If you need details 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 different regulations. The requirements and choices 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 updated program maintains our commitment to expanding affordable housing. VHIP 2.0 now uses awards for limited brand-new building and construction. Additionally, it introduces a 10-year forgivable loan alongside the existing 5-year grants, intending to even more incentivize property owners. This new choice needs renting units at fair market rates without the need for referrals from Coordinated Entry Organizations.

Tabulation:

What can you finish with VHIP 2.0 funding? Just how much financing are tasks 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 funding?

VHIP 2.0 provides grants or forgivable loans to:

Rehabilitate existing uninhabited systems. Rehabilitate structural components effecting numerous 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 systems. Complete repairs required for code compliance in occupied systems (only eligible for ten years forgivable loan)

Rehabilitation tasks can include updates to fulfill housing codes, weatherization, and ease of access improvements, of eligible rental housing units.

How much financing are projects qualified for?

Based upon the kind of task, residential or commercial property owners are eligible to get as much as:

$ 30,000 per system for rehabilitation of 0-2-bedroom units. $ 50,000 per system for rehabilitation of 3+ bedroom systems, structural components impacting numerous systems , new system development, or creation of Accessory Dwelling Units (ADUs)

Structural repair work grant or loan awards are offered 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 same building must be encumbered with a VHIP Covenant or FLA/Promissory Note. Contact your HOC or DHCD for more information and to discuss your job if you are thinking about structural repair work 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 choice for an in-kind match for unbilled services or owned products. For instance, an individual who receives an award of $50,000 will be required to supply a $10,000 match.

Fair Market Rent: Participants are also required to sign a rental covenant concurring to charge at or below HUD Fair Market Rent (FMR) or coupon amount for the length of the contract (5 or 10 years, discover more about these alternatives here). Participants will be required to submit a yearly recertification form to 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 need to see 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 view). The online, self-paced Fair Housing training is provided by CVOEO. It includes a summary of state and federal anti-discrimination requirements, examples of unlawful housing discrimination and possible penalties, gain access to requirements for individuals with impairments, consisting of sensible lodgings and sensible modifications, and best practices for housing service providers. This training will be verified through completion of a brief quiz. Please click on this link to register. You will be asked to produce an account on the Ruzuku learning platform, then you'll have immediate 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 can pick their tenants. However, the renters they select need to satisfy the program requirements, based upon if they are enrolled in the 5- or 10-year tract (click here to discover more). For residential or commercial properties enrolled in this program, the residential or commercial property owner might not need a credit report greater than 500, and participants are restricted to charging no more than one month's rent for a deposit, regardless of whether it is called a down payment, a damage deposit or a family pet deposit, last month's lease, etc. Additionally, residential or commercial property owners must cover the cost of running background checks on prospective occupants. Residential or commercial property owners are also needed to accept any housing coupons that are available to pay all, or a part of, the renter's lease and energies. Additionally, residential or commercial property owners must accept paper applications for tenants with minimal 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 units to make sure a local, responsible 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 in between the 5-year grant and the 10-year forgivable loans are:

- The duration for which the residential or commercial property owner need to charge at or below HUD Fair Market Rent for the registered systems (5 v ten years). The 5-year grant option features extra renter choice requirements to lease to a household exiting homelessness

To discover more specifics about these 2 choices, review the areas listed below.

5-Year Grants

Any residential or commercial property, with the exception of occupant occupied systems addressing code non-compliance issues, getting VHIP 2.0 can choose to receive a 5-year grant. This compliance duration will start when the VHIP 2.0 unit 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 5 years. That the residential or commercial property supervisor work with Coordinated Entry Lead Organizations to discover appropriate occupants exiting homelessness for a minimum of 5 years or with USCRI to discover refugee households to lease the unit to

Participants need to sign a rental covenant to this result. This covenant will be efficient for 5 years and states that for this period, the unit needs to stay a long-lasting rental with a monthly rental rate at or listed below HUD Fair Market Rent which 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 released the grant figures out that a household exiting homelessness is not readily available to rent the unit, the property owner shall lease the system to a home with an income equal to or less than 80 percent of location typical income. If such a household is unavailable, the residential or commercial property owner may lease the unit to another family with the approval of the DHCD or HOC.

Grant to Loan Conversion: A property manager may convert 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 shall receive a 10% credit for loan forgiveness for each year in which the landlord participates 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 financing will be forgiven, and the forgivable loan terms would use for 8 years.

Note. This only applies to tasks that got financing through VHIP 2.0. The initial VHIP financing was sourced from State Fiscal Recovery Funds, which had various policies. The requirements and options detailed 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 obtaining VHIP 2.0 can decide to receive a 10-year forgivable loan. This compliance period will start as soon as the VHIP 2.0 unit is put in service. This grant needs that the system is leased at or listed below HUD Fair Market Rent for the location for at least ten years. The owner needs to lease the unit 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 year this requirement is not fulfilled 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 thorough guide strolls residential or commercial property owners through every action of the VHIP 2.0 procedure, from determining if the program is an excellent suitable for your job, how to use, payment disbursement, maintaining 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 kind of job requesting financing. 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 new structure). Rehabilitation of Occupied Units

Fair Market Rent & Recertification

All residential or commercial property owners taking part in VHIP 2.0 are required 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 choice. FMRs routinely released by HUD represent the expense of leasing a reasonably priced dwelling unit in the regional housing market.

Fair Market Rent Calculator - To use the calculator, you must finish the utility worksheet, which indicates which utilities the occupant is accountable for payment. Once the energy worksheet is complete, the calculator will show the optimum allowable lease based upon 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 guarantee they abide by the program requirements, including FMR. While the program requirements are in effect, residential or commercial property owners will receive an annual demand to finish the recertification form. Residential or commercial property owners are encouraged to proactively complete this kind upon turnover or lease renewal.

If you need help finishing the recertification type or determining FMR for your location, please connect with your local Homeownership Center or the State Housing Division (VHIP@vermont.gov).
duckduckgo.com
More Questions?

As this program matures, the Department is working to increase ease of access and response eligibility questions. Additional details and responses to regularly asked questions will continue to be published to this website as available. Click here to join our e-mail list and stay up to date on Vermont Housing Improvement Program 2.0 updates and news.