Vermont Housing Improvement Program (VHIP)
Offering grants to repair vacant and blighted apartments, and new unit or accessory dwelling unit creation.
NEIGHBORWORKS OF WESTERN VT IS NOW ACCEPTING APPLICATIONS FOR THE VERMONT HOUSING IMPROVEMENT PROGRAM (VHIP). THIS PROGRAM ALLOWS PROPERTY OWNERS TO REPAIR VACANT AND BLIGHTED APARTMENTS, AND CREATE NEW UNITS TO INCREASE AVAILABLE AFFORDABLE RENTAL HOUSING, PARTICULARLY FOR HOUSEHOLDS WHO ARE EXITING HOMELESSNESS.
NOW ACCEPTING APPLICATIONS
- The Vermont Housing Improvement Program (VHIP) offers grants up to $50,000 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.
- All units must be done with construction, occupied (with a Certificate of Occupancy) and all invoices submitted to NWWVT no later than 18 months after signing of the grant agreement for the project. By missing this deadline, you will assume the remaining payments due to the contractor and/or supplier.
NOW ACCEPTING APPLICATIONS!
Electronic applications are strongly encouraged. Applications must be complete, incomplete applications will not be accepted.
For more information, email [email protected] or call 802-438-2303.