If you require 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 different 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 previous 3 years and more than 500 units funded, this updated program keeps our dedication to broadening budget-friendly housing. VHIP 2.0 now uses awards for limited brand-new building. Additionally, it introduces a 10-year forgivable loan alongside the existing 5-year grants, intending to even more incentivize landlords. This new alternative requires renting systems at fair market costs without the requirement for recommendations from Coordinated Entry Organizations.
Tabulation:
What can you finish with VHIP 2.0 funding?
How much funding 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 finish with VHIP 2.0 funding?
VHIP 2.0 provides grants or forgivable loans to:
Rehabilitate existing uninhabited systems.
Rehabilitate structural aspects effecting multiple units, such as the roof of a multi-family residential or commercial property.
Develop a 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 units.
Complete repair work necessary for code compliance in occupied units (just qualified for 10 year forgivable loan)
Rehabilitation tasks can consist of updates to satisfy housing codes, weatherization, and ease of access improvements, of eligible rental housing systems.
Just how much funding are projects qualified for?
Based on the type of task, residential or commercial property owners are qualified to receive approximately:
$ 30,000 per unit for rehab of 0-2-bedroom systems.
$ 50,000 per system for rehab of 3+ bed room systems, structural elements impacting multiple units *, new unit creation, or development of Accessory Dwelling Units (ADUs)
* Structural repair work grant or loan awards are offered for an optimum of $50,000 per award produced a residential or commercial property. For each structural award made, a rent-ready unit in the exact same building must 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 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 option for an in-kind match for unbilled services or owned products. For example, an individual who gets an award of $50,000 will be needed to provide a $10,000 match.
Fair Market Rent: Participants are likewise needed to sign a rental covenant accepting charge at or listed below HUD Fair Market Rent (FMR) or coupon amount for the length of the contract (5 or 10 years, find out more about these choices here). Participants will be needed to submit an annual recertification form to guarantee they remain in compliance with the program requirements. To calculate HUD FMR for your area, inspect out our resources on Fair Market Rent.
Landlord Education: VHIP 2.0 candidates should view a Landlord-Tenant Mediation video and finish a Fair Housing Training as part of the application procedure. 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 provided by CVOEO. It includes an overview of state and federal anti-discrimination requirements, examples of illegal housing discrimination and prospective charges, access requirements for people with specials needs, including affordable accommodations and sensible modifications, and finest practices for housing providers. This training will be verified through conclusion of a brief test. Please click here to register. You will be asked to develop an account on the Ruzuku finding out platform, then you'll have immediate 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 can choose their renters. However, the renters they pick must meet the program requirements, based on if they are registered in the 5- or 10-year system (click here to discover more). For residential or commercial properties enrolled in this program, the residential or commercial property owner might not require a credit rating greater 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 rent, etc. Additionally, residential or commercial property owners must cover the cost of running background look at potential renters. Residential or commercial property owners are also needed to accept any housing vouchers that are offered to pay all, or a part of, the tenant's rent and energies. Additionally, residential or commercial property owners should accept paper applications for renters with limited internet gain access to.
Out-of-State Owners: Out-of-State owners are needed to identify a residential or commercial property supervisor situated within 50 miles of the systems to ensure a local, responsible celebration 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 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 need to charge at or listed below HUD Fair Market Rent for the enrolled systems (5 v ten years).
The 5-year grant alternative comes with additional renter selection requirements to lease to a family leaving homelessness
To get more information specifics about these two options, review the sections listed below.
5-Year Grants
Any residential or commercial property, with the exception of renter inhabited units addressing code non-compliance issues, making an application for VHIP 2.0 can choose to get a 5-year grant. This compliance duration will begin when the VHIP 2.0 unit is positioned in service. This grant requires that:
The unit is leased at or listed below HUD Fair Market Rent for the location for a minimum of 5 years.
That the residential or commercial property manager deal with Coordinated Entry Lead Organizations to find suitable tenants exiting homelessness for at least 5 years or with USCRI to find refugee households to lease the system to
Participants should sign a rental covenant to this effect. This covenant will work for 5 years and states that for this period, the system must stay a long-lasting rental with a monthly rental rate at or 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 figures out that a home exiting homelessness is not available to lease the unit, the proprietor will lease the system to a family with an income equal to or less than 80 percent of location typical earnings. If such a home is unavailable, the residential or commercial property owner may lease the system to another home with the approval of the DHCD or HOC.
Grant to Loan Conversion: A proprietor may convert a grant to a forgivable loan upon approval by DHCD and the HOC that approved the grant. When the grant is transformed to a forgivable loan, the residential or commercial property owner will get a 10% credit for loan forgiveness for each year in which the landlord participates in the grant program. For example, 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 financing will be forgiven, and the forgivable loan terms would look for 8 years.
Note. This only applies to projects that received financing through VHIP 2.0. The preliminary VHIP financing was sourced from State Fiscal Recovery Funds, which had different policies. The requirements and choices outlined here do NOT use to projects 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 decide to get a 10-year forgivable loan. This compliance period will start as soon as the VHIP 2.0 unit is put in service. This grant requires that the system is rented at or listed below HUD Fair Market Rent for the area for a minimum of 10 years. The owner should rent the system for 10 years at or listed below FMR to be forgiven in its whole. Funds will need to be paid back to the State of Vermont for every year this requirement is not met i.e. if an owner only 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 strolls residential or commercial property owners through every action of the VHIP 2.0 procedure, from determining if the program is a great suitable for your project, how to use, payment disbursement, maintaining 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 project types VHIP 2.0 assistances, the Frequently Asked Questions (FAQs) specify to the type of task requesting financing. To ask concerns about your task, 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 rents at or below HUD Fair Market Rent (FMR) for the length of the contract, depending upon whether the residential or commercial property owner selects the 5-year grant or 10-year forgivable loan alternative. FMRs frequently released by HUD represent the expense of leasing a reasonably priced home unit in the regional housing market.
Fair Market Rent Calculator - To utilize the calculator, you need to complete the energy worksheet, which shows which utilities the renter is responsible for payment. Once the energy worksheet is total, the calculator will reveal the maximum allowable rent based on the county the unit lies in and the number of bedrooms.
Fair Market Rent Recertification Form - Residential or commercial property owners taking part in VHIP 2.0 must send an annual recertification type to guarantee they abide by the program requirements, including FMR. While the program requirements are in effect, residential or commercial property owners will get a yearly request to finish the recertification kind. Residential or commercial property owners are encouraged to proactively complete this type upon turnover or lease renewal.
If you require support completing the recertification form or figuring out FMR for your location, please connect with your regional Homeownership Center or the State Housing Division (VHIP@vermont.gov).
More Questions?
As this program matures, the Department is working to increase ease of access and answer eligibility concerns. Additional details and answers to often asked questions will continue to be posted to this website as available. Click here to join our email list and keep up to date on Vermont Housing Improvement Program 2.0 updates and news.
