COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS

Community Housing Development Organizations (CHDOs) are specially defined non-profits allowed to compete each year for a 15 percent HOME reserve once they meet certain HUD criteria and are certified as CHDOs by the Illinois Housing Development Authority (IHDA). These HUD CHDO criteria include

1. The provision of affordable low- and moder­ate-income housing as a stated purpose.
2. Operation as a 501(c)(3) IRS tax-exempt organization.
3. A commitment to affordable housing over time.
4. The capacity to carry out HOME activities.
5. The maintenance of low-income residents or their representatives on CHDO governing boards.

Although CHDOs may apply for a variety of types of HOME funding, only the following HOME activities qualify toward the 15 percent set-aside reserved for CHDOs:

• New construction of rental housing, including supportive housing.

• Acquisition and rehabilitation of exist­ing rental housing, including supportive housing.

• Acquisition and rehabilitation of exist­ing housing for sale to homebuyers.

Pre-development loans, covering up-front costs to establish the feasibility of HOME-assisted developments on a certain site, are also made available only to CHDOs.

For further information on becoming designated as a Community Housing Development Organization, or on apply­ing for funds for CHDO-eligible HOME activities, please contact the HOME Program Department at (312) 836-5200.