Community Housing Development Organization (CHDO)

A Community Housing Development Organization (CHDO) is a specific nonprofit designation established under the U.S. Department of Housing and Urban Development’s (HUD) HOME Investment Partnerships (HOME) Program, as authorized by the Cranston-Gonzalez National Affordable Housing Act of 1990.

Historically, HUD required nonprofit organizations to be formally certified as CHDOs to be eligible for a mandatory set-aside of 15 percent of a state’s annual HOME allocation, reserved exclusively for affordable housing development activities carried out by CHDOs. 

In 2013, HUD revised its regulations to allow nonprofit organizations to apply for HOME funds prior to CHDO certification, with certification required only at the time of funding award in order to access the CHDO set-aside, provided the organization met the applicable CHDO criteria.

Beginning in 2018, HUD waived the statutory CHDO set-aside requirement. As a result, the State does not currently evaluate or require CHDO status as part of its HOME funding selection criteria for nonprofit organizations. Should HUD reinstate the CHDO set-aside requirement or otherwise require CHDO certification in the future, the State will resume assessing CHDO status in accordance with federal guidance.

Additional information regarding CHDO requirements and eligibility is available on the HUD website.