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

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

Drawing from insights gained over the past 3 years and more than 500 systems moneyed, this upgraded program keeps our dedication to broadening inexpensive housing. VHIP 2.0 now provides awards for minimal new building. Additionally, it presents a 10-year forgivable loan together with the existing 5-year grants, aiming to further incentivize property managers. This new choice requires renting units at reasonable market prices without the need for referrals from Coordinated Entry Organizations.

Table of Contents:

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

VHIP 2.0 provides grants or forgivable loans to:

Rehabilitate existing vacant systems. Rehabilitate structural components effecting several units, 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 new systems within an existing structure. Create a new structure with 5 or less domestic units. Complete repair work required for code compliance in occupied systems (only eligible for ten years forgivable loan)

Rehabilitation jobs can consist of updates to meet housing codes, weatherization, and ease of access improvements, of qualified rental housing systems.

How much funding are projects qualified for?

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

$ 30,000 per system for rehabilitation of 0-2-bedroom units. $ 50,000 per unit for rehabilitation of 3+ bed room systems, structural elements impacting numerous systems , new unit development, or development of Accessory Dwelling Units (ADUs)

Structural repair work grant or loan awards are available for an optimum 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 need to 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 thinking about structural repair work that affect more than one unit.

What are the program requirements?

Program Match: All individuals are required to offer 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 offer a $10,000 match.

Fair Market Rent: Participants are also needed to sign a rental covenant accepting charge at or listed below HUD Fair Market Rent (FMR) or voucher amount for the length of the arrangement (5 or 10 years, find out more about these alternatives here). Participants will be required to send a yearly recertification kind to guarantee 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 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 offered by the Vermont Landlord Association (Please click here to see). The online, self-paced Fair Housing training is provided by CVOEO. It includes a summary of state and federal anti-discrimination requirements, examples of unlawful housing discrimination and possible charges, gain access to requirements for people with disabilities, including sensible accommodations and sensible modifications, and finest practices for housing service providers. This training will be confirmed through completion of a short test. Please click on this link to sign up. You will be asked to develop an account on the Ruzuku learning platform, then you'll have instant access to the training. If you experience any problems or have concerns, please contact CVOEO at classcoord@cvoeo.org or 802-660-3455 ext. 205.

Tenant Selection: VHIP 2.0 participants can choose their renters. However, the renters they pick must meet the program requirements, based on if they are registered in the 5- or 10-year system (click on this link to find out more). For residential or commercial properties registered in this program, the residential or commercial property owner might not need a credit score higher 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 down payment, a damage deposit or a pet deposit, last month's rent, and so on. Additionally, residential or commercial property owners need to cover the expense of running background checks on prospective occupants. Residential or commercial property owners are likewise required to accept any housing coupons that are available to pay all, or a part of, the renter's lease and utilities. Additionally, residential or commercial property owners must accept paper applications for occupants with limited web access.

Out-of-State Owners: Out-of-State owners are required to determine a residential or commercial property supervisor situated within 50 miles of the units to ensure a local, accountable celebration 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 difference 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 listed below HUD Fair Market Rent for the registered units (5 v ten years). The 5-year grant alternative features additional renter selection requirements to lease to a home exiting homelessness

To read more specifics about these 2 alternatives, examine the areas listed below.

5-Year Grants

Any residential or commercial property, with the exception of occupant occupied systems attending to code non-compliance issues, making an application for VHIP 2.0 can decide to get a 5-year grant. This compliance period will begin as soon as the VHIP 2.0 system is positioned in service. This grant needs that:

The unit is rented 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 discover ideal occupants leaving 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 work for 5 years and states that for this period, the system needs to stay a long-term rental with a month-to-month 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 released the grant determines that a home leaving homelessness is not available to lease the unit, the proprietor shall lease the unit to a household with an income equivalent to or less than 80 percent of location median income. If such a household is unavailable, the residential or commercial property owner might lease the system to another home with the approval of the DHCD or HOC.

Grant to Loan Conversion: A proprietor may convert a grant to a forgivable loan upon approval by DHCD and the HOC that approved 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 owner 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 transforming 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 received financing through VHIP 2.0. 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 jobs authorized before March 25, 2024, and those grants can NOT be transformed to forgivable loans.

10-Year Forgivable Loans

Any residential or commercial property getting VHIP 2.0 can choose to receive a 10-year forgivable loan. This compliance duration will begin as soon as the VHIP 2.0 system is positioned in service. This grant needs that the unit is leased at or listed below HUD Fair Market Rent for the location for a minimum of ten years. The owner needs to lease the system for ten years at or listed below FMR to be forgiven in its totality. Funds will need to be repaid to the State of Vermont for every single year this requirement is not fulfilled i.e. if an owner only leases the unit for 7 years at or listed 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 figuring out if the program is a great fit for your task, how to apply, payment disbursement, 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 amount of a grant or forgivable loan are public records and are published quarterly on this website.

Since there are a number of job types VHIP 2.0 supports, the Frequently Asked Questions (FAQs) are specific to the kind of project making an application for funding. To ask questions about your task, 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 arrangement, depending on whether the residential or commercial property owner chooses the 5-year grant or 10-year forgivable loan choice. FMRs frequently released by HUD represent the expense of renting a moderately priced house unit in the regional housing market.

Fair Market Rent Calculator - To use the calculator, you must finish the utility worksheet, which indicates which energies the tenant is accountable for payment. Once the energy worksheet is total, the calculator will reveal the optimum allowable lease based upon the county the system lies in and the variety of bedrooms.

Fair Market Rent Recertification Form - Residential or commercial property owners taking part in VHIP 2.0 must submit an annual recertification form to guarantee they abide by the program requirements, consisting of FMR. While the program requirements are in result, residential or commercial property owners will get a yearly request to complete the recertification kind. Residential or commercial property owners are encouraged to this kind upon turnover or lease renewal.

If you need help finishing the recertification type or figuring out FMR for your area, 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 ease of access and response eligibility questions. Additional details and answers to frequently asked questions will continue to be posted to this site as available. Click here to join our e-mail list and keep up to date on Vermont Housing Improvement Program 2.0 updates and news.
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