RHIP is a low-interest loan program to help landlords make basic repairs or improvements, which we developed and a member of our board now manages for the Town of Brattleboro.

What properties are eligible?

Any rental housing in the town of Brattleboro is eligible if it meets these conditions:

• At least 51% of the tenants have a total household income not higher than shown here. (Where there are two or four tenants the requirement is 50%.)
• All tenants have written rental agreements that conform to Vermont law.
• The property complies with Brattleboro zoning requirements and either complies with building, fire and health codes or will use the loan to come into compliance.
• The owner has at least 20% equity in the property to be improved.
• The owner is current with all taxes on Brattleboro property s/he owns or has an interest in.

What work is eligible?

A variety of repairs or improvements are eligible, including:

• Bringing the property into compliance with applicable codes
• Creation or rehabilitation of rental units in a single- or multi-family building
• Structural repairs
• Electrical, plumbing or heating improvements
• Weatherization
• Accessibility modifications
• Lead paint or asbestos abatement

Loans may not be made for routine maintenance.

Loan Terms

• Loans may be for any amount from $3,000 to $25,000.
• Loans may be for a period of up to 10 years.
• Interest will be 50% of the Prime interest rate.
• Loans will be secured by promissory notes and mortgage deeds, as applicable.
   

Affordability Requirement

Borrowers will be required to keep rent and utility costs at a level affordable to low- or moderate-income tenants for 5 years or the duration of the loan, whichever is longer. For the year 2009-10, see table at right.

How do I apply?

The application process includes the following steps:

1. A preliminary application form is completed.
2. The Loan Coordinator reviews the project’s eligibility.
3. A full application and processing fee are submitted. Information is required about the building’s and owner’s finances. (Personal financial information is reviewed only by a two-person credit committee and does not become public record.)
4. A site visit is conducted to review the proposed work and budget.
5. The Loan Review Committee reviews the application and makes a recommendation.
6. The Selectboard makes the final decision on the loan.

The Loan Coordinator will be available to help you with paperwork and in meeting deadlines.

For more information or a preliminary application form, please call Byron Stookey at 257-4691 or Patricia DeNaranjo in the Town Finance Department at 251-8122.