If you require information about VHIP awards approved before 2024, please refer to our original VHIP page. The initial VHIP funding was sourced from State Fiscal Recovery Funds, which had various policies. The requirements and options outlined here do NOT use to tasks approved 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 systems moneyed, this upgraded program preserves our dedication to expanding affordable housing. VHIP 2.0 now uses awards for restricted new building and construction. Additionally, it presents a 10-year forgivable loan alongside the existing 5-year grants, aiming to even more incentivize property managers. This brand-new alternative requires leasing systems at fair market value without the requirement for referrals from Coordinated Entry Organizations.

Table of Contents:

What can you finish with VHIP 2.0 financing? Just how much financing 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 do with VHIP 2.0 financing?

VHIP 2.0 provides grants or forgivable loans to:

Rehabilitate existing uninhabited units. Rehabilitate structural aspects effecting numerous units, such as the roof 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 less property units. Complete repair work necessary for code compliance in occupied units (only qualified for ten years forgivable loan)

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

Just how much funding are projects qualified for?

Based upon the type of task, residential or commercial property owners are eligible to receive as much as:

$ 30,000 per system for rehab of 0-2-bedroom units. $ 50,000 per unit for rehabilitation of 3+ bedroom systems, structural elements impacting multiple systems , brand-new unit production, or creation 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 system in the exact same building should 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 required to provide a 20% match of the award, the alternative for an in-kind match for unbilled services or owned products. For example, a participant who receives an award of $50,000 will be needed to offer a $10,000 match.

Fair Market Rent: Participants are also required to sign a rental covenant accepting charge at or listed below HUD Fair Market Rent (FMR) or voucher amount for the length of the arrangement (5 or ten years, discover more about these options here). Participants will be needed to submit a yearly recertification kind to guarantee 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 must see a Landlord-Tenant Mediation video and complete 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 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 unlawful housing discrimination and prospective penalties, access requirements for individuals with specials needs, consisting of sensible lodgings and reasonable modifications, and finest practices for housing companies. This training will be confirmed through completion of a short quiz. Please click on this link to register. You will be asked to develop an account on the Ruzuku finding out platform, then you'll have instant access to the training. If you experience any problems or have questions, please contact CVOEO at classcoord@cvoeo.org or 802-660-3455 ext. 205.

Tenant Selection: VHIP 2.0 individuals have the right to pick their tenants. However, the occupants they choose must satisfy the program requirements, based upon if they are enrolled in the 5- or 10-year system (click on this link 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 participants are restricted to charging no more than one month's lease for a deposit, despite whether it is called a down payment, a damage deposit or an animal deposit, last month's lease, etc. Additionally, residential or commercial property owners should cover the expense of running background checks on prospective occupants. Residential or commercial property owners are also required to accept any housing coupons that are readily available to pay all, or a portion of, the renter's lease and utilities. Additionally, residential or commercial property owners must accept paper applications for tenants with restricted internet gain access to.

Out-of-State Owners: Out-of-State owners are required to determine a residential or manager situated within 50 miles of the systems to guarantee a local, accountable party can manager the residential or commercial property in the lack of the residential or commercial property owner.

5-Year Grant Versus 10-Year Forgivable Loan

The primary 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 enrolled systems (5 v 10 years). The 5-year grant option features additional tenant selection requirements to rent to a family exiting homelessness

To read more specifics about these 2 choices, evaluate the areas listed below.

5-Year Grants

Any residential or commercial property, with the exception of tenant occupied units dealing with code non-compliance problems, obtaining VHIP 2.0 can choose to get a 5-year grant. This compliance period will begin as soon as the VHIP 2.0 unit is positioned in service. This grant needs that:

The unit is leased at or 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 tenants exiting homelessness for a minimum of 5 years or with USCRI to find refugee homes to rent the unit to

Participants need to sign a rental covenant to this impact. This covenant will be efficient for 5 years and states that for this duration, the system should stay a long-lasting rental with a month-to-month rental rate at or 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 provided the grant determines that a family exiting homelessness is not offered to rent the system, the proprietor will lease the system to a family with an income equal to or less than 80 percent of area mean income. If such a family is not available, the residential or commercial property owner might lease the system to another home with the approval of the DHCD or HOC.

Grant to Loan Conversion: A landlord might 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 will 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 took part 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 use for 8 years.

Note. This only applies to jobs that got funding through VHIP 2.0. The initial VHIP funding was sourced from State Fiscal Recovery Funds, which had various guidelines. The requirements and choices outlined here do NOT use to jobs approved before March 25, 2024, and those grants can NOT be transformed to forgivable loans.

10-Year Forgivable Loans

Any residential or commercial property getting VHIP 2.0 can opt to receive a 10-year forgivable loan. This compliance duration will begin when the VHIP 2.0 unit is put in service. This grant needs that the unit is rented at or below HUD Fair Market Rent for the area for a minimum of 10 years. The owner needs to rent the system for ten years at or below FMR to be forgiven in its totality. Funds will require to be paid back to the State of Vermont for every single year this requirement is not fulfilled i.e. if an owner just leases the unit for 7 years at or 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 procedure, from figuring out if the program is a good fit for your job, 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 receivers and the amount of a grant or forgivable loan are public records and are released quarterly on this site.

Since there are numerous task types VHIP 2.0 supports, the Frequently Asked Questions (FAQs) are particular to the kind of job obtaining funding. 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 getting involved in VHIP 2.0 are needed to charge rents at or below HUD Fair Market Rent (FMR) for the length of the contract, depending upon whether the residential or commercial property owner chooses the 5-year grant or 10-year forgivable loan alternative. FMRs routinely published by HUD represent the cost of leasing a reasonably priced residence unit in the local housing market.

Fair Market Rent Calculator - To utilize the calculator, you must finish the utility worksheet, which indicates which utilities the renter is accountable for payment. Once the utility worksheet is total, the calculator will reveal the optimum permitted rent based upon the county the system is situated 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 an annual recertification type to guarantee they comply with the program requirements, consisting of FMR. While the program requirements are in impact, residential or commercial property owners will receive an annual request to complete the recertification type. Residential or commercial property owners are encouraged to proactively finish this type upon turnover or lease renewal.

If you need help completing the recertification kind or determining FMR for your area, please contact your regional Homeownership Center or the State Housing Division (VHIP@vermont.gov).
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More Questions?

As this program matures, the Department is working to increase availability and response eligibility questions. Additional info and responses to often asked concerns will continue to be published to this website as available. Click here to join our e-mail list and remain up to date on Vermont Housing Improvement Program 2.0 updates and news.
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