Eligible Activities - Owners, Sponsors, Developers

Using the 15% set-aside, a CHDO acting as an owner, sponsor, or developer may undertake any of the following activities:

• acquisition and/or rehabilitation of rental
  property;
• new construction of rental housing;
• acquisition and/or rehabilitation of homebuyer property;
• new construction of homebuyer property;
• direct financial assistance to purchasers of HOME-assisted housing sponsored or developed by a CHDO with HOME funds.

Ineligible Activities - Owners, Sponsors, Developers

Using the 15% set-aside, a CHDO acting as an owner, sponsor, or developer may not undertake any of the following activities:

• rehabilitation of existing homeowners' properties;
• tenant-based rental assistance.

Eligible Activities - Subrecipients

CHDOs may also act as subrecipients with non-set-aside funds by undertaking all other HOME-eligible activities such as:

• TBRA;
• homeowner rehabilitation;
• providing downpayment or closing cost assistance; and
• brokering or other real estate transactions that are not counted towards the set-aside.