If you need info about VHIP awards approved before 2024, please describe our initial VHIP page. The initial VHIP financing was sourced from State Fiscal Recovery Funds, which had various regulations. The requirements and alternatives detailed here do NOT use to projects approved before March 25, 2024.
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The Vermont Housing Improvement Program (VHIP) is relaunching as VHIP 2.0!
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Drawing from insights gained over the past 3 years and more than 500 systems funded, this updated program maintains our dedication to expanding cost effective housing. VHIP 2.0 now offers awards for restricted brand-new building. Additionally, it introduces a 10-year forgivable loan alongside the existing 5-year grants, intending to further incentivize proprietors. This brand-new option requires leasing systems at reasonable market costs without the need 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 make with VHIP 2.0 financing?

VHIP 2.0 provides grants or forgivable loans to:

Rehabilitate existing uninhabited units. Rehabilitate structural aspects 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 brand-new units within an existing structure. Create a brand-new structure with 5 or less residential units. Complete repairs necessary for code compliance in occupied units (just eligible for ten years forgivable loan)

Rehabilitation projects can include updates to fulfill housing codes, weatherization, and accessibility enhancements, of housing units.

How much funding are jobs eligible for?

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

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

Structural repair grant or loan awards are offered for a maximum of $50,000 per award produced a residential or commercial property. For each structural award made, a rent-ready system in the very same structure must 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 repair work that affect more than one unit.

What are the program requirements?

Program Match: All participants are required to offer a 20% match of the award, the choice for an in-kind match for unbilled services or owned products. For example, an individual who receives 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 voucher quantity for the length of the arrangement (5 or ten years, learn more about these options here). Participants will be needed to submit an annual recertification kind to guarantee they remain in compliance with the program requirements. To compute HUD FMR for your area, inspect out our resources on Fair Market Rent.

Landlord Education: VHIP 2.0 applicants should enjoy a Landlord-Tenant Mediation video and complete 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 a summary of state and federal anti-discrimination requirements, examples of prohibited housing discrimination and prospective penalties, gain access to requirements for individuals with disabilities, consisting of reasonable lodgings and sensible adjustments, and best practices for housing suppliers. This training will be validated through completion of a brief test. Please click on this link to sign up. You will be asked to produce an account on the Ruzuku learning 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 individuals have the right to choose their occupants. However, the tenants they pick should fulfill the program requirements, based upon if they are enrolled 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 history higher than 500, and participants are limited to charging no greater than one month's rent for a deposit, no matter whether it is called a security deposit, a damage deposit or an animal 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 needed to accept any housing coupons that are readily available to pay all, or a portion of, the renter's rent and energies. Additionally, residential or commercial property owners need to accept paper applications for occupants with limited web access.

Out-of-State Owners: Out-of-State owners are required to recognize a residential or commercial property manager situated within 50 miles of the units to ensure a regional, accountable party 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 main difference in 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 choice includes extra renter selection requirements to rent to a household exiting homelessness

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

5-Year Grants

Any residential or commercial property, with the exception of tenant occupied systems dealing with code non-compliance concerns, making an application for VHIP 2.0 can opt to receive a 5-year grant. This compliance duration will begin when the VHIP 2.0 system is put in service. This grant needs 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 deal with Coordinated Entry Lead Organizations to find ideal renters leaving homelessness for a minimum of 5 years or with USCRI to discover refugee families to lease the system to

Participants need to sign a rental covenant to this impact. This covenant will work for 5 years and states that for this period, the system should remain 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 identifies that a household leaving homelessness is not offered to rent the unit, the proprietor will lease the unit to a family with an earnings equal to or less than 80 percent of location mean earnings. If such a household is unavailable, the residential or commercial property owner may rent the system to another home with the approval of the DHCD or HOC.

Grant to Loan Conversion: A property owner may convert 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 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 transforming to a forgivable 20% of the funding will be forgiven, and the forgivable loan terms would make an application for 8 years.

Note. This only uses to tasks that got funding through VHIP 2.0. The initial VHIP funding was sourced from State Fiscal Recovery Funds, which had different policies. The requirements and options described here do NOT use to jobs approved before March 25, 2024, and those grants can NOT be converted 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 as soon as the VHIP 2.0 system is put in service. This grant requires that the system is leased at or below HUD Fair Market Rent for the location for a minimum of 10 years. The owner must rent the unit for 10 years at or listed below FMR to be forgiven in its whole. Funds will need to be paid back to the State of Vermont for each year this requirement is not met i.e. if an owner just leases the system for 7 years at or listed 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 identifying if the program is a great suitable for your job, how to apply, 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 published quarterly on this site.

Since there are a number of project types VHIP 2.0 supports, the Frequently Asked Questions (FAQs) are particular to the type of project making an application for financing. To ask concerns 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 rents at or 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 cost of leasing a moderately priced home system in the local housing market.

Fair Market Rent Calculator - To use the calculator, you must complete the utility worksheet, which indicates which energies the occupant is accountable for payment. Once the energy worksheet is total, the calculator will show the optimum permitted rent based upon the county the unit is situated in and the variety of bedrooms.

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

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

More Questions?

As this program matures, the Department is working to increase availability and response eligibility concerns. Additional info and responses to regularly asked concerns will continue to be published to this site 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.