Qualification and Certification of 
Community Housing Development Organization (CHDO)	

Instructions: Qualification forms must be completed by an authorized officer of the appropriate development team's organization. Submit the completed qualification form to mhfa.app@state.mn.us through Partner Login on Minnesota Housing’s website.

Minnesota Housing is required to review each proposed CHDO according to the HOME Program regulations. By completing this form, the CHDO certifies the following is accurate and truthful to the best of its knowledge.

Community Housing Development Organization (CHDO)	
Full Legal Name of CHDO	     	
Address	     	
City, State, Zip	                 	
Website	     	
Telephone Number	     	
Fax Number	     	
Contact Person	     	
Contact Person Email Address	     	

The information contained in this checklist refers to the definition of CHDOs in Subpart A of 24 CFR Part 92.2.

Legal Status 
1.	Organized under state or local laws, as evidenced by:
	A charter, page      , OR
	Articles of incorporation, page      

2.	No part of its net earnings inures to the benefit of any member, founder, contributor, or individual, as evidenced by:
	A charter, page      , OR
	Articles of incorporation, page      

3.	Has a tax exemption ruling from the Internal Revenue Service (IRS) under Section 501(c) (3) or (4) of the Internal Revenue Code of 1986, as evidenced by:
	A 501(c)(3) or (4) Certificate from the IRS, OR
	Is classified as a subordinate of a central organization nonprofit under Section 905 of the Internal Revenue Code of 1986; or if the private nonprofit organization is a wholly owned entity that is disregarded as an entity separate from its owner for tax purposes, the owner organization has a tax exemption ruling from the Internal Revenue Service under Section 501(c)(3) or (4) of the Internal Revenue Code of 1986 and meets the definition of “community housing development organization,” as determined by Minnesota Housing. 

4.	Has among its purposes the provision of decent housing that is affordable to low- and moderate-income people, as evidenced by a statement in the CHDO’s:
	Charter, page      ,
	Articles of Incorporation, page      ,
	Bylaws, page      , OR
	Resolutions

Capacity
1.	Conforms to the financial accountability standards of 24 CFR Part 84.21, “Standards for Financial Management Systems”, as evidenced by:
	A notarized statement by the president or chief financial officer of the organization,
	A certification from a certified public accountant, OR
	A U.S. Department of Housing and Urban Development (HUD) approved audit summary

2.	An organization that will own housing must demonstrate capacity to act as owner of a project and meet the requirements of 24 CFR Part 92.300(a)(2), as evidenced by:
	A notarized statement by the president or chief financial officer of the organization documenting the ownership and management experience of key staff

A nonprofit organization does not meet the test of demonstrated capacity based on any person who is a volunteer or whose services are donated by another organization.

3.	A designated organization undertaking development activities as a developer or sponsor must satisfy this requirement by having paid employees with housing development experience who will work on projects assisted with HOME funds. Has a demonstrated capacity for carrying out activities assisted with HOME funds, as evidenced by:
	Résumés and/or statements that describe the experience of key staff members who have successfully completed projects similar to those to be assisted with HOME funds, OR
	During its first year of funding as a CHDO, an organization may satisfy this requirement through a contract(s) with a designated Enhancing Capacity CHDO, consultant firms or individuals who have housing experience similar to projects to be assisted with HOME funds, to train appropriate key staff of the organization. 

4.	Has a history of serving the community within which housing to be assisted with HOME funds is to be located, as evidenced by:
	Documents demonstrating at least one year of experience in serving the community, OR
	For newly created organizations formed by local churches, service or community organizations, a statement that documentation that its parent organization has at least one year of experience in serving the community.

The organization must be able to show it has a history of serving the community within which housing to be assisted with HOME funds is to be located. In general, an organization must be able to show one year of serving the community before HOME funds are reserved for the organization. In the statement, the organization must describe its history (or its parent organization’s history) of serving the community by describing activities that it provided (or its parent organization provided), such as an owner or developer of new housing or rehabilitating existing stock and managing housing stock, or as a sponsor. The statement must be signed by the president or other officer of the organization.

Organizational Structure
1.	Maintains at least one-third of its governing board’s membership for residents of low-income neighborhoods, other low-income community residents, or elected representatives of low-income neighborhood organizations as evidenced by the CHDO’s:
	Bylaws, page      ,
	Charter, page      , OR
	Articles of Incorporation, page      

Under the HOME program, for urban areas, the term “community” is defined as one or several neighborhoods, a city, county, or a metropolitan area. For rural areas, “community” is defined as one or several neighborhoods, a town, village, county, or multi-county area (but not the whole state).

2.	Provides a formal process for low-income, program beneficiaries to advise the organization in all of its decisions regarding the design, siting, development, and management of affordable housing projects, as evidenced by:
	The CHDO’s Bylaws, page      ,
	Resolutions, OR
	A written statement of operating procedures approved by the governing body

3.	Answer the following questions about the last years’ efforts:
a.	In what ways was the input of low-income residents sought and implemented, and what were the results? 
     

b.	How have the low-income residents and program beneficiaries in your service area been involved with the organization on policies and procedures, program design, site location(s), and the development and management of affordable housing decisions? 
     

c.	Are there any unique approaches you have taken to get feedback from low/moderate-income residents? 
     

d.	What options will be pursued to overcome any barriers to obtaining low/moderate-income resident input?      

4.	A CHDO may be created by a governmental entity, but the following restrictions apply: (1) the governmental entity may not have the right to appoint more than one-third of the membership of the organization’s governing body; (2) the board members appointed by the governmental entity may not, in turn, appoint the remaining two-thirds of the board members; (3) no more than one-third of the governing board members may be public officials or employees of the governmental entity; and (4) the officers or employees of a governmental entity may not be officers or employees of a CHDO as evidenced by the CHDO’s:
	Bylaws, page      ,
	Charter, page      , OR
	Articles of Incorporation, page      

5.	If the CHDO is sponsored or created by a for-profit entity, the for-profit entity may not have the right to appoint more than one-third of the membership of the CHDO’s governing body, and the board members appointed by the for-profit entity may not, in turn, appoint the remaining two-thirds of the board members, as evidenced by the CHDO’s:
	Bylaws, page      ,
	Charter, page      , OR
	Articles of Incorporation, page      

Relationship with For-profit Entities
1.	The CHDO is not controlled, nor receives directions from individuals, or entities seeking profit from the organization, as evidenced by:
	The CHDO’s Bylaws, page      , OR
	A Memorandum of Understanding (MOU)
2.	A CHDO may be sponsored or created by a for-profit entity; however:
a.	The for-profit entity’s primary purpose does not include the development or management of housing such as builder, developer, or real estate management firm, as evidenced:
	In the for-profit organization’s Bylaws, page      , AND;
	The for-profit’s Articles of Incorporation

b.	The CHDO is free to contract for goods and services from vendor(s) of its own choosing, as evidenced in the CHDO’s:
	Bylaws, page     , 
	Charter, page      , OR
	Articles of Incorporation page      , AND;

c.	The officers and employees of the for-profit entity may not be officers or employees of the CHDO:
	Bylaws, page     , 
	Charter, page      , OR
	Articles of Incorporation page      

Additional Information
1.	Note if the CHDO performs the following functions:

	Yes	No	Number
of Units	Number of Years’ Service Provided	
Asset Management			     	     	
Property Management			     	     	
Planning			     	     	
Project Management			     	     	
Owner* (specify Multifamily and/or Single Family): 
      			     	     	
Developer**			     	     	
Sponsor***			     	     	
Architecture			     	     	
Construction			     	     	
Other (specify):      			     	     	
*Rental housing is “owned” by the CHDO if the CHDO is the owner in fee simple absolute of multifamily or single-family housing (or has a long-term ground lease) for rental to low-income families in accordance with 24 CFR Part 92.252. If the housing is to be rehabilitated or constructed, the CHDO hires and oversees the developer that rehabilitates or constructs the housing. 
** Rental housing is “developed” by the CHDO if the CHDO is the owner of multifamily or single-family housing in fee simple absolute (or has a long-term ground lease) and the developer of new housing that will be constructed or existing substandard housing that will be rehabilitated for rent to low-income families in accordance with 24 CFR Part 92.252. To be the “developer,” the CHDO must be in sole charge of all aspects of the development process, including obtaining zoning, securing non-HOME financing, selecting architects, engineers and general contractors, overseeing the progress of the work and determining the reasonableness of costs.
***Rental housing is “sponsored” by the CHDO if it is rental housing “owned” or “developed” by a wholly owned subsidiary of a CHDO, a limited partnership of which the CHDO or its subsidiary is the sole general partner, or a limited liability company of which the CHDO or its subsidiary is the sole managing member. HOME-assisted rental housing is also “sponsored” by a CHDO if the CHDO “developed” the rental housing project that it agrees to convey to an identified private nonprofit organization at a predetermined time after completion of the development of the project.

(NOTE: The partial definitions contained above refer to the CHDO’s owner, developer and sponsor in Subpart G of 24 CFR Part 92.300. Additional definitions and requirements can be found in the HOME Final Rule.)

2.	Summarize the CHDO’s purpose and strategic goals:
     

3.	Was the CHDO created by a for-profit or governmental entity? If yes to either, what is the name of the entity?
     

4.	Provide the CHDO’s mission statement:
     

5.	Does the CHDO have a current business plan? If so, briefly describe its primary goals and primary line of business:
      

6.	Complete the following information for board members:

Board Member Name	Years of Service on Board	Professional Affiliations	Specific Skill 
(Developer, real estate, lawyer, accounting, etc.)	
     	     	     	     	
     	     	     	     	
     	     	     	     	
     	     	     	     	
     	     	     	     	
     	     	     	     	
     	     	     	     	
     	     	     	     	
     	     	     	     	
     	     	     	     	

7.	Complete the following information for board members:

Names of Current Board Members	Is member a resident of a low-income community?*	Is member a low-income resident of the community?**	Is member an elected representative of a low-income neighborhood organization?***	Is member a public or elected official?****	
	Yes	No	Yes	No	Yes	No	Yes	No	
     									
     									
     									
     									
     									
     									
     									
     									
     									
     									
     									
     									
*Low-income neighborhoods are defined as those where 51% or more of residents are low-income; residents of low-income neighborhoods do not need to be low-income themselves.
**In urban areas, community is not necessarily limited to a single neighborhood but may include several neighborhoods, the city, county or metropolitan area; in rural areas, community may mean a multi-county area; the board does not need to include low-income residents from each county.
***A low-income organization is an organization composed primarily of residents of a low-income neighborhood with a primary purpose of serving the interests of neighborhood residents.
****Public officials include but are not limited to council members, aldermen, commissioners, state legislators, members of school boards, members of planning or zoning commissions or any other regulatory or advisory boards, employees of public agencies, or any individual that is not necessarily a public official but who has been appointed by a public official to serve on the CHDO board.

8.	Has there been stability/continuity of board members over the last five years? If not, explain why.
     

9.	Does the board have a committee structure or other means of overseeing planning and development?
     

10.	Attach a copy of the CHDO’s current operating budget.
     

11.	Who maintains the CHDO’s accounting records and what are their qualifications? 
     

12.	Is the CHDO audited by a certified public accountant as evidenced by audit reports? 	 Yes   No
If yes, attach the last two years of audit reports. If not, attach three years of financial reports.
     

13.	Attach copies of the CHDO’s three most current IRS Form 990s.
     

14.	Complete the following table pertaining to the CHDO’s senior leadership and development staff composition:

Staff Name	Job Title	Number of Years with the Agency	Brief Description of Individual’s Qualifications	
     	     	     	     	
     	     	     	     	
     	     	     	     	
     	     	     	     	
     	     	     	     	
     	     	     	     	
     	     	     	     	
     	     	     	     	
     	     	     	     	
     	     	     	     	
     	     	     	     	

15.	Does the CHDO have staff training and evaluation procedures in place? If so, describe, and if not, explain why and describe a plan to implement training and evaluation procedures: 
     

16.	Have there been significant changes to services or programs since the CHDO began. If so, describe:
     

17.	What types and amounts of insurance does the CHDO maintain? 
     

18.	If the CHDO will not be the ownership entity or mortgagor, state the type of entity to be formed and its proposed name:      

19.	Is the CHDO required to file periodic reports with the Federal Securities and Exchange Commission or any state agency?   Yes     No
	
20.	Has there ever been a petition of involuntary bankruptcy filed against the CHDO?   Yes     No

21.	Has the CHDO ever made an assignment for the benefit of creditors?   Yes    No

22.	Are there any unsatisfied judgments outstanding against the CHDO and/or any of the officers? 	 Yes    No

23.	Has the CHDO been a party to any litigation within the last five years?   Yes     No

24.	Is the CHDO currently debarred from any Minnesota program, other states’ program(s), or any federal programs?   Yes     No

25.	If any of the questions 19 – 24 above have been answered "Yes", provide details: 
     

26.	Complete and attach the Developer/Sponsor Table A and B. 

I,      , hereby certify that the information set forth, and in any supporting attachments, is true, correct, and complete to the best of my knowledge and belief.

     		     	
Name of CHDO		Signature 	
			
     	     	     	
Printed Authorized Signatory	Title of Authorized Signatory	Date