If you need information 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 regulations. The requirements and alternatives outlined here do NOT apply to projects authorized 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 funded, this updated program keeps our dedication to expanding budget-friendly housing. VHIP 2.0 now offers awards for minimal brand-new construction. Additionally, it presents a 10-year forgivable loan together with the existing 5-year grants, aiming to even more incentivize property managers. This brand-new option requires renting systems at reasonable market prices without the requirement for recommendations from Coordinated Entry Organizations.
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Tabulation:

What can you do with VHIP 2.0 funding? How much financing are jobs qualified 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 make with VHIP 2.0 funding?

VHIP 2.0 provides grants or forgivable loans to:

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

Rehabilitation projects can consist of updates to fulfill housing codes, weatherization, and availability improvements, of qualified rental housing units.

How much funding are projects qualified for?

Based upon the type of job, residential or commercial property owners are qualified to receive as much as:

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

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

What are the program requirements?

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

Fair Market Rent: Participants are likewise required to sign a rental covenant consenting to charge at or below HUD Fair Market Rent (FMR) or voucher quantity for the length of the arrangement (5 or 10 years, find out more about these alternatives here). Participants will be required to send an annual recertification type to ensure they remain in compliance with the program requirements. To calculate HUD FMR for your area, take a look at our resources on Fair Market Rent.

Landlord Education: VHIP 2.0 applicants should see a Landlord-Tenant Mediation video and complete a Fair Housing Training as part of the application process. The Landlord-Tenant Mediation video is offered by the Vermont Landlord Association (Please click on this link to see). The online, self-paced Fair Housing training is supplied by CVOEO. It includes an introduction of state and federal anti-discrimination requirements, examples of illegal housing discrimination and possible charges, gain access to requirements for people with impairments, consisting of reasonable lodgings and sensible modifications, and finest practices for housing suppliers. This training will be validated through completion of a short quiz. Please click here to register. You will be asked to produce an account on the Ruzuku learning platform, then you'll have instant access to the training. If you experience any issues or have questions, please contact CVOEO at classcoord@cvoeo.org or 802-660-3455 ext. 205.

Tenant Selection: VHIP 2.0 individuals can choose their tenants. However, the tenants they choose should meet the program requirements, based on if they are enrolled in the 5- or 10-year system (click here to get more information). For residential or commercial properties enrolled in this program, the residential or commercial property owner may not need a credit score greater than 500, and individuals are limited to charging no greater than one month's rent for a deposit, despite whether it is called a down payment, a damage deposit or an animal deposit, last month's rent, and so on. Additionally, residential or commercial property owners should cover the expense of running background checks on potential renters. Residential or commercial property owners are likewise required to accept any housing coupons that are offered to pay all, or a portion of, the tenant's lease and energies. Additionally, residential or commercial property owners should accept paper applications for tenants with limited internet access.

Out-of-State Owners: Out-of-State owners are required to determine a residential or commercial property supervisor located within 50 miles of the systems to make sure a local, accountable party can manager the residential or commercial property in the absence of the residential or commercial property owner.

5-Year Grant Versus 10-Year Forgivable Loan

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

- The duration for which the residential or commercial property owner should charge at or listed below HUD Fair Market Rent for the registered units (5 v 10 years). The 5-year grant choice features extra renter choice requirements to rent to a home exiting homelessness

To find out more specifics about these 2 choices, review the sections listed below.

5-Year Grants

Any residential or commercial property, with the exception of renter inhabited units dealing with code non-compliance concerns, making an application for VHIP 2.0 can choose to get a 5-year grant. This compliance period will start as soon as the VHIP 2.0 system is put in service. This grant needs that:

The system is leased at or listed below HUD Fair Market Rent for the location for at least 5 years. That the residential or commercial property supervisor work with Coordinated Entry Lead Organizations to find suitable renters exiting homelessness for at least 5 years or with USCRI to discover refugee households to rent the system to

Participants should sign a rental covenant to this effect. This covenant will be effective for 5 years and states that for this period, the unit needs to stay a long-lasting rental with a month-to-month rental rate at or listed below HUD Fair Market Rent and that the 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 provided the grant figures out that a household leaving homelessness is not readily available to rent the system, the landlord shall rent the unit to a family with an earnings equivalent to or less than 80 percent of area median earnings. If such a family is unavailable, the residential or commercial property owner may lease the system to another household with the approval of the DHCD or HOC.

Grant to Loan Conversion: A property owner might transform a grant to a forgivable loan upon approval by DHCD and the HOC that approved the grant. When the grant is converted to a forgivable loan, the residential or commercial property owner shall get a 10% credit for loan forgiveness for each year in which the proprietor gets involved in the grant program. For instance, if the residential or commercial property owner took part in the grant program for 2 years prior to converting to a forgivable 20% of the funding will be forgiven, and the forgivable loan terms would make an application for 8 years.

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

10-Year Forgivable Loans

Any residential or commercial property using for VHIP 2.0 can opt to receive a 10-year forgivable loan. This compliance duration will begin when the VHIP 2.0 unit is placed in service. This grant needs that the unit is rented at or below HUD Fair Market Rent for the location for at least 10 years. The owner should rent the unit for ten years at or listed below FMR to be forgiven in its whole. Funds will require to be repaid to the State of Vermont for each year this requirement is not fulfilled i.e. if an owner only leases 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 extensive guide strolls residential or commercial property owners through every action of the VHIP 2.0 process, from figuring out if the program is a great suitable for your job, how to use, payment dispensation, keeping program requirements, to offering a VHIP 2.0 residential or commercial property.

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

Since there are a number of project types VHIP 2.0 supports, the Frequently Asked Questions (FAQs) are particular to the type of job getting financing. To ask questions about your project, get in touch with your regional 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 participating in VHIP 2.0 are required to charge rents at or below HUD Fair Market Rent (FMR) for the length of the agreement, depending upon whether the residential or commercial property owner picks the 5-year grant or 10-year forgivable loan option. FMRs routinely released by HUD represent the cost of renting a moderately priced dwelling system in the local housing market.

Fair Market Rent Calculator - To utilize the calculator, you need to complete the utility worksheet, which shows which energies the tenant is accountable for payment. Once the energy worksheet is complete, the calculator will reveal the optimum allowable rent based on the county the system is situated in and the number of bed rooms.

Fair Market Rent Recertification Form - Residential or commercial property owners taking part in VHIP 2.0 should submit an annual recertification form to ensure they abide by the program requirements, including FMR. While the program requirements are in effect, residential or commercial property owners will get a yearly demand to complete the recertification kind. Residential or commercial property owners are encouraged to proactively finish this type upon turnover or lease renewal.

If you require support finishing the recertification type or identifying FMR for your location, please get in touch with your regional Homeownership Center or the State Housing Division (VHIP@vermont.gov).
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More Questions?

As this program grows, the Department is working to increase accessibility and response eligibility questions. Additional details and responses to frequently asked concerns will continue to be published to this site as available. 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.