VHIP (Rental Rehab)

Program Overview:

VHIP works with private property owners to create or rehab rental housing stock across Vermont through a grant or a 10-year forgivable loan option. These homes, includings accessory dwellling units (ADUs) and multifamily rentals will be leased at an affordable rate for at least 5-10 years depending on the funding structure. Windham & Windsor housing Trust administers this program in Windham and Windsor Counties. For more information about the statewide program visit the VHIP 2.0 page. To learn about how to apply in Windham & Windsor counties, program compliance, and more information, please review the information provided below. NOTE: The application window ran from April 15-May 31st

Windham & Windsor Housing Trust’s Role

• Review and equitably evaluate all applications received from property owners and award grants that maximize State of Vermont goals for VHIP 2.0
• Ensure accountability for property owners receiving funds
• Attend an initial site visit of the property/units with Property Owner and/or Contractor(s) to review proposed scope of work and budget,
• Verify that all permitting and compliance with local, state, and federal regulations are satisfied
• Verify that signed contracts are in place that allow work to be complete and apartments leased by the deadline
• Conduct ongoing site visits (3 minimal) to inspect repair work during the project and provide grant payments upon milestone completion
• Oversee match requirements, and other project required documentation
• Conduct final inspection to ensure all repairs have been completed
• Collect and verify all program documents; pre-work, during-work, post-work as required
• Collect receipts of payments to assure all obligations to program and contractors have been met
• Prepare and record signed, notarized Covenants, and Grant Agreements
• Oversee and verify compliance with all program requirements

Keep in mind that VHIP 2.0 is a competitive program, and Windham and Windsor Housing Trust will be evaluating each project based on the following criteria:

VHIP 2.0 is a competitive program with applications being available on April 15, 2024. Round 1 of applications will be accepted from April 15^th through May 31^st. All applications will be scored using  scoring criteria as detailed below. Applications will be reviewed for completeness within 30 days of being submitted and returned if incomplete. If there is any remaining time before May 31^st applicants can resubmit. Site visits may be conducted during this time to help determine feasibility of the project, if time allows.

After the application deadline is up, all projects will be competitively reviewed and approvals made based on scoring criteria. If funding is still available after Round 1 applications have been awarded, WWHT will open Round 2 applications.

Awards will be issued on a rolling basis prior to the application deadline to applications that receive a high score in all categories based on the below scoring criteria.  All other application will be reviewed against each other after the application deadline is over.

Grant Award Timeline

WWHT will issue grant awards on a rolling basis based on date of complete application.

Scoring Criteria

Ranking System: each criterion is described below. WWHT will be placing a strong emphasis on Shovel readiness, past performance and Critical/urgency.

Shovel Ready: Higher scores will be awarded to those projects that are ready to start construction i.e have signed contracts, permits and matching funds in place

Geographic location: Scoring is based on providing a good geographic spread across Windham and Windsor Counties based on prior rounds of VHIP and VHIP 2.0 applicant pool

Past Performance: Scoring is based is based on applicant’s performance with prior funding rounds and/or similar programs in complying with program requirements, leasing requirements and deadlines. In addition, we want to ensure good spread across applicants

Number of Units and Unit type: Scoring is based on providing a good spread across unit type and size. We are also taking into consideration the amount of individual units in each community, as well as attempting to diversify the number of bedrooms in each unit per community.

Length of vacancy; Higher scores will be provided to units that have been vacant the longest

Critical and/or urgency: Scoring is based overall urgency of the project or an urgent need to remedy critical life safety code compliance issues.

Community benefit: Scoring is based on positive impact to the community and community support.

To be eligible, a property owner must:

• Submit a complete Application; a complete application includes the following: A complete and entire eligibility form (see below for specific form), property deed with schedule A, an up to date tax bill, proof of insurance, W9, and a scope of work. Please click the link below for the application that matches your goals.
• Meet with WWHT Representative to review project scope
• Provide a 20% match per grant in cash, or provide a signed contract with WWHT of specified labor, materials, or tasks as an in-kind match of up to or above the 20%. WWHT may require evidence that outstanding balance can be covered
• Sign a Housing Affordability Covenant outlining a commitment that all affected units must be rented at or below HUD “gross” Fair Market Rents for the appropriate County – which include utilities or rent reduction based on HUD’s “utility allowance” guidelines – for a period of five years for grants and ten years for forgivable loans.
• Have no Vermont or Federal tax liens or be delinquent on property taxes, sewer/water, or building be in foreclosure.
• Property owners are responsible for obtaining all permits and submit copies to WWHT
• Property owners must be willing to submit all necessary receipts throughout the project
• To be eligible for a VHIP 2.0 Grant you must watch this video Fair Housing Video and take a short quiz:  https://www.cvoeo.org/fair-housing-training-for-landlords

Current HUD FMR figures for 2024 Windham and Windsor Counties are calculated annually. This chart lists the maximum rents considered affordable by apartment type. Find the Fair Market Rent calculator worksheet here (select the fair market option)

Program Compliance

• Property owners need to submit an annual Form to Department of Housing and Community Development annually to show rental rate verification, and are responsible to notify DHCD of any changes to property status
• If property is sold or transferred the rent stabilization agreement stays with the property

For five year grants only:

• For more detailed information visit the ACCD VHIP WebpageAgree to work with the regional and appointed Continuum of Care (CoC), or work with a Refugee Resettlement Program to find suitable renters, for a period of five years after the original Occupancy is granted. Property owners are asked to use the Common Rental Application for expedience, but may petition the CE lead organization to utilize their own application. If a tenant is not available through the CoC, after recorded due diligence has been attempted, beginning prior to the completion of the project, and for a period of 30 days after DFS Certificate of Occupancy has been granted, a property owner may petition the DHCD for other possible rental options; it is up to the discretion of the DHCD to determine appropriate tenancy options.

For more detailed information visit the ACCD VHIP Webpage

How to Get Started-

• Reach out to a contractor to get an estimate of the feasibility and cost of your project
• Once you have determined your project is feasible and affordable, you should reach out to your town Zoning/Planning board to learn about any town requirements regarding set-backs, water/sewer, change of use restrictions, and any other zoning and/or planning limits that might be in the by-laws of the town. (if you don’t have a contractor see link below)
• If, after a conversation with the town, you are ready to move ahead with your project, and would like to be approved for a VHIP grant you should complete a WWHT application (if you are located in Windham or Windsor Counties)
• Applications have closed for this round as of May 31st