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If you require information about VHIP awards approved before 2024, please describe our initial VHIP page. The initial VHIP funding was sourced from State Fiscal Recovery Funds, which had different policies. The requirements and alternatives described here do NOT apply to tasks approved before March 25, 2024.

The Vermont Housing Improvement Program (VHIP) is relaunching as VHIP 2.0!

Drawing from insights got over the previous 3 years and more than 500 units funded, this upgraded program preserves our dedication to broadening affordable housing. VHIP 2.0 now uses awards for restricted new construction. Additionally, it introduces a 10-year forgivable loan alongside the existing 5-year grants, intending to further incentivize property managers. This new choice requires renting units at fair market rates without the requirement for recommendations from Coordinated Entry Organizations.

Table of Contents:

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

VHIP 2.0 provides grants or forgivable loans to:

Rehabilitate existing vacant 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 new units within an existing structure. Create a brand-new structure with 5 or less property units. Complete repair work necessary for code compliance in occupied units (only qualified for 10 year forgivable loan)

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

Just how much financing are jobs eligible for?

Based on the type of project, residential or commercial property owners are eligible to get as much as:

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

Structural repair work grant or loan awards are offered for a maximum of $50,000 per award made for a residential or commercial property. For each structural award made, a rent-ready system in the same structure should be encumbered 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 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 example, an individual who receives an award of $50,000 will be needed to offer a $10,000 match.

Fair Market Rent: Participants are also needed to sign a rental covenant consenting to charge at or below HUD Fair Market Rent (FMR) or voucher amount for the length of the agreement (5 or ten years, discover more about these choices here). Participants will be required to submit a yearly recertification kind to guarantee they remain in compliance with the program requirements. To compute HUD FMR for your location, check 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 offered by the Vermont Landlord Association (Please click here to view). The online, self-paced Fair Housing training is provided by CVOEO. It consists of a summary of state and federal anti-discrimination requirements, examples of illegal housing discrimination and prospective penalties, gain access to requirements for individuals with disabilities, including affordable lodgings and reasonable modifications, and finest practices for housing providers. This training will be validated through conclusion of a short quiz. Please click on this link to register. You will be asked to produce an account on the Ruzuku discovering 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 individuals deserve to select their renters. However, the tenants they pick should meet the program requirements, based on if they are enrolled in the 5- or 10-year system (click here to find out more). For residential or commercial properties enrolled in this program, the residential or commercial property owner might not need a credit rating higher than 500, and individuals 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 an animal deposit, last month's rent, etc. Additionally, residential or commercial property owners need to cover the expense of running background look at potential renters. Residential or commercial property owners are also needed to accept any housing vouchers that are offered to pay all, or a portion of, the occupant's rent and utilities. Additionally, residential or commercial property owners need to accept paper applications for renters with minimal web gain access to.

Out-of-State Owners: Out-of-State owners are needed to determine a residential or commercial property manager located within 50 miles of the systems to ensure a local, 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 primary distinction 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 below HUD Fair Market Rent for the registered systems (5 v 10 years). The 5-year grant choice comes with extra tenant selection requirements to lease to a family leaving homelessness

To find out more specifics about these 2 alternatives, evaluate the areas below.

5-Year Grants

Any residential or commercial property, with the exception of tenant inhabited systems attending to code non-compliance concerns, obtaining VHIP 2.0 can opt to receive a 5-year grant. This compliance period will begin once 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 area for at least 5 years. That the residential or commercial property supervisor work with Coordinated Entry Lead Organizations to discover ideal occupants exiting homelessness for a minimum of 5 years or with USCRI to discover refugee homes to rent the system to

Participants must sign a rental covenant to this effect. This covenant will work for 5 years and states that for this duration, the unit must remain a long-term rental with a regular monthly rental rate at or listed 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 released the grant determines that a household leaving homelessness is not available to rent the system, the landlord will rent the unit to a household with an earnings equal to or less than 80 percent of location typical earnings. If such a family 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 owner may 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 shall get a 10% credit for loan forgiveness for each year in which the proprietor takes part in the grant program. For instance, if the residential or commercial property owner got involved 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 apply for 8 years.
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Note. This only uses to tasks that received financing through VHIP 2.0. The preliminary VHIP funding was sourced from State Fiscal Recovery Funds, which had various policies. The requirements and alternatives described here do NOT apply to projects authorized before March 25, 2024, and those grants can NOT be transformed 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 once the VHIP 2.0 unit is placed in service. This grant requires that the system is leased at or listed below HUD Fair Market Rent for the area for at least ten years. The owner should rent the unit for 10 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 each year this requirement is not fulfilled i.e. if an owner only 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 step of the VHIP 2.0 process, from figuring out if the program is a good suitable for your task, how to use, payment dispensation, preserving program requirements, to offering a VHIP 2.0 residential or commercial property.

VHIP 2.0 Recipient List - The identity of VHIP recipients and the amount of a grant or forgivable loan are public records and are published quarterly on this site.

Since there are numerous task types VHIP 2.0 supports, the Frequently Asked Questions (FAQs) specify to the kind of project obtaining financing. To ask questions about your project, 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 taking part in VHIP 2.0 are required to charge leas at or below HUD Fair Market Rent (FMR) for the length of the agreement, depending upon whether the residential or commercial property owner chooses the 5-year grant or 10-year forgivable loan option. FMRs frequently published by HUD represent the cost of leasing a moderately priced dwelling unit in the regional housing market.

Fair Market Rent Calculator - To use the calculator, you should complete the utility worksheet, which indicates which energies the tenant is accountable for payment. Once the energy worksheet is total, the calculator will reveal the optimum permitted rent based on the county the system is located in and the number of bed rooms.

Fair Market Rent Recertification Form - Residential or commercial property owners taking part in VHIP 2.0 needs to send a yearly recertification type to ensure they abide by the program requirements, consisting of FMR. While the are in impact, residential or commercial property owners will get an annual demand to complete the recertification kind. Residential or commercial property owners are encouraged to proactively finish this type upon turnover or lease renewal.

If you need help finishing the recertification kind 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 develops, the Department is working to increase availability and answer eligibility concerns. Additional info and responses to often asked questions will continue to be posted to this site as readily available. Click here to join our e-mail list and keep up to date on Vermont Housing Improvement Program 2.0 updates and news.