Community Housing Development Organizations

At least 15 percent of HOME Investment Partnerships Program (HOME) funds must be set aside for specific activities to be undertaken by a special type of nonprofit called a Community Housing Development Organization (CHDO). A CHDO is a private nonprofit, community-based organization that has staff with the capacity to develop affordable housing for the community it serves. In order to qualify for certification as a CHDO, the organization must meet certain requirements pertaining to their legal status, organizational structure, and capacity and experience. SC Housing administers the HOME Program for the State of South Carolina and meets the 15 percent set-aside through the production of rental housing.

In order to count towards the 15 percent set-aside, a CHDO must act as the owner, developer, or sponsor of a project that is an eligible set-aside activity. HUD requires SC Housing to certify that a non-profit meets the definition of a CHDO at the time of project commitment.

Key CHDO Qualifying Requirements:

• Legal and tax-exempt status,
• Financial management capacity and accountability,
• Staff capacity to carry out HOME-funded activities,
• Experience serving the community,
• Board representation by community members, with at least one-third of its members low-income, and
• Lack of for-profit or public control.

Questions regarding the CHDO requirements and the certification process can be submitted to CommunityDevelopmentPrograms@schousing.com.