Welcome to the resource center for Community Housing Development Organizations (CHDOs). CHDOs are private, nonprofit, community-based housing development organizations that are organized under state or local law to develop affordable housing in the communities they serve.
Available Funding and Related Programs:
The State of Ohio receives a yearly allocation of HOME funds from the Department of Housing and Urban Development. Fifteen percent of those funds must be "set-aside" to be awarded to CHDOs to develop housing. The Ohio Housing Finance Agency (OHFA) administers this program, and distributes the set-aside for the State of Ohio through its Housing Tax Credit (HTC) program in the form of gap financing for HTC developments. OHFA develops guidelines for its state-certified CHDO program, based on the Code of Federal Regulations Title 24 – Housing and Urban Development, Part 92 – HOME Investment Partnership Program. Attaining state-certified status indicates that the organization has the capacity to own, develop or sponsor a particular type (rental or owned) of HOME-assisted housing. It also indicates that the organization is in touch with the community it is chartered to serve.
A Community Housing Development Organization that has been certified as a CHDO in the HTC program may also be eligible for a CHDO Operating Grant. The development for which the CHDO is certified must be partially funded by the 15 percent CHDO set-aside allocation to establish eligibility.
CHDO Certification Process:
- HOME rules require that housing development organizations (even previously state-certified CHDOs) must be certified as a CHDO each time they apply for HOME funding from the 15 percent set-aside or the CHDO Operating Grant. Consequently, an organization can only be a CHDO if it is involved in a particular HOME-funded development project.
- An applicant seeking to participate in a 9 percent Housing Tax Credit development as a state-certified CHDO must submit the CHDO Certification Application by the deadline indicated in the most current Qualified Allocation Plan. Those elements of the certification that can be reviewed by OHFA prior to the submission of the Housing Tax Credit Proposal, such as confirming proper board composition, non-profit status, mission to provide affordable housing, service areas, involving the community, etc. will be evaluated and applicants will be notified of any deficiencies with enough time to correct any issues prior to the HTC Proposal application deadline.
- Once the HTC Proposal application is received and the details of the development become known, OHFA will make the final determination of CHDO eligibility. Determination will be based on evaluating the development experience of the paid staff and how that relates to the proposed development, the capacity of the CHDO to function as the sole general partner/sole managing member of the ownership entity, the appropriateness of the CHDO as a part of the development team, and the assessment of the financial capacity of the organization.
- The organization can only be a state-certified CHDO for the type of development project (example ” multi-family rental) for which it can demonstrate the on-staff capacity to sponsor a 9 percent Housing Tax Credit development. If prior development experience is in building and selling single family homes, the applicant most likely will not be certified as a CHDO to develop rental housing.
- In a limited partnership, (LP) the CHDO or its subsidiary must be the sole general partner. In a limited liability company, (LLC) the CHDO or its subsidiary must be the sole managing member. Further, if the LP or LLC agreement permits the CHDO to be removed as general partner or sole managing member, the agreement must provide that the removal must be for cause and that the CHDO must be replaced with another CHDO.
Developing housing as a CHDO has taken on increased obligations and commitments. The pertaining regulations as well as a section by section analysis of the 2012-13 rule changes can be found at http://www.ecfr.gov/ (CHDO specific regulations are in Subpart G) and https://www.onecpd.info/
Applications and Forms:
More information on the certification rules as well as the CHDO Operating Grant can be found in the CHDO Guidelines and Application.
- CHDO 2017 Guidelines and Applications (886 KB Word File)
- CHDO Board Self-Certification (33 KB Word File)
- CHDO Operating Grant Application for 2016 Housing Tax Credit Awards (41 KB Word File) New
Questions and correspondence regarding the CHDO program may be directed to:
Planning, Preservation and Development
Ohio Housing Finance Agency
57 East Main Street
Columbus, Ohio 43215