Community Housing Development Organizations (CHDO)

A Community Housing Development Organization (CHDO) is an official designation of selected private nonprofit housing development corporations that meet requirements set by the U.S. Department of Housing and Urban Development (HUD) at the time they apply for funding under the HOME Investment Partnership Program (HOME). The CHDO designation may provide particular benefits to the organization as it develops and/or operates housing. An organization, which is designated as a CHDO can potentially qualify for special project funds, operating funds and technical assistance support associated with a project funded under the State’s HOME Program, and may be eligible to retain project proceeds.

To qualify as a CHDO, an organization:

  • Must have in its charter, resolutions or by-laws, a statement that among its purposes is the development of decent housing that is affordable to low- and moderate-income persons.

  • Must be community-based and have representatives of low-income community residents making up at least one-third of its governing board. 

  • May be created by a public body provided the nonprofit is not controlled by the public body, therefore, no more than one-third of the board may be public officials.

  • Must meet requirements to maintain accountability to low-income community residents.

  • Must have a demonstrated history and capacity for carrying out housing development in the geographic area that the organization serves.

CHDOs may serve as:

  • Developers of projects which they own and maintain, or

  • Project Sponsors wherein they develop a project they intend to pass on to a non-profit owner at a specific time or which they develop in a partnership, of which the CHDO is the sole managing member or general partner, using a subsidiary of the CHDO, or

  • Owners of project they either develop or purchase and intend to maintain and operate.

  • For single-family Homebuyer development projects, CHDO's must serve as developers only.

HOME entitlement communities such as Milwaukee and Madison may also designate CHDOs independently.

A non-profit interested in being designated as a CHDO needs to submit the required documentation to verify legal status, organization structure, capacity and the relationship to for-profit entities at the time they apply for HOME funds.