If you need info about VHIP awards given before 2024, please describe our initial VHIP page. The preliminary VHIP financing was sourced from State Fiscal Recovery Funds, which had various guidelines. The requirements and options outlined here do NOT apply to projects authorized 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 past 3 years and more than 500 systems funded, this updated program preserves our dedication to broadening affordable housing. VHIP 2.0 now uses awards for limited new construction. Additionally, it presents a 10-year forgivable loan alongside the existing 5-year grants, aiming to further incentivize property owners. This new option requires leasing units at fair market value without the need for recommendations from Coordinated Entry Organizations.

Table of Contents:

What can you finish with VHIP 2.0 funding? How much financing 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 make with VHIP 2.0 financing?

VHIP 2.0 provides grants or forgivable loans to:

Rehabilitate existing uninhabited units. Rehabilitate structural aspects effecting multiple 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 brand-new systems within an existing structure. Create a new structure with five or less residential units. Complete repairs required for code compliance in occupied units (only qualified for ten years forgivable loan)

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

How much funding are tasks eligible for?

Based upon the kind of project, residential or commercial property owners are eligible to get as much as:

$ 30,000 per unit for rehabilitation of 0-2-bedroom systems. $ 50,000 per unit for rehab of 3+ bed room units, structural components affecting several units , brand-new unit creation, or creation 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 unit 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 task if you are thinking about structural repairs 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 alternative for an in-kind match for unbilled services or owned products. For instance, 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 concurring to charge at or listed below HUD Fair Market Rent (FMR) or voucher amount for the length of the contract (5 or 10 years, find out more about these options here). Participants will be needed to send a yearly recertification form to ensure they remain in compliance with the program requirements. To compute HUD FMR for your area, inspect out our resources on Fair Market Rent.

Landlord Education: VHIP 2.0 candidates must enjoy a Landlord-Tenant Mediation video and complete a Fair Housing Training as part of the application process. The Landlord-Tenant Mediation video is supplied by the Vermont Landlord Association (Please click here to see). The online, self-paced Fair Housing training is offered by CVOEO. It consists of a summary of state and federal anti-discrimination requirements, examples of prohibited housing discrimination and possible charges, access requirements for individuals with specials needs, including sensible accommodations and sensible modifications, and finest practices for housing service providers. This training will be verified through completion of a short test. Please click here to sign up. You will be asked to create an account on the Ruzuku learning 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 participants can choose their occupants. However, the renters they select should fulfill the program requirements, based upon if they are enrolled in the 5- or 10-year tract (click on this link to find out more). For residential or commercial properties registered in this program, the residential or commercial property owner may not require a credit history greater than 500, and participants are limited to charging no more than one month's rent for a deposit, no matter whether it is called a security deposit, a damage deposit or an animal deposit, last month's lease, and so on. Additionally, residential or commercial property owners need to cover the expense of running background checks on prospective tenants. Residential or commercial property owners are likewise needed to accept any housing coupons that are available to pay all, or a part of, the occupant's rent and energies. Additionally, residential or commercial property owners need to accept paper applications for occupants with minimal internet access.

Out-of-State Owners: Out-of-State owners are required to determine a residential or commercial property manager situated within 50 miles of the units to guarantee 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 main difference in between the 5-year grant and the 10-year forgivable loans are:

- The period for which the residential or commercial property owner need to charge at or below HUD Fair Market Rent for the enrolled units (5 v ten years). The 5-year grant alternative includes additional occupant selection requirements to rent to a family leaving homelessness

To get 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 occupied systems addressing code non-compliance issues, making an application for VHIP 2.0 can choose to receive a 5-year grant. This compliance period will start when the VHIP 2.0 system is positioned in service. This grant needs that:

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

Participants need to sign a rental covenant to this result. This covenant will work for 5 years and states that for this period, the unit must 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 should authorize the sale of the residential or commercial property.

Tenant Selection: If the Department of Housing and (DHCD) or the Homeownership Center (HOC) that released the grant identifies that a home leaving homelessness is not available to lease the system, the property manager will lease the system to a family with an income equal to or less than 80 percent of area average earnings. If such a family is unavailable, the residential or commercial property owner might rent the unit to another household with the approval of the DHCD or HOC.

Grant to Loan Conversion: A property manager might transform 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 will receive a 10% credit for loan forgiveness for each year in which the proprietor 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 look for 8 years.

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

10-Year Forgivable Loans

Any residential or commercial property requesting VHIP 2.0 can opt to get a 10-year forgivable loan. This compliance period will begin once the VHIP 2.0 unit is positioned in service. This grant needs that the unit is rented at or listed below HUD Fair Market Rent for the area for at least 10 years. The owner needs to lease the system for 10 years at or below FMR to be forgiven in its totality. Funds will require to be repaid to the State of Vermont for every single year this requirement is not fulfilled i.e. if an owner just leases 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 procedure, from determining if the program is an excellent suitable for your task, how to use, payment dispensation, 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 amount of a grant or forgivable loan are public records and are released quarterly on this website.

Since there are several job types VHIP 2.0 supports, the Frequently Asked Questions (FAQs) specify to the kind of project requesting funding. To ask questions about your task, connect 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 getting involved in VHIP 2.0 are required to charge rents at or below HUD Fair Market Rent (FMR) for the length of the contract, depending on whether the residential or commercial property owner chooses the 5-year grant or 10-year forgivable loan option. FMRs regularly published by HUD represent the expense of renting a moderately priced residence system in the regional housing market.

Fair Market Rent Calculator - To use the calculator, you need to complete the energy worksheet, which indicates which utilities the occupant is responsible for payment. Once the utility worksheet is complete, the calculator will show the optimum permitted rent based upon the county the system is located in and the variety of bed rooms.

Fair Market Rent Recertification Form - Residential or commercial property owners taking part in VHIP 2.0 needs to submit a yearly recertification form to ensure they adhere to the program requirements, consisting of FMR. While the program requirements are in effect, residential or commercial property owners will get an annual demand to finish the recertification kind. Residential or commercial property owners are encouraged to proactively finish this type upon turnover or lease renewal.

If you need support completing the recertification type or identifying FMR for your area, please get in touch with your regional Homeownership Center or the State Housing Division (VHIP@vermont.gov).

More Questions?

As this program grows, the Department is working to increase availability and response eligibility concerns. Additional information and answers to regularly asked concerns will continue to be posted to this website as offered. Click on this link to join our e-mail list and keep up to date on Vermont Housing Improvement Program 2.0 updates and news.