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Housing division seeks $4 million in base funding for VHIP after more than 1,000 units; ADUs grow but septic and tax issues remain
Summary
State housing officials told the Senate committee that the Vermont Housing Improvement Program (VHIP) has funded or completed more than 1,000 units and now seeks $4 million in base funding to stabilize the program. Officials highlighted program rules, compliance timelines and barriers to accessory dwelling units (ADUs).
Sean Gilpin, director of the Vermont Housing Division, and Jamie Bauer, who manages the Vermont Housing Improvement Program (VHIP), updated the Senate Economic Development, Housing & General Affairs Committee on VHIP’s progress and asked lawmakers to make the program permanent through base funding.
The agency reported more than 1,000 VHIP units completed or funded statewide and said the program averages roughly $39,000 of work per unit with an average owner match of about $32,000. "It is a rapid unit creation program" designed to bring underused, substandard or vacant units up to HUD housing quality standards, Gilpin said.
VHIP currently offers grants and forgivable loans. Jamie Bauer outlined two primary program options for property owners: a five‑year affordability commitment tied to HUD fair market rent and a homeless‑services referral requirement, or a 10‑year affordability commitment structured as a 0% forgivable loan (forgiveness occurs…
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