If you require information about VHIP awards granted before 2024, please refer to our original VHIP page. The preliminary VHIP financing was sourced from State Fiscal Recovery Funds, which had different regulations. The requirements and options described here do NOT apply to projects approved before March 25, 2024.
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The Vermont Housing Improvement Program (VHIP) is relaunching as VHIP 2.0!

Drawing from insights gained over the previous 3 years and more than 500 systems funded, this updated program keeps our dedication to broadening budget friendly housing. VHIP 2.0 now offers awards for limited brand-new building and construction. Additionally, it presents a 10-year forgivable loan together with the existing 5-year grants, aiming to further incentivize proprietors. This brand-new alternative needs renting systems at reasonable market value without the requirement for recommendations from Coordinated Entry Organizations.

Tabulation:

What can you do with VHIP 2.0 funding? How much funding are jobs 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 finish with VHIP 2.0 financing?

VHIP 2.0 provides grants or forgivable loans to:

Rehabilitate existing uninhabited units. Rehabilitate structural components effecting numerous units, 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 brand-new systems within an existing structure. Create a brand-new structure with five or fewer residential units. Complete repairs essential for code compliance in occupied units (just eligible for ten years forgivable loan)

Rehabilitation tasks can include updates to satisfy housing codes, weatherization, and availability improvements, of qualified rental housing units.

How much funding are tasks eligible for?

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

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

Structural repair grant or loan awards are readily available 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 exact same building must be overloaded with a VHIP Covenant or FLA/Promissory Note. Contact your HOC or DHCD for more information and to discuss your project if you are thinking about structural repairs that impact more than one unit.

What are the program requirements?

Program Match: All individuals are required to provide a 20% match of the award, the alternative for an in-kind match for unbilled services or owned materials. For instance, a participant who gets an award of $50,000 will be required to offer 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 amount for the length of the agreement (5 or 10 years, discover more about these alternatives here). Participants will be needed to send a yearly recertification form to ensure they are 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 must enjoy a Landlord-Tenant Mediation video and complete 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 offered by CVOEO. It consists of a summary of state and federal anti-discrimination requirements, examples of illegal housing discrimination and possible charges, gain access to requirements for individuals with impairments, consisting of reasonable accommodations and sensible adjustments, and best practices for housing suppliers. This training will be confirmed through completion of a brief test. Please click on this link to sign up. You will be asked to create an account on the Ruzuku finding out 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 individuals can choose their renters. However, the tenants they select must meet the program requirements, based upon if they are registered in the 5- or 10-year tract (click here to find out more). For residential or commercial properties registered in this program, the residential or commercial property owner might not require a credit history higher than 500, and participants are limited to charging no greater than one month's rent for a deposit, despite 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 tenants. Residential or commercial property owners are also needed to accept any housing vouchers that are readily available to pay all, or a part of, the tenant's rent and energies. Additionally, residential or commercial property owners need to accept paper applications for tenants with minimal internet gain access to.

Out-of-State Owners: Out-of-State owners are required to recognize a residential or commercial property supervisor situated within 50 miles of the systems to ensure a regional, accountable celebration 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 between the 5-year grant and the 10-year forgivable loans are:

- The duration for which the residential or commercial property owner must charge at or listed below HUD Fair Market Rent for the registered units (5 v ten years). The 5-year grant alternative comes with additional occupant selection requirements to rent to a family exiting homelessness

For more information specifics about these 2 options, evaluate the sections listed below.

5-Year Grants

Any residential or commercial property, with the exception of renter inhabited systems dealing with code non-compliance problems, obtaining VHIP 2.0 can decide to get a 5-year grant. This compliance period will begin as soon as the VHIP 2.0 system is placed in service. This grant requires that:

The system is leased at or below HUD Fair Market Rent for the area for at least 5 years. That the residential or commercial property manager work with Coordinated Entry Lead Organizations to find suitable occupants exiting homelessness for a minimum of 5 years or with USCRI to discover refugee families to lease the unit to

Participants should sign a rental covenant to this effect. This covenant will be efficient for 5 years and states that for this period, the unit needs to remain a long-lasting rental with a monthly rental rate at or listed below HUD Fair Market Rent and that the Department of Housing and Community Development must 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 issued the grant figures out that a household leaving homelessness is not offered to rent the system, the property manager will rent the system to a family with an earnings equal to or less than 80 percent of area typical earnings. If such a household is not available, the residential or commercial property owner might lease the unit to another household 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 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 make an application for 8 years.

Note. This only applies to jobs that received funding through VHIP 2.0. The preliminary VHIP financing was sourced from State Fiscal Recovery Funds, which had different policies. The requirements and options described here do NOT use to tasks approved before March 25, 2024, and those grants can NOT be transformed to forgivable loans.

10-Year Forgivable Loans

Any residential or commercial property obtaining VHIP 2.0 can decide to get a 10-year forgivable loan. This compliance period will begin as soon as the VHIP 2.0 unit is positioned in service. This grant requires that the unit is leased at or listed below HUD Fair Market Rent for the area for at least ten years. The owner must rent the system for ten years at or listed below FMR to be forgiven in its whole. Funds will need to be repaid to the State of Vermont for every single year this requirement is not met i.e. if an owner just rents the unit 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 action of the VHIP 2.0 process, from figuring out if the program is a good suitable for your task, how to apply, payment disbursement, keeping program requirements, to selling 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 site.

Since there are numerous task types VHIP 2.0 supports, the Frequently Asked Questions (FAQs) specify to the type of project looking for 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 needed to charge rents at or listed below HUD Fair Market Rent (FMR) for the length of the agreement, depending upon whether the residential or commercial property owner picks the 5-year grant or 10-year forgivable loan choice. FMRs routinely released by HUD represent the cost of leasing a moderately priced dwelling system in the regional housing market.

Fair Market Rent Calculator - To utilize the calculator, you need to complete the energy worksheet, which shows which utilities the renter is accountable for payment. Once the utility worksheet is total, the calculator will reveal the optimum allowable lease based on 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 submit an annual recertification type to ensure they comply with the program requirements, consisting of FMR. While the program requirements are in impact, residential or commercial property owners will get an annual 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 kind or identifying FMR for your area, please contact your local Homeownership Center or the State Housing Division (VHIP@vermont.gov).

More Questions?

As this program grows, the Department is working to increase accessibility and answer eligibility questions. Additional information and to often asked concerns will continue to be published to this website as available. Click on this link to join our e-mail list and stay up to date on Vermont Housing Improvement Program 2.0 updates and news.