Vermont Housing Improvement Program (VHIP)

Applications are being accepted until October 15, 2025

VHIP 2.0 provides forgivable loans with no interest of up to $50,000 per unit to help property owners in Vermont rehabilitate, repair or create rental units to increase the availability of safe, code-compliant and affordable housing in the State.

VHIP 2.0 is a competitive program. Applications will be reviewed for completeness within 30 days of receipt. Incomplete applications will be returned to the applicant. Complete applications will be reviewed and scored based on the following criteria:

Readiness to begin project upon approval
Project Timeline
Applicants’ past performance and compliance with VHIP projects
Geographic location of the project
Quality of proposed project
Unit type
Local property owner
Length of vacancy
Willingness to work with homeless service organizations or USCRI to find suitable renters exiting homelessness.

Awards will be announced by email the first week of November 2025.

Renovating existing vacant units
Rehabilitate structural elements affecting multiple units such as foundation, roof, or HVAC, plumbing or electrical systems
Constructing an Accessory Dwelling Unit (ADU) on an owner-occupied property
Creating new units within an existing structure
Building a new structure with five or fewer residential units
Addressing code-compliance repairs in occupied units (only eligible for 10-year forgivable loan)

Project funding is based on the type of project and/or the number of bedrooms in the unit.

Up to $30,000 per unit for rehabilitation of 0-2 bedroom units
Up to $50,000 per unit for rehabilitation of 3+ bedroom units or the creation of a new unit or ADU.
Up to $50,000 for structural elements affecting multiple units. (Applicant must select one unit for which the Rental Covenant will be placed).

The primary differences between the 5-year forgivable loan and the 10-year forgivable loans are:

The period for which the property owner must charge at or below HUD Fair Market Rent for the enrolled units (5 v 10 years)
The 5-year grant option comes with additional tenant selection requirements to rent to a household exiting homelessness

To learn more specifics about these two options, please visit ACCD's VHIP 2.0 webpage.

VHIP 2.0 disburses loan funds on a reimbursement basis apart from the first disbursement. Scheduled loan disbursements are made as follows:

35% Initial Disbursement: after documentation of 20% match is received
25% Mid-Point Disbursement: after midpoint site visit is completed by RuralEdge staff and documentation of expenditures totaling at least 50% of project cost have been received
25% Final Inspection Disbursement: after all work is complete, a site visit is completed by RuralEdge staff and expenditures totaling 100% of the project cost have been received
15% Lease Up Disbursement: Upon receipt of executed lease(s) and code/occupancy sign-off

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). Participants must submit a yearly recertification form to ensure compliance with the program guidelines.

2025 HUD Fair Market with Utilities Included

County	1 Bedroom	2 Bedroom	3 Bedroom	4 Bedroom
Caledonia	$909	$1,092	$1,471	$1,561
Essex	$854	$946	$1,326	$1,351
Orleans	$955	$1,099	$1,431	$1,578

FMR Calculator (Use this calculator to determine Fair Market Rent when the tenant is responsible for some or all utilities).

As a participant in the VHIP 2.0 program, property owners have the right to select their own tenants. However, all selected tenants must meet the eligibility requirements specific to the loan term selected.

For properties enrolled in VHIP 2.0, the following guidelines apply:

Credit Requirements: Owners may not require a credit score higher than 500.
Deposits: Total deposits may not exceed the equivalent of one month’s rent. This includes any fees labeled as a security deposit, damage deposit, pet deposit, last month’s rent, or similar.
Background Checks: Property owners are responsible for covering the cost of background checks for all potential tenants.
Voucher Acceptance: Owners must accept all valid housing vouchers that cover part or all of a tenant’s rent and utilities.
Application Access: Paper applications must be made available to prospective tenants who have limited or no internet access.

VHIP 2.0 applicants must watch a Landlord-Tenant Mediation video and complete a Fair Housing Training as part of the application process. Applications will not be reviewed prior to the completion of these trainings.

Required Landlord-Tenant Mediation video is provided by the Vermont Landlord Association Please click here to view.
Required Fair Housing training is provided by CVOEO Please click here to register. You will be asked to create an account on the Ruzuku learning platform, then you’ll have immediate access to the training. If you experience any problems or have questions, please contact CVOEO at classcoord@cvoeo.org or 802-660-3455 ext. 205.

Apply for VHIP 2.0 Funding:

Application for Unoccupied Rental Units

Application for Accessory Dwelling Units (ADU)

Application for New Construction Units

Application for Occupied Rental Units

Email completed application & supporting documents to rentalrehab@ruraledge.org or mail to:

RuralEdge Attn: VHIP 1222 Main Street St. Johnsbury, VT 05819

For more information, email RentalRehab@ruraledge.org or call (802) 473-3919 to speak with Victoria Porter, Homeownership Center Program Manager.

NML# 223009. "This is an Equal Opportunity Program. Discrimination is prohibited by Federal Law. Complaints of discrimination may be filed with USDA, Director, Office of Civil Rights, Room 326-W, Whitten Bldg., 14th and Independence Ave., SW, Washington, DC 20250-9410"