Fill - Free fillable CITY OF PASADENA COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) (City of Pasadena, Texas) PDF form

Jeff Wagner, Mayor

CITY OF PASADENA

COMMUNITY HOUSING DEVELOPMENT

ORGANIZATION (CHDO) CERTIFICATION

APPLICATION

NOTE: This portion outlines the application process to qualify as CHDO.

Applications Due: Thursday, April 2, 2020 at 4:00 p.m. CST

NO LATE APPLICATIONS WILL BE ACCEPTED

Applications may be either mailed or hand delivered to:

Office of the City Secretary

1149 Ellsworth Drive, 2

Floor

Pasadena, Texas 77506

Any application received after the above stated date and time will be returned

unopened. Your application will not be evaluated if all the submission requirements

are not met and the documentation is not attached.

TABLE OF CONTENTS

I. OVERVIEW .................................................................................................................................... 3

II. APPLICATION INSTRUCTIONS.................................................................................................... 5

III. APPLICATION FOR FUNDING.................................................................................................... 12

IV. AFFIDAVIT OF STANDARDS FOR FINANCIAL MANAGEMENT SYSTEMS ............................. 19

V. AFFIDAVIT OF LOW-INCOME BOARD REPRESENTATION .................................................... 23

VI. BOARD MEMBER INFORMATION FORM ................................................................................. 24

VII. FORMAL PROCESS FOR LOW-INCOME INPUT ........................................................................ 26

VIII. RELIGIOUS OR FAITH BASED ORGANIZATION CERTIFICATION .......................................... 28

IX. SUBMISSION CHECKLIST .......................................................................................................... 30

I. OVERVIEW

The City of Pasadena Community Development Department is committed to expanding the capacity of

Community Housing Development Organizations (CHDOs) to develop and manage decent and affordable

housing and to promoting partnerships between public, private and nonprofit organizations that effectively

utilize all available resources to provide more affordable housing choices to low-to-moderate income

citizens of Pasadena.

To be eligible for a certification as a CHDO, the CHDO must be organized and structured according to the

definition of a CHDO as listed in 24 CFR Part 92. Additionally, an organization seeking certification as a

CHDO must submit and receiving an award of HOME CHDO set-aside funds. The applications will be

reviewed and approved concurrently.

CHDO Certification is valid for one year, after which CHDOs must be recertified. CHDOs will also be

recertified each time the City commits HOME funds to a CHDO project.

Qualification as a CHDO

HUD has established the following standard criteria for organizations to be eligible for CHDO certification:

 Organized Under State/Local Law: A nonprofit organization must show evidence in its Articles of

Incorporation that it is organized under state or local law.

 Nonprofit Status: The organization must be conditionally designated or have a tax exemption ruling

from the Internal Revenue Service (IRS) under Section 501(c) of the Internal Revenue Code of 1986.

A 501(c) certificate from the IRS must evidence the ruling.

 Purpose of the Organization: Amount its primary purposes, the organization must have the

provision of decent housing that is affordable to low- and moderate-income people. This must be

evidenced by a statement in the organization’s Articles of Incorporation and/or Bylaws.

 Board Structure: The board of directors must be organized to contain no more than one-third

representation from the public sector and a minimum of one-third representation from the low-

income community.

 No For-Profit Control: The organization may not be controlled by, nor receive directions from,

individuals or entities seeking profit from or that will derive direct benefit from the organization.

 No Individual Benefit: No part of a CHDO’s net earnings (profits) may benefit any members,

founders, contributors, or individuals. This requirement must also be evidenced in the

organization’s Articles of Incorporation.

 Clearly Defined Service Area: The organization must have a clearly defined geographic service area

outlined in its Articles of Incorporation and/or Bylaws.

 Low-Income Advisory Process: A formal process must be developed and implemented for low-

income program beneficiaries and low-income residents of the organization’s service area to advise

the organization in all of its decisions regarding the design, location, development and management

of affordable housing projects.

 Capacity/Experience: To qualify as a CHDO, a non-profit must have paid staff whose experience

qualifies them to undertake CHDO set-aside activities. Capacity cannot be demonstrated by use of a

consultant, except in the first year that a CHDO becomes certified. The key staff and board of

directors must also have significant experience and capacity to carry out CHDO-eligible, HOME-

assisted projects in the community where it intends to develop affordable housing.

 Community Service: A minimum of one year of relative experience serving the community(ies)

where it intends to develop affordable housing must be demonstrated.

 Financial Accountability Standards: The organization must meet and adhere to the financial

accountability standards as outlined in 2 CFR Part 200 Subpart D, “Post Federal Award

Requirements Standards for Financial and Program Management.”

In addition to the regulatory requirements from HUD, the City has established additional criteria for CHDO

certification. The organization must:

 Maintain a record of good standing with the Texas Secretary of State’s Office; and

 Maintain a clear history of no significant compliance findings on City funded projects.

CHDO Roles and Eligible Activities

The evaluation of whether an organization can be designated as a CHDO always takes place in the context

of awarding funds from the CHDO set-aside—that is in consideration of a housing project that is being or is

likely to be funded. The Rule requires that the City certify that an organization meets the CHDO definition

“each time it commits funds to the organization.”

The evaluation of an organization’s capacity, in particular, is closely connected to the organization’s role as

an “owner,” “developer,” or “sponsor” of affordable housing. Those terms are carefully defined in the HOME

regulation at §92.300(a)(2)-(6) and require that the CHDO be solely in charge of the project.

This application for CHDO Certification was developed to assist the City in evaluating whether or not an

organization can be certified as a CHDO. It is intended to accompany an application for project funding and

does not provide all information the City’s HOME Program will need to evaluate and underwrite the project

itself.

CHDO as Owner: As owner, the CHDO owns the property in fee simple absolute or has a long term ground

lease. If the housing is to be rehabilitated or constructed, the CHDO hires and oversees the developer that

rehabilitates or constructs the housing. At minimum, the CHDO must hire or contract with an experienced

project manager to oversee all aspects of the development. The CHDO must own the housing during the

development for a period of at least equal to the period of affordability.

CHDO as Developer: A CHDO is a developer when the CHDO is the owner of the property in fee 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 HOME Assisted Rental Housing: The CHDO must be in sole charge of all aspects of the

development process. At minimum, the CHDO must own the housing during development and for a

period at least equal to the period of affordability.

 For HOME Assisted Homebuyer Projects: The CHDO must arrange financing of the project and be in

sole charge of construction. The CHDO may provide direct homeownership assistance (e.g., down

payment assistance) when it sells the housing to the low-income families and the CHDO will not be

considered a subrecipient. The HOME funds for down payment assistance shall not be greater than

10 percent of the amount of HOME funds for development of the housing.

CHDO as Sponsor: CHDOs may sponsor HOME-assisted rental housing or hombuyer projects. HUD offers

two models of sponsoring a project by a CHDO.

 For HOME-assisted rental housing, Model 1 – The CHDO is sponsor if the rental housing is “owned”

or “developed” by a 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.

o The subsidiary of the CHDO may be a for-profit or nonprofit organization. The subsidiary

must also be wholly owned by the CHDO. If the limited partnership or limited liability

company agreement permits the CHDO to be removed as general partner or sole managing

member, the agreement must provide that the removal must be for cause and the CHDO

must be replaced by another CHDO.

o HOME funds must be provided to the entity that owns the project.

 For HOME-assisted rental housing, Model 2 – The CHDO is sponsor if the CHDO “developed” the

rental housing project that the CHDO agrees to convey the project to an identified private nonprofit

organization at a predetermined time after completion of the developed project. The following

requirements apply:

o The identified private nonprofit organization may not be created by a government entity.

o HOME funds must be invested in the project owned by the CHDO sponsor.

o The CHDO sponsor must name the nonprofit organization that will obtain ownership of the

property prior to commitment of CHDO set-aside funds.

o The identified private nonprofit must assume all HOME obligations (repayment of loans

and tenant and rent requirements), including affordability periods, for the project after

conveyance. If the property is not transferred, the CHDO sponsor will remain liable for all

HOME obligations.

 For HOME- assisted homebuyer projects – the CHDO is a sponsor when it owns the property and

shifts responsibility to an identified private nonprofit at a specified time in the development

process. The following requirements apply:

o HOME funds must be invested in the project owned by the CHDO, and

o The identified private nonprofit must acquire the completed units or complete the

rehabilitation or construction of the property.

o Upon completion of the project, the identified private nonprofit is required to transfer

property, along will all HOME obligations, to a HOME-qualified homebuyer.

A CHDO acting as owner, developer or sponsor may use the 15 percent CHDO set-aside for the following

eligible activities:

 Acquisition and/or rehabilitation of rental or homebuyer property;

 New construction of rental or homebuyer property; and

 Direct financial assistance to homebuyers or HOME-assisted property developed or sponsored by

the CHDO.

Ineligible uses of the HOME CHDO set-aside funds include:

 Non-development activities;

 Homeowner rehabilitation;

 Tenant-based rental assistance (TBRA); and

 Brokering or other real estate transaction.

II. APPLICATION INSTRUCTIONS

The City receives HOME Investment Partnerships Program (HOME) funds annually from the U.S.

Department of Housing and Urban Development (HUD) to fund activities that provide affordable housing

opportunities to benefit low-income households of Pasadena. These funds are based on a formula for

entitlement communities. HUD HOME regulations, 24 CFR Part 92, require the City to set aside a minimum

of 15 percent of their HOME allocation for qualified, eligible CHDO projects.

A CHDO is a private, non-profit, community based organization whose primary purpose is to develop

affordable housing for the community it serves. The CHDO must have paid staff with demonstrated capacity

to develop affordable housing. The HOME Program definition of a CHDO is found at 24 CFR Part 92.2.

Prospective CHDOs should complete this application in its entirety and provide all applicable required

attachments. For any required attachment not submitted, an explanation shall be provided to demonstrate

why the attachment is not applicable to your organization.

Attachments should be highlighted by the prospective CHDO to mark key sections of core organizational

documents (for example, highlighting where the Bylaws address limitations on the number of board

members who are governmental officials or employees) to aid the City‘s review.

Applicants shall submit six (6) unbound copies with “ORIGINAL” signatures, and include with the HOME

Program Application.

Applicants must return all applications to the following location by the date and time specified:

City of Pasadena

City Secretary’s Office

1149 Ellsworth Drive, 2

Floor

Pasadena, Texas 77506

Late applications will not be accepted, and will be returned to applicant unopened.

Attachment A – General Information

Submit the completed form found in attachments. The form must have an original signature for the CHDO

applicant.

Attachment B – CHDO Certification

Submit the completed CHDO Certification form. The certification form must be dated with an original

signature for the CHDO applicant.

Attachment C – Legal Status

Texas Nonprofit Corporation Act

The organization must have among its purpose(s) the provision of decent housing that is affordable to low

and moderate income people, as evidenced by a statement in the organization’s organizational document

(Charter, Bylaws, or Articles of Incorporation). Submit the organizational document and label the portion

that states the Act that the nonprofit organization is organized under and its purpose regarding affordable

housing.

Net Earnings

Label the portion of the organizational document (Charter, Bylaws, or Articles of Incorporation) that states

that no part of the net earnings inure benefits to any member, founder, contributor or individual of the

organization.

Organizational Purpose

Label the portion of the organizational document (Charter, Bylaws, or Articles of Incorporation) that states

the organization’s purpose.

Tax Exemption

Submit a copy of the IRS 501 (c) (3) or (4) letter evidencing the organization’s nonprofit status.

Account Status

Submit a Certificate of Fact for the organization from the Office of the Secretary of State.

DUNS Number

Verify that the CHDO itself is registered with D&B and has a DUNS number by submitting a confirmation

email from D&B or other documentation.

Third Party Legal Opinion

Submit a third-party legal opinion letter for the nonprofit. A template of the required legal opinion is

included herein. **Please note, the language must be word for word as written in the template.

Attachment D – Business Plan

Submit a comprehensive business plan for the organization. The business plan must outline a plan for CHDO

eligible housing development activities and citizen participation. The plan must have enough detail to

communicate the organizational concept and strategies. The business plan must describe what the CHDO

organization has evolved from, its current state, and what it is anticipated to evolve to. The Business Plan

must include all of the following sections and information.

Statement of Purpose

This section must state the organization’s purpose and identify housing production objectives over a 2-year

period. The plan must include how the purpose relates to the proposed development project and other

ongoing and/or future initiatives. Include a statement of what the organization plans to achieve in the next

three years.

Organizational Description

This section must describe the organization’s history, status, number of employees and location. The plan

must answer the following questions: Why will this CHDO business plan be successful? What is the

organization’s experience in the housing industry? How have you researched the feasibility of developing

affordable housing in your target area? What commitment(s) has the organization obtained? What

resources does the organization have to ensure success?

Market Analysis

This section must describe the organization’s knowledge of housing in the proposed community and

present highlights and an analysis of the organization’s market research. Describe the organization’s target

area, its characteristics and neighborhood conditions and trends. The plan must answer the following

questions: Who is the organization’s competition for available property and who are the organization’s

prospective homebuyers or tenants? Do not attach a Market Study.

Target Development Area

This section must define the organization’s target neighborhood or development area and what needs are

not currently being met in that area/neighborhood. Describe how the organization plans to meet the needs

of the target and/or development area. Attach a target area map of the proposed neighborhood.

Neighborhood Investment

This section must describe any activities the organization has undertaken which involved the local

community, residents, neighborhood and/or civic organizations where the proposed development is to be

located. Describe any partnerships/alliances/memorandum of understanding the organization has formed

or will form with organizations in the community where the proposed development is to be located.

Marketing and Sales Strategies

This section must describe the strategies and activities that will allow the organization to meet the

organization’s housing productions goals. Describe the media (publications, radio, television, direct mail,

etc.) and marketing strategies that the organization will utilize to influence the organization’s potential

market area. Describe how the organization will conduct community events, meetings, and pre-leasing

activities. Describe the frequency of the organization’s community meetings (weekly, monthly, or

quarterly). Describe how the organization uses a management company that understands the target

population and income requirements under the HOME Program.

Location

This section must describe what factors influenced the organization’s choice of target location(s) (i.e.,

number and costs of available properties, flood plain, platting, and infrastructure issues).

Housing Units

This section must reflect the CHDO’s housing production goals for the next three (3) years. Explain whether

or not the CHDO plans to partner with other organizations. If so, please elaborate and describe current and

future plans to involve outside partners.

Development Team

This section must identify the members of the organization’s development team (i.e. contractors, architect,

engineer, lenders, and attorney). Describe the organization’s experience with the management of federal

funds and meeting federal requirements/obligations.

Risk Management

This section must present a plan for insuring the property, builder’s risk and general liability on the

development project(s).

Organizational Management

This section must describe the management and staff structure for the organization. Provide an

organization chart listing current personnel and a brief description of each individual’s position

description, primary responsibilities and authority in the organization, unique skills and experiences that

add to the capacity and experience of the organization.

Board of Directors

This section must present the names, board position, and extent of Board involvement with the

organization, background, and contribution to the organization’s success historically and in the future.

Advisory Resources

This section must name individuals that will contribute to your organization, as a volunteer, representing

banks, accounting firms, attorneys, insurance agents, and consultants.

Attachment E – Financial Management

Financial Accountability

The organization must meet and adhere to the financial accountability standards of 2 CFR 200 Subpart D,

“Post Federal Award Requirements Standards for Federal and Financial and Program Management.”

Submit a notarized Affidavit (included in Attachments) signed by the Executive Director or Financial Officer

of the organization or Certification of Compliance letter from a Certified Public Accountant or a HUD

approved audit summary.

Internal Control

Submit a written narrative describing the internal controls used to ensure separation of financial duties

and safeguarding corporate assets. Include a description of the organization’s conflict of interest policy

governing employees and development activities.

Attachment F – Capacity and Community Service

CHDO Capacity

The CHDO must have a demonstrated capacity for carrying out the HOME-assisted activities that the

application is proposing. Submit documentation that describes the names, titles and area of expertise of

staff members who have successfully completed projects similar to those to be assisted with HOME funds

or submit copies of contract(s) to train key staff of the organization. Consulting individuals or firms must

have housing experience similar to the project to be assisted with HOME funds.

Community Service

The CHDO must have a history of serving the community within which housing to be assisted with HOME

funds is to be located. Submit documentation that evidences at least one year of experience in serving the

city or county where HOME funds are to be used. The evidence must document and describe the

organization’s history (or its parent organization’s history) of serving the city/county in which the housing

to be assisted with HOME funds is to be located by describing and documenting CHDO eligible activities

which it provided (or its parent organization provided), such as, developing new housing, rehabilitating

existing stock and managing housing stock, or delivering non-housing services that have had lasting

benefits for the community, such as counseling, food relief, or childcare facilities. The evidence must be

signed by the president or other official of the organization.

For newly created organizations formed by local churches, service or community organizations, submit

documentation that evidences that its parent organization has at least one year of experience in serving the

city or county where HOME funds are to be used. In the submission, the organization must document and

describe its history (or its parent organization’s history) of serving the city or county in which the housing

to be assisted with HOME funds is to be located by describing and documenting CHDO eligible activities

which it provided (or its parent organization provided), such as, developing new housing, rehabilitating

existing stock and managing housing stock, or delivering non-housing services that have had lasting

benefits for the community, such as counseling, food relief, or childcare facilities. The statement in the

submission package must be signed by the president or other official of the organization.

Additionally, submit board meeting minutes from a board meeting in each quarter of the previous year

(board minutes of the parent organization must be submitted for newly formed organizations with less

than one year experience).

Submit a statement naming the city of the proposed property where HOME funds are to be used. Describe

in detail the boundaries of the service area that the CHDO serves. A map of the service area is acceptable if

the service area is clearly identified.

Attachment G – Organizational Structure

Board Structure

The organization’s governing board must maintain at least one-third of its membership for residents of low

income neighborhoods, other low-income community residents, or elected representatives of low income

neighborhood organizations. Submit the appropriate organizational document (Charter, By Laws or

Articles of Incorporation) and Affidavit (included in Attachments) signed by the organization’s Executive

Director and notarized. Additionally, submit a current roster of all Board of Directors, including names and

mailing addresses. The required one-third low income resident(s) or elected representative(s) must be

annotated on the list.

Low-Income Input

Submit a formal, written 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

well as, written procedures as to how the formal process will be implemented (public hearings, flyers,

media, etc.). Submit the organization’s bylaws, with written procedures approved by the governing board

as documentation of a low-income input policy; or a resolution, with written procedures approved by the

governing board; or a written statement describing the operating procedures approved by the governing

body. The statement must be on letterhead, signed by the Executive Director and evidenced with the date

of governing body approval. Include copies of all actions that have been taken, dates for marketing outreach

and/or planned neighborhood meetings.

Please note: Under the HOME Program, “Low income” is defined by the U.S. Department of Housing and

Urban Development (HUD) as an annual income that does not exceed eighty percent (80%) of the median

income for the area, with adjustments for family size.

CHDO Charter

A CHDO may be chartered by a state or local government, but the following restrictions apply:

1. The state or local government may not appoint more than one-third of the membership of the

organization’s governing body;

2. The board members appointed by the state or local government may not, in turn, appoint the

remaining two-thirds of the board members; and,

3. No more than one-third of the governing board members are public officials including employees

of the Participating Jurisdiction or state recipients, elected officials, appointed public officials, and

individuals appointed by public official. Elected officials include, but are not limited to, state

legislators or any other statewide elected officials. Appointed public officials include, but are not

limited to, members of any regulatory and/or advisory boards or commissions that are appointed

by a state official. Public officials who themselves are low-income residents or representatives do

not count toward the one-third minimum requirement of community representatives.

Submit the organizational document (Charter, By Laws or Articles of Incorporation) that evidences the Act

the organization is organized under. Label the portion of the organizational document (Charter, By Laws or

Articles of Incorporation) that states the composition of the Board.

CHDO Sponsor

The for-profit entity may not appoint more than one-third of the membership of the CHDO’s board. The

board members appointed by the for-profit entity cannot appoint the remaining two-thirds of the board

members of the board. The CHDO must own the property prior to the development phase of the project.

The CHDO Sponsor must select the nonprofit that will obtain ownership of the property prior to the

commitment of HOME funds. Submit a written statement identifying and naming the nonprofit. The

nonprofit organization must be financially and legally separate from the CHDO Sponsor. Submit

documentation, such as a legally binding agreement, evidencing that the nonprofit is financially and legally

separate from the CHDO Sponsor. Label the portion of the document that states the board composition.

Attachment H – Religious or Faith Based Organization Certification

HOME funds may not be used for the acquisition, construction, or rehabilitation of structures if those

structures are used for inherently religious activities. Sanctuaries, chapels, or other rooms which a faith-

based CHDO uses as its principal place of worship are always ineligible for HOME-funded improvements.

Submit the completed Religious or Faith Based Organization Certification behind this section. The

certification form must be dated with a signature for the CHDO Applicant. Additionally, submit and label

the portion of the organizational document (Charter, Bylaws, or Articles of Incorporation) that states the

proposed development will not be used for inherently religious activities.

Attachment I – Relationship with For-Profit Entities

Effective Control

The CHDO must not be controlled, nor receive direction from individuals, or entities seeking profit form

the organization. Submit documentation that evidences that the CHDO has effective control over the

proposed development. Submit and highlight the document that states the CHDO is not controlled nor

receives direction from the for-profit organization.

For-Profit CHDO Sponsor

The for-profit entity’s primary purpose must not include the development or management of housing.

Submit the organizational document that states the for-profit’s organizational purpose.

Partnership Agreements

The CHDO must not be controlled, nor receive direction from individuals, or entities seeking profit from

the organization. Submit and highlight the portion of the document that states the CHDO is not controlled

nor receives direction from the for-profit organization. Submit all legally binding agreements pertaining to

the development, partnership, sponsorship and ownership of the proposed development. Highlight the

portion of the document that states the CHDO is free to contract for goods and services from the vendor(s)

of its own choosing and states the primary purpose of the for profit entity.

III. APPLICATION FOR FUNDING

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NEXT PAGE IS THE BEGINNING OF THE APPLICATION

COVERSHEET

CHDO CERTIFICATION APPLICATION

FILL IN NAME OF YOUR ORGANIZATION IN SECTION BELOW:

ALL APPLICATIONS MUST BE TYPED AND SUBMITTED TO:

City of Pasadena

Office of the City Secretary

1149 Ellsworth Dr. 2

Floor

Pasadena, Texas 77506

APPLICATION DUE: Thursday, April 2, 2020 at 4:00 pm

NO LATE APPLICATIONS WILL BE ACCEPTED

I have read and understand the application instructions prior to submitting.

I have THOUROUGHLY reviewed the 2020 APPLICATION WORKSHOP POWERPOINT.

I have read and signed the Terms and Conditions Section of this Application.

I HAVE READ AND EXECUTED THE CONFLICT OF INTEREST DISCLOSURE FORM

WITHIN THIS APPLIACTION.

Signature of Applicant Title Date

Attachment A – General Information

Organization Name:

Organization’s Physical Address:

Organization’s Mailing Address:

Tax Identification Number:

Registered with SAM.GOV

Phone:

Fax:

Email:

Web Address:

Authorized Organization Official

Signatory:

Phone:

Email:

*Primary Contact:

Phone:

Email:

* Alternate Contact:

Phone:

Email:

*Both the primary and alternate contact (provided above) will serve as intermediaries between the agency and the City of Pasadena

Community Development Department. Therefore, the primary and alternate contact shall be responsible for the distribution of

information, provided by the City of Pasadena Community Development Department, within the agency.

Proposed Program Name:

Location of Project:

Amount Requested:

Date of Incorporation:

Tax ID Number:

IRS Tax Status

☐ 501(c)(3) Received: ____________

☐ 501(c)(4) Received: ____________

Attachment B – CHDO Certification

Name of CHDO

Date of Formation

On behalf of the Community Housing Development Organization Applicant (hereinafter “Applicant”), I

hereby certify that the Applicant is familiar with the provisions of the federal HOME Final Rule, as published

in 24 CFR §92, the state Uniform Multifamily Rules, as published in 10 TAC Chapters 1, 2, and 10, 13, or 20

and 23 as applicable, and other related administrative rules and regulations and court rulings issued by the

Federal government or state of Texas with respect to CHDOs and the HOME Investment Partnerships

Program and will comply with such rules during the application process and in the event of award, for the

duration of the development process and/or affordability period.

 I hereby certify that the Applicant will comply with the applicable requirements of the conflict of

interest provisions stated in 24 CFR §92.356 and 2 CFR §200.12.

 I hereby certify that the Applicant meets the requirements of the CHDO definition in 24 CFR §92.2.

 I hereby certify that no person or entity that would benefit from the award of HOME funds has

provided a source of Match as defined in 24 CFR §92.220 or has satisfied the Applicant’s obligation

pursuant to 10 TAC §10.307(a)(5) or made promises in connection therewith.

 I hereby certify any funds granted to the CHDO as CHDO Operating Expenses will be expended in

compliance with 24 CFR §92.208, and 2 CFR §§200.32 and 200.33.

 I hereby certify the CHDO will create and follow a tenant participation plan as required in 24 CFR

§92.303 for rental development activities.

 I hereby certify that all statements I have provided in this application and in this Sections herein

are true; that I am authorized to sign this application, and to make these statements, on behalf of

the applicant organization; and that the organization understands that misrepresentation of any

facts which lead to the improper allocation and expenditure of public funds may result in legal

action against the organization for retrieval of any such funds and appropriate penalties.

 I agree the City of Pasadena may, at its discretion, request additional information and/or

documentation in its evaluation of this Application.

 I hereby certify that (I) we, as a CHDO, will qualify as the of

--Select One--

rental housing as defined

in 24 CFR §92.300(a)(2)-(5) or will qualify as the owner and developer of housing for

homeownership as defined in 24 CFR §92.300(a)(6).

Signature of Authorized Representative Title

Printed Name of Individual Date

Attachment C – Legal Status

Insert the required documents for this section as indicated in the instructions. A legal opinion letter

template is provided below; the legal opinion letter must be typed verbatim on the attorney’s letterhead.

The portions that are underlined and enclosed by brackets should be replaced with the described

information.

Legal Opinion Letter

[Date]

Community Development Department

P.O. Box 672

Pasadena, Texas 77501

RE: [Name of Development]

[Address of Development]

[Development Owner]

Ladies and Gentlemen:

[Applicant] is a Community Housing Development Organization (CHDO) within the meaning in Title 24 of

the Code of Federal Regulations (CFR) Subpart A, §92.2. We understand that you require this opinion as a

prerequisite to your consideration of a CHDO Certification.

In rendering our opinion, we have reviewed the Articles of Incorporation and Bylaws of [Applicant] as well

as the Letter of Determination dated [Date] from the Internal Revenue Service. We have also examined the

records of [Applicant] to determine whether or not there exists an identity of interests between [Applicant]

and any for-profit sponsors of the above-referenced development, (the “Development”).

Based upon our review of the foregoing, it is our opinion that:

1. [Applicant] is not affiliated with, or controlled by, a for-profit organization with respect to the

development. [Provide the basis for that opinion]

2. [Applicant] is an organization described in paragraph (3) or (4) of section 501(c) and is exempt from

tax under section 501(a) of the Internal Revenue Code.

3. [Applicant] is an organization which specifically has the fostering of low-income housing as one of its

tax exempt purposes.

4. [Applicant] or a wholly owned subsidiary will be the [owner or managing general partner of the owner

and/or developer] of the Development and [Applicant’s] role will meet the requirements described in

24 CFR §92.300(a)(1) that housing assisted with HOME funds under the 15% set-aside reserved for

CHDOs be developed, sponsored or owned by a community housing development organization and any

subsequent guidance from the United States Department of Housing and Urban Development.

It is our intention that this opinion be relied upon by you in making your determination as to the eligibility

Set-Aside.

Sincerely,

[Name of Attorney or Firm rendering opinion]

Attachment D – Business Plan

Submit a business plan for the CHDO. Include all components indicated in Section II. Application

Instructions.

Attachment E – Financial Management

Internal Controls

Please submit all of the following:

 Written narrative describing the internal controls used to ensure separation of financial duties

and safeguarding corporate assets. Include a description of the organization’s conflict of interest

policy governing employees and development activities.

Financial Accountability

The organization must have financial accountability standards as defined in 2 CFR 200 Subpart D, “Post

Federal Award Requirements Standards for Federal and Financial and Program Management.”

 a notarized Affidavit of Standards for Financial Management Systems (included below) signed by

the Executive Director or Financial Officer of the organization; OR

 a Certification of Compliance letter from a Certified Public Accountant; OR

 A HUD approved audit summary

If applying for CHDO Operating funds, please include a copy of the organization's procurement policy that

complies with 2 CFR §200.318-200.326.

IV. AFFIDAVIT OF STANDARDS FOR FINANCIAL MANAGEMENT

SYSTEMS

Date:

Affiant:

Applicant:

(Exact Legal Name of Organization)

Affiant on oath swears that the following statements are true and are within the personal knowledge of

Affiant:

1. Affiant is the President AND/OR Chief Financial Officer of the Applicant and is authorized to make

this affidavit on behalf of Applicant.

2. Applicant's financial management systems conform to the financial accountability standards that

provide for and incorporate the following:

a. Accurate, current, and complete disclosure of the financial results of each federally-sponsored

project;

b. Records which identify the source and application of funds for federally-sponsored activities.

These records contain information pertaining to federal awards, authorizations, obligations,

un-obligated balances, assets, outlays, income, and interest;

c. Control over and accountability for all funds, property and other assets; adequate safeguards

of all such assets shall be adopted to assure that all assets are used solely for authorized

purposes;

d. Comparison of outlays with budget amounts for each award;

e. Written procedures to minimize the time elapsing between the receipt of funds and the

issuance or redemption of checks for program purposes by the recipient;

f. Written procedures for determining the reasonableness, allocability, and allowability of costs

in accordance with the provisions of federal cost principles and the terms and conditions of

the award;

g. Accounting record, including cost accounting records that are supported by source

documentation.

By:

Signature of Authorized Representative

Printed Name

Title

Date

I, the undersigned, a Notary Public in and for said County and State, do hereby certify that

who signed the foregoing statement, and who is known to be one in the same, has acknowledged before

me on this date, that being informed of the contents of this statement, executed the same voluntarily on

the date same foregoing statement bears.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 20

(Seal) Notary Public Signature

Notary Public, State of

County of

My Commission Expires

Attachment F – Capacity and Community Service

Submit the documentation regarding CHDO capacity and record of community service outlined in

Section II. Application Instructions.

Attachment G – Organizational Structure

Submit the required materials for board structure, low-income community/individual input, CHDO

Charter (if applicable) and CHDO Sponsor (if applicable). Templates for an affidavit of low-income board

representation and resolution for formal process of low-income input are found on the following pages.

Highlight the following information in submitted documents:

 Portion(s) of the organizational document(s) that states the Texas Act or Code that the nonprofit

organization is organized under;

 Portion(s) of the organizational document(s) that states nonprofit organization's purpose

regarding affordable housing;

 Portion(s) of the organizational document(s) that states that no part of the net earnings inure to

the benefit of any member, founder, contributor, or individual of the organization;

 Portion(s) of the organizational document(s) that states the organization's purpose; and

 Portion(s) of the organizational document(s) that outlines the procedure for appointing board

members.

V. AFFIDAVIT OF LOW-INCOME BOARD REPRESENTATION

I hereby certify that the individuals identified in the following exhibits are residents of a low income

neighborhood, other low-income community resident, or elected representative of a low income

neighborhood organization and is an active member of the Board of Directors of , a

private nonprofit corporation.

“Low income” is defined as households whose annual incomes do not exceed 80% of the median

income for the area, as determined by HUD with adjustments for smaller and larger families.

I certify that the above statement is true and correct. I understand that any misstatement or

falsification of information shall be grounds for denial or revocation of certification for CHDO

status.

By:

Signature of Authorized Representative

Printed Name

Title

Date

I, the undersigned, a Notary Public in and for said County and State, do hereby certify that

who signed the foregoing statement, and who is known to be one in the same, has acknowledged before

me on this date, that being informed of the contents of this statement, executed the same voluntarily on

the date same foregoing statement bears.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 20

(Seal) Notary Public Signature

Notary Public, State of

County of

My Commission Expires

VI. BOARD MEMBER INFORMATION FORM

This form must be completed, signed and dated by each member of the Board of Directors of your

organization.

I am a board member of the following nonprofit organization seeking CHDO status:

Name of Organization:

Board Member:

Home Address:

Home Phone:

Occupation and Employer:

Business Address:

Business Phone:

PLEASE CHECK ANY OF THE FOLLOWING THAT APPLIES TO YOU:

☐ I qualify as a low-income resident under the HOME Program definition. The gross annual income of

my household of people is at or below 80% of the county area median income

in the amount of $ (80% AMI limit); OR

☐ I live in a low-income area (where 51% or more of the households in my US Census tract have incomes

at or below 80% of the median household income, as defined by HUD; OR

☐ I am an elected representative of a low-income neighborhood organization. Name of organization and

your title: _________________________________________________________________________________

A signed resolution or signed minutes and election roster from the neighborhood organization naming

the individual as its representative on the CHDO’s board of directors must be provided.

☐ I am a representative of the public sector [a public sector representative is any elected official, any

appointed public official, any employee of a public agency or department, or any individual who is

appointed by a public official to serve on a CHDO board].

I certify that the above statement is correct as of the date indicated below:

By:

Signature

Printed Name

Date

VII. FORMAL PROCESS FOR LOW-INCOME INPUT

[Applicant]

RESOLUTION NO.

The Chairman of the Board submits the following resolution for consideration by the [Applicant] Board

of Directors:

FORMAL PROCESS FOR PUBLIC INPUT

[Applicant] at a minimum will implement the formal process for public input by holding neighborhood

advisory meetings at least bi-annually. Also, the organization will make the community aware of any

housing developments it undertakes through broadcast media, flyers, contacts with a broad array of

social service agencies, and newspaper articles. It will also accept public comment at all times via

telephone, mail, e-mail, and other forms of communication. Comment may be directed to the

organization’s Executive Director, [Name], via regular mail at [Complete Address], or by telephone at

[Phone Number] or by e-mail at [E-mail].

Signed:

Name

Title

Approved by (Applicant's) Board meeting on

, 20 , as witnessed by: (Name),

(Board Secretary).

Attachment H – Religious or Faith Based Organization

Submit the documentation regarding Religious our Faith Based Organization outlined in Section II.

Application Instructions.

VIII. RELIGIOUS OR FAITH BASED ORGANIZATION CERTIFICATION

On behalf of the Religious and/or Faith Based organization and all affiliates of the Applicant (hereinafter

“Applicant”), I (We) hereby certify that the Applicant is familiar with the provisions of 24 CFR §92.257,

with respect to Religious and/or Faith Based Organizations and the HOME Investment Partnerships

Program and will comply with such rules during the application process and in the event of award, for the

duration of the proposed development.

I certify that the Applicant will comply with the requirements listed below:

 Housing developed will be made available exclusively for the residential use of program

beneficiaries and will be made available to all persons regardless of religious affiliations or beliefs.

 I will not use HOME funds to support any explicitly religious activities such as worship, religious

instruction, or proselytizing.

 I will not use HOME funds for the acquisition, construction, or rehabilitation of structures to the

extent that those structures are used for explicitly religious activities.

I hereby certify that all statements I have provided in this Certification are true; that I am authorized to

sign this application, and to make these statements, on behalf of the applicant organization; and that the

organization understands that misrepresentation of any facts which lead to the improper allocation and

expenditure of public funds may result in legal action against the organization for retrieval of any such

funds and appropriate penalties.

Printed Name

Title

Date

Signature of Authorized Representative

Title

Attachment I – Relationship with For-Profit Entities

Submit the documentation regarding Relationship with For-Profit Entities outlined in Section II.

Application Instructions.

IX. SUBMISSION CHECKLIST

Item

Note

Applicant’s Initials

Overview (pgs. 3-5)

I acknowledge reading and understanding the

Overview.

PLEASE REMEMBER:

Applicants shall submit six (6) unbound copies with “ORIGINAL” signatures and submit with HOME

Program Application.

DID YOU REMEMBER TO:

Fill out, sign and return the Community Development (CHDO) Submission Checklist (pg. 30)

Fill out, sign and return the CHDO Certification Application, including attachments. Must include all

required documentation submitted for attachments found under Section II. Application

Instructions. (pg. 13-29)

Fill out, sign and return the Affidavit of Standards for Financial Management Systems. Must be

Notarized. (pg. 19-20)

Fill out and return the Affidavit of Low-Income Board Representation – Authorized Representative.

Must be Notarized. (pg. 23)

Fill out and return Board Member Information Form (pg. 24-25)

Fill out and return Formal Process for Low-Income Input. (Sample on pg. 26)

Fill out and return the Religious or Faith Based Organization Certification. (pg. 27)

10.

Submit a copy of Certificate of Good Standing from the Texas Secretary of State

I CERTIFY THAT THE INFORMATION CONTAINED IN THIS APPLICATION IS TRUE AND CORRECT AND THAT IT

CONTAINS NO FALSIFICATIONS, MISREPRESENTATIONS, INTENTIONAL OMISSIONS, OR CONCEALMENT OF

MATERIAL FACTS. I FURTHER CERTIFY THAT NO CONTRACTS HAVE BEEN AWARDED, FUNDS COMMITTED, OR

CONSTRUCTION BEGUN ON THE PROPOSED PROGRAM AND THAT NONE WILL BE DONE PRIOR TO ISSUANCE OF A

RELEASE OF FUNDS BY THE CITY OF PASADENA.

SIGNATURE OF AUTHORIZED PERSON LISTED ABOVE

DATE

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TITLE

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CITY OF PASADENA COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) (City of Pasadena, Texas)

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