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 designation as a CHDO, the organization must meet certain requirements pertaining to their legal status, organizational structure, and capacity and experience.

With Participating Jurisdiction (PJ) approval, CHDOs may use HOME funds for all eligible HOME activities. However, 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. These eligible set-aside activities include: the acquisition and/or rehabilitation of rental housing; new construction of rental housing; acquisition and/or rehabilitation of homebuyer properties; new construction of homebuyer properties; and direct financial assistance to purchasers of HOME-assisted housing that has been developed with HOME funds by the CHDO.

For more information on Community Housing Development Organizations, see 24 CFR 92 Subpart G:

  • 24 CFR 92.208 - Eligible community housing development organization (CHDO) operating expenses and capacity building costs.
  • 24 CFR 92.300 - Set-aside for community housing development organizations
  • 24 CFR 92.301 - Project-specific assistance to community housing development organizations

Find By Resource Type

Policy Guidance


HOMEfires Vol. 4, No. 1: Frequency of Recertification for CHDOs

How often must a PJ requalify a nonprofit organization as a Community Housing Development Organization (CHDO)?

Date Published: April 2002

HOMEfires Vol. 3, No. 9: Community Land Trusts (CLTs) and CHDO Certification

HUD has withdrawn this guidance.

Are Community Land Trusts (CLTs) automatically considered to be CHDOs?

Date Published: October 2001

HOMEfires Vol. 2 No. 2: Conflict of Interest Provisions that Apply to Board Members of CHDOs and Other Nonprofit Organizations that Receive Home Funding

Occasionally members of PJ, State recipient and subrecipient staffs serve as board members of CHDOs and other nonprofit organizations that receive HOME funding for the provision of low-income housing. What are the HOME conflict of interest provisions that apply to persons serving on these boards?

Date Published: April 1999

HOMEfires Vol. 2, No. 1: Eligible CHDO Activities in the HOME program

HUD is updating this policy.

What are eligible CHDO activities in the HOME program?

Date Published: March 1999

HOME CPD Notices

Notice CPD-06-01: Admin and Soft Costs, Community Development Expenses under HOME and American Dream Downpayment Initiative

This Notice defines administrative costs and project-related soft costs in the HOME Program and the ADDI Program (24 CFR Part 92), clarifies the distinction between them, and provides guidance to PJs on how to categorize costs.

Date Published: February 2006

Notice CPD-01-13: Commitment: CHDO Reservation, and Expenditure Deadline Requirements for HOME

This Notice provides procedures for determining whether PJs have met the requirements established by the HOME Program Final Rule codified at 24 CFR 92.500(d).

Date Published: October 2001

Notice CPD-97-11: Guidance on CHDOs under the HOME Program (Supersedes CPD Notice 94-02)

This Notice explains that PJs must reserve not less than 15 percent of their HOME allocations for investment in housing to be developed, sponsored, or owned by CHDOs.

Date Published: October 1997

Notice CPD-97-09: HOME Program Income, Recaptured Funds, Repayments and CHDO Proceeds

This Notice provides guidance to PJs on the requirements governing program income, recaptured funds, repayments and proceeds from CHDO set-asides.

Date Published: September 1997

Notice CPD-96-09: Administrative Costs, Project-Related Soft Costs, and CHDO Operating Expenses under the HOME Program (Supersedes CPD Notice 94-13)

This Notice defines administrative costs and project-related soft costs in the HOME Program (24 CFR Part 92), clarifies the distinction between them, and provides guidance to participating jurisdictions (PJs) on how to categorize costs.

Date Published: December 1996

Guidebooks and Training Manuals

Building HOME: A HOME Program Primer - Training Manual and Slides

This training provides an overview of the HOME Program, including changes made to the regulations in 1996 with the publication of the HOME Final Rule.

Date Published: February 2012

Webinars and Courses

HOME Final Rule: CHDO Roles: Own, Develop, Sponsor Webcast

The 2013 HOME rule clarifies and establishes new roles for CHDOs as owners, developers, and sponsors of housing, and this webcast provides an overview of these changes.

Date Published: October 2013



View HOME Investment Partnerships Program Frequently Asked Questions (FAQs) on the HOME FAQs landing page.

In addition, these documents contain HOME FAQs organized by topic.