HOME PJs are required to make reasonable efforts to identify CHDOs that are capable or can reasonably be expected to become capable of carrying out activities using the required 15 percent CHDO set-aside funds.
New PJs (PJs still within the first 24 months of participation in the HOME Program) that cannot identify a sufficient number of capable CHDOs may commit a limited amount of HOME funds for capacity-building assistance.
- The maximum that can be used for capacity-building assistance is 20 percent of the minimum 15 percent set-aside, but no more than $150,000 during a 24-month period.
Capacity building funds can be used in various ways. Included in them, the PJ may:
- Contract with an intermediary organization or other entity to provide technical assistance to the CHDO.
- Provide funds directly to the CHDO to obtain training and/or technical assistance.
- Pay the costs of CHDO operating expenses, including staffing.
PJs must commit capacity-building funds within 24 months from the date of HUD execution of the HOME Investment Partnership Agreement. If set-aside funds are not committed to capacity-building assistance within this period, they must be committed to CHDO set-aside projects to avoid recapture.