a for profit if:   The primary purpose of the for profit sponsor is not the development or management of housing (thus, a builder, developer, or real estate management firm may not spin off a CHDO);   The for profit appoints no more than 1/3 of the CHDO's governing board and the board members appointed by the for profit do not appoint the remaining members of the board; and   The CHDO is free to contract for goods and services from any vendors it selects.