If you require information about VHIP awards granted before 2024, please refer to our initial VHIP page. The preliminary VHIP funding was sourced from State Fiscal Recovery Funds, which had different guidelines. The requirements and alternatives detailed here do NOT use to projects approved before March 25, 2024.
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The Vermont Housing Improvement Program (VHIP) is relaunching as VHIP 2.0!

Drawing from insights gained over the previous 3 years and more than 500 systems funded, this updated program keeps our dedication to broadening inexpensive housing. VHIP 2.0 now uses awards for restricted brand-new building and construction. Additionally, it introduces a 10-year forgivable loan along with the existing 5-year grants, intending to even more incentivize property managers. This brand-new option needs leasing systems at fair market value without the requirement for recommendations from Coordinated Entry Organizations.

Table of Contents:

What can you do with VHIP 2.0 financing? How much financing are jobs 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 do with VHIP 2.0 financing?

VHIP 2.0 provides grants or forgivable loans to:

Rehabilitate existing vacant systems. Rehabilitate structural aspects effecting numerous systems, 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 units within an existing structure. Create a brand-new structure with 5 or less domestic systems. Complete repairs essential for code compliance in occupied systems (just eligible for ten years forgivable loan)

Rehabilitation projects can include updates to satisfy housing codes, weatherization, and accessibility enhancements, of qualified rental housing systems.

How much financing are jobs eligible for?

Based on the type of task, residential or commercial property owners are qualified to get approximately:

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

Structural repair grant or loan awards are available 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 structure must be encumbered with a VHIP Covenant or FLA/Promissory Note. Contact your HOC or DHCD for more information and to discuss your job if you are thinking about structural repairs that affect more than one unit.

What are the program requirements?

Program Match: All participants are required to provide a 20% match of the award, the choice 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 also required to sign a rental covenant agreeing to charge at or listed below HUD Fair Market Rent (FMR) or coupon quantity for the length of the arrangement (5 or 10 years, discover more about these options here). Participants will be required to send a yearly recertification form to guarantee they are in compliance with the program requirements. To determine HUD FMR for your area, take a look at our resources on Fair Market Rent.

Landlord Education: VHIP 2.0 candidates must see a Landlord-Tenant Mediation video and finish a Fair Housing Training as part of the application procedure. The Landlord-Tenant Mediation video is supplied by the Vermont Landlord Association (Please click here to view). The online, self-paced Fair Housing training is supplied by CVOEO. It consists of an overview of state and federal anti-discrimination requirements, examples of unlawful housing discrimination and potential penalties, access requirements for individuals with specials needs, including reasonable accommodations and affordable modifications, and finest practices for housing providers. This training will be validated through conclusion of a brief test. 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 issues or have questions, please contact CVOEO at classcoord@cvoeo.org or 802-660-3455 ext. 205.

Tenant Selection: VHIP 2.0 individuals deserve to pick their renters. However, the occupants they select should satisfy the program requirements, based upon if they are enrolled in the 5- or 10-year system (click on this link for more information). For residential or commercial properties registered in this program, the residential or commercial property owner might not need a credit report higher than 500, and individuals are restricted to charging no more than one month's rent for a deposit, no matter whether it is called a down payment, a damage deposit or a family pet deposit, last month's rent, and so on. Additionally, residential or commercial property owners must cover the expense of running background checks on prospective renters. Residential or commercial property owners are likewise needed to accept any housing coupons that are offered to pay all, or a portion of, the tenant's rent and energies. Additionally, residential or commercial property owners need to accept paper applications for tenants with limited web gain access to.

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

- The duration for which the residential or commercial property owner should charge at or below HUD Fair Market Rent for the registered units (5 v ten years). The 5-year grant option includes extra occupant choice requirements to rent to a household exiting homelessness

To read more specifics about these two options, review the sections below.

5-Year Grants

Any residential or commercial property, with the exception of tenant inhabited systems attending to code non-compliance issues, making an application for VHIP 2.0 can opt to get a 5-year grant. This compliance period will begin once the VHIP 2.0 system is positioned 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 manager deal with Coordinated Entry Lead Organizations to find appropriate renters exiting homelessness for a minimum of 5 years or with USCRI to discover refugee families to rent the unit to

Participants must sign a rental covenant to this impact. This covenant will be efficient for 5 years and states that for this period, the unit should stay a long-lasting leasing with a month-to-month 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 provided the grant figures out that a home exiting homelessness is not readily available to lease the system, the landlord shall lease the system to a household with an earnings equal to or less than 80 percent of area typical income. If such a family is not available, the residential or commercial property owner may rent 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 authorized the grant. When the grant is converted to a forgivable loan, the residential or commercial property owner will receive 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 transforming to a forgivable 20% of the funding will be forgiven, and the forgivable loan terms would request 8 years.

Note. This only uses to jobs that received financing through VHIP 2.0. The initial VHIP funding was sourced from State Fiscal Recovery Funds, which had various policies. The requirements and options laid out here do NOT use 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 obtaining VHIP 2.0 can decide to receive a 10-year forgivable loan. This compliance period will start as soon as the VHIP 2.0 system is positioned in service. This grant requires that the system is rented at or below HUD Fair Market Rent for the location for a minimum of 10 years. The owner needs to lease the unit for ten 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 single year this requirement is not satisfied 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 extensive guide walks residential or commercial property owners through every action of the VHIP 2.0 process, from determining if the program is a good suitable for your job, how to use, payment disbursement, preserving program requirements, to selling 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 published quarterly on this site.

Since there are numerous task types VHIP 2.0 assistances, the Frequently Asked Questions (FAQs) specify to the type of task looking for funding. To ask questions about your project, link 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 getting involved in VHIP 2.0 are required to charge rents at or below HUD Fair Market Rent (FMR) for the length of the agreement, depending upon whether the residential or commercial property owner picks the 5-year grant or 10-year forgivable loan option. FMRs frequently released by HUD represent the cost of leasing a reasonably priced dwelling system in the regional housing market.

Fair Market Rent Calculator - To utilize the calculator, you should complete the utility worksheet, which indicates which energies the tenant is responsible for payment. Once the energy worksheet is total, the calculator will show the optimum allowed lease based upon the county the system lies in and the variety of bed rooms.

Fair Market Rent Recertification Form - Residential or commercial property owners getting involved in VHIP 2.0 needs to send an type to guarantee they comply with the program requirements, including FMR. While the program requirements are in impact, residential or commercial property owners will get an annual demand to complete the recertification form. Residential or commercial property owners are motivated to proactively complete this form upon turnover or lease renewal.

If you need help finishing the recertification form or figuring out FMR for your area, please connect with your regional Homeownership Center or the State Housing Division (VHIP@vermont.gov).

More Questions?

As this program develops, the Department is working to increase accessibility and answer eligibility questions. Additional information and answers to regularly asked concerns will continue to be posted to this website as available. 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.