If you need information about VHIP awards granted before 2024, please refer to our original VHIP page. The preliminary VHIP funding was sourced from State Fiscal Recovery Funds, which had various guidelines. The requirements and choices laid out here do NOT apply to jobs approved before March 25, 2024.

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

Drawing from insights got over the previous 3 years and more than 500 units funded, this updated program preserves our dedication to expanding cost effective housing. VHIP 2.0 now uses awards for minimal new building and construction. Additionally, it presents a 10-year forgivable loan along with the existing 5-year grants, aiming to even more incentivize landlords. This brand-new option needs leasing units at reasonable market value without the need for recommendations from Coordinated Entry Organizations.

Table of Contents:

What can you finish with VHIP 2.0 funding?
Just how much funding 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 funding?

VHIP 2.0 offers grants or forgivable loans to:

Rehabilitate existing vacant systems.
Rehabilitate structural components effecting numerous 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 new systems within an existing structure.
Create a new structure with 5 or less domestic systems.
Complete repair work essential for code compliance in occupied systems (just eligible for ten years forgivable loan)

Rehabilitation projects can consist of updates to fulfill housing codes, weatherization, and availability enhancements, of qualified rental housing systems.

Just how much funding are tasks eligible for?

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

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

* Structural repair grant or loan awards are offered for a maximum of $50,000 per award produced a residential or commercial property. For each structural award made, a rent-ready system in the very same building 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 considering structural repair work that affect more than one unit.

What are the program requirements?

Program Match: All individuals are needed to offer a 20% match of the award, the choice for an in-kind match for unbilled services or owned materials. For example, a participant who receives 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 agreeing to charge at or listed below HUD Fair Market Rent (FMR) or coupon quantity for the length of the agreement (5 or 10 years, discover more about these options here). Participants will be required to send an annual recertification type to ensure they remain in compliance with the program requirements. To calculate HUD FMR for your location, examine out our resources on Fair Market Rent.

Landlord Education: VHIP 2.0 candidates should watch a Landlord-Tenant Mediation video and complete a Fair Housing Training as part of the application procedure. 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 provided by CVOEO. It consists of a summary of state and federal anti-discrimination requirements, examples of illegal housing discrimination and possible charges, gain access to requirements for people with impairments, consisting of reasonable accommodations and reasonable modifications, and finest practices for housing companies. This training will be confirmed through completion of a short test. Please click on this link to sign up. You will be asked to develop an account on the Ruzuku discovering platform, then you'll have instant access to the training. If you experience any problems or have questions, please contact CVOEO at [email protected] or 802-660-3455 ext. 205.

Tenant Selection: VHIP 2.0 individuals have the right to pick their occupants. However, the renters they pick should satisfy the program requirements, based upon if they are enrolled in the 5- or 10-year tract (click on this link for more information). For residential or commercial properties registered in this program, the residential or commercial property owner may not require a credit rating 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 pet deposit, last month's lease, etc. Additionally, residential or commercial property owners should cover the cost of running background look at possible occupants. Residential or commercial property owners are likewise required to accept any housing coupons that are offered to pay all, or a part of, the renter's lease and energies. Additionally, residential or commercial property owners need to accept paper applications for occupants with restricted 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 units to guarantee a regional, accountable 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 distinction in 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 option features additional renter choice requirements to rent to a household exiting homelessness

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

5-Year Grants

Any residential or commercial property, with the exception of occupant occupied units dealing with code non-compliance problems, applying for VHIP 2.0 can decide to receive a 5-year grant. This compliance duration will start when the VHIP 2.0 system is put in service. This grant requires that:

The system is leased at or below HUD Fair Market Rent for the location for at least 5 years.
That the residential or commercial property manager work with Coordinated Entry Lead Organizations to discover ideal occupants exiting homelessness for at least 5 years or with USCRI to discover refugee homes to lease the unit to

Participants should sign a rental covenant to this effect. This covenant will be efficient for 5 years and states that for this duration, the system should remain a long-term leasing with a month-to-month rental rate at or below HUD Fair Market Rent which the Department of Housing and Community Development should approve 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 figures out that a household leaving homelessness is not offered to rent the system, the proprietor shall lease the unit to a home with an earnings equivalent to or less than 80 percent of area mean earnings. If such a household is not available, the residential or commercial property owner might rent the system to another family 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 authorized the grant. When the grant is transformed to a forgivable loan, the residential or commercial property owner shall receive a 10% credit for loan forgiveness for each year in which the landlord takes part in the grant program. For example, if the residential or commercial property owner got involved 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 make an application for 8 years.

Note. This only applies to tasks that received financing through VHIP 2.0. The initial VHIP funding was sourced from State Fiscal Recovery Funds, which had various regulations. The requirements and choices detailed here do NOT apply 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 applying for VHIP 2.0 can opt to receive a 10-year forgivable loan. This compliance period will start when the VHIP 2.0 system is placed in service. This grant needs that the system is leased at or listed below HUD Fair Market Rent for the area for a minimum of 10 years. The owner must lease the unit for 10 years at or listed below FMR to be forgiven in its totality. Funds will need to be repaid to the State of Vermont for every year this requirement is not fulfilled i.e. if an owner only rents the unit 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 walks residential or commercial property owners through every action of the VHIP 2.0 process, from determining if the program is a great fit for your job, how to use, payment disbursement, 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 quantity of a grant or forgivable loan are public records and are released quarterly on this site.

Since there are several task types VHIP 2.0 assistances, the Frequently Asked Questions (FAQs) are particular to the kind of project requesting 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 new structure).
Rehabilitation of Occupied Units

Fair Market Rent & Recertification

All residential or commercial property owners getting involved in VHIP 2.0 are needed to charge leas at or listed 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 moderately priced home system in the local housing market.

Fair Market Rent Calculator - To use the calculator, you must finish the utility worksheet, which suggests which utilities the occupant is accountable for payment. Once the energy worksheet is complete, the calculator will reveal the optimum permitted lease based on the county the system is located in and the number of bed rooms.

Fair Market Rent Recertification Form - Residential or commercial property owners taking part in VHIP 2.0 needs to send a yearly recertification kind to guarantee they abide by the program requirements, consisting of FMR. While the program requirements are in impact, residential or commercial property owners will receive a yearly 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 completing the recertification kind or determining FMR for your location, please contact your local Homeownership Center or the State Housing Division ([email protected]).

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 published to this site as readily 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.