A minimum of 15% of HOME funds is reserved for use by eligible Community Housing Development Organizations (CHDOs). CHDOs are private non-profit, community based service organizations that have obtained or intends to obtain staff with the capacity to develop affordable housing within the City of Kenosha. Organizations are also able to apply for up to $25,000 to be used for CHDO administrative expenses. The HOME Program regulations allow CHDO administrative expenses up to 5% of the City's total annual HOME Grant. CHDOs will need to submit an application to the City which includes their operating budget sources and use of funds to support their application for CHDO administrative expenses.
The City of Kenosha has chosen to set aside 30% of its 2016 HOME funds for eligible CHDOs to undertake the following eligible HOME Program activities:
- Acquisition and/or Rehabilitation of homebuyer properties
- Acquisition and/or construction of homebuyer properties
- Homebuyer Purchase assistance for homebuyer properties developed by CHDO's
In addition to being a non-profit organization that has the capacity to develop affordable housing, the organization must also meet the additional requirements:
- The primary purpose of the organization is to provide decent and affordable housing, as evidenced by the Articles of Incorporation or By-laws;
- The Articles of Incorporation must be organized under State of Wisconsin law;
- The organization must demonstrate through their Articles of Incorporation or By-laws that no part of the CHDO's profits may benefit any members, founders contributors, or individuals;
- The organization must have a clearly defined service area within the City of Kenosha;
- The Board of Directors membership must contain a minimum of 1/3 representation by the low-income community and no more than 1/3 representation from the public sector;
- CHDO's that are sponsored by for-profits cannot be controlled by the for-profit and must be free to contract for goods and services. In addition, the primary purpose of the for-profit cannot be housing ownership/management;
- The organization must have a formal process for low-income program beneficiaries to advise the organization in all of its decisions regarding design, location, development and management of affordable housing;
- The organization must have paid staff that has significant experience and capacity to carry out the CHDO activities;
- The organization must have a minimum one year of relative experience service within the City of Kenosha; and,
- The organization must meet and adhere to financial accountability standards found in 24 CFR 84.21.
Organizations who wish to apply for and utilize CHDO funds are required to submit a CHDO application in order to become certified. Prior to submitting an application, the organization should contact staff and review the CHDO Policies and Procedures. Once an application is submitted, staff will review the application and make a recommendation to the HOME Program Commission. Funding, if available, will be approved by the City's Common Council.
CHDOs are required to meet all CHDO requirements prior to award of funds for each project. In addition, the City is required to recertify CHDO's on an annual basis. CHDOs who do not meet all of the requirements will not be eligible for funding.