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If you require info about VHIP awards given before 2024, please describe our original 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 jobs approved before March 25, 2024.
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The Vermont Housing Improvement Program (VHIP) is relaunching as VHIP 2.0!

Drawing from insights acquired over the past 3 years and more than 500 systems moneyed, this updated program maintains our commitment to broadening cost effective housing. VHIP 2.0 now provides awards for restricted new building. Additionally, it introduces a 10-year forgivable loan alongside the existing 5-year grants, intending to further incentivize proprietors. This new choice needs leasing units at reasonable market costs without the requirement for referrals from Coordinated Entry Organizations.

Table of Contents:

What can you finish with VHIP 2.0 funding? Just how much financing are projects eligible 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 vacant units. Rehabilitate structural aspects effecting multiple systems, such as the roofing system 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 brand-new structure with five or less residential units. Complete repairs essential for code compliance in occupied units (just qualified for 10 year forgivable loan)

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

How much funding are tasks eligible for?

Based on the kind of job, residential or commercial property owners are qualified to receive up to:

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

Structural repair 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 system in the exact same structure must 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 repair work that affect more than one unit.

What are the program requirements?

Program Match: All participants are needed to provide a 20% match of the award, the option for an in-kind match for unbilled services or owned materials. For instance, a participant who gets 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 concurring to charge at or listed below HUD Fair Market Rent (FMR) or coupon quantity for the length of the agreement (5 or 10 years, learn more about these options here). Participants will be needed to submit an annual recertification kind to guarantee they remain in compliance with the program requirements. To compute HUD FMR for your area, have a look at our resources on Fair Market Rent.

Landlord Education: VHIP 2.0 candidates need to watch a Landlord-Tenant Mediation video and complete a Fair Housing Training as part of the application process. The Landlord-Tenant Mediation video is offered by the Vermont Landlord Association (Please click on this link to view). The online, self-paced Fair Housing training is supplied by CVOEO. It includes an overview of state and federal anti-discrimination requirements, examples of unlawful housing discrimination and potential penalties, gain access to requirements for people with impairments, including sensible lodgings and affordable adjustments, and best practices for housing suppliers. This training will be validated through conclusion of a brief quiz. Please click here to sign up. You will be asked to create an account on the Ruzuku learning platform, then you'll have instant 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 deserve to pick their renters. However, the occupants they choose need to fulfill the program requirements, based on if they are enrolled in the 5- or 10-year tract (click here to get more information). For residential or commercial properties registered in this program, the residential or commercial property owner may not need a credit score higher than 500, and participants are limited to charging no greater than one month's rent for a deposit, regardless of whether it is called a security deposit, a damage deposit or a family pet deposit, last month's lease, and so on. Additionally, residential or commercial property owners need to cover the expense of running background checks on potential occupants. Residential or commercial property owners are likewise needed to accept any housing vouchers that are offered to pay all, or a portion of, the occupant's lease and energies. Additionally, residential or commercial property owners must accept paper applications for occupants with limited internet access.

Out-of-State Owners: Out-of-State owners are needed to recognize a residential or commercial property manager situated within 50 miles of the units to guarantee a local, accountable 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 listed below HUD Fair Market Rent for the registered systems (5 v 10 years). The 5-year grant alternative features extra tenant selection requirements to lease to a family leaving homelessness

To get more information specifics about these two choices, review the areas below.

5-Year Grants

Any residential or commercial property, with the exception of tenant inhabited units dealing with code non-compliance issues, getting VHIP 2.0 can choose to receive a 5-year grant. This compliance duration will start when the VHIP 2.0 unit is placed in service. This grant needs that:

The unit is leased at or below HUD Fair Market Rent for the location for at least 5 years. That the residential or commercial property supervisor deal with Coordinated Entry Lead Organizations to find suitable occupants exiting homelessness for at least 5 years or with USCRI to discover refugee families to lease the unit to

Participants must 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 identifies that a family leaving homelessness is not readily available to lease the unit, the property manager shall rent the system to a home with an earnings equivalent to or less than 80 percent of location median earnings. If such a home is not available, the residential or commercial property owner may rent the system to another household 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 converted to a forgivable loan, the residential or commercial property owner will receive 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 got involved in the grant program for 2 years prior to converting to a forgivable 20% of the funding will be forgiven, and the forgivable loan terms would apply for 8 years.

Note. This only uses to jobs that got financing through VHIP 2.0. The preliminary VHIP financing was sourced from State Fiscal Recovery Funds, which had different policies. The requirements and options outlined 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 using for VHIP 2.0 can choose to get a 10-year forgivable loan. This compliance period will start as soon as 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 location for a minimum of 10 years. The owner must rent the unit for 10 years at or listed below FMR to be forgiven in its whole. Funds will require to be repaid to the State of Vermont for every single year this requirement is not fulfilled i.e. if an owner only leases the system 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 in-depth guide walks residential or commercial property owners through every step of the VHIP 2.0 process, from determining if the program is an excellent fit for your job, how to apply, 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 quantity of a grant or forgivable loan are public records and are published quarterly on this site.

Since there are a number of task types VHIP 2.0 assistances, the Frequently Asked Questions (FAQs) specify to the type of job using for funding. To ask questions about your job, connect with your regional 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 participating in VHIP 2.0 are needed to charge leas at or listed below HUD Fair Market Rent (FMR) for the length of the arrangement, depending upon whether the residential or commercial property owner chooses the 5-year grant or 10-year forgivable loan alternative. FMRs frequently published by HUD represent the cost of leasing a residence system in the local housing market.

Fair Market Rent Calculator - To use the calculator, you should complete the utility worksheet, which shows which energies the renter is accountable for payment. Once the energy worksheet is total, the calculator will reveal the maximum permitted rent based on the county the unit is located in and the variety of bed rooms.

Fair Market Rent Recertification Form - Residential or commercial property owners participating in VHIP 2.0 must send a yearly recertification kind 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 demand to finish the recertification form. Residential or commercial property owners are encouraged to proactively finish this form upon turnover or lease renewal.

If you require support finishing the recertification kind or determining FMR for your area, please contact 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 response eligibility concerns. Additional info and responses to regularly asked questions will continue to be published to this website as readily available. Click here to join our email list and keep up to date on Vermont Housing Improvement Program 2.0 updates and news.
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