The U.S. Treasury Department recently announced new guidelines that will significantly increase Vermont’s ability to use pandemic recovery funding to directly support the development of affordable housing and reduce costs for Vermonters.
Disaster recovery
Vermont Homeowner Assistance Program awards $11 million in grants during first six months
Over $11 million of a $50 million program to pay overdue housing costs for homeowners impacted by the pandemic has been disbursed within the first six months of the program. The Vermont Housing Finance Agency (VHFA) launched the Homeowner Assistance Program (HAP) in January 2022 with funding from the federal American Rescue Plan Act. It provides grants of up to $30,000 for income-eligible homeowners.
Watch out for homeowner relief scams
As many states including Vermont begin to award millions in financial assistance to homeowners impacted by the pandemic, the U.S. Department of Housing and Urban Development (HUD) has issued warnings of predatory fraud schemes targeting desperate homeowners looking to avoid foreclosure and stay in their homes.
State funding available to replace wells and septic systems
A new program from the Vermont Agency of Natural Resources has funding for low and moderate income Vermont homeowners to replace their home water or wastewater systems. Applications for the first round of funding are open through April 15, 2022.
Governor Scott announces new Homeowner Assistance Program to help keep homeowners housed
Governor Scott announces a new grant program, the Homeowner Assistance Program (HAP), which will help Vermont homeowners facing pandemic hardships. The program will be managed through the Vermont Housing Finance Agency (VHFA) and is now accepting applications. The program, funded by $50 million from the federal American Rescue Plan Act, will provide grants of up to $30,000 per household towards overdue mortgage payments, utility bills, property taxes, and property association charges. VHFA anticipates that the program will run for multiple years to help reduce the long-term risk of foreclosure and home loss due to the pandemic.
Developer survey reports widespread cost increases and delays related to pandemic
A new white paper from Vermont Housing Finance Agency (VHFA) finds that 86% of Vermont housing developers were experiencing project delays during the pandemic. The report draws from an online survey of statewide developers in August and a subsequent forum that brought together over 60 development professionals and state regulators to discuss challenges and potential solutions. Despite unprecedented state and federal funding increases from pandemic relief bills, Vermont’s development community is encountering significant challenges completing projects.
Using local ARPA funds for housing can help Vermont municipalities
VHFA and the Vermont League of Cities and Towns recently published a checklist of options for using local recovery funds provided through the American Rescue Plan Act (ARPA) to promote recovery from the pandemic through investments in housing and neighborhoods. By providing more safe, affordable housing, communities can address inequities, promote health and spur broader economic benefits. The checklist joins the many resources available to communities in the Vermont Housing-Ready toolbox.
Draft Vermont Homeowner Assistance Fund Plan released
On August 13, 2021, VHFA released the draft Homeowner Assistance Fund plan for submission to the U.S. Treasury describing homeowner needs and proposed programs to be offered through the Vermont Homeowner Assistance Program. The plan is based on data pertaining to homeowner needs and input provided by community and state organizations committed to serving low and moderate income Vermont homeowners. VHFA held 3 public meetings in June 2021 to discuss the upcoming program.
New draft guidelines for upcoming Vermont Homeowner Assistance Fund released
VHFA released a draft program description and income limits this week for the Homeowner Assistance Fund that will start in the next few months. The Homeowner Assistance Fund was created by the federal American Rescue Plan Act to help homeowners avoid foreclosure and displacement by mitigating financial hardships related to the COVID-19 pandemic. The Fund will provide Vermont up to $50 million over a multi-year period to provide assistance for mortgage and other expenses facing Vermont homeowners.
Applications for Vermont COVID Emergency Mortgage Assistance due by 4PM on June 30, 2021
Due to limited funding, applications for the current round of Vermont COVID Emergency Mortgage Assistance must be submitted by 4:00 PM on Wednesday, June 30, 2021. Until then, eligibility requirements and application instructions will remain available on VHFA’s website at www.vhfa.org/map. All grant awards are subject to funding availability.