If you require info about VHIP awards granted before 2024, please describe our original VHIP page. The preliminary VHIP funding was sourced from State Fiscal Recovery Funds, which had different guidelines. The requirements and choices laid out here do NOT apply to tasks authorized before March 25, 2024.
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The Vermont Housing Improvement Program (VHIP) is relaunching as VHIP 2.0!

Drawing from insights got over the past 3 years and more than 500 systems moneyed, this upgraded program preserves our dedication to broadening affordable housing. VHIP 2.0 now provides awards for limited new construction. Additionally, it introduces a 10-year forgivable loan alongside the existing 5-year grants, aiming to further incentivize property managers. This new option needs renting units at reasonable market value without the requirement for recommendations from Coordinated Entry Organizations.

Table of Contents:

What can you do 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 make with VHIP 2.0 financing?

VHIP 2.0 uses grants or forgivable loans to:

Rehabilitate existing vacant systems. Rehabilitate structural aspects effecting multiple 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 new units within an existing structure. Create a new structure with five or fewer property units. Complete repair work essential for code compliance in occupied units (only qualified for ten years forgivable loan)

Rehabilitation tasks can consist of updates to satisfy housing codes, weatherization, and availability improvements, of eligible rental housing units.

How much financing are tasks qualified for?

Based on the kind of job, residential or commercial property owners are qualified to receive up to:

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

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

What are the program requirements?

Program Match: All individuals are needed to supply a 20% match of the award, the alternative for an in-kind match for unbilled services or owned products. For example, a participant who gets 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 listed below HUD Fair Market Rent (FMR) or voucher quantity for the length of the contract (5 or 10 years, find out more about these alternatives here). Participants will be needed to send an annual recertification form to ensure 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 candidates need to view a Landlord-Tenant Mediation video and finish a Fair Housing Training as part of the application procedure. The Landlord-Tenant Mediation video is offered by the Vermont Landlord Association (Please click here 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 unlawful housing discrimination and potential charges, gain access to requirements for people with impairments, consisting of sensible lodgings and affordable adjustments, and best practices for housing suppliers. This training will be confirmed through conclusion of a brief quiz. Please click on this link to register. You will be asked to create 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 participants deserve to choose their tenants. However, the occupants they choose need to satisfy the program requirements, based upon if they are registered in the 5- or 10-year system (click here to find out more). For residential or commercial properties registered in this program, the residential or commercial property owner might not need a credit rating greater than 500, and individuals are restricted to charging no more than one month's rent for a deposit, regardless of whether it is called a security deposit, a damage deposit or an animal deposit, last month's rent, and so on. Additionally, residential or commercial property owners need to cover the expense of running background look at possible renters. Residential or commercial property owners are likewise required to accept any housing vouchers that are readily available to pay all, or a portion of, the occupant's lease and utilities. Additionally, residential or commercial property owners must accept paper applications for renters with limited internet gain access to.

Out-of-State Owners: Out-of-State owners are needed to recognize a residential or commercial property supervisor located within 50 miles of the units to guarantee a local, 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 should charge at or below HUD Fair Market Rent for the registered systems (5 v ten years). The 5-year grant alternative includes additional tenant selection requirements to lease to a family leaving homelessness

To get more information specifics about these 2 options, review the sections below.

5-Year Grants

Any residential or commercial property, with the exception of occupant inhabited systems attending to code non-compliance issues, applying for VHIP 2.0 can decide to receive a 5-year grant. This compliance duration will begin when the VHIP 2.0 unit is placed 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 5 years. That the residential or commercial property manager work with Coordinated Entry Lead Organizations to discover suitable occupants leaving homelessness for a minimum of 5 years or with USCRI to find refugee homes to rent the system to

Participants need to sign a rental covenant to this impact. This covenant will be efficient for 5 years and states that for this period, the unit must stay a long-lasting leasing with a month-to-month 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 released the grant identifies that a family leaving homelessness is not readily available to lease the system, the property manager shall rent the system to a home with an earnings equivalent to or less than 80 percent of area typical earnings. If such a household is unavailable, the residential or commercial property owner may lease the system to another home with the approval of the DHCD or HOC.

Grant to Loan Conversion: A property owner 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 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 obtain 8 years.

Note. This only applies to projects that got funding through VHIP 2.0. The preliminary VHIP funding was sourced from State Fiscal Recovery Funds, which had different regulations. The requirements and options laid out 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 applying for VHIP 2.0 can choose to receive a 10-year forgivable loan. This compliance period will begin once the VHIP 2.0 unit is put in service. This grant requires that the unit is rented at or listed below HUD Fair Market Rent for the location for a minimum of 10 years. The owner must rent the unit for 10 years at or listed below FMR to be forgiven in its entirety. Funds will require to be paid back to the State of Vermont for every year this requirement is not fulfilled i.e. if an owner only leases the system 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 thorough guide strolls residential or commercial property owners through every action of the VHIP 2.0 process, from figuring out if the program is an excellent suitable for your job, 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 receivers and the amount of a grant or forgivable loan are public records and are released quarterly on this website.

Since there are a number of project types VHIP 2.0 supports, the Frequently Asked Questions (FAQs) specify to the type of job making an application for financing. To ask questions 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 taking part in VHIP 2.0 are needed to charge leas at or below HUD Fair Market Rent (FMR) for the length of the agreement, depending on whether the residential or commercial property the 5-year grant or 10-year forgivable loan alternative. FMRs regularly released by HUD represent the cost of renting a moderately priced home system in the regional housing market.

Fair Market Rent Calculator - To use the calculator, you must finish the energy worksheet, which shows which utilities the renter is responsible for payment. Once the utility worksheet is total, the calculator will show the optimum allowed rent based on the county the unit is situated in and the number of bed rooms.

Fair Market Rent Recertification Form - Residential or commercial property owners taking part in VHIP 2.0 should send 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 an annual request to finish the recertification form. Residential or commercial property owners are motivated to proactively complete this kind upon turnover or lease renewal.

If you need assistance completing the recertification kind or identifying FMR for your area, please connect 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 ease of access and answer eligibility concerns. Additional details and responses to often asked questions will continue to be posted to this site as offered. Click on this link to join our email list and keep up to date on Vermont Housing Improvement Program 2.0 updates and news.
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