$5 million available to bring new housing units online by rehabilitating current housing stock.
Vermont Business Magazine Governor Phil Scott and the Vermont Department of Housing and Community Development, along with statewide partners have launched the Vermont Housing Improvement Program (VHIP) designed to bring housing units back online by investing in existing, but under-utilized structures. VHIP builds upon past rental rehabilitation pilot programs that used modest public investment to revitalize housing in Vermont’s downtown areas, while helping renters and property owners who are most in need of assistance.
The program, funded using federal American Rescue Plan Act (ARPA) funds, will invest a total of $5 million into the state’s aging housing stock. VHIP will provide grants of up to $30,000 per unit with a 20% funding match required to bring code non-compliant units back into habitability.
This round of grants is dedicated to units serving renters who are exiting homelessness.
“Expanding the housing stock has been a top priority of me and my team, investing more than any Administration in history,” said Governor Phil Scott. “In addition to building new housing, VHIP will be critical for bringing housing that has fallen into disrepair back online, helping provide more housing for the workforce, lift people out of homelessness, and aid in the transformational change we are seeking to create stronger communities.”
“Throughout the course of the pandemic many businesses received financial assistance, but one of the populations that has been overlooked is the mom-and-pop landlords across the state. We designed this program for the long run with the success of the landlord and the tenant in mind,” said Housing and Community Development Commissioner Josh Hanford, “With this program, you are creating permanent housing and improving neighborhoods.”
“We are working from the ground up, addressing the needs of the most vulnerable,” said Shaun Gilpin, Housing and Community Development Housing Division director. “We have been working with Vermont’s five homeownership centers to create a new program that is based on successful models and improves upon past efforts to bring more housing on-line.”
VHIP partners include Champlain Housing Trust, Rural Edge, Downstreet Housing and Community Development, Windham and Windsor Housing Trust, and Neighborworks of Western Vermont.
SUMMARY
The Vermont Housing Improvement Program (VHIP) provides rental property owners up to $30,000 per unit to cover the costs of bringing vacant and blighted rental units back online.
This program is designed to address two critical issues in the state, the declining quality of rental units and the homeless assistance programs that often struggle to find suitable housing for their clients.
Program participants are required to provide a 20% match, maintain HUD Fair Market Rent prices, and work with Coordinated Entry Lead Organizations to identify suitable tenants exiting homelessness.
VHIP was modeled after the highly successful 2020 Re-Housing Recovery Program, which brought over 240 units up to code, of which approximately one-third house formerly homeless households.
More about VHIP:
- Landlords can apply for $30,000 per unit to bring units up to Vermont Rental Housing Health Code guidelines.
- For structural elements affecting multiple units, applicants can apply for $30,000 per property.
- Property owners are required to match at least 20% of the grant funds, with the option for an in-kind match for unbilled services or owned materials.
- VHIP participants must agree to rent units at or below HUD Fair Market Rents for the County and work with Coordinated Entry Lead Organizations to find suitable renters for at least five years.
Connect with your local Homeownership Center to learn more about VHIP and receive application assistance.
- RuralEdge - Caledonia, Essex, and Orleans Counties
- Champlain Housing Trust – Chittenden, Franklin, and Grand Isle Counties
- NeighborWorks of Western Vermont – Addison, Bennington, and Rutland Counties
- Downstreet Housing & Community Development –Lamoille, Orange, and Washington Counties
- Windham & Windsor Housing Trust – Windham, and Windsor Counties
For more information, click here.
About the Department of Housing and Community Development
The Department of Housing and Community Development works to support vibrant and resilient communities, promote safe and affordable housing for all, protect the state’s historic resources, and improve the quality of life for Vermonters.
About the Agency of Commerce and Community Development (ACCD)
The mission of ACCD is to help Vermonters improve their quality of life and build strong communities. ACCD accomplishes this mission by providing grants, technical assistance, and advocacy through three divisions: The Department of Economic Development, the Department of Tourism and Marketing, and the Department of Housing and Community Development. For more information on ACCD please visit: accd.vermont.gov.
Source: 12.8.2021. Montpelier, Vt. - Governor