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Community Housing Development Organizations (CHDO)

What is a CHDO?

The HOME Investment Partnerships Program (HOME) was created under Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990. The Act's objectives include promoting partnerships among states, units of local government, and not-for-profit organizations to develop and manage safe, decent, and affordable housing. The Indiana Housing and Community Development Authority (IHCDA) receives an annual allocation of HOME funds from the U.S. Department of Housing and Urban Development (HUD) as a participating jurisdiction (PJ).

HUD requires that PJs "set aside" a minimum of 15% of their annual HOME allocation for projects in which a Community Housing Development Organization (CHDO) is the owner, developer, or sponsor. A CHDO is a private, community-based nonprofit organization whose primary purpose is to develop affordable housing for the community it serves. To be recognized as a CHDO, an organization must meet the requirements pertaining to the legal status, organizational structure, capacity, and experience as set for in 24 CFR 92.2, and be certified by IHCDA as a CHDO.

Advantages of Being a CHDO

CHDOs have access to benefits that are not available to non-CHDO applicants. These benefits include:

  • Seed Money and Site Control Predevelopment Loans
    • Loans that can be used to cover project costs necessary to determine project feasibility and gain site control or to cover pre-construction costs for a specific project
  • CHDO Operating Supplement Funds
    • Funding, not to exceed $50,000, may be used to cover operating costs for CHDOs, including staff salaries, training, and travel.
  • Use of HOME Project Proceeds
  • Points in HOME Applications to increase project competitiveness
  • Increased maximum HOME award request
  • Capacity building assistance

How to Become an IHCDA CHDO?

The CHDO certification application is submitted in conjunction with a HOME application. At the time an organization receives certification from IHCDA as a CHDO, it is assessed on all the eligibility criteria for funding under the HOME regulations. While CHDO certification is a prerequisite to receiving funds designated specifically for CHDOs, becoming eligible does not guarantee funding.

Prospective CHDOs should complete all sections of IHCDA's CHDO Application Workbook and provide all required attachments. The CHDO Application Workbook should be submitted with the applicant's HOME application or, if applying for precertification, by the precertification deadline listed in the HOME Rental Policy.

Applicants should contact the IHCDA Real Estate Coordinator to arrange for the upload of the CHDO Application Workbook and supporting documentation. Physical copies of the application and supporting documentation should not be submitted to IHCDA

Application and Forms