If you need information about VHIP awards given before 2024, please refer to our initial VHIP page. The initial VHIP funding was sourced from State Fiscal Recovery Funds, which had various policies. The requirements and options described here do NOT use to projects approved 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 systems funded, this upgraded program keeps our dedication to expanding inexpensive housing. VHIP 2.0 now uses awards for minimal new building and construction. Additionally, it presents a 10-year forgivable loan along with the existing 5-year grants, aiming to further incentivize property managers. This new choice requires leasing units at reasonable market prices without the need for referrals from Coordinated Entry Organizations.

Tabulation:

What can you do with VHIP 2.0 financing? Just 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 financing?

VHIP 2.0 offers grants or forgivable loans to:

Rehabilitate existing uninhabited systems. Rehabilitate structural components effecting multiple units, 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 brand-new structure with 5 or fewer domestic systems. Complete repair work required for code compliance in occupied units (just qualified for ten years forgivable loan)

Rehabilitation jobs can consist of updates to satisfy housing codes, weatherization, and ease of access enhancements, of eligible rental housing systems.

How much funding are jobs qualified for?

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

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

Structural repair grant or loan awards are 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 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 participants are needed to provide a 20% match of the award, the choice for an in-kind match for unbilled services or owned materials. For example, an individual who receives an award of $50,000 will be needed to provide a $10,000 match.
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Fair Market Rent: Participants are likewise needed to sign a rental covenant consenting to charge at or listed below HUD Fair Market Rent (FMR) or coupon quantity for the length of the arrangement (5 or ten years, learn more about these choices here). Participants will be required to send a yearly recertification form to ensure they remain in compliance with the program requirements. To calculate HUD FMR for your area, inspect out our resources on Fair Market Rent.

Landlord Education: VHIP 2.0 candidates must watch a Landlord-Tenant Mediation video and finish a Fair Housing Training as part of the application process. The Landlord-Tenant Mediation video is supplied 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 an introduction of state and federal anti-discrimination requirements, examples of illegal housing discrimination and potential charges, access requirements for people with disabilities, including affordable accommodations and affordable adjustments, and best practices for housing suppliers. This training will be verified through conclusion of a brief quiz. 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 problems or have concerns, please contact CVOEO at classcoord@cvoeo.org or 802-660-3455 ext. 205.

Tenant Selection: VHIP 2.0 individuals deserve to select their tenants. However, the renters they choose must 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 enrolled in this program, the residential or commercial property owner may not need a credit rating greater than 500, and individuals are restricted to charging no more 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 checks on possible occupants. Residential or commercial property owners are likewise needed to accept any housing coupons that are available to pay all, or a part of, the occupant's lease and utilities. Additionally, residential or commercial property owners need to accept paper applications for tenants with limited 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 guarantee a local, responsible 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 primary distinction between the 5-year grant and the 10-year forgivable loans are:

- The duration for which the residential or commercial property owner should charge at or listed below HUD Fair Market Rent for the enrolled units (5 v ten years). The 5-year grant alternative comes with extra occupant selection to lease to a family leaving homelessness

To read more specifics about these two choices, review the areas listed below.

5-Year Grants

Any residential or commercial property, with the exception of occupant occupied units dealing with code non-compliance concerns, getting VHIP 2.0 can choose to get a 5-year grant. This compliance period will start as soon as the VHIP 2.0 system is put in service. This grant requires that:

The system is leased at or listed below HUD Fair Market Rent for the location for a minimum of 5 years. That the residential or commercial property supervisor work with Coordinated Entry Lead Organizations to find appropriate occupants leaving homelessness for at least 5 years or with USCRI to find refugee households to lease the system to

Participants should sign a rental covenant to this impact. This covenant will be efficient for 5 years and states that for this duration, the unit should remain a long-term 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 provided the grant identifies that a household exiting homelessness is not readily available to rent the unit, the proprietor shall lease the system to a household with an income equal to or less than 80 percent of location mean earnings. If such a home is not available, the residential or commercial property owner may rent the system 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 approved the grant. When the grant is converted to a forgivable loan, the residential or commercial property owner will get a 10% credit for loan forgiveness for each year in which the property owner gets involved 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 look 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 various regulations. The requirements and options outlined here do NOT apply to jobs approved before March 25, 2024, and those grants can NOT be transformed to forgivable loans.

10-Year Forgivable Loans

Any residential or commercial property making an application for VHIP 2.0 can decide to receive a 10-year forgivable loan. This compliance duration will start as soon as the VHIP 2.0 unit is placed in service. This grant requires that the unit is rented at or listed below HUD Fair Market Rent for the location for a minimum of ten years. The owner must rent the unit for 10 years at or below FMR to be forgiven in its entirety. Funds will require to be paid back to the State of Vermont for every year this requirement is not satisfied i.e. if an owner only rents the unit for 7 years at or 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 strolls 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 use, payment dispensation, preserving program requirements, to offering a VHIP 2.0 residential or commercial property.

VHIP 2.0 Recipient List - The identity of VHIP receivers and the amount of a grant or forgivable loan are public records and are released quarterly on this website.

Since there are several job types VHIP 2.0 assistances, the Frequently Asked Questions (FAQs) are specific to the type of job looking for funding. To ask questions about your project, get in touch 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 taking part in VHIP 2.0 are needed to charge rents at or below HUD Fair Market Rent (FMR) for the length of the arrangement, depending upon whether the residential or commercial property owner picks the 5-year grant or 10-year forgivable loan alternative. FMRs frequently published by HUD represent the cost of leasing a moderately priced home unit in the local housing market.

Fair Market Rent Calculator - To use the calculator, you should complete the energy worksheet, which suggests which energies the tenant is accountable for payment. Once the utility worksheet is complete, the calculator will show the maximum allowable lease based on the county the unit is located in and the variety of bedrooms.

Fair Market Rent Recertification Form - Residential or commercial property owners taking part in VHIP 2.0 must submit a yearly recertification form to guarantee they adhere to the program requirements, consisting of FMR. While the program requirements are in impact, residential or commercial property owners will get an annual demand to complete the recertification type. Residential or commercial property owners are encouraged to proactively finish this kind upon turnover or lease renewal.

If you require support finishing the recertification kind or figuring out FMR for your location, please connect with 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 answer eligibility concerns. Additional information and responses to often asked questions will continue to be published to this website as available. 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.