The Division of Energy, Housing and Community Resources (DEHCR) has identified homeownership and the conservation of quality owner-occupied housing as top priorities for allocating federal and state housing resources. A program was established to provide essential home purchase assistance and necessary home rehabilitation, and other vital improvements for dwelling units occupied by low- and moderate-income households. The source of funds is the U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnerships Program (HOME). The Wisconsin Department of Administration, DEHCR awards these funds to local units of government and local housing organizations through a biennial funding cycle.
Homebuyer assistance: Direct assistance may be provided to eligible homebuyers for acquisition (down payment and closing costs), acquisition and rehabilitation, or new construction. Grantees may utilize the funds to construct housing for sale to low- and moderate-income (LMI) homebuyers (household income at or below 80% County Median Income).
Owner-occupied rehabilitation: Funds are provided for making essential improvements to single-family homes serving as the principal residence of LMI owners. Eligible costs include energy-related improvements, accessibility improvements, lead-based paint hazard reduction, and repair of code violations.
Community Housing Development Organizations (CHDO)
A Community Housing Development Organization (CHDO) is an official designation of selected private nonprofit housing development corporations that meet requirements set by the U.S. Department of Housing and Urban Development (HUD) at the time they apply for funding under the HOME Investment Partnership Program (HOME). The CHDO designation may provide particular benefits to the organization as it develops and/or operates housing. An organization, which is designated as a CHDO can potentially qualify for special project funds, operating funds and technical assistance support associated with a project funded under the State’s HOME Program, and may be eligible to retain project proceeds.
To qualify as a CHDO, an organization:
Must have in its charter, resolutions or by-laws, a statement that among its purposes is the development of decent housing that is affordable to low- and moderate-income persons.
Must be community-based and have representatives of low-income community residents making up at least one-third of its governing board.
May be created by a public body provided the nonprofit is not controlled by the public body, therefore, no more than one-third of the board may be public officials.
Must meet requirements to maintain accountability to low-income community residents.
Must have a demonstrated history and capacity for carrying out housing development in the geographic area that the organization serves.
For Homebuyer development the CHDO is considered a "developer" and must own, develop and sell the new housing including arranging financing and being responsible for construction.
A non-profit interested in being designated as a CHDO needs to submit the required documentation to verify legal status, organization structure, capacity and the relationship to for-profit entities at the time they apply for HOME funds.