If you require details about VHIP awards granted before 2024, please refer to our initial VHIP page. The preliminary VHIP financing was sourced from State Fiscal Recovery Funds, which had various policies. The requirements and choices laid out here do NOT use to tasks authorized before March 25, 2024.

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

Drawing from insights acquired over the previous 3 years and more than 500 units funded, this updated program keeps our commitment to expanding economical housing. VHIP 2.0 now provides awards for restricted new building. Additionally, it presents a 10-year forgivable loan alongside the existing 5-year grants, intending to further incentivize property owners. This new alternative requires renting systems at fair market value without the need for referrals from Coordinated Entry Organizations.

Table of Contents:

What can you do with VHIP 2.0 funding? Just how much financing are tasks 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 finish with VHIP 2.0 funding?

VHIP 2.0 uses grants or forgivable loans to:

Rehabilitate existing uninhabited units. Rehabilitate structural aspects effecting several 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 brand-new units within an existing structure. Create a brand-new structure with five or fewer property units. Complete repair work essential for code compliance in occupied systems (just qualified for ten years forgivable loan)

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

Just how much funding are jobs eligible for?

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

$ 30,000 per unit for rehabilitation of 0-2-bedroom units. $ 50,000 per unit for rehab of 3+ bed room units, structural components affecting several units , brand-new unit development, or production of Accessory Dwelling Units (ADUs)

Structural repair grant or loan awards are readily available 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 overloaded 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 repairs that impact more than one system.

What are the program requirements?

Program Match: All individuals are needed to provide a 20% match of the award, the alternative for an in-kind match for unbilled services or owned products. For example, a participant who receives 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 agreeing to charge at or below HUD Fair Market Rent (FMR) or coupon quantity for the length of the contract (5 or 10 years, learn more about these choices here). Participants will be required to submit an annual recertification kind to guarantee they are in compliance with the program requirements. To compute HUD FMR for your location, have a look at our resources on Fair Market Rent.

Landlord Education: VHIP 2.0 applicants should view a Landlord-Tenant Mediation video and finish 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 view). The online, self-paced Fair Housing training is offered by CVOEO. It includes an introduction of state and requirements, examples of prohibited housing discrimination and possible penalties, access requirements for individuals with specials needs, consisting of reasonable accommodations and reasonable modifications, and best practices for housing companies. This training will be confirmed through conclusion of a short quiz. Please click here to register. You will be asked to create an account on the Ruzuku learning platform, then you'll have immediate access to the training. If you experience any issues or have concerns, please contact CVOEO at classcoord@cvoeo.org or 802-660-3455 ext. 205.

Tenant Selection: VHIP 2.0 participants deserve to pick their tenants. However, the tenants they choose must satisfy the program requirements, based on if they are enrolled in the 5- or 10-year tract (click here for more information). For residential or commercial properties registered in this program, the residential or commercial property owner might not need a credit history higher than 500, and participants are limited to charging no more than one month's lease for a deposit, no matter whether it is called a down payment, a damage deposit or a pet deposit, last month's lease, etc. Additionally, residential or commercial property owners should cover the expense of running background look at possible tenants. Residential or commercial property owners are likewise required to accept any housing coupons that are available to pay all, or a part of, the occupant's lease and energies. Additionally, residential or commercial property owners should accept paper applications for renters with restricted web gain access to.

Out-of-State Owners: Out-of-State owners are needed to determine a residential or commercial property manager located within 50 miles of the units to make sure a regional, 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 primary distinction in 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 below HUD Fair Market Rent for the registered systems (5 v 10 years). The 5-year grant option features additional tenant selection requirements to rent to a family leaving homelessness

To read more specifics about these 2 choices, evaluate the sections below.

5-Year Grants

Any residential or commercial property, with the exception of renter inhabited systems resolving code non-compliance problems, looking for VHIP 2.0 can choose to get a 5-year grant. This compliance duration will start as soon as the VHIP 2.0 system is put in service. This grant requires that:

The system is rented 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 find suitable occupants exiting homelessness for at least 5 years or with USCRI to discover refugee households to rent the system to

Participants must sign a rental covenant to this effect. This covenant will be effective for 5 years and states that for this duration, the system must stay a long-lasting rental with a month-to-month rental rate at or below HUD Fair Market Rent which the Department of Housing and Community Development must authorize 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 family exiting homelessness is not available to lease the system, the property owner will rent the unit to a family with an earnings equal to or less than 80 percent of location median income. If such a home is not available, the residential or commercial property owner may lease the system to another home with the approval of the DHCD or HOC.

Grant to Loan Conversion: A property manager may 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 will get a 10% credit for loan forgiveness for each year in which the property manager takes part in the grant program. For example, 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 financing will be forgiven, and the forgivable loan terms would request 8 years.

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

10-Year Forgivable Loans

Any residential or commercial property requesting VHIP 2.0 can opt to get a 10-year forgivable loan. This compliance duration will start when the VHIP 2.0 system is placed in service. This grant needs that the unit is rented at or listed below HUD Fair Market Rent for the location for at least ten years. The owner needs to rent the unit for ten years at or below FMR to be forgiven in its whole. Funds will need to be paid back to the State of Vermont for every year this requirement is not fulfilled i.e. if an owner just leases the system 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 walks residential or commercial property owners through every action of the VHIP 2.0 process, from determining if the program is a good fit for your project, how to use, payment disbursement, keeping program requirements, to selling a VHIP 2.0 residential or commercial property.

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

Since there are a number of project types VHIP 2.0 assistances, the Frequently Asked Questions (FAQs) specify to the kind of task requesting 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 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 rents at or below HUD Fair Market Rent (FMR) for the length of the arrangement, depending upon whether the residential or commercial property owner selects the 5-year grant or 10-year forgivable loan alternative. FMRs regularly released by HUD represent the cost of renting a reasonably priced house unit in the regional housing market.

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

Fair Market Rent Recertification Form - Residential or commercial property owners taking part in VHIP 2.0 needs to send a yearly recertification type to guarantee they adhere to the program requirements, including FMR. While the program requirements are in result, residential or commercial property owners will receive a yearly demand to complete the recertification form. Residential or commercial property owners are encouraged to proactively finish this type upon turnover or lease renewal.

If you require assistance completing the recertification type or determining FMR for your location, please connect with your local Homeownership Center or the State Housing Division (VHIP@vermont.gov).

More Questions?

As this program develops, the Department is working to increase accessibility and response eligibility concerns. Additional details and answers to regularly asked questions will continue to be published to this website as available. Click here to join our email list and keep up to date on Vermont Housing Improvement Program 2.0 updates and news.