Community Housing Development Organization (CHDO)
Operating Funds
Since 1995, the Colorado Division of Housing (CDOH) has made funds available to Community Housing Development Organizations (CHDOs) for pre-development, capacity building, administration and operating activities that increase the supply of affordable housing in Colorado. Annually, CDOH has about $440,000 in funds available for CHDO operating funds.
The Colorado Division of Housing accepts applications for CHDO Operating Grants two (2) times a year: April 1st and October 1st. The Colorado Division of Housing will award CHDO Operating Grant funds on an as-needed basis taking into consideration five (5) priorities:
1. Representation in underserved areas
2. Response to community housing needs as identified by Housing Needs Assessments
3. Local match provided
4. Established CHDOs that are continuing to add units to their portfolio
5. Demonstrate the capacity to complete the project(s) as outlined in the MOU.
Certification
In order to receive CHDO funds from the Colorado Division of Housing (CDOH), a local housing organization must be formally certified by the CDOH at the time of each application for operating grants and CHDO eligible housing projects. In order to be certified as a CHDO, a local housing organization must:
• Confirm the CHDO certification requirements per 24 CFR Part 92.208 (See Appendix A, CHDO Certification Checklist) by submitting copies of the following:
o Proof that your organization is legally organized under state and local law.
o Your organization's Charter.
o Your organization's Articles of Incorporation.
o Your organization's By-Laws.
o A description of your organization's geographic service area.
o Your organization's IRS tax-exempt ruling (either conditional or final).
o A list of your organization's Board of Directors, including whether they represent the low-income community or the public sector because they...- Are low-income.
- Live in a low-income neighborhood.
- Are an elected representative of a low-income neighborhood organization.
- Are an elected official, appointed official, or employee of any government entity (including the State of Colorado) within the service area.
- Were appointed to your organization's Board of Directors by a public official.o Your organization's experience/activities within its geographic service area, for at least the past year.
o A description of your staff’s experience with housing projects. If your staff does not have housing experience, then describe the experience of the consultants you will hire to plan and develop your housing projects. The consultants must also train your organization's key staff.
o A certification regarding your organization's financial accountability standards, in conformance with 24 CFR 84.21, "Standards for Financial Management Systems." That could take the form of either a notarized statement by the president or chief financial officer of the organization; OR a certification from a Certified Public Accountant.
• Submit a business plan (See Appendix B, Business Plan Sample), and
• Enter into a Memorandum of Understanding (MOU) with CDOH that states that the CHDO intends to use HOME CHDO set-aside funds to develop units of affordable housing within 24 months of the date of the agreement that specifies the expected uses for the funds (See Appendix C, CHDO Memorandum of Understanding document).
The Colorado Division of Housing will provide a certification letter (See Appendix D, CHDO Certification Letter Sample) to each CHDO to confirm the organization’s CHDO status upon review and approval of the documents listed in this section.
All applicants for CHDO funds are expected to submit their CHDO Certification documents 1 month prior to the submission of each application for CDOH funds. These documents should be submitted directly to the CDOH Regional Housing Development Specialist.
Application Instructions
The Colorado Division of Housing Loan/Grant Application is used to request CHDO Operating and CHDO Set-Aside funds. All documents indicated on the “Checklist for Attachments A – H” (page 9) and the “Checklist/Matrix for Supporting Documents” (page 18) shall be submitted for an application to be considered complete. This includes a CHDO Project Budget and a Staff Allocation Plan (Appendix E and Appendix F).
List of Documents
• Appendix A: CHDO Certification Checklist
• Appendix B: Sample Business Plan
• Appendix C: Sample Memorandum of Understanding
• Appendix D: Sample CDOH CHDO Certification Letter
• Appendix E: CHDO Project Budget Template
• Appendix F: CHDO Staff Allocation Plan Template
Reference Documents
• CDOH CHDO Guidelines
• HUD Building HOME Chapter 8: CHDO Requirements and Activities