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If you require details about VHIP awards granted before 2024, please describe our initial VHIP page. The initial VHIP financing was sourced from State Fiscal Recovery Funds, which had different policies. The requirements and options outlined here do NOT use to jobs 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 units funded, this updated program maintains our commitment to expanding budget friendly housing. VHIP 2.0 now offers awards for restricted brand-new building and construction. Additionally, it introduces a 10-year forgivable loan together with the existing 5-year grants, aiming to further incentivize landlords. This brand-new choice needs renting units at fair market prices without the need for referrals from Coordinated Entry Organizations.

Table of Contents:

What can you do with VHIP 2.0 funding? Just how much financing 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 funding?

VHIP 2.0 provides grants or forgivable loans to:

Rehabilitate existing vacant systems. Rehabilitate structural components effecting multiple systems, 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 new units within an existing structure. Create a new structure with five or fewer property systems. Complete repairs needed for code compliance in occupied units (just qualified for 10 year forgivable loan)

Rehabilitation jobs can include updates to meet housing codes, weatherization, and accessibility enhancements, of eligible rental housing systems.

How much financing are projects eligible for?

Based upon the type of project, residential or commercial property owners are qualified to get approximately:

$ 30,000 per system for rehabilitation of 0-2-bedroom units. $ 50,000 per unit for rehab of 3+ bedroom systems, structural aspects impacting numerous systems , new unit development, 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 should be overloaded with a VHIP Covenant or FLA/Promissory Note. Contact your HOC or DHCD for more details 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 individuals are needed to supply a 20% match of the award, the alternative for an in-kind match for unbilled services or owned products. For example, 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 accepting charge at or below HUD Fair Market Rent (FMR) or coupon quantity for the length of the agreement (5 or ten years, discover more about these choices here). Participants will be needed to submit a yearly recertification kind 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 enjoy a Landlord-Tenant Mediation video and finish 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 supplied by CVOEO. It consists of an introduction of state and federal anti-discrimination requirements, examples of illegal housing discrimination and prospective penalties, access requirements for individuals with specials needs, including affordable accommodations and affordable adjustments, and best practices for housing companies. This training will be validated through conclusion of a short quiz. Please click on this link to register. 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 pick their renters. However, the occupants they select must meet the program requirements, based upon if they are registered in the 5- or 10-year tract (click here to get more information). For residential or commercial properties enrolled in this program, the residential or commercial property owner might not need a credit history greater than 500, and individuals are limited to charging no more than one month's lease for a deposit, no matter whether it is called a down payment, a damage deposit or an animal deposit, last month's lease, and so on. Additionally, residential or commercial property owners need to cover the expense of running background checks on possible occupants. Residential or commercial property owners are also required to accept any housing coupons that are offered to pay all, or a portion of, the tenant's lease and utilities. Additionally, residential or commercial property owners need to accept paper applications for tenants with minimal web 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 make sure a regional, responsible party can supervisor 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 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 listed below HUD Fair Market Rent for the enrolled units (5 v ten years). The 5-year grant alternative comes with additional occupant selection requirements to lease to a household leaving homelessness

For more information specifics about these two alternatives, review the sections listed below.

5-Year Grants

Any residential or commercial property, with the exception of tenant occupied systems addressing code non-compliance issues, getting VHIP 2.0 can decide to receive a 5-year grant. This compliance period will start as soon as the VHIP 2.0 unit is placed in service. This grant needs that:

The system is rented at or below HUD Fair Market Rent for the location for at least 5 years. That the residential or commercial property supervisor work with Coordinated Entry Lead Organizations to discover ideal renters leaving homelessness for a minimum of 5 years or with USCRI to discover refugee households to rent the system to

Participants need to sign a rental covenant to this impact. This covenant will be effective for 5 years and states that for this period, the unit needs to remain a long-lasting leasing 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 provided the grant identifies that a household exiting homelessness is not available to rent the unit, the proprietor shall lease the unit to a household with an income equivalent to or less than 80 percent of area mean income. If such a household is not available, the residential or commercial property owner may lease the system to another family with the approval of the DHCD or HOC.

Grant to Loan Conversion: A property manager might transform 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 get a 10% credit for loan forgiveness for each year in which the landlord 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 funding will be forgiven, and the forgivable loan terms would get 8 years.

Note. This only uses to jobs that got financing through VHIP 2.0. The initial VHIP financing was sourced from State Fiscal Recovery Funds, which had various guidelines. The requirements and alternatives outlined here do NOT apply to projects approved before March 25, 2024, and those grants can NOT be transformed to forgivable loans.

10-Year Forgivable Loans

Any residential or commercial property requesting VHIP 2.0 can opt to receive a 10-year forgivable loan. This compliance period will begin when the VHIP 2.0 unit is put in service. This grant requires that the system is rented at or listed below HUD Fair Market Rent for the location for at least ten years. The owner should lease the unit for ten years at or below FMR to be forgiven in its entirety. Funds will require to be paid back to the State of Vermont for each year this requirement is not fulfilled i.e. if an owner just leases the system for 7 years at or listed 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 thorough guide strolls residential or commercial property owners through every action of the VHIP 2.0 procedure, from figuring out if the program is a great suitable for your project, how to apply, payment dispensation, preserving program requirements, to offering 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 website.

Since there are numerous project types VHIP 2.0 supports, the Frequently Asked Questions (FAQs) specify to the type of task getting 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 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 agreement, depending on whether the residential or commercial property owner selects the 5-year grant or 10-year forgivable loan choice. published by HUD represent the cost of leasing a reasonably priced dwelling unit in the regional housing market.

Fair Market Rent Calculator - To utilize the calculator, you need to complete the energy worksheet, which suggests which energies the occupant is accountable for payment. Once the energy worksheet is complete, the calculator will reveal the optimum allowed rent based upon the county the system lies in and the variety of bedrooms.

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

If you need support completing the recertification form or identifying FMR for your area, please get in touch with your local Homeownership Center or the State Housing Division (VHIP@vermont.gov).
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More Questions?

As this program matures, the Department is working to increase ease of access and answer eligibility concerns. Additional info and responses to frequently asked concerns will continue to be posted to this website as offered. Click here to join our email list and remain up to date on Vermont Housing Improvement Program 2.0 updates and news.