If you require details about VHIP awards approved before 2024, please describe our original VHIP page. The initial VHIP funding was sourced from State Fiscal Recovery Funds, which had different policies. The requirements and options detailed here do NOT use to projects approved before March 25, 2024.

The Vermont Housing Improvement Program (VHIP) is relaunching as VHIP 2.0!

Drawing from insights gained over the previous 3 years and more than 500 units moneyed, this updated program maintains our dedication to broadening budget friendly housing. VHIP 2.0 now offers awards for limited new building and construction. Additionally, it presents a 10-year forgivable loan together with the existing 5-year grants, intending to further incentivize landlords. This brand-new option requires renting units at fair market costs without the requirement for recommendations from Coordinated Entry Organizations.

Table of Contents:

What can you finish with VHIP 2.0 funding?
Just how much financing are tasks eligible for?
What are the program requirements?
5-Year Grant Versus 10-Year Forgivable Loan
VHIP 2.0 Documents Resource Guide for Residential Or Commercial Property Owners
Fair Market Rent (Recertification).
FAQ's.
Recertification.
VHIP Recipient List

Resource Guide for Residential Or Commercial Property Owners Program Stats

What can you finish with VHIP 2.0 funding?

VHIP 2.0 uses grants or forgivable loans to:

Rehabilitate existing vacant systems.
Rehabilitate structural components effecting multiple units, such as the roofing system of a multi-family residential or commercial property.
Develop a brand-new Accessory Dwelling Unit (ADU) on an owner-occupied residential or commercial property.
Create new units within an existing structure.
Create a new structure with five or fewer residential systems.
Complete repairs necessary for code compliance in occupied units (just eligible for 10 year forgivable loan)

Rehabilitation tasks can include updates to meet housing codes, weatherization, and accessibility improvements, of eligible rental housing units.

How much financing are jobs eligible for?

Based on the type of project, residential or commercial property owners are qualified to get approximately:

$ 30,000 per unit for rehab of 0-2-bedroom systems.
$ 50,000 per system for rehab of 3+ bed room units, structural aspects impacting multiple units *, brand-new system production, or development of Accessory Dwelling Units (ADUs)

* Structural repair grant or loan awards are offered for an optimum of $50,000 per award made for a residential or commercial property. For each structural award made, a rent-ready unit in the very same structure should be encumbered with a VHIP Covenant or FLA/Promissory Note. Contact your HOC or DHCD for more details and to discuss your task if you are considering structural repair work that affect more than one system.

What are the program requirements?

Program Match: All participants are needed to provide a 20% match of the award, the choice for an in-kind match for unbilled services or owned materials. For instance, an individual who gets an award of $50,000 will be needed to supply a $10,000 match.

Fair Market Rent: Participants are also required to sign a rental covenant concurring to charge at or listed below HUD Fair Market Rent (FMR) or voucher quantity for the length of the agreement (5 or 10 years, find out more about these choices here). Participants will be required to submit a yearly recertification kind to ensure they are in compliance with the program requirements. To compute HUD FMR for your area, have a look at our resources on Fair Market Rent.

Landlord Education: VHIP 2.0 applicants need to see a Landlord-Tenant Mediation video and finish a Fair Housing Training as part of the application procedure. The Landlord-Tenant Mediation video is offered by the Vermont Landlord Association (Please click on this link to view). The online, self-paced Fair Housing training is offered by CVOEO. It consists of an overview of state and federal anti-discrimination requirements, examples of unlawful housing discrimination and potential charges, access requirements for individuals with disabilities, including reasonable accommodations and sensible adjustments, and best practices for housing service providers. This training will be validated through completion of a brief quiz. Please click on this link to register. You will be asked to develop an account on the Ruzuku finding out platform, then you'll have immediate access to the training. If you experience any problems or have questions, please contact CVOEO at [email protected] or 802-660-3455 ext. 205.

Tenant Selection: VHIP 2.0 participants can pick their tenants. However, the renters they choose must fulfill the program requirements, based upon if they are enrolled in the 5- or 10-year system (click on this link to find out more). For residential or commercial properties enrolled in this program, the residential or commercial property owner may not require a credit rating greater than 500, and participants are limited to charging no more than one month's rent for a deposit, regardless of whether it is called a security deposit, a damage deposit or an animal deposit, last month's rent, etc. Additionally, residential or commercial property owners need to cover the expense of running background checks on possible renters. Residential or commercial property owners are also needed to accept any housing vouchers that are readily available to pay all, or a part of, the occupant's lease and energies. Additionally, residential or commercial property owners must accept paper applications for occupants with limited internet access.

Out-of-State Owners: Out-of-State owners are required to determine a residential or commercial property manager situated within 50 miles of the units to guarantee a regional, accountable party can manager the residential or commercial property in the lack of the residential or commercial property owner.

5-Year Grant Versus 10-Year Forgivable Loan

The primary distinction between the 5-year grant and the 10-year forgivable loans are:

- The period for which the residential or commercial property owner need to charge at or listed below HUD Fair Market Rent for the enrolled units (5 v ten years).
The 5-year grant option comes with additional renter selection requirements to lease to a family leaving homelessness

To find out more specifics about these 2 alternatives, examine the areas below.

5-Year Grants

Any residential or commercial property, with the exception of renter inhabited units attending to code non-compliance concerns, requesting VHIP 2.0 can decide to get a 5-year grant. This compliance duration will begin as soon as the VHIP 2.0 system is put in service. This grant needs that:

The system is leased at or below HUD Fair Market Rent for the location for a minimum of 5 years.
That the residential or commercial property supervisor work with Coordinated Entry Lead Organizations to discover ideal occupants leaving homelessness for at least 5 years or with USCRI to find refugee families to rent the system to

Participants must sign a rental covenant to this result. This covenant will work for 5 years and states that for this period, the unit should remain a long-term rental with a regular monthly rental rate at or below HUD Fair Market Rent which the Department of Housing and Community Development must approve the sale of the residential or commercial property.

Tenant Selection: If the Department of Housing and Community Development (DHCD) or the Homeownership Center (HOC) that issued the grant identifies that a household leaving homelessness is not readily available to rent the system, the landlord shall rent the unit to a home with an income equal to or less than 80 percent of location average income. If such a household is not available, the residential or commercial property owner may rent the system to another household with the approval of the DHCD or HOC.

Grant to Loan Conversion: A property owner may transform a grant to a forgivable loan upon approval by DHCD and the HOC that authorized the grant. When the grant is converted to a forgivable loan, the residential or commercial property owner shall receive a 10% credit for loan forgiveness for each year in which the proprietor takes part in the grant program. For instance, if the residential or commercial property owner took part in the grant program for 2 years prior to transforming to a forgivable 20% of the financing will be forgiven, and the forgivable loan terms would obtain 8 years.

Note. This only uses to tasks that got financing through VHIP 2.0. The preliminary VHIP funding was sourced from State Fiscal Recovery Funds, which had different guidelines. The requirements and alternatives laid out here do NOT apply to jobs approved before March 25, 2024, and those grants can NOT be converted to forgivable loans.

10-Year Forgivable Loans

Any residential or commercial property looking for VHIP 2.0 can opt to receive a 10-year forgivable loan. This compliance duration will begin once the VHIP 2.0 system is placed in service. This grant requires that the system is leased at or below HUD Fair Market Rent for the location for a minimum of ten years. The owner should rent the system for ten years at or below FMR to be forgiven in its whole. Funds will require to be paid back to the State of Vermont for every single year this requirement is not fulfilled i.e. if an owner just rents the unit for 7 years at or below FMR, 3 years (30%) of financing will not be forgiven.

VHIP Documents

General Documents

VHIP 2.0 Resource Guide for Residential Or Commercial Property Owners - This in-depth guide strolls residential or commercial property owners through every step of the VHIP 2.0 process, from determining if the program is a good suitable for your job, how to apply, payment disbursement, maintaining program requirements, to offering a VHIP 2.0 residential or commercial property.

VHIP 2.0 Recipient List - The identity of VHIP receivers and the quantity of a grant or forgivable loan are public records and are released quarterly on this site.

Since there are numerous project types VHIP 2.0 supports, the Frequently Asked Questions (FAQs) are specific to the type of job making an application for funding. To ask concerns about your project, connect with your local homeownership center.

Rehabilitation or Conversion of Unoccupied Units
Accessory Dwelling Units
New Unit Creation (within a brand-new structure).
Rehabilitation of Occupied Units

Fair Market Rent & Recertification

All residential or commercial property owners taking part in VHIP 2.0 are required to charge leas at or listed below HUD Fair Market Rent (FMR) for the length of the arrangement, depending on whether the residential or commercial property owner chooses the 5-year grant or 10-year forgivable loan alternative. FMRs regularly published by HUD represent the expense of leasing a reasonably priced dwelling system in the local housing market.

Fair Market Rent Calculator - To use the calculator, you must complete the energy worksheet, which indicates which utilities the occupant is accountable for payment. Once the energy worksheet is total, the calculator will show the optimum allowable rent based upon the county the unit is situated in and the variety of bedrooms.

Fair Market Rent Recertification Form - Residential or commercial property owners participating in VHIP 2.0 must submit an annual recertification kind to ensure they abide by the program requirements, including FMR. While the program requirements are in effect, residential or commercial property owners will receive an annual request to complete the recertification type. Residential or commercial property owners are motivated to proactively finish this kind upon turnover or lease renewal.

If you need help completing the recertification type or determining FMR for your area, please get in touch with your local Homeownership Center or the State Housing Division ([email protected]).

More Questions?

As this program develops, the Department is working to increase ease of access and response eligibility questions. Additional info and responses to often asked concerns will continue to be published to this site as offered. Click on this link to join our e-mail list and keep up to date on Vermont Housing Improvement Program 2.0 updates and news.