Q:
How often must a PJ requalify a non-profit organization as a Community
Housing Development Organization (CHDO)?
A:
HUD strongly recommends recertification of CHDOs annually. However,
at a minimum, a participating jurisdiction (PJ) must requalify an
organization as a CHDO each time it receives additional set-aside
or operating funds.
As stated in the HOME regulations (§ 92.300 (a)(1)), PJs are
required to reserve not less than 15% of their HOME allocation for
investment in housing to be developed, sponsored or owned by CHDOs.
A CHDO is a special type of non-profit organization that meet the
following requirements:
- Has
a governing board consisting of not less than one-third low-income
persons and not more than one-third public officials.
- Has
a 503(c)(3) or (c)(4) ruling from the IRS.
- Has
demonstrated a capacity for carrying out activities assisted
with HOME funds.
- Has
a history of serving the community in which the HOME assisted
housing is to be located for a minimum of one year.
- Has
among its purposes the provision of decent housing that is affordable
to low-income and moderate-income persons, as evidenced in its
charter, articles of incorporation, resolutions or by-laws.
PJs
must identify non-profit organizations and certify these organizations
as CHDOs using the guidance given in CPD notice 97-11, Guidance
on Community Housing Development Organizations (CHDOs) under the
HOME Program, as may be updated.
Non-profit organizations may experience transitions in board composition
and management. Charters or by-laws may be amended at any given
time. Therefore, after the initial certification, it is not adequate
to assume a certified CHDO remains a CHDO. HUD will monitor a PJ's
files to ensure that CHDO designations are being updated as required.
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