If you need information about VHIP awards approved before 2024, please refer to our original VHIP page. The initial VHIP funding was sourced from State Fiscal Recovery Funds, which had different policies. The requirements and choices laid out here do NOT apply to projects approved before March 25, 2024.
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The Vermont Housing Improvement Program (VHIP) is relaunching as VHIP 2.0!

Drawing from insights acquired over the past 3 years and more than 500 units funded, this updated program preserves our dedication to expanding cost effective housing. VHIP 2.0 now provides awards for restricted brand-new building. Additionally, it presents a 10-year forgivable loan alongside the existing 5-year grants, intending to even more incentivize landlords. This new alternative requires renting units at reasonable market rates without the need for referrals from Coordinated Entry Organizations.

Table of Contents:

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

VHIP 2.0 provides grants or forgivable loans to:

Rehabilitate existing uninhabited units. Rehabilitate structural components effecting numerous systems, 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 less residential units. Complete repair work needed for code compliance in occupied units (just qualified for 10 year forgivable loan)

Rehabilitation projects can consist of updates to meet housing codes, weatherization, and ease of access enhancements, of eligible rental housing systems.

How much funding are jobs eligible for?

Based upon the kind of task, residential or commercial property owners are qualified to get approximately:

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

Structural repair grant or loan awards are readily available for a maximum of $50,000 per award made for a residential or commercial property. For each structural award made, a rent-ready system in the exact same structure should 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 considering structural repair work that affect more than one unit.

What are the program requirements?

Program Match: All individuals are required to supply a 20% match of the award, the choice 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 provide a $10,000 match.

Fair Market Rent: Participants are also needed to sign a rental covenant agreeing to charge at or listed below HUD Fair Market Rent (FMR) or coupon amount for the length of the agreement (5 or 10 years, discover more about these choices here). Participants will be required to send an annual recertification kind to ensure they remain in compliance with the program requirements. To determine HUD FMR for your area, have a look at our resources on Fair Market Rent.

Landlord Education: VHIP 2.0 applicants need to view 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 on this link to view). The online, self-paced Fair Housing training is supplied by CVOEO. It includes a summary of state and federal anti-discrimination requirements, examples of unlawful housing discrimination and prospective charges, gain access to requirements for individuals with disabilities, including sensible accommodations and sensible modifications, and finest practices for housing suppliers. This training will be confirmed through conclusion of a brief test. Please click on this link to sign up. 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 problems or have questions, please contact CVOEO at classcoord@cvoeo.org or 802-660-3455 ext. 205.

Tenant Selection: VHIP 2.0 participants deserve to choose their tenants. However, the tenants they choose should satisfy the program requirements, based upon if they are registered in the 5- or 10-year system (click here to learn 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 limited to charging no greater than one month's lease for a deposit, despite whether it is called a security deposit, a damage deposit or a family pet deposit, last month's rent, etc. Additionally, residential or commercial property owners should cover the cost of running background examine potential occupants. Residential or commercial property owners are also required to accept any housing coupons that are readily available to pay all, or a portion of, the tenant's rent and utilities. Additionally, residential or commercial property owners should accept paper applications for renters with limited internet gain access to.

Out-of-State Owners: Out-of-State owners are required to recognize a residential or commercial property manager situated within 50 miles of the units to guarantee a local, responsible party can supervisor 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 difference 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 alternative includes additional renter selection requirements to lease to a home leaving homelessness

For more information specifics about these two choices, review the areas listed below.

5-Year Grants

Any residential or commercial property, with the exception of occupant inhabited units attending to code non-compliance problems, getting VHIP 2.0 can decide to receive a 5-year grant. This compliance duration will begin once the VHIP 2.0 system is put in service. This grant needs that:

The system is rented at or below HUD Fair Market Rent for the area for a minimum of 5 years. That the residential or commercial property manager deal with Coordinated Entry Lead Organizations to find suitable occupants leaving homelessness for at least 5 years or with USCRI to find refugee families to rent the system to

Participants need to sign a rental covenant to this effect. This covenant will work for 5 years and states that for this period, the system needs to stay a long-term rental with a monthly rental rate at or listed below HUD Fair Market Rent which the Department of Housing and Community Development need to 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 determines that a household leaving homelessness is not offered to lease the system, the property manager will lease the system to a household with an income equal to or less than 80 percent of area average earnings. If such a household 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 property owner might transform 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 receive a 10% credit for loan forgiveness for each year in which the landlord 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 funding will be forgiven, and the forgivable loan terms would apply for 8 years.

Note. This only uses to jobs that received financing through VHIP 2.0. The initial VHIP financing was sourced from State Fiscal Recovery Funds, which had various guidelines. The requirements and alternatives described here do NOT use to tasks approved before March 25, 2024, and those grants can NOT be transformed to forgivable loans.

10-Year Forgivable Loans

Any residential or commercial property looking for VHIP 2.0 can decide to get a 10-year forgivable loan. This compliance period will start once the VHIP 2.0 unit is positioned 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 10 years. The owner must lease the system for ten years at or below FMR to be forgiven in its totality. Funds will require to be paid back to the State of Vermont for every year this requirement is not satisfied i.e. if an owner only rents the system for 7 years at or 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 thorough guide strolls residential or commercial property owners through every step of the VHIP 2.0 process, from identifying if the program is an excellent fit for your job, 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 website.

Since there are several project types VHIP 2.0 assistances, the Frequently Asked Questions (FAQs) specify to the kind of project making an application for financing. To ask concerns about your task, connect 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 taking part in VHIP 2.0 are needed to charge rents at or 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 option. FMRs routinely released by HUD represent the cost of leasing a moderately priced house unit in the local housing market.

Fair Market Rent Calculator - To utilize the calculator, you need to finish the energy worksheet, which indicates which energies the renter is accountable for payment. Once the energy worksheet is total, the calculator will show the maximum permitted lease based upon the county the unit is situated 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 an annual recertification form to ensure they comply with the program requirements, including FMR. While the program requirements are in impact, residential or commercial property owners will get a yearly request to finish the recertification form. Residential or commercial property owners are encouraged to proactively complete this form upon turnover or lease renewal.

If you require support finishing the recertification type or determining FMR for your area, please get in touch with your local Homeownership Center or the State Housing Division (VHIP@vermont.gov).

More Questions?

As this program matures, the Department is working to increase accessibility and response eligibility questions. Additional details and answers to regularly asked concerns will continue to be published to this as readily available. Click on this link to join our e-mail list and remain up to date on Vermont Housing Improvement Program 2.0 updates and news.