If you require info about VHIP awards given before 2024, please refer to our original VHIP page. The initial VHIP financing was sourced from State Fiscal Recovery Funds, which had different policies. The requirements and choices outlined here do NOT apply to tasks authorized 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 previous 3 years and more than 500 systems funded, this updated program keeps our dedication to expanding budget friendly housing. VHIP 2.0 now uses awards for restricted new building and construction. Additionally, it introduces a 10-year forgivable loan along with the existing 5-year grants, intending to further incentivize property owners. This brand-new choice needs leasing systems at reasonable market value without the requirement for recommendations from Coordinated Entry Organizations.

Table of Contents:

What can you make 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 do with VHIP 2.0 financing?

VHIP 2.0 uses 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 brand-new Accessory Dwelling Unit (ADU) on an owner-occupied residential or commercial property. Create brand-new systems within an existing structure. Create a brand-new structure with five or fewer residential systems. Complete repair work necessary for code compliance in occupied units (only qualified for ten years forgivable loan)

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

How much funding are tasks eligible for?

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

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

Structural repair work grant or loan awards are readily available 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 need to be encumbered with a VHIP Covenant or FLA/Promissory Note. Contact your HOC or DHCD for more information and to discuss your task if you are thinking about structural repairs that impact more than one system.

What are the program requirements?

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

Fair Market Rent: Participants are also 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 10 years, discover more about these options here). Participants will be needed to send an annual recertification type to ensure they are in compliance with the program requirements. To determine HUD FMR for your area, check out our resources on Fair Market Rent.

Landlord Education: VHIP 2.0 applicants need to watch a Landlord-Tenant Mediation video and finish a Fair Housing Training as part of the application procedure. The Landlord-Tenant Mediation video is supplied by the Vermont Landlord Association (Please click here to see). The online, self-paced Fair Housing training is provided by CVOEO. It consists of an overview of state and federal anti-discrimination requirements, examples of prohibited housing discrimination and potential penalties, access requirements for individuals with specials needs, consisting of affordable lodgings and affordable modifications, and finest practices for housing companies. This training will be validated through completion of a brief quiz. Please click on this link to sign up. You will be asked to produce 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 deserve to select their tenants. However, the tenants they choose need to fulfill the program requirements, based on if they are enrolled in the 5- or 10-year system (click on this link to get more information). For residential or commercial properties registered in this program, the residential or commercial property owner may not require a credit history 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 down payment, a damage deposit or a pet deposit, last month's lease, etc. Additionally, residential or commercial property owners need to cover the expense of running background checks on prospective occupants. Residential or commercial property owners are likewise required to accept any housing coupons that are available to pay all, or a part of, the tenant's lease and utilities. Additionally, residential or commercial property owners must accept paper applications for renters with limited web gain access to.

Out-of-State Owners: Out-of-State owners are needed to identify a residential or commercial property manager situated within 50 miles of the units to guarantee a regional, accountable party can supervisor 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 difference 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 systems (5 v 10 years). The 5-year grant alternative comes with extra tenant selection requirements to lease to a home leaving homelessness

For more information specifics about these 2 choices, examine the areas listed below.

5-Year Grants

Any residential or commercial property, with the exception of tenant occupied units dealing with code non-compliance concerns, looking for VHIP 2.0 can decide to get a 5-year grant. This compliance period will begin when the VHIP 2.0 system is positioned in service. This grant requires that:

The system is rented at or below HUD Fair Market Rent for the area for a minimum of 5 years. That the residential or commercial property supervisor deal with Coordinated Entry Lead Organizations to discover appropriate occupants exiting homelessness for a minimum of 5 years or with USCRI to find refugee families to rent the unit 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 rental with a month-to-month rental rate at or listed below HUD Fair Market Rent which the Department of Housing and Community Development should 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 released the grant determines that a home exiting homelessness is not offered to lease the system, the landlord will lease the system to a home with an earnings equal to or less than 80 percent of area mean income. If such a family is not available, the residential or commercial property owner may lease the system to another household with the approval of the DHCD or HOC.

Grant to Loan Conversion: A landlord might transform a grant to a forgivable loan upon approval by DHCD and the HOC that authorized the grant. When the grant is transformed 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 manager 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 request 8 years.

Note. This only applies to projects that got funding through VHIP 2.0. The initial VHIP funding was sourced from State Fiscal Recovery Funds, which had various regulations. The requirements and options laid out here do NOT use 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 requesting VHIP 2.0 can opt to receive a 10-year forgivable loan. This compliance duration will begin once the VHIP 2.0 system is put in service. This grant requires that the unit is leased at or below HUD Fair Market Rent for the area for a minimum of 10 years. The owner must lease the system for ten years at or below FMR to be forgiven in its whole. Funds will require to be repaid to the State of Vermont for each year this requirement is not satisfied i.e. if an owner just leases the system 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 project, how to use, payment disbursement, preserving program requirements, to offering a VHIP 2.0 residential or commercial property.

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

Since there are several job types VHIP 2.0 supports, the Frequently Asked Questions (FAQs) specify to the kind of job getting funding. To ask concerns about your task, 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 below HUD Fair Market Rent (FMR) for the length of the contract, depending upon whether the residential or commercial property owner selects the 5-year grant or 10-year forgivable loan alternative. FMRs routinely published by HUD represent the expense of renting a reasonably priced house system in the local housing market.

Fair Market Rent Calculator - To utilize the calculator, you must complete the energy worksheet, which suggests which energies the tenant is accountable for payment. Once the energy worksheet is total, the calculator will show the optimum allowed lease based upon 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 needs to submit a yearly recertification form to ensure they abide by the program requirements, consisting of FMR. While the program requirements are in result, residential or commercial property owners will get an annual demand to complete the recertification form. Residential or commercial property owners are encouraged to proactively complete this kind upon turnover or lease renewal.

If you need assistance finishing the recertification form or figuring out FMR for your location, please contact your local Homeownership Center or the State Housing Division (VHIP@vermont.gov).

More Questions?

As this program develops, the Department is working to increase ease of access and response eligibility concerns. Additional info and answers to regularly asked questions will continue to be published to this site as readily available. Click on this link to join our email list and stay up to date on Vermont Housing Improvement Program 2.0 updates and news.