CHDO Summary of Requirements

A CHDO must be recertified as eligible to continue an activity if the activity they were awarded HOME funds for was not completed and all funds expended during the year.

Each CHDO must supply the following:

  • A copy of their By-Laws, Articles, Charter and non-profit standing.
  • Any changes to their By-Laws, Charter, Articles, or non-profit standing.
  • Any signed statements or resolutions regarding CHDO eligibility.
  • Resume of Key Personnel and Proof of Paid employment. (part or full time is acceptable)
  • Audited financials for the most recent calendar year and verification that the organization has access to funds to support the activity. (cash, line of credit, awards, board financial support, etc.)
  • Copy of the organizations insurance, including liability, fidelity, bond, workers compensation, property hazard and project insurance, as applicable.
  • A list of Board Members and a Board Member Eligibility Summary Form for each member.
  • Identification of members at or below 80 % of our area median income based on family size.
  • Identification of members living in lower income census tracts.
  • Identification of members that are elected representatives of lower income neighborhood organizations. (Please identify and describe the organization.)
  • Identification of members that are public or government employees. Definition – Public Sector Representatives:
    • Elected Officials.
    • Appointed Officials–members of the regulatory and/or advisory board or commission appointed by elected officials.
    • Public Employees – all government employees.

Board members meeting the definition of a public sector representative cannot meet the definition of a low-income representative for purposes of required board composition.

Based on a board of __________ members, __________ are 80% or below area median adjusted for family size, are residents of lower-income census areas, __________ are elected representatives of low-income neighborhood organizations or groups, and __________ are public employees.

Remember not to double count board members and that a public employee/official cannot be used to meet the minimum 1/3 low-income representation requirement.

A statement signed by each Board member that summarizes the eligibility status of the Board member must be included and kept on file with the project information acquired by the CHDO. The CHDO must certify documentation is on file to support these assertions. Each statement is to be signed, dated, and retained by the CHDO for reference and review.

Other Requirements

  • The one-third lower income representation must be made part of the CHDO’s By-Laws or Articles of Incorporation. The organization must commit to a governing board structure of at least one-third representation from low income neighborhoods, other low-income community residents or elected representatives of low income neighborhood organizations.

If you need assistance verifying L/M Census Tract and Block Groups, please ask. Currently, 2011~2015 ACS data provides Low Mod Area percentages for board membership. This HUD mapping site may help.

The CHDO must have a process for lower-income persons to advise in decisions regarding designs, sites, and management of projects. This can be a written statement outlining a procedure approved by the CHDO board. It could be a resolution that the CHDO will advertise its activities and request input from neighborhood groups before a project is finalized. It could be a resolution to put project occupants on the CHDO board or any other means that the CHDO devises.

A copy of the lower-income involvement should be sent to the City with any revised By-Laws, the board member list, and eligibility summary.

The City requires copies of the most recent audit and/or updated yearly financial statements.

CHDO Requirements Checklist Rev. 1.6.15

Before committing CHDO set-aside funds to an organization, the PJ must certify that the organization:

  • Meets the definition of a “community housing development organization” in §92.2;
  • Has a project eligible for the set-aside that the organization will own, develop, or sponsor in accordance with §92.300(a); and
  • Has paid staff with demonstrated experience appropriate to the role the organization will play for the project being funded.

Additionally, before committing funds for CHDO pre-development loans under §92.301 or CHDO operating expenses under §92.208, the PJ must certify that the organization meets the definition of a “community housing development organization” in §92.2 and that other requirements, outlined in Sections 6 (predevelopment) and 7 (operating) below, have been satisfied.

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