Rule 6-4-7.3 - Requirements There are three specific requirements related to the organization's board, which must be evidenced in the organization's by-laws, charter, or articles of incorporation. These are:
A. Low Income Representation. At least Ms of the organization's board must be representatives of a low-income community served by the CHDO. The CHDO is required to certify the status of low-income representatives. There are three (3) methods to meet the HOME requirement that stipulates Ms of the organization's board be representatives of a low-income community serviced by the CHDO. If a potential board member fits one of the following descriptions, then he/she count towards fulfilling this requirement: (i). The person lives in a low-income neighborhood where 51% or more of the residents are low-income. This resident does not have to be low-income. In order to qualify under this criteria, the board member must live in a low-income neighborhood where 51% or more of the residents are low-income. The board member does not have to be low-income. Neighborhood means a geographic location designated in comprehensive plans, ordinances, or other local documents as a neighborhood, village, or similar geographical designation that is within the boundary but does not encompass the entire area of a unit of general local government; except that if the unit of general local government has a population under 25,000, the neighborhood may, but need not encompass the entire area of the unit of a general local government,(ii). The person is a low-income resident of the community. In order to qualify under this criteria, the board member must be a low-income resident of a community that the CDHO is certified to serve. Low-income is defined as 80% or less of area median family income.(iii). The person was elected by a low-income neighborhood organization to serve on the CHDO board. The organization must be composed primarily of residents of the low-income neighborhood and its primary purpose must be to serve the interests of the neighborhood residents. Such organizations might include block groups, neighborhood associations, and neighborhood watch groups. In order to qualify under this criteria, the board member must be elected by a low-income neighborhood organization to serve the CHDO Board. The group must be a neighborhood organization and it may not be the CHDO itself. If the board member is qualifying under this criterion, a copy of the signed resolution from the neighborhood organization naming the individual as their representative on the CHDO is required.B. Public Sector Limitations. No more than Ms of the organization's board may be representatives of the public sector. States or local governments who charter CHDOs may not appoint more than Ms of the board, and the board members appointed by the state or local government may not appoint the remaining % of the board members. If a person qualifies as a low-income person and a public official, their role as a public sector representative supersedes their residency or income status. Therefore, the official counts toward the Ms public sector limitation.C. For Profit Limitations. If a CHDO is sponsored by a for-profit entity, the for-profit may not appoint more than Ms of the board. The board members appointed by the for-profit may not appoint the remaining % of the board members.42 USCA § 12701 et seq. ; Pub. L. 101 - 625, title I et seq. ; 24 CFR 92