Community Housing Development Organization (CHDO) Program
The Housing and Community Development Department (HCD) is dedicated to enhancing and expanding the availability of affordable homes in Houston's neighborhoods. We aim to provide opportunities for low to moderate-income households whose income does not exceed 80% of the Area Median Income (AMI) to become homeowners. The Community Housing Development Organizations (CHDO) Single-Family Home Development Program serves several vital purposes.
- It aims to develop and promote high-quality, sustainable Energy Star-certified affordable single-family homes.
- It strives to maximize available resources by collaborating with community developers to offer a broader range of affordable housing options.
- The program provides homebuyer assistance through CHDOs and extends homeownership opportunities to families earning less than 80% of the Area Median Income (AMI).
Information for Homebuyers
If you are a potential homebuyer looking to purchase, there are some early steps you can take:
- Be a U.S. citizen or permanent resident. (This includes the co-applicant, and spouse)
- Take a first-time homebuyer education course (even if it isn’t your first time buying a home). You can find a qualifying class online .
- Qualify for a fixed-rate (not adjustable-rate or seller-financed) mortgage. We ask for a pre-approval letter from a lender.
- Make sure you meet other qualifications:
- Household income is less than 80% of Area Median Income (Español) .
- Based on the subsidy required, the affordability period can range from 5-15 years
The City of Houston only funds home development and does not sell the homes directly. To start your home process, please contact the Realtor associated with the specific CHDO you would like to purchase a home through.
Key Documents and Resources
Currently Certified CHDOs Frequently Asked QuestionsInformation for Developers
The Community Housing Development Organization (CHDO) Program accepts proposals from non-profit organizations that contribute new and innovative ideas consistent with the City of Houston Housing and Community Development Department’s mission. The non-profit organization must be an existing certified CHDO or seek qualification as a certified CHDO when submitting a proposal.
Now Accepting Proposals
If your firm has a unique idea for which proposal submission may be the right approach, please submit the information electronically to singlefamilychdo@houstontx.gov.
Submissions must include:
- Name of the applicant
- HCDD program area
- Date of submission
- Description of project
- Amount of financing requested
- Site location (if applicable)
Unsolicited proposals will be disclosed in the form of an application log on HCD’s website.
View Unsolicited Proposals Compliance Requirements Key DocumentsCurrent Certified CHDOs:
Community Housing Development Organizations (CHDOs) are developers who complete new projects using funding from the federally funded HOME program. In comparison to other contractors, CHDOs are community-based and design homes with the interest of pre-determined homeowners in mind.
In line with our commitment to sustainability and resilience, we encourage home designs incorporating energy efficiency and innovative approaches to long-term sustainability and mitigation.
The designs of each home will address:
- Elevated foundations
- Energy STAR-certified
- Fortified roof structures
- Improved windows and doors
- A strong continuous load path connection
- Embrace sustainable landscape design principles
A Caring Safe Place
Reverend Stanley E. Phill, Executive Director
Phone: 713-225-5441
Located in Fifth Ward, A Caring Safe Place was founded in 1997. Their work focuses on crisis intervention and bringing services and programs to HIV-affected individuals. A Caring Safe Place offers immediate services and manages transitional and permanent housing.
Contact Information
Realtor
Kimberly Duckett - NextGen Real Estate PropertiesPhone: 936-648-7450
Email: realtor@kduckett.com
General Contractor/Builder
Mayberry HomesContact Name: Sharone Mayberry
Change Happens CDC
Leslie Smith, CEO and Founder
Phone: 713-374-1110
Change Happens CDC addresses the need for affordable housing by renovating and constructing single-family and multi-family homes for people in areas that are being gentrified. Hurricanes, flooding, and the abandonment of these houses make the homes uninhabitable, and now the COVID pandemic has made finding a home at an affordable price nearly impossible due to the booming housing market, which has led to increased property valuations and rising property taxes. The issues are compounded by dilapidated houses that become drug dens. Change Happens CDC is at the forefront of providing low-income housing to homebuyers and renters who would otherwise be unable to afford it and allowing residents who have lived in the area most of their lives to remain in the neighborhood.
Teamwork makes the dream work!
Contact Information
Realtor
LaTisha Grant with TAS Realty GroupPhone: 713-929-3411
Email: latisha@tasrealtygroup.com
General Contractor/Builder
Contact Name: Tim RoseEmail: tim@theroseconstructiongroup.com https://theroseconstructiongroup.com
Heart of Houston CDC, Inc.
Aileen Mayberry, President/CEO
Phone: 832-978-3377
Heart of Houston CDC was formed in 2020 as a nonprofit dedicated to building stronger sustainable communities with a focus on affordable housing for low- to moderate-income families/individuals without regard to race, color, religion, gender (sex), disability (handicap), status, national origin, sexual orientation or gender identity of any prospective client, customer, or residents of any community.
Contact Information
Realtor
Ashley Mayberry with Mayberry BlackPhone: 713-842-7535
Email: ashley@heartofhoustoncdc.org
General Contractor/Builder
Benny Rodriguez Homes, Inc.Phone: 281-748-1513
Email: Bennyrodriguez@gmail.com
Interested in becoming a CHDO?
Get started with a training course offered by the U.S. Department of Housing and Urban Development (HUD). To learn more, please call us at 832-394-6200 or refer to other resources published by HUD .
Photo Gallery
About the CHDO Program
Key Facts
HCD aims to provide newly constructed, affordable single-family homes for Low-Moderate Income Homebuyers.
Properties are located in Acres Home, Settegast, Sunnyside, Fifth Ward, and Third Ward.
Household income must be below 80% of Area Median Income (Español) .
Frequently Asked Questions
Q: How do I buy a home? - Answer
A: If you see a CHDO home you are interested in, please contact the CHDO Developer directly (see developer locations for contact information).
Q: Is there an affordability period or secondary lien on the home? - Answer
A: You must reside in the home as your primary residence. Depending on the amount of subsidy you receive, the affordability period fluctuates (see chart below). There will be a lien placed on the property to secure the CHDO Loan..
| Amount of Assistance | Length of Lien | Annual Reduction Rate* |
|---|---|---|
| Less than $20,000 | 2.5 Years | 40% |
| $20,001 - $40,000 | 5 Years | 20% |
| $40,001 - $50,000 | 10 Years | 10% |
| $50,001 and above | 15 Years | 6.67% |
Q: How much subsidy can I recieve? - Answer
A: Subsidy is based on financial need.
Q: Is there a maximum amount of liquid assets I can have? - Answer
A: You must have less than $30,000 in liquid assets at the time of eligibility determination and at closing.
Q: Do I have to be a U.S. Citizen? - Answer
A: The Applicant, Co-Applicant, and Spouse must be U.S. Citizens or a permanent resident.
Q: Can I purchase a CHDO home if I have previously owned a home? - Answer
A: You must be a first-time homebuyer to participate in this program.
Q: How long does the process take? - Answer
A: The eligibility process can take up to six weeks, provided there are no external delays. Please note that the six weeks are measured from the time the applicant submits a complete application. We cannot begin work on an incomplete application.
Q: What if I must sell my home or move out before my affordability period is over? - Answer
A: In these cases, the City will collect a portion of the investment made, proportional to the amount of time remaining in the residency period. To begin this process, please submit this Payoff Statement Request form to HCDDLoanServicing@houstontx.gov.
Q: Are there any fees associated with the program? - Answer
A: The buyer must contribute a minimum of $1,000 towards the transaction, which could be the inspection, down payment, appraisal, etc., but no fees are paid to the City of Houston. If someone tells you that there are participation fees, please report them for fraud .
Q: Are credit reports required for all household adults? - Answer
A: No. All household income must be reported, but only the loan applicant’s credit is reviewed during underwriting.
Q: Is there a credit score requirement? - Answer
A: No, the Homebuyer Assistance Program does not consider credit score.
Q: What can the assistance provided be used for? - Answer
A: The assistance CAN be used for:
- Down-payment
- Pre-paid items (homeowner’s insurance, mortgage interest, property taxes, etc.)
- Subsidize mortgage interest rate
- Reduce principal amount of first mortgage payment
- Reasonable closing costs
The assistance CANNOT be used for:
- Realtor’s commissions
Q: What if I need to refinance my home? - Answer
A: If your mortgage information changes, you will need to share the new information with our department. Please submit this Subordination Agreement Request to HCDDLoanServicing@houstontx.gov.
Q: Does this program follow FHA guidelines? - Answer
A: No. The Single Family Eligibility sets and follows its own internal guidelines. Our underwriting includes calculating debt-to-income ratio, ensuring that there are no outstanding collections for government services or utilities, and verifying that there are no defaulted student loans.
Q: Is there a mandatory training that lenders and realtors must take to participate in the program? - Answer
A: No. Any lenders and realtors may participate. However, we do encourage realtors and lenders to view our workshop replay video on YouTube for additional information and to gain knowledge of the program.
Q: Who is the loan servicer? - Answer
A: HCD’s programs are serviced internally with our Loan Servicing Division. The loan is not amortized; however, there is a 6% fee applied to the defaulted loan balance.
Q: Can the program funds be used to pay realtor commissions? - Answer
A: No, the funds are strictly for down payment, closing costs, pre-paid items, and principal reduction. Should the buyer choose to pay a realtor commission, they will have to do so from their personal funds.
Q: Are there formal guidelines for the CHDO Program? - Answer
A: Yes, download the Program Guidelines here .
Q: What are the Federal Regulations required to work with the HOME Program and become a CHDO? - Answer
A: The work of CHDOs is set by the U.S. Department of Housing & Urban Development (HUD). You can find information on these regulations in the Electronic Code of Federal Regulations (Part 92: Subpart G)
Q: Can I get tax-exempt status for my organization? - Answer
A: Yes. Visit the U.S. Internal Revenue Service to find more information.
Q: Do I need to be recertified as a CHDO? - Answer
A: Yes. Community Housing Development Organizations must be recertified every two years. Also, developers are only designated as CHDOs while working on projects funded by HOME funds. For recertification documents, please contact us directly.
Q: Is there an affordability period? - Answer
| Compliance Periods for Homeownership HOME Direct Subsidy Provided | Minimum Period of Affordability |
|---|---|
| Under $15,000 | 5 Years |
| $15,000 - $40,000 | 10 Years |
| $40,000 or above | 15 Years |
