If you need details about VHIP awards approved before 2024, please refer to our original VHIP page. The preliminary VHIP funding was sourced from State Fiscal Recovery Funds, which had different policies. The requirements and options outlined here do NOT use to jobs approved 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 systems funded, this upgraded program maintains our commitment to broadening budget-friendly housing. VHIP 2.0 now offers awards for minimal brand-new building. Additionally, it introduces a 10-year forgivable loan along with the existing 5-year grants, intending to further incentivize proprietors. This brand-new alternative needs renting units at fair market costs without the requirement for referrals from Coordinated Entry Organizations.

Table of Contents:

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

VHIP 2.0 offers 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 brand-new systems within an existing structure. Create a brand-new structure with 5 or fewer domestic systems. Complete repair work necessary for code compliance in occupied units (just eligible 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 funding are tasks eligible for?

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

$ 30,000 per unit for rehab of 0-2-bedroom units. $ 50,000 per system for rehab of 3+ bed room units, structural aspects affecting multiple units , brand-new unit development, or production of Accessory Dwelling Units (ADUs)

Structural repair grant or loan awards are available 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 exact same building need to be encumbered 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 repairs that impact more than one unit.

What are the program requirements?

Program Match: All participants are required to offer a 20% match of the award, the alternative for an in-kind match for unbilled services or owned materials. For example, an individual who receives an award of $50,000 will be required to offer a $10,000 match.

Fair Market Rent: Participants are likewise required to sign a rental covenant accepting charge at or below HUD Fair Market Rent (FMR) or voucher quantity for the length of the contract (5 or ten years, discover more about these choices here). Participants will be required to submit a yearly recertification type to guarantee they are in compliance with the program requirements. To compute HUD FMR for your area, take a look at our resources on Fair Market Rent.

Landlord Education: VHIP 2.0 candidates should view a Landlord-Tenant Mediation video and complete a Fair Housing Training as part of the application process. The Landlord-Tenant Mediation video is provided by the Vermont Landlord Association (Please click here to see). The online, self-paced Fair Housing training is supplied by CVOEO. It includes a summary of state and federal anti-discrimination requirements, examples of illegal housing discrimination and prospective penalties, gain access to requirements for individuals with impairments, including sensible lodgings and affordable adjustments, and best practices for housing providers. This training will be confirmed through conclusion of a brief quiz. 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 individuals can pick their tenants. However, the occupants they select must satisfy the program requirements, based upon if they are registered in the 5- or 10-year tract (click here to get more information). For residential or commercial properties registered in this program, the residential or commercial property owner may not require a credit report higher than 500, and individuals are limited to charging no greater 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 should cover the cost of running background checks on prospective tenants. Residential or commercial property owners are likewise needed to accept any housing coupons that are readily available to pay all, or a portion of, the tenant's rent and utilities. Additionally, residential or commercial property owners must accept paper applications for tenants with limited web gain access to.

Out-of-State Owners: Out-of-State owners are required to identify a residential or commercial property manager situated within 50 miles of the systems to make sure a regional, responsible party can supervisor the residential or commercial property in the lack of the residential or commercial property owner.

5-Year Grant Versus 10-Year Forgivable Loan

The main distinction in between the 5-year grant and the 10-year are:

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

To get more information specifics about these two choices, examine the sections below.

5-Year Grants

Any residential or commercial property, with the exception of tenant occupied systems dealing with code non-compliance issues, making an application for VHIP 2.0 can choose to receive a 5-year grant. This compliance duration will start once the VHIP 2.0 unit is put in service. This grant requires that:

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

Participants should sign a rental covenant to this result. This covenant will work for 5 years and states that for this period, the unit needs to remain a long-lasting rental with a regular monthly rental rate at or listed below HUD Fair Market Rent which the Department of Housing and Community Development must 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 issued the grant identifies that a family leaving homelessness is not offered to lease the system, the property manager will rent the system to a family with an earnings equal to or less than 80 percent of location mean income. If such a family is not available, the residential or commercial property owner might lease the system to another family with the approval of the DHCD or HOC.

Grant to Loan Conversion: A landlord may transform a grant to a forgivable loan upon approval by DHCD and the HOC that authorized the grant. When the grant is converted to a forgivable loan, the residential or commercial property owner shall receive a 10% credit for loan forgiveness for each year in which the proprietor gets involved in the grant program. For example, if the residential or commercial property owner participated 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 request 8 years.

Note. This only applies to jobs 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 choices described here do NOT use to tasks authorized 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 get 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 system is leased at or listed below HUD Fair Market Rent for the location for a minimum of ten years. The owner must lease the unit for 10 years at or listed below FMR to be forgiven in its whole. Funds will need to be repaid to the State of Vermont for every year this requirement is not satisfied i.e. if an owner only leases the unit 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 extensive guide walks residential or commercial property owners through every step of the VHIP 2.0 process, from identifying if the program is a good suitable for your project, how to apply, 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 site.

Since there are numerous project types VHIP 2.0 supports, the Frequently Asked Questions (FAQs) are particular to the kind of project looking for financing. To ask concerns about your project, connect 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 participating in VHIP 2.0 are needed to charge leas at or below HUD Fair Market Rent (FMR) for the length of the arrangement, depending upon whether the residential or commercial property owner selects the 5-year grant or 10-year forgivable loan choice. FMRs frequently published by HUD represent the cost of leasing a reasonably priced home unit in the local housing market.

Fair Market Rent Calculator - To use the calculator, you need to finish the energy worksheet, which suggests which utilities the renter is responsible for payment. Once the utility worksheet is complete, the calculator will reveal the maximum permitted rent based upon the county the system lies in and the number of bedrooms.

Fair Market Rent Recertification Form - Residential or commercial property owners taking part in VHIP 2.0 must submit a yearly recertification form to ensure they abide by the program requirements, including FMR. While the program requirements are in impact, residential or commercial property owners will receive an annual request to finish the recertification type. Residential or commercial property owners are encouraged to proactively finish this kind upon turnover or lease renewal.

If you require help finishing the recertification type or determining FMR for your location, please connect 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 ease of access and answer eligibility concerns. Additional details and answers to often asked concerns will continue to be posted to this site as available. 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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