Understanding Community Housing Development Organizations (CHDOs)

Definition

Community Housing Development Organizations (CHDOs) are nonprofit, community-based service organizations that develop affordable housing for low-income individuals and families. They play a vital role in tackling the affordable housing shortage and combating homelessness.

Description

CHDOs are integral players in the affordable housing sector. They are formulated under the governance of the federal HOME Investment Partnerships Program run by the U.S. Department of Housing and Urban Development (HUD). They are built upon a tripartite board governance model that ensures community control and ownership while focusing on addressing housing opportunity discrepancies within low-income communities.

Objectives

• Develop and provide access to affordable housing.
• Alleviate the housing shortage.
• Reduce homelessness.
• Enable community members to influence and control housing conditions.
• Facilitate social and economic development in the community.

Mechanisms

• Securing public and private funding sources.
• Constructing, rehabilitating, or purchasing affordable housing assets.
• Collaborating with local governments, private sector entities, and other nonprofits.
• Leveraging federal funds and resources.
• Promoting fair practices and advocacy in affordable housing.

Benefits

• Provides affordable housing alternatives for low-income individuals and families.
• Creates jobs and stimulates economic development.
• Facilitates community empowerment and engagement.
• Enables access to federal resources dedicated for low-income housing.
• Advocates for affordable housing rights.

Challenges

• Securing sufficient and consistent funding.
• Balancing the needs of the organization with those of the community.
• Navigating complex regulations of government housing policies.
• Overcoming market and economic instabilities that affect affordable housing.
• Building and maintaining partnerships for long-term sustainability.

Examples

• Aeon, a Minnesota-based CHDO, has created and managed thousands of affordable homes, changing lives and strengthening communities since 1986.
• Mission Economic Development Agency (MEDA), a CHDO operating in San Francisco, transforms low-income and immigrant communities through housing, economic and social programs.

Further Reading

1. The National Low Income Housing Coalition's explainer about the HOME program and CHDOs
2. The U.S. Department of Housing and Urban Development's resource library about CHDOs