If you require information about VHIP awards granted before 2024, please describe our original VHIP page. The initial VHIP funding was sourced from State Fiscal Recovery Funds, which had different policies. The requirements and options described here do NOT apply to tasks authorized before March 25, 2024.

The Vermont Housing Improvement Program (VHIP) is relaunching as VHIP 2.0!
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Drawing from insights got over the previous 3 years and more than 500 units funded, this upgraded program maintains our commitment to broadening inexpensive housing. VHIP 2.0 now provides awards for minimal new construction. Additionally, it introduces a 10-year forgivable loan along with the existing 5-year grants, intending to even more incentivize property managers. This new choice requires leasing units at fair market rates without the requirement for referrals from Coordinated Entry Organizations.

Table of Contents:

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

VHIP 2.0 provides grants or forgivable loans to:

Rehabilitate existing uninhabited systems. Rehabilitate structural components effecting numerous units, such as the roof 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 new structure with five or fewer residential units. Complete repair work necessary for code compliance in occupied systems (only eligible for ten years forgivable loan)

Rehabilitation jobs can include updates to fulfill housing codes, weatherization, and ease of access enhancements, of qualified rental housing systems.

How much funding are projects qualified for?

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

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

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

What are the program requirements?

Program Match: All individuals are required to offer a 20% match of the award, the option for an in-kind match for unbilled services or owned products. For example, a participant who receives an award of $50,000 will be required to provide 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 coupon quantity for the length of the arrangement (5 or ten years, discover more about these options here). Participants will be required to submit an annual recertification type to guarantee they remain in compliance with the program requirements. To calculate HUD FMR for your location, take a look at our resources on Fair Market Rent.

Landlord Education: VHIP 2.0 applicants must watch 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 here to see). The online, self-paced Fair Housing training is provided by CVOEO. It includes an introduction of state and federal anti-discrimination requirements, examples of prohibited housing discrimination and prospective penalties, access requirements for individuals with specials needs, consisting of reasonable accommodations and affordable modifications, and best practices for housing suppliers. This training will be verified through completion of a brief test. Please click here to sign up. You will be asked to produce an account on the Ruzuku discovering platform, then you'll have instant 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 individuals deserve to select their occupants. However, the occupants they choose need to fulfill the program requirements, based on if they are registered in the 5- or 10-year tract (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 report higher than 500, and participants are restricted to charging no greater than one month's rent for a deposit, no matter 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 cost of running background checks on possible tenants. Residential or commercial property owners are likewise needed to accept any housing vouchers that are readily available to pay all, or a portion of, the tenant's lease and energies. Additionally, residential or commercial property owners should accept paper applications for occupants with restricted web gain access to.

Out-of-State Owners: Out-of-State owners are needed to recognize a residential or commercial property manager located within 50 miles of the systems to make sure a regional, responsible 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 primary difference between the 5-year grant and the 10-year forgivable loans are:

- The period for which the residential or commercial property owner must charge at or listed below HUD Fair Market Rent for the registered units (5 v 10 years). The 5-year grant choice includes additional renter choice requirements to rent to a home leaving homelessness

For more information specifics about these 2 choices, review the areas below.

5-Year Grants

Any residential or commercial property, with the exception of tenant occupied systems addressing code non-compliance issues, requesting VHIP 2.0 can decide to get a 5-year grant. This compliance period will begin once the VHIP 2.0 unit is put in service. This grant requires that:

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

Participants must sign a rental covenant to this result. This covenant will work for 5 years and states that for this period, the system must stay a long-lasting rental with a month-to-month rental rate at or below HUD Fair Market Rent and that 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 family exiting homelessness is not available to rent the unit, the property manager shall lease the system to a family with an earnings equivalent to or less than 80 percent of area average income. If such a family is not available, the residential or commercial property owner might rent the system to another home with the approval of the DHCD or HOC.

Grant to Loan Conversion: A proprietor 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 will get a 10% credit for loan forgiveness for each year in which the landlord 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 financing will be forgiven, and the forgivable loan terms would make an application for 8 years.

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

10-Year Forgivable Loans

Any residential or commercial property obtaining VHIP 2.0 can decide to receive a 10-year forgivable loan. This compliance duration will start as soon as the VHIP 2.0 unit is positioned in service. This grant needs that the unit is leased at or below HUD Fair Market Rent for the location for at least ten years. The owner must lease the unit for ten years at or listed below FMR to be forgiven in its entirety. Funds will need to be paid back to the State of Vermont for every single year this requirement is not fulfilled i.e. if an owner only 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 extensive guide strolls residential or commercial property owners through every step of the VHIP 2.0 process, from figuring out if the program is a good fit for your task, how to use, payment disbursement, preserving program requirements, to offering 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 a number of task types VHIP 2.0 assistances, the Frequently Asked Questions (FAQs) are specific to the type of job getting financing. To ask concerns 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 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 picks the 5-year grant or 10-year forgivable loan option. FMRs regularly released by HUD represent the expense of renting a reasonably priced dwelling unit in the regional housing market.

Fair Market Rent Calculator - To utilize the calculator, you should complete the utility worksheet, which indicates which energies the renter is accountable for payment. Once the utility worksheet is complete, the calculator will reveal the maximum permitted rent based on 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 must submit a yearly recertification kind to guarantee they comply with the program requirements, including FMR. While the program requirements are in effect, residential or commercial property owners will get an annual demand to complete the recertification type. Residential or commercial property owners are motivated to proactively complete this kind upon turnover or lease renewal.

If you require support completing the recertification type or determining FMR for your area, please contact your regional 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 response eligibility questions. Additional details and responses to asked concerns will continue to be published to this site as offered. Click here to join our e-mail list and remain up to date on Vermont Housing Improvement Program 2.0 updates and news.