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Roles and Funding

A CHDO may obtain funding from a PJ in several different ways. CHDOs may:

  • Serve as owners, developers, and
    sponsors of projects undertaken with funds from a PJ's required 15 percent set-aside for CHDOs.
  • Receive special assistance, such as predevelopment loans, technical assistance or operating funds, from a PJ that is not available to other types of organizations.
  • Perform certain services as contractors to PJs.
  • Contract with PJs in the same ways as other nonprofit subrecipients.

This topic first explains the 15 percent set-aside for CHDOs, then discusses the issue of "set-aside recapture." In addition, this topic provides an in-depth discussion of the various CHDO roles when undertaking HOME-eligible activities with the set-aside funds under the HOME Program.