If you need details about VHIP awards approved before 2024, please describe our initial VHIP page. The preliminary VHIP financing was sourced from State Fiscal Recovery Funds, which had various regulations. The requirements and options described here do NOT use 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 moneyed, this upgraded program maintains our commitment to expanding cost effective housing. VHIP 2.0 now provides awards for minimal new building and construction. Additionally, it introduces a 10-year forgivable loan alongside the existing 5-year grants, intending to further incentivize landlords. This brand-new choice needs leasing systems at reasonable market prices 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 funding?

VHIP 2.0 offers grants or forgivable loans to:

Rehabilitate existing uninhabited units. Rehabilitate structural components effecting several units, such as the roofing system of a multi-family residential or commercial property. Develop a brand-new Accessory Dwelling Unit (ADU) on an or commercial property. Create brand-new units within an existing structure. Create a brand-new structure with 5 or fewer domestic systems. Complete repairs required for code compliance in occupied systems (only qualified for ten years forgivable loan)

Rehabilitation projects can include updates to fulfill housing codes, weatherization, and ease of access improvements, of qualified rental housing units.

Just how much funding are projects qualified for?

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

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

Structural repair grant or loan awards are readily 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 very same structure should be overloaded with a VHIP Covenant or FLA/Promissory Note. Contact your HOC or DHCD for more details and to discuss your project if you are thinking about structural repairs that impact more than one unit.

What are the program requirements?

Program Match: All participants are required to offer a 20% match of the award, the choice for an in-kind match for unbilled services or owned materials. For instance, an individual who gets an award of $50,000 will be needed to supply a $10,000 match.
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Fair Market Rent: Participants are likewise required to sign a rental covenant consenting to charge at or 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 send an annual recertification kind to guarantee they are in compliance with the program requirements. To determine HUD FMR for your area, have a look at our resources on Fair Market Rent.

Landlord Education: VHIP 2.0 candidates should see a Landlord-Tenant Mediation video and complete a Fair Housing Training as part of the application process. 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 includes a summary of state and federal anti-discrimination requirements, examples of illegal housing discrimination and possible charges, gain access to requirements for individuals with specials needs, including affordable lodgings and reasonable adjustments, and finest practices for housing providers. This training will be validated through conclusion of a short test. Please click here to register. You will be asked to develop an account on the Ruzuku discovering platform, then you'll have immediate access to the training. If you experience any problems or have concerns, please contact CVOEO at classcoord@cvoeo.org or 802-660-3455 ext. 205.

Tenant Selection: VHIP 2.0 participants have the right to pick their occupants. However, the occupants they choose must fulfill the program requirements, based upon 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 need a credit rating greater than 500, and participants are limited to charging no greater than one month's rent for a deposit, despite 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 need to cover the expense of running background checks on prospective tenants. Residential or commercial property owners are likewise needed to accept any housing vouchers that are readily available to pay all, or a part of, the occupant's rent and energies. Additionally, residential or commercial property owners need to accept paper applications for tenants with restricted web access.

Out-of-State Owners: Out-of-State owners are needed to recognize a residential or commercial property supervisor situated within 50 miles of the systems to make sure 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 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 must charge at or below HUD Fair Market Rent for the registered systems (5 v ten years). The 5-year grant option includes extra tenant choice requirements to rent to a home leaving homelessness

To find out more specifics about these 2 choices, review the areas below.

5-Year Grants

Any residential or commercial property, with the exception of renter inhabited systems dealing with code non-compliance concerns, requesting VHIP 2.0 can opt to get a 5-year grant. This compliance duration will begin as soon as the VHIP 2.0 system is positioned in service. This grant needs that:

The system is leased at or below HUD Fair Market Rent for the area for a minimum of 5 years. That the residential or commercial property supervisor deal with Coordinated Entry Lead Organizations to discover suitable occupants leaving homelessness for a minimum of 5 years or with USCRI to find refugee homes to rent the system to

Participants should sign a rental covenant to this impact. This covenant will work for 5 years and states that for this duration, the system should remain a long-term leasing with a regular monthly rental rate at or listed below HUD Fair Market Rent and that the Department of Housing and Community Development must 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 provided the grant determines that a family exiting homelessness is not offered to lease the unit, the landlord shall lease the unit to a household with an income equivalent to or less than 80 percent of area median income. If such a household is not available, the residential or commercial property owner might rent the unit to another household with the approval of the DHCD or HOC.
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Grant to Loan Conversion: A landlord may transform a grant to a forgivable loan upon approval by DHCD and the HOC that approved the grant. When the grant is converted to a forgivable loan, the residential or commercial property owner shall receive a 10% credit for loan forgiveness for each year in which the property owner 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 converting to a forgivable 20% of the financing will be forgiven, and the forgivable loan terms would request 8 years.

Note. This only uses to projects that got financing through VHIP 2.0. The preliminary VHIP funding was sourced from State Fiscal Recovery Funds, which had various guidelines. The requirements and choices described here do NOT apply to projects authorized 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 choose to get a 10-year forgivable loan. This compliance duration will start once the VHIP 2.0 unit is positioned in service. This grant needs that the unit is leased at or listed below HUD Fair Market Rent for the location for at least 10 years. The owner must rent the system for ten years at or listed below FMR to be forgiven in its totality. Funds will require to be repaid to the State of Vermont for every single year this requirement is not met i.e. if an owner only rents the unit for 7 years at or listed 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 step of the VHIP 2.0 process, from determining if the program is a good suitable for your project, 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 released quarterly on this site.

Since there are numerous task types VHIP 2.0 supports, the Frequently Asked Questions (FAQs) are specific to the kind of project looking for funding. To ask concerns about your task, get in touch 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 taking part in VHIP 2.0 are needed to charge leas at or listed 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 option. FMRs routinely released by HUD represent the cost of leasing a reasonably priced residence system in the local housing market.

Fair Market Rent Calculator - To utilize the calculator, you need to finish the energy worksheet, which shows which energies the tenant is accountable for payment. Once the utility worksheet is total, the calculator will reveal the maximum permitted rent based on the county the system lies 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 submit an annual recertification form to ensure they abide by the program requirements, consisting of FMR. While the program requirements are in result, residential or commercial property owners will receive a yearly demand to finish the recertification kind. Residential or commercial property owners are motivated to proactively finish this form upon turnover or lease renewal.

If you require assistance finishing the recertification type or figuring out FMR for your area, please contact your regional Homeownership Center or the State Housing Division (VHIP@vermont.gov).

More Questions?

As this program develops, the Department is working to increase availability and answer eligibility questions. Additional info and responses to frequently asked questions will continue to be posted to this website as offered. Click on this link to join our email list and keep up to date on Vermont Housing Improvement Program 2.0 updates and news.