Vermont Housing Improvement Program 2.0
If you require info about VHIP awards granted before 2024, please refer to our original VHIP page. The preliminary VHIP funding was sourced from State Fiscal Recovery Funds, which had various guidelines. The requirements and choices described here do NOT use to jobs authorized before March 25, 2024.
The Vermont Housing Improvement Program (VHIP) is relaunching as VHIP 2.0!
Drawing from insights got over the past 3 years and more than 500 units moneyed, this upgraded program preserves our commitment to expanding affordable housing. VHIP 2.0 now provides awards for minimal new building. Additionally, it presents a 10-year forgivable loan along with the existing 5-year grants, intending to further incentivize landlords. This brand-new choice needs renting units at fair market value without the need for referrals from Coordinated Entry Organizations.
Table of Contents:
What can you make with VHIP 2.0 funding?
How much funding are projects 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 uses grants or forgivable loans to:
Rehabilitate existing vacant systems.
Rehabilitate structural elements effecting numerous units, such as the roof of a multi-family residential or commercial property.
Develop a brand-new Accessory Dwelling Unit (ADU) on an or commercial property.
Create brand-new systems within an existing structure.
Create a new structure with five or fewer property systems.
Complete repairs required for code compliance in occupied systems (only eligible for 10 year forgivable loan)
Rehabilitation tasks can consist of updates to meet housing codes, weatherization, and accessibility enhancements, of eligible rental housing systems.
How much funding are tasks qualified for?
Based upon the type of project, residential or commercial property owners are eligible to receive as much as:
$ 30,000 per system for rehabilitation of 0-2-bedroom units.
$ 50,000 per system for rehabilitation of 3+ bed room units, structural aspects impacting multiple systems , new system creation, or development of Accessory Dwelling Units (ADUs)
Structural repair grant or loan awards are available for an optimum of $50,000 per award made for a residential or commercial property. For each structural award made, a rent-ready unit in the very same structure should be overloaded 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 repair work that affect more than one unit.
What are the program requirements?
Program Match: All individuals are needed to provide a 20% match of the award, the option for an in-kind match for unbilled services or owned products. For instance, an individual who gets an award of $50,000 will be needed to provide a $10,000 match.
Fair Market Rent: Participants are also needed to sign a rental covenant consenting to charge at or listed below HUD Fair Market Rent (FMR) or voucher quantity for the length of the contract (5 or 10 years, find out more about these alternatives here). Participants will be required to send a yearly recertification form to guarantee they remain in compliance with the program requirements. To compute HUD FMR for your location, take a look at our resources on Fair Market Rent.
Landlord Education: VHIP 2.0 candidates must watch a Landlord-Tenant Mediation video and finish a Fair Housing Training as part of the application process. 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 consists of an overview of state and federal anti-discrimination requirements, examples of prohibited housing discrimination and possible penalties, gain access to requirements for individuals with specials needs, including affordable accommodations and sensible adjustments, and best practices for housing service providers. This training will be verified through completion of a short test. Please click on this link to register. 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 concerns, please contact CVOEO at classcoord@cvoeo.org or 802-660-3455 ext. 205.
Tenant Selection: VHIP 2.0 participants have the right to choose their occupants. However, the occupants they pick should satisfy the program requirements, based on if they are registered in the 5- or 10-year system (click on this link to discover more). For residential or commercial properties enrolled in this program, the residential or commercial property owner may not need a credit rating higher than 500, and individuals are restricted to charging no greater than one month's lease for a deposit, no matter whether it is called a security deposit, a damage deposit or a pet deposit, last month's rent, etc. Additionally, residential or commercial property owners need to cover the cost of running background examine potential tenants. Residential or commercial property owners are likewise needed to accept any housing vouchers that are readily available to pay all, or a part of, the renter's rent and utilities. Additionally, residential or commercial property owners should accept paper applications for occupants with minimal internet 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 guarantee a regional, accountable party can manager the residential or commercial property in the lack of the residential or commercial property owner.
5-Year Grant Versus 10-Year Forgivable Loan
The main distinction 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 alternative features additional renter choice requirements to rent to a family leaving homelessness
To discover more specifics about these 2 alternatives, review the areas below.
5-Year Grants
Any residential or commercial property, with the exception of tenant occupied systems dealing with code non-compliance problems, getting VHIP 2.0 can choose to get a 5-year grant. This compliance period will begin as soon as the VHIP 2.0 unit is placed in service. This grant needs that:
The unit 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 ideal tenants exiting homelessness for at least 5 years or with USCRI to find refugee households to lease the unit to
Participants must sign a rental covenant to this effect. This covenant will work for 5 years and states that for this period, the unit must stay a long-term rental with a month-to-month rental rate at or listed below HUD Fair Market Rent which the Department of Housing and Community Development must approve 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 identifies that a household exiting homelessness is not offered to rent the unit, the property owner will rent the unit to a household with an earnings equal to or less than 80 percent of location mean income. If such a household is not available, the residential or commercial property owner may lease the system to another home with the approval of the DHCD or HOC.
Grant to Loan Conversion: A property owner might convert a grant to a forgivable loan upon approval by DHCD and the HOC that authorized the grant. When the grant is converted to a forgivable loan, the residential or commercial property owner shall get a 10% credit for loan forgiveness for each year in which the landlord gets involved in the grant program. For instance, if the residential or commercial property owner got involved in the grant program for 2 years prior to converting 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 applies to tasks that received financing through VHIP 2.0. The preliminary VHIP financing was sourced from State Fiscal Recovery Funds, which had different policies. The requirements and choices detailed here do NOT apply to projects authorized 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 begin once the VHIP 2.0 system is placed in service. This grant requires that the unit is rented at or listed below HUD Fair Market Rent for the area for a minimum of 10 years. The owner must lease the unit for ten years at or listed below FMR to be forgiven in its whole. Funds will require to be paid back to the State of Vermont for every single 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 walks residential or commercial property owners through every action of the VHIP 2.0 procedure, from figuring out if the program is a good fit for your job, how to apply, payment dispensation, preserving program requirements, to selling a VHIP 2.0 residential or commercial property.
VHIP 2.0 Recipient List - The identity of VHIP receivers and the amount of a grant or forgivable loan are public records and are released quarterly on this site.
Since there are numerous job types VHIP 2.0 supports, the Frequently Asked Questions (FAQs) are particular to the kind of project obtaining financing. To ask concerns about your job, connect 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 participating in VHIP 2.0 are required to charge rents at or listed below HUD Fair Market Rent (FMR) for the length of the contract, depending on whether the residential or commercial property owner chooses the 5-year grant or 10-year forgivable loan alternative. FMRs regularly published by HUD represent the cost of renting a moderately priced residence system in the regional housing market.
Fair Market Rent Calculator - To utilize the calculator, you must complete the energy worksheet, which suggests which utilities the renter is accountable for payment. Once the utility worksheet is total, the calculator will reveal the maximum allowed lease 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 needs to submit an annual recertification type 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 kind. Residential or commercial property owners are encouraged to proactively complete this form upon turnover or lease renewal.
If you require assistance completing the recertification kind or figuring out FMR for your area, please get in touch with your regional Homeownership Center or the State Housing Division (VHIP@vermont.gov).
More Questions?
As this program matures, the Department is working to increase ease of access and response eligibility questions. Additional information and answers to often asked concerns will continue to be posted to this site as offered. Click on this link to join our email list and keep up to date on Vermont Housing Improvement Program 2.0 updates and news.
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