A CHDO is considered an owner of a property when it holds valid legal title or has a long-term leasehold interest (99-year minimum). The CHDO may be an owner with one or more individuals, corporations, partnerships, or other legal entities.
While a CHDO may be sole owner and have another entity act as developer, it can also be the owner and developer of its own project.
- The CHDO may own a property in partnership with either a majority or minority interest. However, the CHDO - in partnership with a wholly-owned for profit or nonprofit subsidiary - must be the managing general partner with effective control (in decision making authority) of the project.
Example of a CHDO as an ownerA CHDO purchased a four-unit rental building and plans to rehabilitate it to rent as low-income affordable housing. The local PJ has also committed HOME funds to assist the PJ in the rehabilitation. After completion of the project, the CHDO will maintain ownership and manage the property, ensuring that the fulfillment of all obligations and requirements associated with the use of the HOME funds are met during the period of affordability.