[Code of Federal Regulations]

[Title 24, Volume 1]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR92.300]



[Page 629-630]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

PART 92_HOME INVESTMENT PARTNERSHIPS PROGRAM--Table of Contents

 

          Subpart G_Community Housing Development Organizations

 

Sec.  92.300  Set-aside for community housing development organizations 

(CHDOs).





    (a)(1) Within 24 months after HUD notifies the participating 

jurisdiction of HUD's execution of the HOME Investment Partnerships 

Agreement, the participating jurisdiction must reserve not less than 15 

percent of the HOME allocation for investment only in housing to be 

developed, sponsored, or owned by community housing development 

organizations. For a State, the HOME allocation includes funds 

reallocated under Sec.  92.451(c)(2)(i) and, for a unit of general local 

government, funds transferred from a State under Sec.  92.102(b). The 

funds are reserved when a participating jurisdiction enters into a 

written agreement with the community housing development organization. 

The funds must be provided to a community housing development 

organization, its subsidiary, or a partnership of which it or its 

subsidiary is the managing general partner. If a CHDO owns the project 

in partnership, it or its wholly owned for-profit or non-profit 

subsidiary must be the managing general partner. In acting in any of the 

capacities specified, the community housing development organization 

must have effective project control. In addition, a community housing 

development organization, in connection with housing it develops, 

sponsors or owns with HOME funds provided under



[[Page 630]]



this section, may provide direct homeownership assistance (e.g. 

downpayment assistance) and not be considered a subrecipient.

    (2) The participating jurisdiction determines the form of 

assistance, e.g., grant or loan, that the community housing development 

organization receives and whether any proceeds must be returned to the 

participating jurisdiction or may be retained by the community housing 

development organization. While the proceeds the participating 

jurisdiction permits the community housing development organization to 

retain are not subject to the requirements of this part, the 

participating jurisdiction must specify in the written agreement with 

the community housing development organization whether they are to be 

used for HOME-eligible or other housing activities to benefit low-income 

families. However, funds recaptured because housing no longer meets the 

affordability requirements under Sec.  92.254(a)(5)(ii) are subject to 

the requirements of this part in accordance with Sec.  92.503.

    (b) Each participating jurisdiction must make reasonable efforts to 

identify community housing development organizations that are capable, 

or can reasonably be expected to become capable, of carrying out 

elements of the jurisdiction's approved consolidated plan and to 

encourage such community housing development organizations to do so. If 

during the first 24 months of its participation in the HOME Program a 

participating jurisdiction cannot identify a sufficient number of 

capable community housing development organizations, up to 20 percent of 

the minimum community housing development organization setaside of 15 

percent specified in paragraph (a) of this section, above, (but not more 

than $150,000 during the 24 month period) may be committed to develop 

the capacity of community housing development organizations in the 

jurisdiction.

    (c) Up to 10 percent of the HOME funds reserved under this section 

may be used for activities specified under Sec.  92.301.

    (d) HOME funds required to be reserved under this section are 

subject to reduction, as provided in Sec.  92.500(d).

    (e) If funds for operating expenses are provided under Sec.  92.208 

to a community housing development organization that is not also 

receiving funds under paragraph (a) of this section for housing to be 

developed, sponsored or owned by the community housing development 

organization, the participating jurisdiction must enter into a written 

agreement with the community housing development organization that 

provides that the community housing development organization is expected 

to receive funds under paragraph (a) of this section within 24 months of 

receiving the funds for operating expenses, and specifies the terms and 

conditions upon which this expectation is based.

    (f) Limitation on community housing development organization 

operating funds. A community housing development organization may not 

receive HOME funding for any fiscal year in an amount that provides more 

than 50 percent or $50,000, whichever is greater, of the community 

housing development organization's total operating expenses in that 

fiscal year. This also includes organizational support and housing 

education provided under section 233(b)(1), (2), and (6) of the Act, as 

well as funds for operating expenses provided under Sec.  92.208.



[61 FR 48750, Sept. 16, 1996, as amended at 62 FR 28930, May 28, 1997]