If you need information about VHIP awards approved before 2024, please refer to our initial VHIP page. The initial VHIP financing was sourced from State Fiscal Recovery Funds, which had various policies. The requirements and options outlined 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 got over the previous 3 years and more than 500 units funded, this upgraded program keeps our dedication to broadening economical housing. VHIP 2.0 now uses awards for minimal new construction. Additionally, it introduces a 10-year forgivable loan together with the existing 5-year grants, intending to further incentivize property managers. This new option requires renting units at fair market value without the requirement for recommendations from Coordinated Entry Organizations.

Table of Contents:

What can you do with VHIP 2.0 financing? Just 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 funding?

VHIP 2.0 provides grants or forgivable loans to:

Rehabilitate existing vacant systems. Rehabilitate structural aspects effecting numerous 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 new systems within an existing structure. Create a brand-new structure with 5 or fewer residential units. Complete repairs essential for code compliance in occupied units (just qualified for ten years forgivable loan)

Rehabilitation projects can include updates to fulfill housing codes, weatherization, and ease of access enhancements, of eligible rental housing units.

Just how much funding are jobs qualified for?

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

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

Structural repair grant or loan awards are offered 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 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 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 required to provide a 20% match of the award, the alternative for an in-kind match for unbilled services or owned products. For instance, a participant who gets 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 consenting to charge at or below HUD Fair Market Rent (FMR) or voucher amount for the length of the agreement (5 or ten years, find out more about these options here). Participants will be required to send a yearly recertification kind to ensure they are in compliance with the program requirements. To determine HUD FMR for your location, take a look at our resources on Fair Market Rent.

Landlord Education: VHIP 2.0 candidates must see a video and complete a Fair Housing Training as part of the application procedure. 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 provided by CVOEO. It includes an overview of state and federal anti-discrimination requirements, examples of prohibited housing discrimination and prospective penalties, gain access to requirements for individuals with specials needs, consisting of affordable accommodations and reasonable adjustments, and best practices for housing service providers. This training will be validated through completion 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 concerns, please contact CVOEO at classcoord@cvoeo.org or 802-660-3455 ext. 205.

Tenant Selection: VHIP 2.0 individuals can pick their occupants. However, the tenants they choose should satisfy the program requirements, based on if they are registered 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 require a credit rating greater than 500, and individuals are limited to charging no more than one month's lease for a deposit, despite whether it is called a down payment, a damage deposit or a pet deposit, last month's lease, and so on. Additionally, residential or commercial property owners should cover the expense of running background look at possible tenants. Residential or commercial property owners are also required to accept any housing coupons that are offered to pay all, or a part of, the renter's lease and energies. Additionally, residential or commercial property owners need to accept paper applications for tenants 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 systems to ensure a regional, 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 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 enrolled systems (5 v 10 years). The 5-year grant alternative includes extra renter selection requirements to lease to a home exiting homelessness

For more information specifics about these two options, evaluate the areas below.

5-Year Grants

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

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

Participants must sign a rental covenant to this effect. This covenant will work for 5 years and states that for this duration, the unit should stay a long-term leasing with a monthly rental rate at or listed below HUD Fair Market Rent which 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 released the grant determines that a household leaving homelessness is not available to rent the unit, the proprietor shall rent the system to a family with an income equal to or less than 80 percent of area mean earnings. If such a family is unavailable, the residential or commercial property owner might lease the system to another household with the approval of the DHCD or HOC.

Grant to Loan Conversion: A landlord 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 get a 10% credit for loan forgiveness for each year in which the proprietor takes part in the grant program. For example, if the residential or commercial property owner participated 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 look for 8 years.

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

10-Year Forgivable Loans

Any residential or commercial property making an application for VHIP 2.0 can opt to receive a 10-year forgivable loan. This compliance duration will start when the VHIP 2.0 unit is placed in service. This grant requires that the unit is leased at or listed below HUD Fair Market Rent for the location for at least ten years. The owner needs to lease the unit for ten years at or below FMR to be forgiven in its totality. Funds will need to be paid back to the State of Vermont for every single year this requirement is not met i.e. if an owner just rents 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 thorough guide walks residential or commercial property owners through every step of the VHIP 2.0 process, from identifying if the program is an excellent suitable for your job, how to apply, payment disbursement, preserving program requirements, to selling a VHIP 2.0 residential or commercial property.

VHIP 2.0 Recipient List - The identity of VHIP receivers 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 task types VHIP 2.0 assistances, the Frequently Asked Questions (FAQs) are specific to the kind of job requesting funding. To ask concerns about your task, get in touch with your local 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 getting involved in VHIP 2.0 are required to charge leas at or below HUD Fair Market Rent (FMR) for the length of the contract, depending on whether the residential or commercial property owner picks the 5-year grant or 10-year forgivable loan choice. FMRs routinely released by HUD represent the expense of leasing a moderately priced residence unit in the regional housing market.

Fair Market Rent Calculator - To use the calculator, you should finish the energy worksheet, which indicates which utilities the renter is accountable for payment. Once the utility worksheet is total, the calculator will reveal the maximum allowed lease based on the county the unit lies in and the number of bedrooms.

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

If you need assistance completing the recertification form or figuring out FMR for your location, please connect with your local Homeownership Center or the State Housing Division (VHIP@vermont.gov).
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More Questions?

As this program develops, the Department is working to increase ease of access and answer eligibility concerns. Additional info and answers to frequently asked concerns will continue to be published 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.