If you need info about VHIP awards approved before 2024, please describe our original VHIP page. The preliminary VHIP financing was sourced from State Fiscal Recovery Funds, which had various policies. The requirements and options laid out here do NOT apply to jobs 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 units funded, this updated program preserves our commitment to broadening cost effective housing. VHIP 2.0 now uses awards for restricted brand-new construction. Additionally, it introduces a 10-year forgivable loan together with the existing 5-year grants, intending to further incentivize landlords. This new option needs renting units at reasonable market prices without the requirement for referrals from Coordinated Entry Organizations.

Table of Contents:

What can you make with VHIP 2.0 funding? Just 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 do with VHIP 2.0 funding?

VHIP 2.0 provides grants or forgivable loans to:

Rehabilitate existing vacant units. Rehabilitate structural components effecting several systems, such as the roof 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 units within an existing structure. Create a new structure with 5 or fewer property units. Complete repair work necessary for code compliance in occupied systems (just qualified for 10 year forgivable loan)

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

How much financing are projects eligible for?

Based on the kind of task, residential or commercial property owners are qualified to receive as much as:

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

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

What are the program requirements?

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

Fair Market Rent: Participants are also required 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, find out more about these choices here). Participants will be required to submit a yearly recertification type to guarantee they remain 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 view a Landlord-Tenant Mediation video and complete a Fair Housing Training as part of the application procedure. The Landlord-Tenant Mediation video is provided by the Vermont Landlord Association (Please click on this link to see). The online, self-paced Fair Housing training is offered by CVOEO. It includes an introduction of state and federal anti-discrimination requirements, examples of prohibited housing discrimination and possible charges, access requirements for individuals with impairments, including sensible lodgings and affordable adjustments, and best practices for housing providers. This training will be verified through completion of a brief test. Please click here to sign up. You will be asked to develop an account on the Ruzuku discovering platform, then you'll have immediate 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 can select their tenants. However, the occupants they pick must satisfy the program requirements, based on if they are registered in the 5- or 10-year tract (click on this link to learn more). For residential or commercial properties registered in this program, the residential or commercial property owner might not need a credit rating higher than 500, and individuals are restricted to charging no more than one month's rent for a deposit, no matter whether it is called a down payment, a damage deposit or a family pet deposit, last month's rent, etc. Additionally, residential or commercial property owners must cover the expense of running background examine prospective occupants. Residential or commercial property owners are likewise required to accept any housing vouchers that are offered to pay all, or a portion of, the tenant's lease and energies. Additionally, residential or commercial property owners must accept paper applications for occupants with restricted internet access.

Out-of-State Owners: Out-of-State owners are required to identify a residential or commercial property supervisor situated within 50 miles of the systems to guarantee a local, responsible party 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 in 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 10 years). The 5-year grant choice includes extra tenant choice requirements to rent to a household exiting homelessness

To read more specifics about these 2 choices, review the sections listed below.

5-Year Grants

Any residential or commercial property, with the exception of occupant occupied units resolving code non-compliance issues, making an application for VHIP 2.0 can choose to receive a 5-year grant. This compliance period will start when the VHIP 2.0 system is placed in service. This grant requires that:

The system 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 work with Coordinated Entry Lead Organizations to find appropriate renters leaving homelessness for a minimum of 5 years or with USCRI to find refugee families to rent the unit to

Participants must sign a rental covenant to this result. This covenant will work for 5 years and states that for this duration, the unit must stay a long-lasting leasing with a month-to-month rental rate at or below HUD Fair Market Rent and that 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 provided the grant determines that a household leaving homelessness is not offered to rent the unit, the proprietor shall rent the unit to a family with an earnings equivalent to or less than 80 percent of area average earnings. If such a home is unavailable, the residential or commercial property owner may lease the unit to another household with the approval of the DHCD or HOC.

Grant to Loan Conversion: A landlord 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 will receive 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 look for 8 years.

Note. This only applies to tasks that got financing through VHIP 2.0. The preliminary VHIP funding was sourced from State Fiscal Recovery Funds, which had various regulations. The requirements and options detailed here do NOT use to tasks authorized 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 choose to get a 10-year forgivable loan. This compliance duration will begin when the VHIP 2.0 system is put in service. This grant requires that the system is rented at or listed below HUD Fair Market Rent for the area for at least 10 years. The owner should lease the system for ten years at or below FMR to be forgiven in its whole. Funds will need to be paid back to the State of Vermont for every single year this requirement is not satisfied i.e. if an owner only 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 walks residential or commercial property owners through every step of the VHIP 2.0 process, from determining if the program is a great suitable for your job, how to apply, 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 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) specify to the type of job applying for funding. To ask questions about your job, 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 leas at or listed below HUD Fair Market Rent (FMR) for the length of the contract, depending upon whether the residential or commercial property owner picks the 5-year grant or 10-year forgivable loan choice. FMRs regularly released by HUD represent the expense of leasing a reasonably priced house unit in the local housing market.

Fair Market Rent Calculator - To utilize the calculator, you should finish the energy worksheet, which shows which utilities the renter is accountable for payment. Once the energy worksheet is total, the calculator will reveal the optimum allowable rent based on the county the unit is located in and the number of bedrooms.

Fair Market Rent Recertification Form - Residential or commercial property owners getting involved in VHIP 2.0 must send an annual recertification form to ensure they comply with the program requirements, consisting of FMR. While the program requirements are in result, residential or commercial property owners will get an annual demand to finish the recertification type. Residential or commercial property owners are encouraged to proactively complete this type upon turnover or lease renewal.

If you require assistance finishing the recertification form or determining FMR for your location, please contact your regional Homeownership Center or the State Housing Division (VHIP@vermont.gov).

More Questions?

As this program matures, the Department is working to increase availability and answer eligibility concerns. Additional information and answers to regularly asked concerns will to be posted to this site as available. Click on this link to join our email list and keep up to date on Vermont Housing Improvement Program 2.0 updates and news.