# Presentation: 000728

## Community Planning and Development Programs

- Getting Involved Through the Consolidated Planning Process

## Module 3 Overview

- HUD’s Community Planning and Development (CPD) Formula Programs.
- CDBG
- HOME
- HOPWA
- ESG
- Briefing of CPD’s Competitive Programs.
- The Consolidated Plan Process and Getting Involved.
- CBDOs and CHDOs.

**Notes:**
This slide represents the agenda for the overall training module.

The four areas that will be covered in this training module
Much of the purpose of this training is not to make you an expert on CPD programs, but to familiarize you with the terminology and the processes for obtaining funding – Think of it as a vocabulary lesson or the decoder for HUD’s acronym soup!  
This training should provide you with the starter tools to know where to begin asking educated questions of your community leaders and help you know where you can get involved to move your organization’s agenda forward and better help the people you serve.  

## HUD’s Federal Formula Programs

- Grantee:
- The State or Locality that receives and distributes funding.
- Formulas:
- Determines which States and Localities will receive the funding and how much of it.
- Money:
- Allocated each year to the grantees, for each program.
- Match Funds:
- HOME, HOPWA and ESG require a Match.

**Notes:**
The simple basics of Federal formula funding –

1. Your State or Locality, depending on if you are in a city, urban county, large MSA or in a rural area, will be the GRANTEE, or recipient of federal formula funding.  

2 & 3. There are four formula programs at HUD, CDBG, HOME, HOPWA and ESG.  They receive money each year from the federal government.  That money is distributed to States, cities, urban counties, consortia, etc. based on a formula derived for each program.  The formulas take into consideration things like population and measures of poverty.

4. Match: A match means a certain proportion of money or resources that a grantee must provide to receive each federal dollar.  Among the formula programs, only HOME, HOPWA and ESG require a match and the amounts and rules for each program are different.  CDBG does not require a match. 

It is helpful to know about all of these program’s matching requirements because that will give you a better idea of how much money or resources the grantees really have to use toward the formula programs.  In other words, by accepting the federal formula funds, the grantees actually have to provide MORE resources to their community than just the federal allocation.   

In most cases the match can be any number of things: It could be cash, donated  land, donated labor or services, waived taxes and fees. 

5. Note that you as a community based and/or faith-based organization will NOT receive formula funding directly from the federal government through the Consolidated Planning process.  You must figure out how your state or locality uses and distributes the funds, and go from there to try to apply or request funding for your organization.  This is why the consolidated planning process is so important for you to know about.  It is THE process by which you can access federal formula funding through your jurisdiction.   

However, you can apply directly to the federal government for certain competitive programs, which we will ONLY cover briefly in this module since it is the main focus for this overall grant writing training over these two days.  

First, let’s cover HUD’s formula programs that are directly covered in the Con Plan.  

## HUD Formula Programs

- Community Development Block Grant, **CDBG**
- FY 2008 Total of $3,865,800,000
- HOME Investment Partnerships Program, **HOME**
- FY 2008 Total of $1,704,000,000
- Emergency Shelter Grant, **ESG**
- FY 2008 Total of $160,000,000
- Housing Opportunities for Persons with AIDS, **HOPWA**
- FY 2008 Total $300,100,000
- _http://www.hud.gov/offices/cpd/_

**Notes:**
The FY 2008 appropriation was:

CDBG   $3,865,800,000, including $272.4 million for set-asides
HOME  $1,704,000,000, including $69.3 million for set-asides
HOPWA $300,100,000
ESG $160 million out of $1,585,990,000.  The $1.6 billion is for all homeless programs.  

This module will cover some of the basics of each of these programs in turn.  

Website listed is for the general CPD webpage.  Many links to the various programs, and various CPD information.  

FYI, in case anyone asks: 
CDBG Set-Asides = may include technical assistance, earmarks, BEDI, other elements
HOME Set-Asides = may include Insular areas, HOME/CHDO TA, possibly housing counseling. 

## What is the Community Development Block Grant? (CDBG)

- The CDBG program is a **flexible** program that provides communities with resources to address a wide range of community development needs.
- It was begun through the **Housing and Community Development Act of 1974**.
- It is one of the longest continuously run programs at HUD.
- _http://www.hud.gov/offices/cpd/communitydevelopment/programs/_

**Notes:**
Starting with CDBG – the largest of CPD’s formula programs.

It can be helpful to be familiar with the title of the legislation that dictate the various programs.  You may want to point out the significance of the Housing and Community Development Act of 1974. 

CDBG’s program website

## Primary Objectives of CDBG

- 	The development of viable communities,    	principally for low and moderate income  	persons, through:
- Decent Housing
- Suitable Living Environment
- Expanded Economic Opportunity

**Notes:**
HUD programs like CDBG are designed to provide decent housing and a suitable living environment.  CDBG is also a flexible program that allows for community and economic development activities.  

## CDBG National Objectives

- Each Activity MUST meet at least one:
- Benefit low- and moderate-income persons,
- Prevent or eliminate slums or blight,
- Urgent Need

## Persons Served by CDBG

**Low and Moderate Income**
- Households and persons whose incomes do not exceed 80 percent of the median income of the area involved, as determined by HUD with adjustments for household or family size.
- Over a 1, 2, or 3-year period, as selected by the grantee, **not less than 70 percent** of CDBG funds MUST be used for activities that benefit low- and moderate-income persons.

## Some Eligible CDBG Activities

- Acquisition of Real Property
- Construction of Public Facilities and Improvements
- Such as water and sewer facilities, streets, neighborhood centers, and the conversion of school buildings for eligible purposes
- Rehab of Residential and Non-Residential Structures
- Public Services, within certain limits
- Activities related to Energy Conservation and Renewable Energy Resources
- Relocation and Demolition
- Housing Services, Some Homeownership Activities
- Economic Development
- Community Based Development Organization (CBDO) Activities (More discussion in later module)
- Planning and Administration

**Notes:**
Examples of some of the activities that can be undertaken with CDBG funding include a large variety of things.  

## Some Ineligible Activities

- Buildings for the general conduct of government and general government expenses
- Political activities
- New housing construction by local units of governments
- Income payments
- Purchase of equipment
- Operating and maintenance expenses

**Notes:**
These are just SOME examples.

## Distribution of CDBG Funds	

- Entitlement Program
- Principal cities of Metropolitan Statistical Areas (MSA’s)
- Cities with populations of 50,000 or more
- Qualified urban counties with populations of 200,000 or more (not including a qualifying city).
- State and Small Cities Program
- States that administer the program to non-entitled cities/counties; and Hawaii

**Notes:**
This slide describes the basic distribution of CDBG funds

## How Can CDBG Funding Get to You?

- You would probably be the _**Subrecipient, **_unless you are a CBDO.
- A public or private nonprofit agency, authority, or organization, or a for-profit entity authorized under §570.201(o), receiving CDBG funds from the recipient or another subrecipient to undertake activities eligible under subpart C.
**Your local government makes the decision about which organizations to fund.**

**Notes:**
Often local governments are creatures of habit, funding the same organizations each year.  This is why it is all the more important to understand the Consolidated Planning process so you know how to get your name out there. 

It is important to reiterate here, that for all of the CPD programs including CDBG, Faithbased orgs do not have any special standing, but they are just as able to apply and receive funding as any qualified organization. 

This slide specifically emphasizes the meaning of the term subrecipient for the CDBG program because it is very different than the meaning it takes under the HOME program rules.  We will discuss the HOME meaning when we discuss the HOME program in a moment, but for now realize that they are quite different so that you do not confuse the meanings.  

What is important to remember is that you need to find out about and understand the process by which your locality or state distributes their formula funding and how they make decisions about who to fund.  Do not let the terminology throw you off your goals; when in doubt contact your local HUD office.  

Other Background information in case there are questions. 
A for-profit agency may be a subrecipient
Institutions of higher learning may be subrecipients
Who are not subrecipients?  Procured contractors, beneficiaries of assistance, owners of rental housing seeking rehab assistance, and CBDO’s are not automatically subrecipients.
A written agreement must be executed before funds are disbursed
Minimal required elements:
Statement of work
Records and reports
Program income
Uniform administrative and other federal requirements
Suspension/termination and reversion of assets
Conditions for religious organizations.  

## HOME Investment Partnership Program (HOME) 	

- Designed exclusively **to create affordable housing** for low-income households.
- Became law in 1990.
- _http://www.hud.gov/homeprogram/_

**Notes:**
Moving on from the CDBG program, HOME is our housing program.  It too is a block grant and is provided to local jurisdictions based on a formula.  These jurisdictions – just like with CDBG - prioritize their use of the funds based on community needs. 

HOME’s program website is listed for future further reference

## Participating Jurisdictions(PJs) 

- State and Local Governments, or Consortia.
- Receive annual formula allocations HOME funds.
- Responsible for the eligible use of funds.
- A PJ may designate a “**Subrecipient” (**public agency or nonprofit) to administer all or a portion of its program on its behalf.
***You would receive funding from the PJ or the Subrecipient***.

**Notes:**
The HOME program uses the term PJs to refer to their grantees – the state or local governments.  

Participating jurisdictions often administer their own programs, but some states and local governments delegate the administration of specific programs to subrecipients. Here is where the term subrecipient is used differently than in the CDBG program.  In the HOME program the term subrecipient describes an office or organization that effectively administers a portion of the grant for the PJ, and for all practical purposes, they act as if they were the grantee.  If your PJ uses a subrecipient to administer the specific HOME program that you need funding from, you will need to be in contact with the subrecipient to try to gain access to the HOME funds.  They are still a part of the Con Plan process, and the subrecipient is still held accountable by the PJ itself.  

## Overall Key Actors in the HOME Program

- State Governments
- State Recipients
- Local Governments
- Consortia
- Subrecipients
- Community Housing Development Organizations (CHDO’s)
- Developers, owners, and sponsors
- Private lenders
- Contractors

## Four  HOME Program Types

- Homeowner (Owner-Occupied) Rehabilitation
- Homebuyer Assistance
- Rental Development
- New construction or rehabilitation
- Tenant-Based Rental Assistance (TBRA)

**Notes:**
This slide simply lays out the 4 types of HOME programs

Homeowner (Owner-Occupied) Rehabilitation
Homebuyer Assistance
Downpayment assistance programs or development for homeownership
Rental Development 
New construction or rehabilitation
Tenant-Based Rental Assistance
TBRA:  This is Assistance that fills the gap between the amount a family can afford to pay for housing costs (rent and utilities) and the actual costs of housing selected by the family. 

## Eligible HOME Activities

- Acquisition (standard properties)
- Rehabilitation
- New Construction
- Tenant-based rental assistance

**Notes:**
These are the only eligible activities under the HOME program.  All projects must involve acquisition of standard property, rehab or new construction.  TBRA is eligible only as a separate program or when provided to in-place tenants of a property about to be rehabbed with HOME $.

## Some Eligible HOME Expenditures

- Hard costs (construction)
- Land Acquisition
- Demolition
- Project Related Soft Costs
- Inspections
- Financing fees, etc.
- Relocation Costs

**Notes:**
These expenditures are eligible HOME costs when associated with one of the four HOME eligible activities.   

## Some Prohibited Activities in HOME

- Non-housing facilities (shelters, nursing homes, treatment facilities, other public facilities)
- Emergency Repairs
- Project-based rental assistance
- Paying delinquent taxes on behalf of the owner
-  Operation, construction or modernization of Public Housing
- Match for other federal programs

**Notes:**
To give you some idea of what cannot be done with HOME funds, these are some of the activities that are prohibited in the HOME program.

## Overview of Basic HOME Rules

- All HOME funds must be used for families with incomes below 80 percent of the Area Median Income.
- Deeper targeting for rental housing
-  HOME-funded projects are subject to affordability periods.
- New construction and rehab must meet local codes and property standards and federal accessibility requirements.

**Notes:**
Point 1
All HOME beneficiaries must be low-income or very low-income.
Deeper income targeting  income requirements for rental housing.
Yearly limits by locality are listed on the HOME website. 

Point 2
Affordability: Minimum time period is established by the amount of HOME money; 5, 10, 15 or 20 years.
States and Localities can set longer periods of affordability.  

Point 3
This covers codes, ordinances and zoning
Must meet applicable federal requirements for persons with disabilities.  

## Other Notable HOME Features

- Matching requirement
- PJs must match 25 cents of every HOME dollar.
- Performance standards
- Funds must be committed within  2 years
- Funds must be expended within 5 years
- Technical Assistance funds
- Awarded to intermediaries to  build the capacity of qualified Community Housing Development Organizations (CHDOs).

**Notes:**
This slide describes the basic key features that characterize the HOME program.  

Again, it is important to remember that different programs also have restrictions on what can be counted toward the match. For HOME, matching funds from PJs can include donated land, donated labor or services, or waived taxes and fees.  Contributions from the developers of the HOME housing cannot count towards match.

## Forms of HOME Assistance

- Direct Assistance
- Grants
- Direct Loans (interest or non-interest bearing)
- Deferred Loans
- Loan Guarantees
- For rental, owner-occupied rehab or homebuyer programs.

**Notes:**
HOME assistance can take the form of grants, direct loans or deferred loans.   

Realize that while possible to use, loan guarantees are used infrequently in the HOME program.
Direct assistance is the most common form of HOME assistance.

## Limits on How Funds Can Be Spent 

**Administration**: Up to 10% of allocation
**CHDO Operating Expenses**: Up to 5%
**CHDO Set-Aside for development project activities**: AT LEAST 15%
**Remaining HOME funding is used for Project Activities**.

**Notes:**
This slide speaks for itself, however it tends to be a confusing topic.  For the purposes of this presentation, it is provided as a for your information for the community and faith based organizations, and should not need extensive explanation. 

## Housing Opportunities for Persons With AIDS (HOPWA)

- Has both a Formula and a Competitive Program.
- Eligible States and localities determined using a statutory formula that relies on AIDS statistics.
- Used for housing assistance and appropriate supportive services.
- _http://www.hud.gov/offices/cpd/aidshousing/programs/_

**Notes:**
Very straightforward: HOPWA provides funding for establishing housing for persons with AIDS.  It is part of CPD’s Office of Special Needs Assistance Programs, along with the homeless programs.  

HOPWA website

## HOPWA

- Some Examples of Eligible Uses:
-  Acquisition, rehabilitation and new construction of housing units
- Costs for facility operations
- Rental assistance
- Short-term payments to prevent homelessness
- Supportive Services
- Mental health services
- Chemical dependency treatment
- Nutritional services
- Case management
- Assistance with daily living

**Notes:**
The HOPWA program is very specific for what the funds can be used for.  For our purposes it is important for you to know about the program so you can determine how the funds may be being used in your jurisdiction. 

## Emergency Shelter Grant (ESG)

**Purpose:**
- To provide homeless persons with basic shelter and essential supportive services.
- _http://www.hud.gov/offices/cpd/homeless/programs/esg_

**Notes:**
The ESG program is designed to be the first step in a continuum of assistance to prevent homelessness and to enable homeless individuals and families to move toward independent living.
Website connects you to an overview of HUD’s ESG programs.

## Emergency Shelter Grant (ESG)

**History:**
- Originally established by the Homeless Housing Act of 1986
- Incorporated into subtitle B of title IV of the McKinney-Vento Homeless Assistance Act in 1987.

**Notes:**
If you work with homeless individuals, it is vital that you become familiar with the McKinney-Vento Homeless Assistance Act if you are not already.  It is the basic legislation for HUD’s homeless programs.  

## Emergency Shelter Grant (ESG)

**Grantees: **
- State governments, metropolitan cities, urban counties, and U.S. territories
- Grantees make the funds available to **eligible recipients**, which can be local government agencies or private nonprofit organizations.
**Matching Requirement: **
- Local ESG grant funds must be matched dollar for dollar with locally-generated amounts.
- States do not have to match the first $100,000 of ESG assistance that they receive.

**Notes:**
These local amounts for the matching can come from:
 The grantee or recipient agency or organization;
 Other federal, state and local grants; 
“In-kind" contributions such as the value of a donated building, supplies and equipment, new staff services, and volunteer time. 

## Five Categories of ESG Eligible Activities

- Rehab or conversion of buildings into homeless shelters
- Operating expenses and maintenance of the shelter
- Essential supportive services
- Short-term homeless prevention activities
- Administration of the grant

**Notes:**
Some examples of essential services: 
case management, physical and mental health treatment, substance abuse counseling, childcare, etc.
Short-term homeless prevention activities to persons at imminent risk of losing their own housing due to eviction, foreclosure, or utility shutoffs. 

## HUD’s Definition of Homelessness 

- Based on primary nighttime residence
- Includes individuals and families
- Must be living in one of the following:
- Places not meant for human habitation;
- Emergency shelter; or
- Transitional housing for homeless persons who originally came from streets or emergency shelter

**Notes:**
For any organization working with homeless individuals and who is seeking HUD funds to support their programs, it is important to know how HUD defines homelessness. 

## HUD’s Definition of Homelessness

- Does not include:
- Persons living in substandard housing
- Persons living in overcrowded housing situations
- Persons that are wards of the state
- Persons being discharged from institutions where housing placement is condition of release
- Persons living with family/friends

**Notes:**
Where is a definition of what is, we must follow with what isn’t included in the definition. 

## Chronic Homelessness

*HUD is focused on ending chronic homelessness*
- Definition of a chronically homeless person: *“Either: *
*An unaccompanied homeless individual with a disabling condition who has been continuously homeless for a year or more, OR *
*An unaccompanied individual with a disabling condition who has had at least four episodes of homelessness in the past three years.”*

**Notes:**
HUD is continuing to focus on ending chronic homelessness.  For this reason, if you provide any type of services for homeless persons you should be familiar with the definition of chronic homelessness. 

## Competitive Programs

- In the Office Community Planning and Development (CPD)
- The Continuum of Care
- Homeless Competitive Grants
- Other CPD Competitive Grants
**Certificate of Consistency with the Consolidated Plan**

**Notes:**
Moving from formula grant programs into the competitive programs.  For the most part, competitive programs are not a direct part of the Consolidated Planning Process.

HOWEVER!
While the competitive programs operate in their own right and are awarded competitively at the federal level, they must provide a Certificate of Consistency with the Consolidated Plan signed by a certifying official (local government or the State).  
Realize also that most of HUD’s competitive programs in the SuperNOFA, even outside of the CPD office, require a signed Certificate of Consistency with the Consolidated Plan!!!!

Further, the success of a proposed competitive project may likely be influenced by the priorities set forth by a state or locality in their consolidated plan.  
We will only cover the CPD competitive programs briefly for your exposure, focusing slightly more on the homeless programs since they are the largest portion of CPD’s competitive program and we realize that many of you specialize in providing care and housing to the homeless population.  

Again, while the competitive programs are not a direct part of the consolidated planning process like the four formula programs are, they are still affected by the process.  

## The Continuum of Care (CoC)

**HUD’s Homeless Assistance Plan**
*HUD believes the best approach for alleviating homelessness is through a community-based process that provides a comprehensive response to the diverse needs of homeless persons.** *
- _http://www.hud.gov/offices/cpd/homeless/programs/index.cfm_

**Notes:**

We realize that many of you are already involved in the continuum of care process.  It is important to realize that the Continuum of Care process is its own process, separate from the consolidated planning process. Nonetheless, it is still affected by the consolidated planning process.  

Since many of you likely specialize in programs for homeless persons  we have included a bit more detail about the CPD’s competitive homeless programs for your general information.  Please refer to the website to learn more about these programs if you are interested.    

Website for information on CoCs – see also the websites listed for the ESG program and the new Homeless Resource Exchange (which will show in a later slide).
The Continuum of Care model is based on the understanding that homelessness is not caused by simply a lack of shelter, but involves a variety of underlying needs. 

Another definition of CoC:  A system of organizations and processes designed to bring the community together to plan and develop a strategy to end homelessness.  

## Continuum of Care Basics

*“**A collaborative funding approach that helps communities plan for and provide a full range of emergency, transitional, and permanent housing and service resources to address the various needs of homeless persons.”* FY 2007 SuperNOFA
- Locally organized
- Includes designated lead agency and contact person
- Geographically based

**Notes:**
The idea is that the CoC is a community-driven process 

Locally organized:
The community determines local needs; they prioritize the projects that HUD should fund.  You need to appeal to your local CoC for federal funding. 
Lead Agency and Contact person
Geographically Based:
The CoC organizes all the projects going on in the area, decides their approach and the CoC applies to the federal government directly for the competitive funding.

To get involved, you need to find out about your local or state CoC! 

## Overview of Continuum of Care

- Housing and service providers
- Nonprofit organizations
- Public housing authorities
- Advocacy groups
- Community and faith-based organizations
- State and local government agencies

- Housing developers and other private businesses
- Private agencies, like health care organizations
- Law enforcement and corrections
- School systems
- Private funding providers
- Homeless or formerly homeless persons

- A CoC system is developed through an inclusive, community-wide or region-wide process involving:

**Notes:**
Basically, get everyone in the community involved to bring more ideas and resources to address local homeless issues in a holistic way.  

## Continuum of Care

**CoC **
**Planning/Coordinating ****Organizations**

**Veterans Services**

**Businesses**

**Mental Illness**

**HIV / AIDS**

**Neighborhood Groups**

**Banks**

**Foundations**

**Service Providers**

**Housing**
**Developers**

**Homeless Persons**

**Educators**

** ****Government**

**Notes:**
Visual depiction of the previous slide

## Five Basic Components of Continuum of Care

**Outreach and assessment to identify the needs and conditions of homeless persons. **
**Immediate (emergency) shelter with appropriate supportive services.**
**Transitional housing with appropriate supportive services.**
**Permanent housing or permanent supportive housing.**
**Prevention strategies. **

**Notes:**
This slide simply describes the five basic components of the CoC.  It should be sufficient to simply run through the slide, only providing extra emphasis to the extra information listed under the notes below

Outreach and assessment to identify the needs and conditions of a person or family who is homeless, or chronically homeless
Immediate (emergency) shelter with appropriate supportive services
Transitional housing with appropriate supportive services 
To help homeless individuals and families prepare to make the transition to permanent housing and  independent living
Permanent housing or permanent supportive housing, 
To help meet the long-term needs of homeless individuals and families
Prevention strategies 
Play an integral role in a community’s plan to eliminate homelessness by effectively intervening for persons in public systems (corrections, foster care, mental health) so that they do not enter the homeless system. (ESG is the only HUD homeless program for which Prevention is an eligible expense – SHP, S+C, and SRO funds cannot be used for prevention)

## Continuum of Care (CoC) Competitive Homeless Assistance Programs

**Supportive Housing Program (SHP)**
**Shelter Plus Care (S+C)**
**Section 8 Moderate Rehabilitation Single Room Occupancy (SRO) Program for Homeless Individuals**

**Notes:**
These are the three competitive programs that are included in the CoC
Matching funds are required from local, state, federal or private resources for all three of the programs. 

## Supportive Housing Program (SHP)

- Provides housing, including housing units and group quarters.
- Combine supportive services and housing to help homeless persons to live as independently as possible.
- Three overall goals:
- Achieve residential stability
- Increase skill levels and/or incomes
- Obtain greater self-determination

**Notes:**
This slide and the next two can be quickly reviewed, very much on a “for your information” basis.  For the purposes of this overall module, very little time should be spent describing or discussing these three programs.  

Elaboration of the goals of the SHP program:
Achieve residential stability (permanent or transitional housing), 
Increase their skill levels and/or incomes, and 
Obtain greater self-determination (i.e., more influence over decisions that affect their lives).

## Shelter Plus Care (S+C)

- Provides housing and supportive services on a long-term basis for **homeless persons with disabilities**, and their families.
- Rental assistance for **hard-to-serve** homeless persons with disabilities**.**
- Works in connection with supportive services funded from sources outside the program.

**Notes:**
Again, all the information to be discussed is included in the slide. 

## Single Room Occupancy Program

- Provides rental assistance for homeless persons in connection with the moderate rehabilitation of SRO dwellings.
- SRO housing contains units for occupancy by one person

**Notes:**
Again, all the information to be discussed is included in the slide. 

## Resources

- Homeless Resource Exchange (HRE):
- _http://www.HUDHRE.info_
- HUD’s web site:
- _http://www.hud.gov/offices/cpd/homeless/index.cfm _
- _http://www.hud.gov/homeless/ _

**Notes:**
The Homeless Resource Exchange (HRE) is HUD’s new “one-stop shop” for finding out about homelessness and providing housing and services to homeless persons.  It is easy to find what information you are looking for.  

There are also a few of the links to HUD’s web site, including an index of CPD’s competitive and formula homeless programs, and information on the CoC.  Most of the information on HUD’s web site is also on the HRE.  When using HUD’s web site, please be sure to pay attention to the sidebars on both the left and right sides of the screen.

## Other CPD Competitive Programs 

- HOPWA Competitive Program
- Self-Help Homeownership Opportunity Program (SHOP)
- Rural Housing and Economic Development (RHED)
- Brownfields Economic Development Initiative (BEDI)
- Linked to the Section 108 Loan Guarantee program.
- Technical Assistance
- HOME
- CHDO TA
- McKinney-Vento Homeless Assistance Programs HOPWA

**Notes:**
This is the list of the rest of CPD’s competitive programs.  The application process varies for all of them, so check with your local jurisdiction and the published SuperNOFA to determine if you qualify and what you would need to do to apply. 

One of the main points of this overall grant training workshop is to learn the ins and out of the grant writing process and the SuperNOFA requirements in general.  The SuperNOFA process will be covered in much greater detail in the next module of today’s training. Nonetheless, we have prepared a handout of some basic information about the SuperNOFA process that may help you better understand what needs to be done to get involved.  

## When Considering Federal Funding, Ask Yourself...

- What are the priorities of your community?
- Does your program/project meet those priorities?
- Are you already doing the types of projects serving the target population sought by the funding program?
- Does your organization have the capacity and experience to use and manage the funding?
- Is your organization financially prepared to manage federal funding and can you meet the required match?

**Notes:**
Whether you are interested in working with your jurisdiction to obtain access to formula funding through the Consolidated Plan, or if you want to get involved in your local Continuum of Care or if you want to apply for other HUD competitive programs, these are important questions to ask yourself to determine if you are ready to take on federal funding and the subsequent requirements that go with it!!!!  Please consider these questions seriously!  

## The Consolidated Plan

**Why Should You Care?**
- Money!!!
- Primarily Benefits Low-income Persons and Families!
- Opportunity for Empowerment!
- Get on Your Community’s Radar!

**Notes:**
So, now you have the overview of all of Community Planning and Development’s grant programs, including the competitive programs.  As we’ve said the process for applying for the competitive programs will be covered in great detail in the next training module later today. Now it is time to focus on how to get involved in your community’s planning process and how to gain access to the formula funding that provided to your community.    

We’ve covered the basics of the formula programs that are covered in the Consolidated Plan – we talked about CDBG, HOME, HOPWA and ESG – and you have some guidance on where you can find some more information on the programs from the federal level at HUD’s websites.  Now we move to the ever important Consolidated Planning process, so you can know how to get on your community’s radar and access information and federal funding from the local level.  

## Why the Consolidated Plan Process is Important

- It is THE process for how your organization can be regularly and actively involved in your City, County or State's planning and funding process.

**Notes:**
The slide say it all, and the point cannot be emphasized enough.

## Benefits to Getting Involved

- Community Involvement
- Influence
- Funding
- Accountability
- Potential Access to CPD’s Formula Programs

**Notes:**
Community Involvement: Help your local jurisdiction gain more awareness of the full range of needs of the community. 

Influence: Help influence your locality’s  housing and community agenda . Get your name out there!

Funding: Know how to apply for funding from your locality for your housing and community programs.

Accountability: Hold your locality accountable for addressing your community's needs.

Potential Access to CPD’s Formula Programs: 
CDBG: Community Development Activities
HOME: Affordable Housing
ESG: Homelessness
HOPWA: Other Special Needs (non-homeless)

## Roots of the Con Plan

- Comprehensive Housing Affordability Strategy (CHAS)
- Created in 1990, Title 1 National Affordable Housing Act; aka Cranston-Gonzalez Act
- Aim to develop **Annual Housing Goals**

**Notes:**
This slide simply sets forth the roots of the Con Plan process in the CHAS. This slide is primarily important for term recognition, as well as for a bit of history.  

The legacy of the CHAS is that the Con Plan still aims to develop annual housing goals, which describe the housing needs of people, the condition of housing, and available materials.

## The Consolidated Plan

*A collaborative process whereby a community establishes a vision for housing, community and economic development actions*
- Purposes
- “Application” for Formula Funding for States and Localities
- Planning Document
- Performance Reporting

**Notes:**
The Con Plan serves many purposes for a jurisdiction.  

What is the ConPlan?
Application:  It serves as a submission for funding: the jurisdictions “apply” to the federal government for the funds they are set to receive
Planning: It is a comprehensive housing affordability strategy and community development plan for implementing the vision
Performance: It is a management tool for tracking results

## The Consolidated Plan

- Stakeholders
- HUD
- State and Local Governments
- Community Groups
- Non-Profits
- Private Sector
- Financial Institutions

**Notes:**
The Consolidated Planning process should be considered a community process, and indeed citizen participation is an important key element to the process.  Other primary stakeholders include those listed here but are not limited to them.  

The Con Plan process is meant to “Encourage participation of local and regional institutions (including businesses, developers, and community and faith-based organizations) in the process of developing and implementing the plan.” (91.105(a)(2)(ii)

## The Consolidated Plan

- Basics:
- The Three or Five-Year Plan Strategic Plan
- The **Annual** Action Plan
- The **Annual** Performance Report

**Notes:**
Refer to “getting involved” handout

These are the 3 basic pieces that make up the Consolidated Plan.  It focuses on long-term strategy updated every 3 to 5 years; yearly updates to the plan for that year’s funding; and the performance report for each completed year.  

## 3 – 5 Year Strategic Plan

- Setting Priority Needs
- Specific Objectives/Performance Measures
- Non-housing Community Development Plan
- Neighborhood Revitalization Strategy Areas
- Continuum of Care Homeless Strategy
- Anti-Poverty Strategy

**Notes:**
The 3 to 5 year strategic plan is the backbone of the Consolidated Plan.  It sets the stage for the plans for the upcoming years.  It covers a broad range of community assessments. 	

## Annual Action Plan 

- Resources and annual objectives
- Programs, projects, or activities
- Annual numeric goals
- Other relevant actions
- Certifications

**Notes:**
Made clear by the name, the annual action plan is the yearly plan for what the jurisdiction will do in the upcoming year.  It is completed every year, and activities are planned according to the federal allocation set for that year.  The annual action plan must cover what the jurisdiction’s resources will be, what their annual objectives are, and what they are going to do with the funds.  Certifications must be completed each year which cover certifying that the actions are consistent with requirements like those regarding lead in housing.   

## Five Stages of the Consolidated Plan Process

- Identifying Needs
- The “Proposed” Consolidated Plan
- The “Final” Consolidated Plan
- Annual Performance Report
- Substantial Amendments

**Notes:**
These are the five basic pieces of the Consolidated Planning process.  We will cover each in turn.  

Refer to the “conplan five steps” handout – either at this slide, or at the end of the discussion of substantial amendments.  

## Identifying Needs

- The Community Profile
- Housing, homeless, community development and special needs assessment
- Housing market analysis
- Inventory of public and assisted housing
- Inventory of homeless facilities/services
- Barriers to affordable housing

**Notes:**
Key Parts of the Consolidated Plan: 

1) The Community Profile

As an a community-based or faith-based organization, you will not be directly involved or responsible for creating the community profile, but knowing what it is and that it needs to be done by the grantee is helpful information.  Your organization may be able to provide information that could affect your jurisdiction’s development of the various pieces, and best represent the overall needs of your community.  

The 5 points listed are the 5 pieces of the community profile, to assess and state the community’s needs as thoroughly as possible. 

## Proposing the Con Plan

- Setting Priorities
- Activities designed to respond to the identified needs
- Geographic areas where needs exist
- Indicate how funds identified will be used to meet needs
- Performance Indicators

**Notes:**
The process of proposing the Consolidate Plan involves first setting the priorities of the jurisdiction.  

## Proposing the Con Plan

- Identifying _All_ Resources That Will Be Available
- CDBG, HOME, ESG, HOPWA, Public and Assisted Housing
- State and Local Funds
- Private Funds

**Notes:**
The jurisdiction must identify all the resources that they will have available to them. 

## Citizen Participation Plan

- Grantees must provide and encourage citizen participation.
- Required to have a Plan, but no rules on when to update it.
- The Development of the plan requires consultation with public and private sectors.

**Notes:**
Knowing about your jurisdiction’s Citizen Participation Plan is the best way for you to get involved in the consolidated planning process. It is very important that you learn about your jurisdiction's plan!  The best way to do this is to request to see, read and review a copy of your jurisdiction’s Citizen Participation Plan – they must provide it to you!

The Citizen Participation Plan: 
HUD requires that each state or locality spell out the process for citizens to participate in the preparation of the ConPlan through the Citizen Participation Plan. 
24 CFR Part 91.105
In order to ensure there is real community participation in the ConPlan process, the federal government sets out minimum requirements regarding citizen participation and consultation with public and private sectors. 
The rules do not set out just how the consultation is to be done. 
Encourage citizen participation by providing access to information about amount of money the government expects to receive, the proposed activities, and the estimated amount of funds that will benefit low and moderate income persons. (91.105(b)(1)
A grantee is required to have a Citizen Participation Plan, however, there are no requirements to update it.  Your jurisdiction may have a CP Plan that is more than 10 years old – this means it may no longer reflect the demographics or needs of your community.  You can only find this out by obtaining a copy of the CP Plan, reviewing it and commenting on it to your jurisdiction or to HUD.   
The Consolidated Plan must include a summary of the citizen participation process, citizen comments or views on the plan, and efforts made to broaden public participation, including outreach to minorities, non-English speaking persons, and persons with disabilities.
Complaints: Written description of how complaints will be handled regarding consolidated Plan, substantial amendments and performance reports.  

## The Citizen Participation Plan

- Community Stakeholders
- Access to Information
- Public Hearings
- At least 2 each year, 1 for States
- Accommodations
- Review and Comment

**Notes:**
Community Stakeholders:
The Citizen Participation Plan should include specific steps that will be taken to encourage the participation of ALL citizens, especially the neediest populations – i.e. those most likely to be affected by the decisions and priorities set forth in the ConPlan
Low/mod populations
Homeless individuals
Persons with disabilities, etc. 

Access to Information: 
The “proposed” con plan must be publicly accessible and a reasonable number of FREE copies must be provided upon request > check libraries, local housing offices, etc.  Most jurisdictions also have their Consolidated Plans available on the web.

Public Hearings 
A minimum of 30 days for the public to review and comment on the proposed conplan
The jurisdiction must “consider” all comments – oral and written comments – although there is little guidance as to what “consider” means. 
Citizen participation plan must state how and when at least two public hearings will be held at different stages of the process to address housing and community development needs, development of proposed activities, and a review of program performance. (91.105(e))
Citizen participation plan must state how and when adequate advance notice will be given to citizens of each hearing (including residents of assisted and public housing) and sufficient information must be published about the subject of the hearing.
Provide public hearings at convenient times and locations
Describe how accommodations for persons with disabilities will be made.
Describe how the needs of non-English speaking persons will be met. 

Review and Comment
The government must publish its proposed consolidated plan submission so that affected citizens have sufficient opportunity to review it and provide comments.  The citizen participation plan must set forth how it will publish the plan and provide an opportunity to comment.(91.105(b)(2)
Citizen participation plan must provide a period of not less than 30 days to receive comments from citizens prior to the submission of the consolidated plan.  The jurisdiction must consider the views of citizens, public agencies and other interested parties in preparing its final consolidated plan submission.(91.105(b)(4)

## Technical Assistance for Citizen Participation

***The Citizen Participation Plan must describe how technical assistance will be provided to appropriate groups that request assistance to develop proposals.***

**Notes:**
Citizen participation plan must provide for technical assistance to groups representative of persons of low‐ and moderate‐income that request such assistance in developing proposals for funding assistance under the consolidated plan.(91.105(i)

Even if a government does not accept proposals, i.e. it does not distribute federal funds on a competitive basis, they still must say in the Citizen Participation Plan that an organization may request TA to learn how to develop a proposal.
Grantees have to be willing to train organizations for how to apply to receive the funding. 

This is why it is SO important to request to see, read and review your jurisdiction's Citizen Participation Plan!   

## Characteristics of Effective Citizen Participation

- Collaboration between community and faith-based organizations
- Collaboration between those Organizations and  Local Government
- Open Discussion of Community Issues and Needs
- Short-term and Long-term Planning
- Marketing and Outreach

**Notes:**
In general, this slide describes the general goals of what is intended by Citizen Participation. 

## The “Final” Con Plan

- Considers all the comments made during the citizen participation process
- Must be publicly available.
- HUD approval is necessary
- Due 45 days before the start of the program year
- HUD has 45 days to approve or disapprove

**Notes:**
The next step from the “proposed” plan is developing the “final” Consolidated Plan from it.  

One of the tricks in the Consolidated Planning process is figuring out what your jurisdiction’s “program year” start and end dates are.  They are different for every jurisdiction.  The most popular start date is July 1, but many jurisdictions do not start their program year until October1, April 1 or January 1.  Contacting your jurisdiction’s housing office or your local HUD office can help answer this question for you and give you a better idea of what the Con Plan schedule will be for your jurisdiction.  

## The “Final” Con Plan

- Possible Reasons for Disapproval:
- Developed without the required citizen participation process
- Failing to meet all the required elements of the regulations
- Inaccurate certifications
- Inconsistency with the purposes of the National Affordable Housing Act

**Notes:**
It is very uncommon for HUD to disapprove a Consolidated Plan, but here are some of the more common reasons why they would.  Notice, that holding a jurisdiction accountable for the requirements of citizen participation is vital for the approval of the Consolidated Plan.  

## Annual Performance Report

- CAPER: Consolidated Annual Performance and Evaluation Report
- Provides a detailed description of the activities funded with CPD money during the program year.
- How much money budgeted
- How much money spent
- Location of activities
- What was accomplished
- Who benefited

**Notes:**
Once the Consolidated Plan is completed, Annual Action Plans will be drafted each year to “update” it for each year that it covers.  Following that, there needs to be an Annual Performance Plan. The Performance plan covers all of the items listed in the slide, and is the primary means for HUD and the public to hold a jursidication accountable for doing what they said they were going to do, and for proper use of government funds.  

Essentially, the Consolidated Annual Performance Report (CAPER) is a self-evaluation of the plan that tracks results in meeting affordable housing goals and benefits to low and moderate income persons.

Why Performance Measurement is Important: 
Aggregate data and report on outcomes at a national level > so we really know how well the programs are performing nationally. 
Report outcomes to the public, Congress, & OMB > this in turn provides “proof” to the legislators for why a particular program is needed.  

## Substantial Amendments

- Specify criteria to be used to determine what constitutes a substantial amendment.
- Describe how citizens will be given opportunity to comment with length of comment period and summary of comments.

**Notes:**
The Final step of the 5 steps for developing the Consolidated Plan are substantial amendments that may be added to the already existing Consolidated Plan (remember it is a 3 to 5 year plan).  The jurisdiction itself decides what it means to be “substantial”, but it is important to know that when a substantial amendment is proposed, the jurisdiction is still held to the requirements of citizen participation.  

## “Consistent” With the Consolidated Plan

- Law requires that any use of Community Planning and Development money for _*housing*_ activities be “consistent” with the jurisdiction’s Consolidated Plan.
- What is meant by “Consistent”?
- Need
- Long-range Strategy
- Location

**Notes:**
This is part of what we briefly discussed when we explained the competitive programs.  You need to be aware that you may be required to obtain a “certificate of consistency with the consolidated plan’ to be considered for funding.  

Consistent:
Your program meets the needs that are stated in the Con Plan
Your program meets a piece of the long-range strategy as stated in the Con Plan
Your program takes place in a location stated as a geographic area of focus in the Con Plan. 

## Roles of Non-Profits in the Consolidated Plan Process

- Engage in Strategic Planning Process
- Ensure that Low-Income Persons are Beneficiaries of Program Funds
- Have the needs of communities you serve be recognized.
- Stay informed of the process, speak up at public hearings, and provide comments!

**Notes:**
General points for non-profits, community and faith based organizations to remember when thinking about their role in the Consolidated Planning process. 

## How Do You Get Involved?

- Figure Out if Your Government Must Prepare a Consolidated Plan
- Annual Process:
- Updated each year with the Annual Action Plan, and Performance Report
- Go to the Public Hearings and be prepared to comment

**Notes:**
If your locality or state receives formula funding they will have to complete the consolidated plan. 

It is important to find out who has the lead role in preparing the Consolidated Plan and developing the schedule for the process. This can be done by calling the Chief Executive of the community or the planning/community development department of the local government. If the community does not have a Consolidated Plan then contact the state’s housing and/or community development department in order to get involved.

Faith-based and community-based organizations should also make sure to get a copy of the most recent Consolidated Plan from these state or local officials. They should become familiar with both the content and the format of the Consolidated Plan. The critical pieces of information to find out are:
the Consolidated Plan program year;
when the next plan will be prepared;
the schedule for public hearings; and
the consultation requirements.

## How Do You Get Involved?

- To whom Do I Speak With?
- Government officials, Housing or Planning department, HUD Local or Regional Field Office
- What Papers or Information Should I Ask For?
- “Citizen Participation Plan”
- “Long-term Strategic Plan”
- “Annual Action Plan”
- “Consolidated Annual Performance Report” (CAPER)

**Notes:**
All of these planning documents are public materials and a reasonable amount of copies must be available free of charge.   

## Where Can You Start?

- Let your state or locality know you are interested
- Let them know you want to be involved
- Let them know you want to be kept informed
- Ask to be placed on their mailing list
- Know you have a right to be involved
- Be persistent

**Notes:**
It is all right there on the slide! 

## Information Sources

- HUD Consolidated Plan website:
- http://www.hud.gov/offices/cpd/about/conplan/
- Your Local HUD Office

**Notes:**
All on the slide. 

## Housing Development Organizations: Special Considerations

- CBDO
- Community Based Development Organization
- CDBG
- CHDO
- Community Housing Development Organization
- HOME

**Notes:**

We’ll take a short time to discuss two types of special designations in CPD programs that can provide non-profit Housing development organizations with some extra advantages. (Provided that sufficient time is available)

For both of these designations, it is important to realize that there are tight requirements that must be met to be considered a CBDO or CHDO, and your organization MUST be very sure that you have the organizational, financial and development capacity to be able to conduct major housing development activities.  

There are significant benefits to having status as a CBDO, CHDO or both, but with that comes significant responsibility to perform!   Becoming a CHDO or a CBDO is a worthy goal, but not one to be entered into lightly.  Local jurisdictions determine whether an organization qualifies as a CHDO or CBDO. 

** FOR THE TRAINERS: Most of the following slides are FYI slides, so the slide itself should cover the information that needs to be conveyed.  Most of the notes will be extra information to provide you, the trainer, with a little extra info in case anyone asks a question that puts you on the spot.  Please remember, these slides are meant as a very broad OVERVIEW of CBDO and CHDOs.  Any solid training on either program would need to be much more involved and detailed.  

## Community Based Development Organizations (CBDO)

- CDBG Program
- A CBDO must undertake one of these three activities:
- Neighborhood revitalization
- Community economic development
- Energy conservation

**Notes:**
Set forth by 24 CFR Part 570.204

## Benefit to Being a CBDO

- Access to conducting a wider variety of neighborhood revitalization activities > more flexibility.
- Status allows spending of CDBG funds on certain types of projects that are not ordinarily eligible for funding
- e.g. new housing construction
**However: **
**	****	****Distribution and use of funding for ****	****CBDO’s is determined by the grantee.**

**Notes:**
572-04

## CBDO Requirements

- The Organization Must:
- Be organized under state/local law for specific community development activities
- Operate in a specific geographic area within a grantee’s jurisdiction
- Have a primary focus the improvement of economic/physical/social aspect of service area, particularly for low/mod persons
- Have a governing board of at least 51% low/mod representatives.

## CBDO GOVERNING BOARD

- To meet the 51% low/mod representation:
- Residents of  service area
- Owners/officers of entities located in  service area OR
- Representatives of low/mod groups in service area
- Less than 1/3 of board may be:
- Elected or appointed public officials, or
- Employees of the grantee
- Governing body must be nominated by general membership.

## Other CBDO Requirements

- If CBDO is a for-profit entity, profits to shareholders/members must be incidental to operations
- Organizations that could easily qualify:
- Single-neighborhood –based CHDOs automatically meet CBDO requirements.
- Other CHDO’s must qualify separately.
- Certain SBA organizations

## Community Housing Development OrganizationCHDO

- HOME Program funds
- The Bottom Line:
- The project must involve development activity
- The CHDO must own, develop or sponsor the project
- CHDO has effective project control.

**Notes:**
Development activity must include new construction, rehab

The CHDO must own, develop or sponsor the project, as defined in CPD Notice 97-11, and have Effective project control > and in tax credit projects the CHDO must be a managing general partner of the LP. 

The “bottom line” points are Vital to emphasize!!

## Use of HOME Funds

- Eligible uses of CHDO set-aside funds:
- Develop affordable housing for renters or homebuyers through  rehabilitation or new construction
- Ineligible uses of set-aside funds:
- Provision of tenant-based rental assistance
- Rehabilitation for owner-occupants
- Provision of downpayment/closing costs to homebuyers unless CHDO developed unit
- Any project where CHDO role does not meet own, develop or sponsor definition

## Extra Benefits as a CHDO

- At least 15% of HOME allocation set-aside for CHDOs
- Up to 10% of the CHDO set-aside may be provided for site control or  predevelopment loans
- Optional: Up to 5% of HOME allocation for CHDO operating expenses (salaries, rent, admin, etc.)
- Technical Assistance

**Notes:**

Providing for CHDO operating expenses is an optional benefit that a PJ may chose to provide. 

Technical Assistance is available to you as a non-profit organization

## CHDO Qualifying Criteria

- CHDOs must meet requirements pertaining to their:
- Legal status
- Organizational structure
- Capacity and experience

## Legal Status to Be a CHDO

- To be eligible, an organization must:
- Be organized under state and local law
- Have as its purpose to provide decent and affordable housing to low-income persons
- Provide no individual benefit
- Have a clearly defined service area
- Have IRS tax exempt status

**Notes:**
501 ©(3) or 501 ©(4) or Section 905 (a subbordinate organization of a 501 ©)

The legal status of an organization is the first characteristic examined to determine if it is eligible to become a  CHDO. There are five legal status requirements that an organization must meet to be qualified as a CHDO by a PJ. These are:
Organized Under State/Local Law. Organizations must show evidence to the PJ, either in their charter or articles of incorporation, that they are organized under state or local law.
Purpose of Organization. Among its purposes, the organization must have the provision of decent housing that is affordable to low and moderate income people. This must be evidenced by a statement in the organization’s charter, articles of incorporation, by-laws, or resolutions.
No Individual Benefit. No part of a CHDO’s net earnings (profits) may benefit any members, founders, contributors, or individuals. This requirement must also be evidenced in the organization’s charter or articles of incorporation.
Clearly Defined Service Area. The organization must have a clearly defined geographic service area which can be described and documented for the PJ. CHDOs may serve individual neighborhoods or large areas. However, while the organization may include an entire community in their service area (such as a city, town, village, county, or multi county area), they may not include the entire state.
Nonprofit Status. The organization must have a tax exemption ruling from the Internal Revenue Service (IRS) under Section 501(c) of the Internal Revenue Code of 1986. The ruling must be evidenced by a 501(c) certificate from the IRS. 

Non Profit Status
To be certified by a PJ, a CHDO must have a tax-exempt ruling from the IRS under Section 501(c) of the Internal Revenue Code of 1986. There are many incorporation options under Section 501(c), depending on the type and purpose of the organization seeking the tax-exempt designation.
The 501(c) designations permissible for CHDOs under the HOME regulations are:
  501(c)(3) status - a charitable, nonprofit corporation  
501(c)(4) status - a community or civic organization 
 Section 905 status - subordinate organization of a 501(c) organization

## Organizational Structure

- CHDO board must have:
- At least 1/3 of board must represent the low-income community
- No more than 1/3 of board may represent the public sector (elected/appointed officials, and employees)
- Low-income representatives are:
- Residents of low-income neighborhoods
- Low-income persons
- Elected representatives of low-income neighborhood organizations

**Notes:**
The HOME Program establishes requirements for the organizational structure of a CHDO to ensure that the governing body of the organization is controlled by the community it serves. These requirements are designed to ensure that the CHDO is capable of decisions and actions that address the community’s needs without undue influence from the PJ or for-profit sponsors.
There are four specific requirements related to the organization’s board which must be evidenced in the organization’s by-laws, charter, or articles of incorporation. 

These are: 

At least 1/3 of the organization’s board must be representatives of the low-income community served by the CHDO. 
No more than 1/3 of the organization’s board may be representatives of the public sector, including any employees of the PJ. 
If a CHDO is sponsored by a for-profit entity, the for-profit may not appoint ore than 1/3 of the board. The board members appointed by the for-profit may not appoint the remaining 2/3 of the board members. 
States or local governments who charter CHDOs may not appoint more than 1/3 of the board, and the board members appointed by the state or local government may not appoint the remaining 2/3 of the board members.

## Capacity and Experience

- Organization must:
- Have at least ONE YEAR of experience serving the community
- Demonstrate staff capacity to carry out planned activities (can be contract with consultant who has experience and will train CHDO staff to carry out future projects independently)
- Have financial accountability standards
- http://www.hud.gov/offices/cpd/affordablehousing/programs/home/topical/chdo.cfm

**Notes:**
Experience
CHDOs must demonstrate a history of serving the community where the housing to be assisted with HOME funds will be located.

Types of experience requiredHUD requires that organizations show a history of serving the community by providing:
  A statement that documents at least one year of experience serving the community.  For newly created organizations formed by churches, service or community organizations, providing a statement that the parent organization has at least one year experience serving the community.

Example of CHDO experience The United Way of Hometown creates a new nonprofit corporation to develop single-family homes for homebuyers. Although the nonprofit is new, the United Way of Hometown was chartered 50 years ago and has considerable low-income community experience. By sponsoring the creation of the new nonprofit, the United Way has fulfilled this requirement.

Capacity 
CHDOs must demonstrate the capacity of key staff to carry out the HOME-assisted activities they are planning. Types of capacity requiredCHDOs must demonstrate that their staff has the relevant experience necessary to perform the HOME-assisted activities they are planning. CHDOs must have either: 
  Resumes and/or statements of key staff members that describe their experience of successfully completed projects similar to those proposed. 
OR
  A plan in place for experienced consultants to help plan and develop proposed projects as well as train key staff. 
Example of CHDO capacity The Cranberry Orchard Neighborhood Development Organization (CONDO) has successfully developed more than 100 units of housing for homebuyers by acquiring, rehabilitating and selling existing single-family homes. CONDO plans to use a similar stock of single-family homes for a scattered-site, 30-unit rental housing development project that it will own and manage. This is CONDO's first experience in rental housing development. To demonstrate key staff capacity to carry out the HOME-assisted activity that they are proposing, CONDO will retain a consultant who will develop a training plan and assist CONDO's key staff during the development of their first rental housing project on development issues specifically related to rental housing.

Financial Accountability 
CHDOs must have financial accountability standards that conform to the requirements detailed in 24 CFR 84.21, "Standards for Financial Management Systems."Financial Accountability Requirements 
  Providing a notarized statement by the president or chief financial officer of the organization.  Furnishing a certification from a certified public accountant.
OR
  Supplying HUD with an approved audit summary.

Example of CHDO Financial Accountability
The Growville Housing Corporation (GHC),a nonprofit organization, has been in existence for years. They sell rehabilitated homes to first-time homebuyers who are low-income. GHC is applying to be a CHDO. In the past, the majority of their funds have come from private donations. However, with housing material costs rising, GHC is looking for additional sources of funds. By becoming a CHDO, they will be able to receive HOME funds to do eligible projects. To meet the financial accountability requirement of becoming a CHDO, GHC will have its accountant submit a certification to the PJ which states its accounting systems meet the financial standards of 24 CFR 84.21. Alternately, the president or chief financial officer of the CHDO can submit a notarized statement to the PJ.