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If you require info about VHIP awards approved before 2024, please describe our original VHIP page. The initial VHIP financing was sourced from State Fiscal Recovery Funds, which had various policies. The requirements and options detailed 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 systems funded, this updated program preserves our commitment to expanding inexpensive housing. VHIP 2.0 now provides awards for minimal brand-new construction. Additionally, it introduces a 10-year forgivable loan alongside the existing 5-year grants, aiming to further incentivize property owners. This brand-new option requires leasing units at reasonable market value without the need for referrals from Coordinated Entry Organizations.

Tabulation:

What can you make with VHIP 2.0 financing? 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 financing?

VHIP 2.0 provides grants or forgivable loans to:

Rehabilitate existing uninhabited systems. Rehabilitate structural elements effecting several units, such as the roof 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 five or less property systems. Complete repairs essential for code compliance in occupied units (just qualified for ten years forgivable loan)

Rehabilitation tasks can consist of updates to fulfill housing codes, weatherization, and availability enhancements, of eligible rental housing systems.

How much funding are jobs qualified for?

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

$ 30,000 per system for rehab of 0-2-bedroom systems. $ 50,000 per unit for rehabilitation of 3+ bed room units, structural aspects affecting multiple systems , new unit development, or production of Accessory Dwelling Units (ADUs)

Structural repair work grant or loan awards are available 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 exact same structure need to 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 option for an in-kind match for unbilled services or owned materials. For instance, an individual who gets an award of $50,000 will be needed to supply a $10,000 match.

Fair Market Rent: Participants are likewise needed to sign a rental covenant agreeing to charge at or below HUD Fair Market Rent (FMR) or voucher amount for the length of the arrangement (5 or 10 years, find out more about these options here). Participants will be needed to submit an annual recertification kind to ensure they remain in compliance with the program requirements. To calculate HUD FMR for your area, take a look at our resources on Fair Market Rent.

Landlord Education: VHIP 2.0 candidates must see 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 see). The online, self-paced Fair Housing training is offered by CVOEO. It includes an overview of state and federal anti-discrimination requirements, examples of illegal housing discrimination and potential charges, access requirements for individuals with specials needs, including sensible lodgings and affordable modifications, and finest practices for housing providers. This training will be verified through completion of a brief test. Please click on this link to sign up. You will be asked to develop an account on the Ruzuku learning platform, then you'll have immediate 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 individuals deserve to select their renters. However, the renters they select need to fulfill the program requirements, based on if they are enrolled in the 5- or 10-year tract (click here to get more information). For residential or commercial properties registered in this program, the residential or commercial property owner may not require a credit report higher than 500, and participants are limited 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 pet deposit, last month's lease, and so on. Additionally, residential or commercial property owners should 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 available to pay all, or a part of, the tenant's lease and utilities. Additionally, residential or commercial property owners should accept paper applications for renters with limited web access.

Out-of-State Owners: Out-of-State owners are required to recognize a residential or commercial property supervisor located within 50 miles of the units to ensure a local, responsible party 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 distinction in between the 5-year grant and the 10-year forgivable loans are:

- The duration for which the residential or commercial property owner must charge at or listed below HUD Fair Market Rent for the registered systems (5 v 10 years). The 5-year grant option includes additional occupant selection requirements to rent to a household leaving homelessness

To read more specifics about these 2 alternatives, review the areas below.

5-Year Grants

Any residential or commercial property, with the exception of tenant inhabited systems resolving 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 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 5 years. That the residential or commercial property supervisor work with Coordinated Entry Lead Organizations to discover ideal renters exiting homelessness for at least 5 years or with USCRI to find refugee families 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 system should stay a long-term leasing with a month-to-month rental rate at or listed below HUD Fair Market Rent which the Department of Housing and Community Development need to 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 determines that a family leaving homelessness is not offered to rent the unit, the landlord will lease the unit to a family with an income equivalent to or less than 80 percent of location mean earnings. If such a household is not available, the residential or commercial property owner may rent the unit to another family with the approval of the DHCD or HOC.

Grant to Loan Conversion: A landlord might transform a grant to a forgivable loan upon by DHCD and the HOC that authorized 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 example, 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 financing will be forgiven, and the forgivable loan terms would look for 8 years.

Note. This only applies to tasks that received funding through VHIP 2.0. The preliminary VHIP financing was sourced from State Fiscal Recovery Funds, which had different guidelines. The requirements and choices laid out here do NOT apply to tasks approved before March 25, 2024, and those grants can NOT be converted to forgivable loans.

10-Year Forgivable Loans

Any residential or commercial property requesting VHIP 2.0 can decide to receive a 10-year forgivable loan. This compliance period will start when the VHIP 2.0 system is placed in service. This grant needs that the unit is rented at or listed below HUD Fair Market Rent for the area for at least 10 years. The owner needs to lease the system for ten years at or below FMR to be forgiven in its entirety. Funds will need to be paid back to the State of Vermont for every year this requirement is not met i.e. if an owner just rents the system for 7 years at or listed 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 walks residential or commercial property owners through every action of the VHIP 2.0 process, from figuring out if the program is an excellent fit for your project, how to use, payment disbursement, 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 quantity of a grant or forgivable loan are public records and are published quarterly on this website.

Since there are a number of task types VHIP 2.0 assistances, the Frequently Asked Questions (FAQs) specify to the kind of job looking for financing. To ask questions about your project, link with your regional 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 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 released by HUD represent the expense of renting a moderately priced house unit in the local housing market.

Fair Market Rent Calculator - To use the calculator, you should finish the energy worksheet, which suggests which energies the occupant is accountable for payment. Once the utility worksheet is complete, the calculator will show the optimum allowed lease based on the county the unit is situated in and the variety of bedrooms.

Fair Market Rent Recertification Form - Residential or commercial property owners getting involved in VHIP 2.0 should send an annual recertification kind to ensure they comply with the program requirements, including FMR. While the program requirements 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 complete this type upon turnover or lease renewal.

If you need help finishing the recertification type or determining FMR for your location, 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 availability and response eligibility concerns. Additional info and responses to frequently asked questions will continue to be published to this site as available. Click here to join our email list and keep up to date on Vermont Housing Improvement Program 2.0 updates and news.
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