If you need information about VHIP awards given before 2024, please refer to our initial VHIP page. The preliminary VHIP funding was sourced from State Fiscal Recovery Funds, which had various policies. The requirements and alternatives laid out here do NOT apply to projects authorized before March 25, 2024.

The Vermont Housing Improvement Program (VHIP) is relaunching as VHIP 2.0!

Drawing from insights gained over the past 3 years and more than 500 units moneyed, this updated program preserves our commitment to broadening budget-friendly housing. VHIP 2.0 now provides awards for restricted new building. Additionally, it introduces a 10-year forgivable loan alongside the existing 5-year grants, intending to further incentivize property managers. This brand-new choice needs leasing systems at fair market rates without the requirement for recommendations from Coordinated Entry Organizations.

Table of Contents:

What can you make with VHIP 2.0 funding? How much financing are tasks 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 provides grants or forgivable loans to:

Rehabilitate existing vacant units. Rehabilitate structural components effecting several units, 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 brand-new units within an existing structure. Create a new structure with 5 or fewer residential systems. Complete repair work required for code compliance in occupied systems (just eligible for 10 year forgivable loan)

Rehabilitation projects can include updates to meet housing codes, weatherization, and ease of access improvements, of eligible rental housing systems.

How much financing are tasks eligible for?

Based upon the type of project, residential or commercial property owners are qualified to receive up to:

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

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

What are the program requirements?

Program Match: All individuals are needed to provide a 20% match of the award, the option for an in-kind match for unbilled services or owned materials. For example, a participant who gets an award of $50,000 will be needed to supply 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 arrangement (5 or ten years, discover more about these alternatives here). Participants will be required to submit a yearly recertification kind to ensure they are in compliance with the program requirements. To calculate HUD FMR for your area, 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 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 on this link to see). The online, self-paced Fair Housing training is offered by CVOEO. It includes an introduction of state and federal anti-discrimination requirements, examples of illegal housing discrimination and potential charges, gain access to requirements for individuals with disabilities, including affordable lodgings and affordable adjustments, and finest practices for housing providers. This training will be validated through conclusion of a brief quiz. Please click on this link to sign up. You will be asked to create an account on the Ruzuku discovering platform, then you'll have immediate 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 can choose their renters. However, the renters they choose must meet the program requirements, based on 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 might not need a credit report greater than 500, and individuals are restricted to charging no more than one month's lease for a deposit, regardless of whether it is called a security deposit, a damage deposit or a pet deposit, last month's lease, and so on. Additionally, residential or commercial property owners must cover the cost of running background look at possible occupants. Residential or commercial property owners are likewise needed to accept any housing vouchers that are offered to pay all, or a part of, the renter's lease and energies. Additionally, residential or commercial property owners should accept paper applications for tenants with minimal internet gain access to.

Out-of-State Owners: Out-of-State owners are required to determine a residential or commercial property manager situated within 50 miles of the systems to ensure a local, accountable 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 enrolled units (5 v 10 years). The 5-year grant choice features extra renter choice requirements to rent to a home exiting homelessness

To get more information specifics about these 2 choices, examine the areas below.

5-Year Grants

Any residential or commercial property, with the exception of renter occupied units addressing code non-compliance problems, making an application for VHIP 2.0 can opt to get a 5-year grant. This compliance period will begin as soon as the VHIP 2.0 system is put in service. This grant needs that:

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

Participants must sign a rental covenant to this impact. This covenant will work for 5 years and states that for this period, the unit needs to remain a long-lasting leasing 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 Community Development (DHCD) or the Homeownership Center (HOC) that released the grant determines that a household is not available to lease the system, the property manager shall rent the unit to a household with an income equal to or less than 80 percent of area average earnings. If such a household is unavailable, the residential or commercial property owner may lease the unit to another household 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 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 landlord 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 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 uses to projects that received financing through VHIP 2.0. The initial VHIP financing was sourced from State Fiscal Recovery Funds, which had different guidelines. The requirements and alternatives described 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 using for VHIP 2.0 can opt to receive a 10-year forgivable loan. This compliance period will start as soon as the VHIP 2.0 unit is placed in service. This grant requires that the unit is rented at or below HUD Fair Market Rent for the location for a minimum of ten years. The owner needs to lease the unit for 10 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 each year this requirement is not satisfied i.e. if an owner just 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 extensive guide strolls residential or commercial property owners through every step of the VHIP 2.0 process, from determining if the program is a good fit for your project, 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 quantity of a grant or forgivable loan are public records and are released quarterly on this website.

Since there are numerous job types VHIP 2.0 assistances, the Frequently Asked Questions (FAQs) specify to the type of project making an application for financing. To ask concerns about your project, get in touch with your regional homeownership center.

Rehabilitation or Conversion of Unoccupied Units Accessory Dwelling Units New Unit Creation (within a brand-new structure). Rehabilitation of Occupied Units

Fair Market Rent & Recertification

All residential or commercial property owners taking part in VHIP 2.0 are required to charge leas at or listed below HUD Fair Market Rent (FMR) for the length of the arrangement, depending upon whether the residential or commercial property owner picks the 5-year grant or 10-year forgivable loan alternative. FMRs frequently published by HUD represent the expense of renting a reasonably priced dwelling system in the local housing market.

Fair Market Rent Calculator - To utilize the calculator, you must finish the energy worksheet, which shows which utilities the tenant is responsible for payment. Once the energy worksheet is complete, the calculator will show the optimum permitted rent based on the county the unit lies in and the variety of bed rooms.

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 abide by the program requirements, consisting of FMR. While the program requirements are in result, residential or commercial property owners will get a yearly demand to finish the recertification type. Residential or commercial property owners are encouraged to proactively finish this kind upon turnover or lease renewal.

If you need help finishing the recertification form or identifying FMR for your area, please get in touch with 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 accessibility and answer eligibility questions. Additional info 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.