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ELIGIBLE USES OF CHDO FUNDS The 15% CHDO set -aside is eligible to be used for new construction or rehabilitation of affordable rental housing projects and affordable homeownership units. The selected and qualified CHDOS will also have a demonstrated history of working cooperatively with surrounding neighborhoods in all phases of project development. Both nonprofit developers and organizations are eligible to apply. CHDO ROLES In July 2013, the U.S. Department of Housing and Urban Development (HUD) issued a Final Rule amending the HOME Program regulations, known as the 2013 HOME Final Rule. The amended regulations have redefined the roles of CHDOs as an Owner, Sponsor or Developer. The 2013 HOME Final Rule defines the CHDO roles as the following: - Owner of Rental Housing - Developer of housing for homeownership - Sponsor of Rental Housing - Sponsor of housing for homeownership - Developer of Rental Housing CHDO CAPACITY REQUIREMENTS The 2013 HOME Final Rule emphasizes that the CHDO must have paid key staff that have housing experience appropriate to the role the CHDO undertakes. USE OF CONSULTANTS TO DEMONSTRATE DEVELOPMENT CAPACITY (New CHDOs Only) The CHDO may hire consultants for the first year to demonstrate development capacity provided that the following conditions are met: 1) The CHDO and the consultant must enter into a written agreement which specifies the tasks to be performed by the consultant; 2) The consultant must demonstrate sufficient experience to perform the assigned tasks; 3) The written agreement must include a provision that the consultant will provide training to CHDO staff; and 4) A detailed training plan must be submitted with the certification application. The plan must specifically state the scope of the training and a timeline for completion of the training. IV. HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) FUNDING The City of Santa Ana (City) has adopted a Consolidated Five -Year Plan (Plan) that governs its expenditure of formula grant funds received from the U.S. Department of Housing and Urban Development (HUD). The Plan identifies the development of affordable rental housing and homeownership as a high priority. It further stipulates that HOME Investment Partnerships Program funds (HOME) may appropriately be used to meet these goals. City of Santa Ana Community Development Agency Request for Qualifications for Community Housing Development Organizations (CHDO) 19ai -113