If you require information about VHIP awards before 2024, please refer to our original VHIP page. The preliminary VHIP financing was sourced from State Fiscal Recovery Funds, which had different regulations. The requirements and choices outlined 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 past 3 years and more than 500 units funded, this updated program preserves our dedication to expanding inexpensive housing. VHIP 2.0 now provides awards for restricted brand-new building. Additionally, it presents a 10-year forgivable loan alongside the existing 5-year grants, aiming to further incentivize property managers. This brand-new alternative requires renting units at reasonable market rates without the need for referrals from Coordinated Entry Organizations.

Table of Contents:

What can you do 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 funding?

VHIP 2.0 offers grants or forgivable loans to:

Rehabilitate existing uninhabited units. Rehabilitate structural elements effecting several systems, such as the roofing of a multi-family residential or commercial property. Develop a new Accessory Dwelling Unit (ADU) on an owner-occupied residential or commercial property. Create new units within an existing structure. Create a new structure with 5 or fewer domestic systems. Complete repair work needed for code compliance in occupied systems (only eligible for 10 year forgivable loan)

Rehabilitation tasks can include updates to fulfill housing codes, weatherization, and accessibility enhancements, of eligible rental housing units.

How much financing are projects qualified for?

Based on the kind of task, residential or commercial property owners are eligible to receive approximately:

$ 30,000 per unit for rehab of 0-2-bedroom units. $ 50,000 per unit for rehab of 3+ bedroom systems, structural aspects affecting multiple systems , new system production, or creation of Accessory Dwelling Units (ADUs)

Structural repair grant or loan awards are readily available for a maximum 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 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 repair work that impact more than one unit.

What are the program requirements?

Program Match: All participants are needed to supply a 20% match of the award, the option for an in-kind match for unbilled services or owned products. For instance, an individual who receives an award of $50,000 will be required to supply a $10,000 match.

Fair Market Rent: Participants are likewise required to sign a rental covenant concurring to charge at or below HUD Fair Market Rent (FMR) or coupon quantity for the length of the agreement (5 or 10 years, discover more about these alternatives here). Participants will be required to send an annual recertification type to ensure they are in compliance with the program requirements. To determine HUD FMR for your area, check out our resources on Fair Market Rent.

Landlord Education: VHIP 2.0 applicants must view a Landlord-Tenant Mediation video and finish a Fair Housing Training as part of the application process. The Landlord-Tenant Mediation video is provided by the Vermont Landlord Association (Please click here to view). The online, self-paced Fair Housing training is provided by CVOEO. It includes an introduction of state and federal anti-discrimination requirements, examples of illegal housing discrimination and prospective charges, gain access to requirements for individuals with specials needs, including affordable accommodations and affordable adjustments, and finest practices for housing companies. This training will be verified through completion 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 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 participants can choose their tenants. However, the occupants they select should fulfill the program requirements, based on if they are registered in the 5- or 10-year tract (click on this link to read more). For residential or commercial properties registered in this program, the residential or commercial property owner may not require a credit score higher than 500, and participants are restricted to charging no more than one month's lease for a deposit, regardless of whether it is called a down payment, a damage deposit or a pet deposit, last month's rent, and so on. Additionally, residential or commercial property owners must cover the expense of running background checks on possible tenants. Residential or commercial property owners are also required to accept any housing coupons that are available 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 occupants with minimal 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 units to ensure a local, responsible celebration 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 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 registered systems (5 v ten years). The 5-year grant option features extra tenant choice requirements to rent to a home exiting homelessness

To find out more specifics about these 2 options, examine the sections below.
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5-Year Grants

Any residential or commercial property, with the exception of renter occupied systems addressing code non-compliance concerns, using for VHIP 2.0 can choose to receive a 5-year grant. This compliance duration will begin once the VHIP 2.0 unit is positioned in service. This grant requires that:

The system is rented at or listed 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 find appropriate occupants exiting homelessness for a minimum of 5 years or with USCRI to discover refugee homes to lease the system to

Participants need to sign a rental covenant to this result. This covenant will be efficient for 5 years and states that for this duration, the system should remain a long-lasting rental 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 issued the grant determines that a household leaving homelessness is not available to lease the system, the proprietor will lease the system to a household with an earnings equal to or less than 80 percent of area mean income. If such a home is not available, the residential or commercial property owner may rent the unit to another household 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 will get a 10% credit for loan forgiveness for each year in which the property owner 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 request 8 years.

Note. This only applies to projects that received funding through VHIP 2.0. The preliminary VHIP financing was sourced from State Fiscal Recovery Funds, which had different guidelines. The requirements and choices 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 getting VHIP 2.0 can choose to receive a 10-year forgivable loan. This compliance period will start once the VHIP 2.0 unit is placed in service. This grant needs that the unit is rented at or listed below HUD Fair Market Rent for the location for a minimum of ten years. The owner should rent the unit for ten years at or below FMR to be forgiven in its whole. Funds will need 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 in-depth guide walks residential or commercial property owners through every step of the VHIP 2.0 procedure, from determining if the program is an excellent suitable for your project, how to use, payment dispensation, maintaining program requirements, to selling 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 published quarterly on this website.

Since there are numerous job types VHIP 2.0 supports, the Frequently Asked Questions (FAQs) are specific to the kind of project 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 brand-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 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 choice. FMRs frequently published by HUD represent the expense of renting a moderately priced dwelling system in the local housing market.

Fair Market Rent Calculator - To use the calculator, you should complete the energy worksheet, which indicates which energies the occupant is accountable for payment. Once the energy worksheet is total, the calculator will show the maximum permitted rent based on the county the system is situated in and the variety of bedrooms.

Fair Market Rent Recertification Form - Residential or commercial property owners taking part in VHIP 2.0 must send an annual recertification form to guarantee they comply with the program requirements, including FMR. While the program requirements are in effect, residential or commercial property owners will receive a yearly request to finish the recertification type. Residential or commercial property owners are motivated to proactively complete this form upon turnover or lease renewal.

If you require support finishing the recertification form or figuring out FMR for your location, 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 ease of access and response eligibility questions. Additional details and answers to often asked concerns will continue to be posted 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.