If you require information about VHIP awards approved before 2024, please describe our original VHIP page. The initial VHIP financing was sourced from State Fiscal Recovery Funds, which had different guidelines. The requirements and choices described here do NOT apply to jobs 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 moneyed, this updated program preserves our commitment to expanding cost effective housing. VHIP 2.0 now provides awards for minimal brand-new building. Additionally, it introduces a 10-year forgivable loan together with the existing 5-year grants, aiming to further incentivize proprietors. This brand-new option requires renting units at fair market costs without the need for referrals from Coordinated Entry Organizations.

Table of Contents:

What can you do with VHIP 2.0 funding? How much funding 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 finish with VHIP 2.0 funding?

VHIP 2.0 offers grants or forgivable loans to:

Rehabilitate existing vacant units. Rehabilitate structural elements effecting numerous systems, such as the roofing system of a multi-family residential or commercial property. Develop a brand-new Accessory Dwelling Unit (ADU) on an owner-occupied residential or commercial property. Create new systems within an existing structure. Create a new structure with five or less residential units. Complete repairs necessary for code compliance in occupied systems (just eligible for ten years forgivable loan)

Rehabilitation jobs can include updates to meet housing codes, weatherization, and ease of access improvements, of eligible rental housing systems.

Just how much funding are tasks eligible for?

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

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

Structural repair work grant or loan awards are available 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 structure must be overloaded 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 system.

What are the program requirements?

Program Match: All individuals are required to offer a 20% match of the award, the alternative for an in-kind match for unbilled services or owned products. For instance, a participant who receives an award of $50,000 will be required to offer 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 quantity for the length of the agreement (5 or ten years, discover more about these choices here). Participants will be required to submit a yearly recertification type to guarantee they are in compliance with the program requirements. To calculate HUD FMR for your location, have a look at our resources on Fair Market Rent.

Landlord Education: VHIP 2.0 applicants 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 here 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 prohibited housing discrimination and possible penalties, access requirements for people with disabilities, including reasonable accommodations and sensible adjustments, and finest practices for housing providers. This training will be validated through conclusion of a short test. Please click on this link to sign up. You will be asked to create an account on the Ruzuku finding out 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 pick their renters. However, the occupants they pick need to meet the program requirements, based on if they are enrolled in the 5- or 10-year system (click on this link to learn more). For residential or commercial properties enrolled in this program, the residential or commercial property owner may not need a credit report higher than 500, and participants are limited to charging no more than one month's lease for a deposit, no matter whether it is called a security deposit, a damage deposit or a pet deposit, last month's lease, etc. Additionally, residential or commercial property owners must cover the cost of running background look at possible tenants. Residential or commercial property owners are likewise needed to accept any housing coupons that are readily available to pay all, or a part of, the tenant's lease and energies. Additionally, residential or commercial property owners should accept paper applications for tenants with limited web gain access to.

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 regional, accountable celebration can manager the residential or commercial property in the absence of the residential or commercial property owner.

5-Year Grant Versus 10-Year Forgivable Loan

The main difference between the 5-year grant and the 10-year forgivable loans are:

- The duration for which the residential or commercial property owner must charge at or below HUD Fair Market Rent for the registered systems (5 v 10 years). The 5-year grant alternative comes with additional occupant choice requirements to lease to a home exiting homelessness
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For more information specifics about these 2 options, examine the sections listed below.

5-Year Grants

Any residential or commercial property, with the exception of occupant occupied units dealing with code non-compliance issues, obtaining VHIP 2.0 can choose to receive a 5-year grant. This compliance duration will begin when the VHIP 2.0 system is positioned in service. This grant requires that:

The unit is leased at or listed below HUD Fair Market Rent for the location for at least 5 years. That the residential or commercial property manager deal with Coordinated Entry Lead Organizations to find appropriate tenants leaving homelessness for at least 5 years or with USCRI to find refugee families to lease the system to

Participants must sign a rental covenant to this result. This covenant will work for 5 years and states that for this period, the system must remain a long-lasting leasing with a monthly rental rate at or below HUD Fair Market Rent which 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 issued the grant identifies that a home leaving homelessness is not offered to lease the unit, the property manager will lease the unit to a with an income equivalent to or less than 80 percent of area mean earnings. If such a home is unavailable, the residential or commercial property owner might lease the unit to another family with the approval of the DHCD or HOC.

Grant to Loan Conversion: A property manager may transform a grant to a forgivable loan upon approval by DHCD and the HOC that authorized 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 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 tasks that received financing through VHIP 2.0. The preliminary VHIP funding was sourced from State Fiscal Recovery Funds, which had various policies. The requirements and choices described here do NOT use to projects approved 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 opt to get a 10-year forgivable loan. This compliance duration will begin as soon as the VHIP 2.0 unit is positioned in service. This grant requires that the unit is rented at or below HUD Fair Market Rent for the location for a minimum of 10 years. The owner needs to rent the system for 10 years at or below FMR to be forgiven in its totality. Funds will need to be repaid to the State of Vermont for every single year this requirement is not satisfied i.e. if an owner just rents the system for 7 years at or below FMR, 3 years (30%) of funding will not be forgiven.
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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 process, from determining if the program is an excellent suitable for your job, how to use, payment dispensation, keeping 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 a number of task types VHIP 2.0 supports, the Frequently Asked Questions (FAQs) are particular to the type of task requesting funding. To ask questions about your job, get in touch 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 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 arrangement, depending on whether the residential or commercial property owner chooses the 5-year grant or 10-year forgivable loan choice. FMRs regularly released by HUD represent the expense of renting a moderately priced home unit in the local housing market.

Fair Market Rent Calculator - To utilize the calculator, you should finish the utility worksheet, which suggests which utilities the occupant is accountable for payment. Once the energy worksheet is complete, the calculator will reveal the maximum allowed rent based upon the county the unit 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 form to ensure they abide by the program requirements, consisting of FMR. While the program requirements are in impact, residential or commercial property owners will receive an annual request to complete the recertification form. Residential or commercial property owners are encouraged to proactively complete this type upon turnover or lease renewal.

If you need help completing the recertification type or identifying FMR for your area, please get in touch with your local Homeownership Center or the State Housing Division (VHIP@vermont.gov).

More Questions?

As this program grows, the Department is working to increase accessibility and response eligibility questions. Additional info and answers to often asked questions will continue to be posted to this site 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.