Vermont Housing Improvement Program (VHIP) 2.0

Vermont Housing Improvement Program (VHIP) 2.0 is sponsored by Vermont Agency of Commerce and Community Development (administered regionally by Homeownership Centers). VHIP 2.

Vermont Housing Improvement Program 2. 0 (VHIP 2. 0) | Agency of Commerce and Community Development State Plans and Housing Data Fair Housing and Anti-Discrimination Vermont Housing Improvement Program 2.

0 Manufactured Home Improvement and Repair Program (MHIR) Charitable Housing Tax Credit Events, Trainings and Workshops Vermont Housing Improvement Program 2. 0 (VHIP 2. 0) Awards Before March of 2024 If you need information about VHIP awards granted before 2024, please refer to our original VHIP page .

T he initial VHIP funding was sourced from State Fiscal Recovery Funds, which had different regulations. The requirements and options outlined here do NOT apply to projects approved before March 25, 2024 or VHIP 1. 0 projects .

The Vermont Housing Improvement Program (VHIP) is now VHIP 2. 0! VHIP 2.

0 offers awards for rehabs and conversions of existing structures, as well as limited new construction, to create affordable rental housing in Vermont. There are also additional funds available to apply to projects that commit to developing ADA compliant housing. It offers 5- and 10-year forgivable loans to offer more options for landlords.

What can you do with VHIP 2. 0 funding? How much funding are projects eligible to receive ?

What are the program requirements? 5-Year Versus 10-Year Forgivable Loa n General Documents: Resource Guide for Property General Documents: VHIP 2.

0 Recipient List Owners Fair Market Rent & Recertification Connect with your Local Homeownership Center to Apply Resource Guide for Property Owners Program Stats Fair Market Rent Calculator Documents on this page required to comply with Federal Accessibility Standards are in the process of being updated. Certain documents are exempt from the regulation . To request an accessible version, please contact Erin Aguayo .

What can you do with VHIP 2. 0 funding? VHIP 2.

0 offers 5 and 10-year forgivable loans to: Rehabilitate existing vacant units Rehabilitate structural elements affecting multiple units, suc h as the roof or foundation, or electrical/plumbing/HVAC systems of a multi-family prop erty Develop a new Accessory Dwelling Unit (ADU) on an owner-occupied property Create new units within an existing structure Create a new structure with five or fewer residential units Complete repairs necessary for code compliance in occupied units (only eligible for 10-year forgivable loan) Apply ADA and Vermont Access Rules Accessibility standards to an approved VHIP unit Rehabilitation projects can include updates to meet housing codes, weatherization, and accessibility improvements of eligible rental housing units.

How much funding are projects eligible for?

Based on the type of project, property owners are eligible to receive up to: $30,000 per unit for rehab of 0–2-bedroom units $50,000 per unit for rehab of 3+ bedroom units, structural elements impacting multiple units*, new unit creation, or creation of Accessory Dwelling Units (ADUs) UP TO $20,000 for verifiable costs to make any approved VHIP unit to a ADA/Vermont Access Rules standard *Structural repair grant or loan awards are available for a maximum of $50,000 per award made for a property.

For each structural award made, a rent-ready unit in the same building must be encumbered with a VHIP forgivable loan. Contact your HOC or DHCD for more details and to discuss your project if you are considering structural repairs that affect more than one unit. What are the program requirements?

Program Match: All participants are required to provide a 20% match of the award, the option for an in-kind match for unbilled services or owned materials. For example, a participant who receives an award of $50,000 will be required to provide a $10,000 match.

Fair Market Rent: Participants are also required to sign a F orgivable Loan Agreement to charge at or below HUD Fair Market Rent (FMR) or voucher amount for the length of the agreement (5 or 10 years ). Participants will be required to submit a yearly recertification form to ensure they are in compliance with the program requirements. To calculate HUD FMR for your area, check out our resources on Fair Market Rent .

Landlord Education: VHIP 2. 0 applicants must watch a Landlord-Tenant Mediation video and complete a Fair Housing Training as part of the application process. The Landlord-Tenant Mediation video is provided by the Vermont Landlord Association ( Please click here to view ).

The online, self-paced Fair Housing training is provided by CVOEO. It includes an overview of state and federal anti-discrimination requirements, examples of illegal housing discrimination and potential penalties, access requirements for people with disabilities, including reasonable accommodations and reasonable modifications, and best practices for housing providers. This training will be confirmed through completion of a short quiz.

Please click here to register. You will be asked to create an account on the Ruzuku learning 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 participants have the right to select their tenants. However, the tenants they select must meet the program requirements, based on if they are enrolled in the 5 or 10-year track ( click here to learn more ).

For properties enrolled in this program, property owners: may not require a credit score greater than 500 are limited to charging no more than one month’s rent for a deposit, regardless of whether it is called a security deposit, a damage deposit or a pet deposit, last month's rent, etc. must cover the cost of running background and/or credit checks on potential tenants are required to accept any housing vouchers that are available to pay all, or a portion of, the tenant’s rent and utilities must accept paper applications for tenants with limited internet access.

Out-of-State Owners : Out-of-State owners are required to identify a property manager located within 50 miles of the units to ensure a local, responsible party can manager the property in the absence of the property owner.

5-Year Versus 10-Year Forgivable Loans The primary differences between the 5-year and 10-year forgivable loans are: The period for which the property owner must charge at or below HUD Fair Market Rent for the enrolled units (5 or 10 years) The 5-year option comes with tenant selection requirements to rent to a household exiting homelessness From July through March each year, 30% of VHIP project funding is set aside for 5-year forgivable loans.

Unassigned funds from this setaside will be released to award to either 5 or 10-year projects each April. To learn more specifics about these two options, review the sections below. To determine Fair Market Rent in your area, use our FMR Calculator .

Any property applying for VHIP 2. 0 can opt to receive a 5-year forgivable loan for one or more of the units receiving an award. (Exception: Tenant-occupied units addressing code compliance issues must sign a 10-year forgivable loan.)

This compliance period will begin once the VHIP 2. 0 unit is placed in service.

This loan requires that: The unit is rented at or below HUD Fair Market Rent for the area for at least 5 years That the property manager work with homeless service organizations to find suitable renters exiting homelessness for at least 5 years, or with USCRI to find refugee households to rent the unit Participants must sign a Forgivable Loan Agreement to this effect.

This agreement will be effective for 5 years and states that for this period: The unit must remain a long-term rental with a monthly rental rate at or below HUD Fair Market Rent Tenants must be referred from approved agencies The Department of Housing and Community Development must approve the sale of the property Tenant Selection: If the Department of Housing and Community Development (DHCD) or the Homeownership Center (HOC) that issued the grant determines that a household exiting homelessness is not available to lease the unit, the landlord shall lease the unit to another household with the approval of the DHCD or HOC at or below Fair Market Rent.

5 to 10 Year Loan Conversion: A landlord may convert a 5-year forgivable loan to a 10-year forgivable loan upon approval by DHCD and the HOC that approved the project. Upon the conversion, the property owner shall receive a prorated credit for loan forgiveness for each year in which the landlord participated in the grant program.

For example, if the property owner participated in the 5-year program for 2 years prior to converting to a 10-year forgivable loan, 20% of the funding will be forgiven, and the forgivable loan terms would apply for 8 more years. Note. This only applies to projects that received funding through VHIP 2.

0. T he initial VHIP funding was sourced from State Fiscal Recovery Funds, which had different regulations. The requirements and options outlined here do NOT apply to projects approved before March 25, 2024, and those grants can NOT be converted to forgivable loans.

Any property applying for VHIP 2. 0 can opt to receive a 10-year forgivable loan for one or more of the approved units. This compliance period will begin once the VHIP 2.

0 unit is placed in service. This loan requires that the unit is rented at or below HUD Fair Market Rent for the area for at least 10 years. The owner must rent the unit for 10 years at or below FMR for the loan to be forgiven in its entirety.

Funds will need to be repaid to the State of Vermont for every year this requirement is not met i.e. if an owner only leases the unit for 7 years at or below FMR, 3 years (30%) of funding will not be forgiven and must be repaid. VHIP 2. 0 Resource Guide for Property Owners - This in-depth guide walks property owners through every step of the VHIP 2.

0 process, from determining if the program is a good fit for your project, how to apply, payment disbursement, maintaining program requirements, to selling a VHIP 2. 0 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 website. Frequently Asked Questions Since there are several project types VHIP 2. 0 supports, the Frequently Asked Questions (FAQs) are specific to the type of project applying for funding.

To ask questions about your project, connect with your local homeownership center. Rehabilitation or Conversion of Unoccupied Units New Unit Creation (within a new structure) Rehabilitation of Occupied Units Fair Market Rent & Recertification All property owners participating 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 property owner selects the 5-year grant or 10-year forgivable loan option. FMRs regularly published by HUD represent the cost of renting a moderately priced dwelling unit in the local housing market.

Fair Market Rent Calculator - To use the calculator, you must complete the utility worksheet, which indicates which utilities the tenant is responsible for payment. Once the utility worksheet is complete, the calculator will show the maximum allowable rent based on the county the unit is located in and the number of bedrooms. Fair Market Rent Recertification Form - Property owners participating in VHIP 2.

0 must submit a yearly recertification form to ensure they comply with the program requirements, including FMR. While the program requirements are in effect, property owners will receive an annual request to complete the recertification survey. If you have questions about recertification, write VHIP@vermont.

gov . Connect with your local Homeownership Center to learn more about VHIP 2. 0 and receive application assistance.

RuralEdge - Caledonia, Essex, and Orleans Counties Email rentalrehab@ruraledge. org or call 802-473-3919 Champlain Housing Trust – Chittenden, Franklin, and Grand Isle Counties Email vhip@getahome. org or call 802- 861-7389 Cornerstone Housing Partners – Addison, Bennington, and Rutland Counties Email Info@cornerstonehousingpartners.

org or call 802-438-2303 Downstreet Housing & Community Development – Lamoille, Orange, and Washington Counties Email RCarpenter@downstreet. org or call 802-477-1330 Windham & Windsor Housing Trust – Windham, and Windsor Counties Email jcravinho@homemattershere. org or call 802-246-2126