LOAN AND GRANT PROGRAMS
VHCB funds the acquisition, rehabilitation and construction of affordable housing by nonprofit housing organizations. Private developers are eligible to apply for federal HOME Program funds which increase affordability and come with reporting requirements.
Affordable housing projects eligible for funding include rental housing, rental and ownership coops, mobile home parks, single family homes, shared elderly housing, single room occupancy housing, and group homes. VHCB funds help to leverage federal and private funds to develop housing to serve lower income households and individuals with special needs. Private bank loans and Low Income Housing and Historic Preservation Tax Credit equity are common financing tools in VHCB-funded projects. Federal rental subsidies are present in many VHCB projects, and many housing projects involve housing development organizations working together with social service agencies to provide housing with support services for residents. Certain projects address special needs, such as housing for battered women, housing for the deaf, housing for physically, developmentally, or mentally disabled persons, and housing for artists.
All housing funded must serve households earning less than 100% of median income as defined by HUD income guidelines. The majority of the units funded by VHCB serve households with incomes between 30% and 80% of median income. The affordability of the housing is secured with legal instruments (housing subsidy covenants) filed in the land records that travel with the property upon resale to ensure perpetual affordability.
Feasibility Funds
Housing and conservation projects in the early stages of development are eligible for Feasibility Grants of up to $10,000 for a single project to cover feasibility related expenses and up to $15,000 for scattered site projects containing more than two separate sites. Funds can only be used to compensate contracted services and may not be used to compensate applicants for staff time. Feasibility funds typically cover the costs of appraisals, energy assessments, marketing studies, options, engineering and environmental studies, or other predevelopment costs. Feasibility requests are considered on an ongoing basis by VHCB staff. To To apply: Feasibility Funds
Application for Affordable Housing Development
In 2007 VHCB, the Vermont Housing Finance Agency, and the Vermont Community Development Program developed a new Common Application (below) to be used for all multifamily and single family housing developments. The Common Application should be used for all projects and may be submitted to each organization. Site visits by VHCB staff are required prior to submission of the application. Housing applications are considered 3-4 times a year, depending on the availability of funds. A schedule of application deadlines and board meeting dates is posted here.
COMMON APPLICATION
Instructions: The first section of the application contains general information all funding agencies need to see. Each appendix that follows is specific to a single program or funding source. All applicants must complete and return Section II, Parts 2 and 3. In addition, you should download, complete and return any other section that's relevant to your development.
Instructions & common application
I. Instructions
Overview and Directions for Common Application format (48 KB; DOC)
II. Common Application — ALL APPLICANTS MUST COMPLETE
Common Application Form (102 KB; DOC)
Checklist of Required Attachments (52 KB; DOC)
Supplemental application materials
III. Vermont Housing and Conservation Board (VHCB)/HOME
Program Overview (36 KB; DOC)
Application Supplement (28 KB; DOC)
Checklist of Required Attachments (32 KB; DOC)
IV. Vermont Community Development Program (VCDP)
Program Overview (28 KB; DOC)
Application Supplement (80 KB; DOC)
Checklist of Required Attachments (32 KB; DOC)
V. Vermont Housing Finance Agency (VHFA) — Tax Credits
Program Overview — Federal & State Housing Credit (1.5 MB; PDF)
Application Supplement (72 KB; DOC)
Checklist of Required Attachments (32 KB; DOC)
VI. VHFA Multifamily Financing
Application Supplement (32 KB; DOC)
VII. VHFA Single Family Construction Financing
Program Overview & Application (48 KB; DOC)
Download the Housing Application Budget Forms (Microsoft Excel File)
HOME Program
The Board administers the federal HOME Program for the State of Vermont through a contract with the Department of Housing and Community Affairs. These funds are used to serve low- and very low-income Vermonters in housing projects meeting the criteria of the state's Consolidated Plan for housing programs. The HOME funds help to cover project development costs, create greater affordability in the projects, and supplement VHCB funds. VHCB has awarded more than $44.8 million in HOME funds since the program began in 1992. The same application, application deadlines and Board meeting dates used for VHCB Housing Funds apply to applications for HOME Funds. Applicants should contact the VHCB office. HOME Program Handbook
Transitional Housing
The Transitional Housing fund was established in 2004 for the development of transitional housing for households who were previously homeless or who are otherwise in need of short term housing with accompanying support services. The goal of the fund is to expedite the funding process to provide a timely response to urgent needs.
Applicants for Transitional Housing funds use the standard VHCB Housing Application, but applications are accepted on a rolling basis (they are not subject to the application schedule due dates and are reviewed and approved by staff; they are not individually approved by the board.). Site visits are required prior to submitting the application. Please call staff to discuss the proposed project and schedule a site visit.
Transitional Housing Information for Potential Applicants
Transitional Housing Feasibiliy Guidelines
HOMEOWNERSHIP PROGRAMS
Homeland
The HOMELAND Program provides purchase subsidies and assistance with down payment and closing costs and rehabilitation loans to make home ownership more affordable for Vermonters. Applicants for HOMELAND funds are pre-qualified to purchase a home within a given price range based on their income. Depending on income level, need, and other factors, homeowners may receive grants (generally 20% of the purchase price, up to $40,000) towards the purchase price of a home. In addition to the HOMELAND grant, buyers obtain mortgage loan financing and contribute their own cash resources (at least $1,500) towards the purchase price of the home. Low-interest mortgage loan financing from the Vermont Housing Finance Agency is available through private banks statewide and is frequently used with HOMELAND funds. USDA Rural Development also sponsors low-interest mortgage financing programs.
Homeland grant funds are administered by nonprofits to subsidize the cost of single family homes, increasing affordability and guaranteeing perpetual affordability upon resale. Appreciation is limited by an agreement between the nonprofit and the homeowner. In return, the purchase price of the home is reduced by the amount of the grant.
Successful completion of a one-day home purchase education program at one of five NeighborWorks HomeOwnership Centers around the state is a requirement for each buyer receiving HOMELAND funds. The HomeOwnership Centers are located in Burlington, St. Albans, Springfield, West Rutland, Lyndonville and Barre.
To apply: Contact a participating nonprofit housing organization and ask for details on the HOMELAND program and the Single Family Assistance Program.
Single Family Assistance Program
Participating nonprofit housing organizations administer VHCB funds to home buyers with grants of up to $7,500 per home to assist with rehabilitation loans (for existing restricted homes) and closing cost assistance (up to $4,000). To apply: Contact the local nonprofit housing organization and ask for details on the HOMELAND program. list Participating housing organizations
Habitat for Humanity and Vocational Education-Built Homes
VHCB makes grants for home building projects undertaken by Habitat for Humanity or Vocational Education programs around the state. The 29 projects funded to date have helped either to pay for land or to lower the costs of construction. The resulting savings have been passed on to first-time home buyers. To apply: Nonprofit applicants should review Guidelines on Habitat for Humanity or Vocational Education-Built Homes. Download the application (MicrosoftWord version) or Adobe Acrobat (pdf) version. Applications are reviewed by VHCB staff on an ongoing basis. Statewide Habitat for Humanity Chapters
MOBILE HOME PARKS
VHCB funds the acquisition of mobile home parks. Use the Common Application; site visits are required prior to submitting the application.
Purchase Subsidy Program
VHCB funds are awarded to assist low-income households to purchase mobile homes in nonprofit-owned mobile home parks. Funds are provided for down payment assistance and to prevent foreclosure. This program enables upgrading and replacement of deteriorated homes. The program is administered by the Vermont Community Loan Fund (802-223-1448; Vermont Community Loan Fund)
Energy Fund
VHCB's Energy Efficiency Fund may be used for improvements to existing permanently affordable multi-family rental properties, including transitional housing and shelters. The primary use of the fund shall be for modestly priced energy efficiency improvements to existing buildings and for devices and systems designed to influence tenant behavior regarding heat consumption, with a secondary use for alternative energy systems for existing buildings. Items should preferably have a payback period of eight years or fewer.
The funds shall generally be used for improvements in two categories:
(1) better control systems for existing building systems. (i.e., Tekmar or similar boiler controls, programmable thermostats, flow meters).
(2) significant upgrades to basis heating systems including alternative ways to generate the energy that the building needs. (i.e., a solar hot water system or biomass boiler).
- In general, the fund is not intended to be used for measures where grant funds for the same purpose are available from other entities or resources except that it may be used to match such other resources if such a match is required or necessary. The Energy Fund will not be used to cover the cost of items such as insulation that can usually be installed and paid for through the Weatherization Program.
- VHCB's goal is to distribute Energy Funds throughout the non-profit housing delivery system statewide as broadly as possible. Although the amount of investment will be a function of demand, we expect to be able to make an investment of $20,000 to $30,000 in most “large” housing portfolios.
While the maximum grant amount is $50,000, we hope to fund numerous, much smaller requests.
- VHCB staff shall review and approve applications for amounts under $15,000. Applications for $15,000 and above shall be reviewed and approved by staff with the concurrence of the board chair.
Application for Energy Funds (MSWord file)
Application for Energy Funds (Adobe PDF)
For Further Information -- For a copy of VHCB applications, policies, application deadlines and board meeting dates, please call 802-828-3250.
Housing Development Consistent with the VHCB Mission
The renovation of historic buildings helps to reinforce Vermont’s traditional settlement pattern, keeping economic activity in the small village centers and downtown areas, further supporting the mission of the Housing and Conservation Board to "maintain for the benefit of future generations the essential characteristics of the Vermont countryside." The Board has supported the preservation of stately older homes no longer feasible for single family ownership, historic public buildings converted to housing, and outstanding historic structures preserved for public educational uses. The Board has also funded the adaptive reuse of buildings such as vacant schools or commercial buildings converted into affordable housing. Because VHCB’s mission encompasses historic preservation, grantees are encouraged or required to undertake rehabilitation consistent with the Secretary of the Interior's Standards for Rehabilitation. VHCB sponsors trainings and provides technical assistance to educate Vermont's affordable housing community regarding rehabilitation techniques and materials consistent with these historic preservation standards.
Housing Articles
HOUSING LINKS
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or call 802-828-3250, or write: VHCB, 149 State Street, Montpelier, VT 05602
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