CHAAP

About the Program

The LHC offers the CHDO Annual Awards Program (CHAAP) for awarding funds for CHDO set-aside activities and Operating Cost Assistance. Under this program, the LHC will reserve 25% (but not less than $2,000,000) of its HOME allocation for use in funding eligible projects proposed by state certified CHDOs on an annual basis.

Program Overview

Homeownership development funds may be used to pay eligible costs associated with the
development of single family homeownership units. The units may be either new construction or
acquisition and rehabilitation of existing vacant units. 

The value of the homes produced (appraised value after rehabilitation or new construction) cannot exceed HOME/Housing Trust Fund Sale Price Limit for the year in which the project is originally funded. The homes produced must be sold to an eligible buyer through a fee simple sale within nine months of completion of the construction.

Rental development funds may be used to pay eligible costs associated with the development of permanent multifamily housing. The units may be either new construction or involve acquisition with rehabilitation or reconstruction. The project can have up to four units. Units developed with LHC assistance must meet the following affordability requirements:

1. Rent for assisted units must not exceed 30% of the adjusted income of a family whose annual income equals or is less than 65% of the area median income as determined by HUD, adjusted by bedroom size. HUD provides annual HOME rent limits that include average occupancy per bedroom and adjusted income assumptions. For the purposes of the CHAAP Program, HOME rent limits and requirements will be used for all HOME Funds-assisted units.
2. In affordable rental housing developments with five or more assisted units, 25% of the assisted units must be occupied by very low-income families and meet one of the following rent requirements:
   1. The rent does not exceed 30% of the annual income of a family whose income equals 50% of the median income for the area, as determined by HUD, with adjustments for smaller and larger families.
   2. The rent does not exceed 30% of the family’s adjusted income. If the unit receives federal or state project-based rental subsidy and the very low-income family pays as a contribution toward rent not more than 30% of the family’s adjusted income, then the maximum rent (i.e., tenant contribution plus project-based rental subsidy) is the rent allowable under the federal or state project-based rental subsidy program.