In
order to increase the supply of affordable single-family homes
and encourage strong partnerships between local governments
and non-profits, the U.S. Department of Housing and Urban
Development (HUD) created the CHDO Program. Under this program,
a minimum of 15% of all HOME funds must be set-aside for Community
Housing Development Organizations (CHDO's). According to HUD,
a CHDO is a private nonprofit, community-based service organization
that has obtained or intends to obtain staff with the capacity
to develop affordable housing for the community it serves.
Under the guidelines of the CHDO Program, OHCD offers loans
to non-profit organizations to provide permanent owner-occupied
housing for families at or below 80% of the Area Median Income
(AMI) adjusted for family size. The housing funds may be used
by the CHDO to acquire vacant land and construct new housing,
acquire and demolish a blighted structure and create new housing,
or acquire and renovate existing housing. The CHDO will be
expected to acquire, develop and sell the property and to
identify and assist qualified buyers.
If they so
wish, non-profits can receive a developer fee if they handle
all aspects of development. In addition, program participants
may provide a homebuyer subsidy of up to $75,000. Homebuyers income must be at or below 80% of the area
median income adjusted to household size. The properties developed through the partnership program are placed into a land trust.
Through these monies, a strong mutually beneficial partnership emerges. Non-profits are able to build affordable housing, program participants gain affordable housing, and OHCD is able to nourish non-profit agencies to provide future affordable housing throughout Sarasota County.
