Use of Funds

Information by State  Print version   Related Information View a summary table which clearly identifies eligible CHDO activities for owners, sponsors, developers and subrecipients. How to Become a CHDO   Characteristics   Roles and funding   Special assistance   Use of funds

Eligible Activities - Owners, Sponsors, Developers

Using the 15% set-aside, a CHDO acting as an owner, sponsor, or developer may undertake any of the following activities:

	acquisition and/or rehabilitation of rental property;
	new construction of rental housing;
	acquisition and/or rehabilitation of homebuyer property;
	new construction of homebuyer property;
	direct financial assistance to purchasers of HOME-assisted housing sponsored or developed by a CHDO with HOME funds.

Ineligible Activities - Owners, Sponsors, Developers

Using the 15% set-aside, a CHDO acting as an owner, sponsor, or developer may not undertake any of the following activities:

	rehabilitation of existing homeowners' properties;
	tenant-based rental assistance.

Eligible Activities - Subrecipients

CHDOs may also act as subrecipients with non-set-aside funds by undertaking all other HOME-eligible activities such as:

	TBRA;
	homeowner rehabilitation;
	providing downpayment or closing cost assistance; and
	brokering or other real estate transactions that are not counted towards the set-aside.