If you need details about VHIP awards given before 2024, please describe our original VHIP page. The initial VHIP funding was sourced from State Fiscal Recovery Funds, which had different guidelines. The requirements and alternatives outlined here do NOT apply to tasks authorized before March 25, 2024.

The Vermont Housing Improvement Program (VHIP) is relaunching as VHIP 2.0!
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Drawing from insights got over the previous 3 years and more than 500 systems moneyed, this upgraded program maintains our commitment to expanding economical housing. VHIP 2.0 now offers awards for limited new building and construction. Additionally, it presents a 10-year forgivable loan alongside the existing 5-year grants, aiming to even more incentivize landlords. This new alternative needs leasing systems at fair market rates without the need for recommendations from Coordinated Entry Organizations.

Table of Contents:

What can you finish with VHIP 2.0 financing? How much funding 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 make with VHIP 2.0 funding?

VHIP 2.0 provides grants or forgivable loans to:

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

Rehabilitation jobs can include updates to meet housing codes, weatherization, and accessibility enhancements, of qualified rental housing systems.

How much funding are projects qualified for?

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

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

Structural repair work grant or loan awards are offered for a maximum of $50,000 per award made for a residential or commercial property. For each structural award made, a rent-ready system in the exact same structure must be encumbered with a VHIP Covenant or FLA/Promissory Note. Contact your HOC or DHCD for more details and to discuss your job if you are thinking about structural repairs that affect more than one system.

What are the program requirements?

Program Match: All participants are required to offer a 20% match of the award, the option for an in-kind match for unbilled services or owned products. For instance, an individual who gets 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 consenting to charge at or below HUD Fair Market Rent (FMR) or coupon quantity for the length of the contract (5 or 10 years, discover more about these alternatives here). Participants will be required to send an annual recertification form to ensure they remain in compliance with the program requirements. To determine HUD FMR for your location, have a look at our resources on Fair Market Rent.

Landlord Education: VHIP 2.0 candidates need to enjoy 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 offered by CVOEO. It includes an overview of state and federal anti-discrimination requirements, examples of prohibited housing discrimination and possible charges, gain access to requirements for individuals with impairments, including reasonable lodgings and sensible adjustments, and best practices for housing companies. This training will be validated through conclusion of a brief test. Please click here to sign up. You will be asked to create an account on the Ruzuku discovering platform, then you'll have immediate access to the training. If you experience any problems or have questions, please contact CVOEO at classcoord@cvoeo.org or 802-660-3455 ext. 205.

Tenant Selection: VHIP 2.0 have the right to select their renters. However, the renters they pick need to fulfill the program requirements, based upon if they are enrolled in the 5- or 10-year system (click here to find out more). For residential or commercial properties enrolled in this program, the residential or commercial property owner might not require a credit history greater than 500, and participants are restricted to charging no greater than one month's rent for a deposit, regardless of 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 should cover the expense of running background examine potential occupants. Residential or commercial property owners are also needed to accept any housing coupons that are available to pay all, or a part of, the renter's rent and energies. Additionally, residential or commercial property owners need to accept paper applications for occupants with restricted web access.

Out-of-State Owners: Out-of-State owners are required to identify a residential or commercial property manager located within 50 miles of the units to make sure 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 difference 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 units (5 v ten years). The 5-year grant option includes additional renter selection requirements to rent to a home leaving homelessness

To learn more specifics about these two options, review the areas below.

5-Year Grants

Any residential or commercial property, with the exception of occupant occupied systems attending to code non-compliance concerns, getting VHIP 2.0 can decide to get a 5-year grant. This compliance period will begin once the VHIP 2.0 system is positioned in service. This grant requires that:

The system is rented at or listed 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 discover appropriate tenants exiting homelessness for at least 5 years or with USCRI to find refugee homes to lease the system to

Participants should sign a rental covenant to this effect. This covenant will work for 5 years and states that for this duration, the system must stay a long-lasting rental 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 released the grant identifies that a home exiting homelessness is not readily available to rent the system, the proprietor shall lease the system to a home with an income equal to or less than 80 percent of location typical income. If such a family is not available, 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 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 proprietor 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 use for 8 years.

Note. This only applies to projects that received financing through VHIP 2.0. The preliminary VHIP funding was sourced from State Fiscal Recovery Funds, which had different guidelines. The requirements and alternatives described here do NOT apply to projects authorized before March 25, 2024, and those grants can NOT be converted to forgivable loans.

10-Year Forgivable Loans

Any residential or commercial property looking for VHIP 2.0 can opt to get a 10-year forgivable loan. This compliance duration will start once the VHIP 2.0 system is placed in service. This grant needs that the system is rented at or listed below HUD Fair Market Rent for the location for at least 10 years. The owner needs to lease the system for 10 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 fulfilled i.e. if an owner just leases the system 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 strolls residential or commercial property owners through every action of the VHIP 2.0 procedure, from determining if the program is a good suitable for your task, how to use, payment disbursement, keeping program requirements, to offering 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 site.

Since there are several task types VHIP 2.0 assistances, the Frequently Asked Questions (FAQs) specify to the kind of job obtaining funding. To ask questions about your project, 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 required to charge leas at or below HUD Fair Market Rent (FMR) for the length of the agreement, depending on whether the residential or commercial property owner selects the 5-year grant or 10-year forgivable loan alternative. FMRs regularly released by HUD represent the cost of leasing a moderately priced residence unit in the regional housing market.

Fair Market Rent Calculator - To utilize the calculator, you must complete the energy worksheet, which indicates which utilities the tenant is responsible for payment. Once the utility worksheet is complete, the calculator will reveal the optimum allowed lease based upon 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 should send a yearly recertification form to guarantee they comply with the program requirements, including FMR. While the program requirements are in result, residential or commercial property owners will receive a yearly request to complete the recertification kind. Residential or commercial property owners are motivated to proactively finish this kind upon turnover or lease renewal.

If you require help completing the recertification form or figuring out FMR for your area, please contact your local Homeownership Center or the State Housing Division (VHIP@vermont.gov).

More Questions?

As this program matures, the Department is working to increase accessibility and answer eligibility concerns. Additional info and answers to often asked questions will continue to be posted to this website as offered. Click on this link to join our email list and remain up to date on Vermont Housing Improvement Program 2.0 updates and news.
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