Application Window is now open through September 12, 2025 at 5pm.
VHIP 2.0 helps Vermont property owners bring vacant or blighted units back online—or create new rental units—by offering up to $50,000 per unit in forgivable loans. The program is part of a statewide effort to expand safe, code-compliant, and affordable housing options, especially for households exiting homelessness.
⚠️ Please note:
VHIP is a competitive application process. Submitting an application does not guarantee funding.
What Projects Are Eligible?
You may qualify for a 5-year forgivable loan or a 10-year forgivable loan for the following types of projects:
- Renovating existing vacant units
- Repairing shared structural elements (e.g., a roof on a multi-unit building)
- Creating new units within an existing structure
- Building an Accessory Dwelling Unit (ADU) on an owner-occupied property
- Constructing a new building with 5 or fewer residential units
- Making code-compliance repairs in occupied rental units (10-year loan only)
Improvements may include code updates, weatherization, and accessibility upgrades.
How Much Funding Is Available?
Depending on your project type:
- Up to $30,000 per unit for rehab of 0–2 bedroom units
- Up to $50,000 per unit for:
- Rehab of 3+ bedroom units
- New unit creation or ADUs
Note: If applying for structural work, you’ll apply for $50,000 per property and designate one unit for the Rental Covenant.
Payment Disbursement
Funds are distributed in four stages:
- 35% after representation of match expenditure
- 25% at 50% completion of scope of work
- 25% after final inspection
- 15% upon submission of receipts, code/occupancy sign-off, and executed lease
Resources & FAQs
VHIP 2.0 Program Requirements
20% Match:
All participants must provide a 20% match of the award. This can include in-kind contributions such as unbilled labor or materials.
Fair Market Rent Covenant:
Participants must agree to charge rent at or below HUD Fair Market Rent (FMR) or the applicable voucher rate for the term of the loan (5 or 10 years).
➡️ FMR Calculator (if utilities are not included)
Fair Housing Education:
Applicants must complete brief online trainings on Fair Housing and Landlord-Tenant Mediation.
➡️ Take the Training
Tenant Selection Rules:
- Credit score requirement cannot exceed 500
- Only one month’s rent can be charged as a deposit (no added pet or last-month charges)
- Background checks must be paid by the landlord
- Property owners must accept housing vouchers
- Paper applications must be accepted for tenants without internet access
Out-of-State Owners:
Must designate a local property manager within 50 miles of the unit(s).
