If you need info about VHIP awards granted before 2024, please refer to our original VHIP page. The initial VHIP financing was sourced from State Fiscal Recovery Funds, which had various guidelines. The requirements and alternatives laid out here do NOT use to tasks approved before March 25, 2024.

The Vermont Housing Improvement Program (VHIP) is relaunching as VHIP 2.0!
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Drawing from insights gained over the previous 3 years and more than 500 systems moneyed, this updated program keeps our dedication to expanding economical housing. VHIP 2.0 now uses awards for minimal new building and construction. Additionally, it introduces a 10-year forgivable loan alongside the existing 5-year grants, intending to further incentivize landlords. This new choice requires leasing systems at fair market costs without the need for referrals from Coordinated Entry Organizations.

Table of Contents:

What can you make 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 financing?

VHIP 2.0 offers grants or forgivable loans to:

Rehabilitate existing vacant units. Rehabilitate structural aspects effecting multiple systems, such as the roofing 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 less residential systems. Complete repairs needed for code compliance in occupied systems (just eligible for ten years forgivable loan)

Rehabilitation jobs can include updates to satisfy housing codes, weatherization, and availability enhancements, of qualified rental .

Just how much funding are tasks eligible for?

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

$ 30,000 per unit for rehab of 0-2-bedroom systems. $ 50,000 per unit for rehabilitation of 3+ bedroom systems, structural aspects impacting multiple units , 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 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 information and to discuss your project if you are thinking about structural repair work 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 materials. For example, an individual who receives an award of $50,000 will be required to supply a $10,000 match.

Fair Market Rent: Participants are likewise needed to sign a rental covenant accepting charge at or below HUD Fair Market Rent (FMR) or coupon quantity for the length of the agreement (5 or ten years, learn more about these options here). Participants will be needed to send a yearly recertification type to ensure they remain in compliance with the program requirements. To calculate HUD FMR for your area, examine out our resources on Fair Market Rent.

Landlord Education: VHIP 2.0 candidates must watch a Landlord-Tenant Mediation video and complete a Fair Housing Training as part of the application process. The Landlord-Tenant Mediation video is provided by the Vermont Landlord Association (Please click here to view). The online, self-paced Fair Housing training is supplied by CVOEO. It consists of a summary of state and federal anti-discrimination requirements, examples of unlawful housing discrimination and potential penalties, gain access to requirements for people with impairments, consisting of reasonable accommodations and reasonable modifications, and finest practices for housing service providers. This training will be validated through conclusion of a brief quiz. Please click on this link to register. You will be asked to develop an account on the Ruzuku discovering platform, then you'll have immediate access to the training. If you experience any problems or have questions, please contact CVOEO at classcoord@cvoeo.org or 802-660-3455 ext. 205.

Tenant Selection: VHIP 2.0 participants have the right to select their occupants. However, the tenants they pick need to meet the program requirements, based on if they are enrolled in the 5- or 10-year system (click here to find out more). For residential or commercial properties registered in this program, the residential or commercial property owner may not need a credit history greater than 500, and individuals are restricted to charging no greater than one month's lease for a deposit, regardless of whether it is called a down payment, a damage deposit or a family pet deposit, last month's rent, and so on. Additionally, residential or commercial property owners must cover the expense of running background look at prospective renters. Residential or commercial property owners are likewise required to accept any housing vouchers that are available to pay all, or a portion of, the tenant's rent and utilities. Additionally, residential or commercial property owners must accept paper applications for occupants with minimal web access.

Out-of-State Owners: Out-of-State owners are required to identify a residential or commercial property supervisor located within 50 miles of the units to make sure a regional, responsible celebration can supervisor the residential or commercial property in the lack of the residential or commercial property owner.

5-Year Grant Versus 10-Year Forgivable Loan

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

- The duration for which the residential or commercial property owner must charge at or below HUD Fair Market Rent for the registered units (5 v ten years). The 5-year grant choice includes extra renter selection requirements to rent to a household exiting homelessness

To get more information specifics about these two choices, review the sections below.

5-Year Grants

Any residential or commercial property, with the exception of renter occupied systems resolving code non-compliance problems, looking for VHIP 2.0 can choose to get a 5-year grant. This compliance duration will start when the VHIP 2.0 unit is placed in service. This grant needs that:

The system is rented at or listed below HUD Fair Market Rent for the area for a minimum of 5 years. That the residential or commercial property supervisor deal with Coordinated Entry Lead Organizations to find ideal renters leaving homelessness for at least 5 years or with USCRI to discover refugee families to lease the system to

Participants must sign a rental covenant to this result. This covenant will be reliable for 5 years and states that for this duration, the unit should remain a long-lasting rental with a regular monthly rental rate at or listed below HUD Fair Market Rent and that the Department of Housing and Community Development need to 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 determines that a family leaving homelessness is not available to rent the unit, the property manager shall lease the unit to a household with an earnings equal to or less than 80 percent of area mean earnings. If such a family is not available, the residential or commercial property owner may lease the system to another family with the approval of the DHCD or HOC.

Grant to Loan Conversion: A landlord might convert a grant to a forgivable loan upon approval by DHCD and the HOC that authorized the grant. When the grant is transformed to a forgivable loan, the residential or commercial property owner shall get a 10% credit for loan forgiveness for each year in which the property manager 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 converting to a forgivable 20% of the funding will be forgiven, and the forgivable loan terms would obtain 8 years.

Note. This only applies 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 options detailed here do NOT apply to projects approved before March 25, 2024, and those grants can NOT be converted to forgivable loans.

10-Year Forgivable Loans

Any residential or commercial property making an application for VHIP 2.0 can decide to receive a 10-year forgivable loan. This compliance period will start once the VHIP 2.0 unit is put in service. This grant needs that the unit is rented at or listed below HUD Fair Market Rent for the area for at least ten years. The owner should lease the unit for ten years at or 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 met i.e. if an owner only leases the system for 7 years at or listed below FMR, 3 years (30%) of funding 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 procedure, from determining if the program is a good fit for your task, how to use, payment disbursement, maintaining program requirements, to selling 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 site.

Since there are numerous job types VHIP 2.0 assistances, the Frequently Asked Questions (FAQs) specify to the type of job looking for financing. To ask concerns about your project, get in touch 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 rents at or below HUD Fair Market Rent (FMR) for the length of the arrangement, depending upon whether the residential or commercial property owner picks the 5-year grant or 10-year forgivable loan alternative. FMRs routinely published by HUD represent the expense of leasing a moderately priced home unit in the regional housing market.

Fair Market Rent Calculator - To utilize the calculator, you must finish the energy worksheet, which shows which energies the occupant is accountable for payment. Once the energy worksheet is complete, the calculator will reveal the optimum permitted lease based upon the county the unit lies in and the variety of bed rooms.

Fair Market Rent Recertification Form - Residential or commercial property owners taking part in VHIP 2.0 should submit an annual recertification kind to ensure they comply with the program requirements, consisting of FMR. While the program requirements are in result, residential or commercial property owners will get an annual request to finish the recertification form. Residential or commercial property owners are motivated to proactively complete this form upon turnover or lease renewal.

If you need help finishing the recertification kind or identifying 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 answer eligibility questions. Additional details and responses to frequently asked questions will continue to be published to this website as available. Click on this link to join our email list and remain up to date on Vermont Housing Improvement Program 2.0 updates and news.
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