Can CHDOs do things that other HOME program participants cannot?
One unusual part of the HOME program concerns new construction. Many jurisdictions are prohibited from using HOME funds for new construction. There are two exceptions; one for special needs housing, the other for new construction in conjunction with neighborhood revitalization efforts. In officially designated neighborhood revitalization areas (not the entire municipality), a CHDO or a public agency can own, develop, or sponsor HOME subsidized new construction projects with the following caveats:
  • No less than 51 percent of all the public funds spent on the neighborhood revitalization project during the previous year had been spent on rehabilitation of substandard housing
  • The participating jurisdiction must certify that rehab is not the most cost effective way of meeting the affordable housing needs of the neighborhood and that affordable housing needs cannot be met solely through rehab
  • The neighborhood must be low-income

The jurisdiction must also certify that either the HOME-assisted new construction will not exceed 20 percent of the total number of HOME-assisted units in the neighborhood revitalization program, or (choose one) 1) the housing will be in severely distressed neighborhood with large expanses of vacant land and abandoned buildings, 2) the neighborhood has an inadequate supply of housing that can be economically rehabilitated to meet needs, 3) the new construction is essential to accomplish the neighborhood revitalization program.

All those requirements mean that a CHDO-linked neighborhood revitalization program might be the only vehicle for some jurisdictions to qualify for new construction.

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1. What is a CHDO?
2. Are there requirements for community participation in CHDO's?
3. What kind of experience does a CHDO have to possess?
4. Can local governments create CHDOs?
5. Can for-profit organizations create CHDO's?
6. Why should a participating jurisdiction work with CHDOs?
7. Is the PJ limited to only 15 percent for CHDOs?
8. Is nonprofit participation limited to the CHDO set-aside?
9. What can CHDOs do with HOME funds?
10. Can CHDOs do things that other HOME program participants cannot?
11. Are there additional eligible program uses for HOME funds in CHDO projects?
12. Who will pay a CHDO for carrying out CHDO set-aside projects?
13. Are there other benefits available to CHDOs?
14. Are there non-HOME benefits from becoming a CHDO?