State official: VHIP averaging $39,000 per project, meets 30% set‑aside for people exiting homelessness
Loading...
Summary
Alex Farrell, commissioner of the Department of Housing and Community Development, told the General & Housing committee that VHIP continues to perform well with an average cost near $39,000, that private owners generally contribute roughly a one-to-one match, and that the program is meeting a 30% set-aside for households exiting homelessness.
Alex Farrell, Commissioner of the Department of Housing and Community Development, updated the General & Housing Committee on the state’s VHIP program, saying it "continues to function very successfully" and that "the average cost is still down around 39,000." Farrell said several iterations of the program (RHRP, BeHIP 1 and BeHIP 2) remain relevant, and pointed to a Brandon project that converted a long-vacant storefront into a three-unit property housing three households who exited homelessness.
Committee members asked about upfront capital requirements for private owners. Farrell said, "What we're aware of is it's roughly a 1 to 1," and that he believes owner contributions may be underreported. He explained VHIP currently operates largely on a reimbursement model, which can create barriers for owners who lack access to capital early in a project.
Lawmakers suggested pairing VHIP with a recently created rural housing fund that provides upfront capital. Farrell said he was not familiar with the fund’s details but agreed to review whether that pool could be used to bridge the reimbursement gap. On the possibility of changing VHIP to provide upfront payments rather than reimbursements, Farrell said the department could consider that "if the legislature explicitly gave us that authority," but added the agency must be cautious with public funds and would need creditworthiness checks or other controls.
Farrell also addressed program targeting. He confirmed a policy enacted last year requires at least 30% of VHIP-supported units be reserved for people exiting homelessness and said the program is "coming in right at 30%" across a five-year view. The commissioner emphasized administrative capacity is a constraint: staff administer compliance obligations (often 10-year terms) and sustaining that staffing would require ongoing funding.
Farrell said detailed VHIP materials and project-level timelines are available in the handout provided to the committee and offered to follow up with additional specifics about owner contributions and any matching strategies. He closed by noting the administration had requested base funding for the program in prior budget proposals but did not state whether the governor’s upcoming request would include a base-funding change.
