Certified CHDOs may receive funds from PJs to be used for operating expenses.
- PJs have the option of allocating up to 5 percent of their HOME allocations to provide CHDO operating expenses. This allocation does not count towards the required 15 percent CHDO set-aside funds that are to be used by CHDOs for projects.
Eligible operating expenses for which CHDOs may use the funds allocated by PJs include:
- Salaries, wages, benefits, and other employee compensation
- Employee education, training and travel
- Rent and utilities
- Communication costs
- Taxes and insurance
- Equipment, materials and supplies
NOTE: HOME assistance for operating expenses in each fiscal year may not exceed $50,000 or 50% of the CHDO's total annual operating expenses for that year, whichever is greater.
Funds Included in the CHDO Operating Expenses Cap
A PJ may elect to give operating funds to eligible CHDOs. However, HOME assistance for CHDO's operating expenses in each fiscal year may not exceed $50,000 or 50% of the CHDO's total annual operating expenses for that year, whichever is greater. The following types of funds are included as part of the maximum $50,000/50% rule a PJ is allowed to give to a CHDO.
- Funds awarded to the CHDO by the PJ for operating expenses. (Under 24 CFR Part 92.208.)
- Funds provided to the CHDO by HUD through intermediaries for organization support and housing education. (24 CFR Part 92.302)
- Capacity building funds committed to the CHDO in the first 24 months of the PJ's participation in the program