Applications for the Vermont Housing Improvement Program are now being accepted. To apply, please click the appropriate button below.
RENTAL REHAB & NEW UNITS ADUs (Accessory Dwelling Units)
VHIP Program Details:
- VHIP offers grants up to $50,000.00 per unit for repairs needed to bring vacant rental units up to Vermont Rental Housing Health Code guidelines, or to add new or accessory dwelling units.
- VHIP Round 2 Per Unit Funding Caps
- Up to $30,000 per unit for 0-1-2 Bedroom Units.
- Up to $50,000 per unit for 3+ Bedroom Units and the creation of New or Accessory Dwelling Units (ADU).
- Existing units must be vacant for a minimum of 90 days before the Property Owner can apply to VHIP.
- To be eligible for the program, the Property Owner must be current on their property taxes and mortgage payments.
- Property Owner is required to contribute at least a 20% match of the grant funds prior to first grant disbursement. An “in-kind” match or defer match timeline may be approved at the discretion of the Homeownership Center overseeing project management.
- VHIP requires Property Owners to commit to providing housing to households exiting homelessness; households that are working with an immigrant or refugee resettlement program; or low income tenants.
- Property Owners are required to work with a Coordinated Entry Lead Organization or an Immigrant or Refugee Resettlement Program to find suitable renters who have experienced homelessness or displacement. This engagement shall continue at unit turnover for a minimum of 5 years.
- If households meeting these criteria are not available to lease the unit to, the Property Owner may petition the Department of Housing and Community Development (DHCD) to lease the unit to a household with an income equal to or less than 80 percent of the Area Median Income (AMI) for a minimum of 5 years.
- For newly created Accessory Dwelling Units as defined in 24 V.S.A. § 4412(E), Property Owners are exempt from seeking homeless tenants through a Coordinated Entry Lead Organization or an Immigrant or Refugee Resettlement Program.
- All units assisted must be rented at or below HUD Fair Market Rents (FMR) for the appropriate County (published annually) or at a rate allowed by a recognized housing assistance voucher for at least five years and Landlord must sign a Housing Affordability Covenant outlining this.
- Alternative tenant selection processes may be considered for approval by the Department of Housing and Community Development during the 5-year program covenant timeframe.
- Grant funds are considered taxable income.
- Project scope may be reviewed and altered if the property is on or eligible for the State or National Historic Register.
- Completed units must comply with the Vermont Rental Housing Health Code and local ordinances.
- Eligible applicants MUST have the ability to meet the deadline for completion, see below*
Current HUD Fair Market Rents for Washington/Lamoille/ Orange Counties:
Fair Market Rents 2023
How will grant applications be evaluated?
- Shovel Ready status- is it feasible to complete the full scope of the rehab and unit leased up by the deadline? (18 months)
- Past Experience and readiness to work with the Continuum of Care and Coordinated Entry Rental application process
- Is the project brining long-term vacant units back on line including imporement of blighted buildings and apartments with substantial code-violations
- Willing to rent at the HUD Fair Market Rent for five years including having a Housing Subdidy Covenant on the building and providing the LC-142 form to the Agency of Commerce and Community Development annually
- Property Taxes and Sewer/Water bills are current. No Federal or State Tax liens and property not in foreclosure.
To apply, please click the appropriate button below:
Rental Rehab & New Units ADUs (Accessory Dwelling Units)