If you require information about VHIP awards approved before 2024, please refer to our original VHIP page. The preliminary VHIP financing was sourced from State Fiscal Recovery Funds, which had different guidelines. The requirements and alternatives laid out here do NOT use 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 past 3 years and more than 500 units funded, this updated program keeps our dedication to broadening cost effective housing. VHIP 2.0 now uses awards for restricted new building. Additionally, it introduces a 10-year forgivable loan together with the existing 5-year grants, aiming to further incentivize landlords. This brand-new option requires leasing units at fair market costs without the requirement for recommendations from Coordinated Entry Organizations.

Table of Contents:

What can you make with VHIP 2.0 financing? Just how much funding 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 uses grants or forgivable loans to:

Rehabilitate existing vacant systems. Rehabilitate structural elements 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 units within an existing structure. Create a new structure with five or fewer residential systems. Complete repair work essential for code compliance in occupied units (only eligible for ten years forgivable loan)

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

Just how much funding are tasks eligible for?

Based upon the type of job, residential or commercial property owners are qualified to get up to:

$ 30,000 per system for rehabilitation of 0-2-bedroom units. $ 50,000 per unit for rehabilitation of 3+ bedroom systems, structural aspects impacting multiple units , new unit production, or creation 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 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 job if you are considering structural repairs that impact more than one unit.

What are the program requirements?

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

Fair Market Rent: Participants are likewise needed to sign a rental covenant accepting charge at or below Market Rent (FMR) or coupon quantity for the length of the contract (5 or ten years, find out more about these alternatives here). Participants will be required to submit a yearly recertification type to guarantee they are 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 must enjoy 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 on this link to view). The online, self-paced Fair Housing training is supplied by CVOEO. It consists of an overview of state and federal anti-discrimination requirements, examples of illegal housing discrimination and potential charges, access requirements for people with disabilities, including sensible lodgings and sensible adjustments, and best practices for housing companies. This training will be validated through conclusion of a short test. Please click here to register. 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 issues or have questions, please contact CVOEO at classcoord@cvoeo.org or 802-660-3455 ext. 205.

Tenant Selection: VHIP 2.0 participants deserve to pick their tenants. However, the renters they pick should meet the program requirements, based on if they are enrolled in the 5- or 10-year system (click here to learn more). For residential or commercial properties registered in this program, the residential or commercial property owner may not need a credit history higher than 500, and participants are limited to charging no greater than one month's lease for a deposit, regardless of whether it is called a security deposit, a damage deposit or a pet deposit, last month's lease, and so on. Additionally, residential or commercial property owners must cover the expense of running background look at potential tenants. Residential or commercial property owners are also required to accept any housing vouchers that are readily available to pay all, or a part of, the tenant's rent and utilities. Additionally, residential or commercial property owners must accept paper applications for occupants with limited web access.

Out-of-State Owners: Out-of-State owners are required to recognize a residential or commercial property manager situated within 50 miles of the systems to make sure a local, accountable celebration 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 between the 5-year grant and the 10-year forgivable loans are:

- The duration for which the residential or commercial property owner need to charge at or below HUD Fair Market Rent for the registered systems (5 v 10 years). The 5-year grant option features extra renter selection requirements to rent to a household exiting homelessness

To get more information specifics about these 2 choices, examine the sections listed below.

5-Year Grants

Any residential or commercial property, with the exception of renter inhabited units addressing code non-compliance problems, requesting VHIP 2.0 can opt to receive a 5-year grant. This compliance period will start as soon as the VHIP 2.0 unit is positioned in service. This grant needs that:

The unit is rented at or 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 a minimum of 5 years or with USCRI to find refugee families to lease the system to

Participants should sign a rental covenant to this result. This covenant will work for 5 years and states that for this period, the system needs to stay a long-lasting leasing with a monthly rental rate at or listed below HUD Fair Market Rent which the Department of Housing and Community Development need to 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 identifies that a home exiting homelessness is not available to rent the system, the proprietor shall lease the system to a household with an earnings equal to or less than 80 percent of area typical income. If such a household is unavailable, the residential or commercial property owner might rent the system to another household with the approval of the DHCD or HOC.

Grant to Loan Conversion: A property manager might 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 shall receive a 10% credit for loan forgiveness for each year in which the landlord takes part in the grant program. For instance, 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 make an application for 8 years.

Note. This only applies to jobs that received funding through VHIP 2.0. The initial VHIP funding was sourced from State Fiscal Recovery Funds, which had various policies. The requirements and choices laid out here do NOT apply to tasks approved before March 25, 2024, and those grants can NOT be converted to forgivable loans.

10-Year Forgivable Loans

Any residential or commercial property obtaining VHIP 2.0 can decide to get a 10-year forgivable loan. This compliance period will begin once the VHIP 2.0 system is positioned in service. This grant requires that the unit is rented at or listed below HUD Fair Market Rent for the area for at least 10 years. The owner should lease the unit for 10 years at or listed below FMR to be forgiven in its whole. Funds will require to be paid back to the State of Vermont for each year this requirement is not met 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
google.com
VHIP 2.0 Resource Guide for Residential Or Commercial Property Owners - This thorough guide strolls residential or commercial property owners through every action of the VHIP 2.0 process, from determining if the program is a great fit for your job, how to apply, payment disbursement, preserving 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 released quarterly on this website.

Since there are numerous job types VHIP 2.0 supports, the Frequently Asked Questions (FAQs) are particular to the kind of project requesting financing. To ask concerns about your task, get in touch with your regional 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 taking part in VHIP 2.0 are needed to charge rents at or listed below HUD Fair Market Rent (FMR) for the length of the agreement, depending on whether the residential or commercial property owner chooses the 5-year grant or 10-year forgivable loan option. FMRs regularly released by HUD represent the expense of leasing a reasonably priced house system in the regional housing market.

Fair Market Rent Calculator - To utilize the calculator, you should finish the utility worksheet, which suggests which utilities the renter is accountable for payment. Once the energy worksheet is total, the calculator will show the maximum allowed rent based on the county the system lies in and the variety of bed rooms.

Fair Market Rent Recertification Form - Residential or commercial property owners taking part in VHIP 2.0 should submit a yearly recertification type to ensure they comply with the program requirements, consisting of FMR. While the program requirements are in result, residential or commercial property owners will receive an annual demand to complete the recertification form. Residential or commercial property owners are motivated to proactively complete this form upon turnover or lease renewal.

If you need support finishing the recertification kind or figuring out FMR for your area, please connect with your local 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 information and answers to regularly asked concerns will continue to be posted to this website as offered. Click on this link to join our e-mail list and keep up to date on Vermont Housing Improvement Program 2.0 updates and news.