You can get free money worth $50,000 to build a tiny home but you must meet construction criteria… – The US Sun

VERMONT is offering grants of up to $50,000 for property owners who build a tiny home on their property.

Accessory dwelling units, or ADUs, can turn single-family homes into housing for multiple families. 

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Vermont’s ADU law went into effect in 2020 after being pitched as a solution to the housing crisis.

The rural state has the highest rate of unsheltered homelessness in the United States, according to the Vermont Daily Chronicle.

The state’s Chamber of Commerce called the plan “a low-barrier way for Vermont homeowners to help solve the housing crisis one unit at a time.”

Now, the state is offering grants to residents seeking to build small housing structures.

ADUs can increase housing supply and offer property owners an opportunity to charge rent.

While many municipalities nationwide ban ADUs to favor the construction of single-family housing, Vermont requires its towns and cities to allow them under certain conditions.

There are several criteria to qualify for the cash.

CLAIM YOUR CASH

While tiny homes can often be built for less than six figures, Vermont won’t pay to build a full ADU on just any property.

The grant is meant for units on owner-occupied properties, meaning the builder must live onsite.

Beneficiaries must match at least 20% of the grant’s funds for the building.

Funds can be used to facilitate construction including structural, roofing, siding, windows, doors, electrical, plumbing, and HVAC work. 

The state also requires that once the unit is built, the grantee must offer it for rent at or below fair market value as determined by the U.S. Department of Housing and Urban Development.

The department determines fair market rents nationwide and publishes the data annually.

The 2024 data, which took effect in October, says a fair rent for a studio-style ADU in Burlington — Vermont’s largest city — would be $1,341 or below.

ADUs can be internal within the structure of an existing home, or external and completely detached from the owner’s home.

Applicants can contact their local housing center to seek grant money.

MORE TINY HOMES

As the need for housing and the cost of living increases, more people have turned to tiny living as a solution.

Cutting down on housing space can be an effective way to cut costs and environmental waste for many interested in alternative lifestyles.

However, many parts of the United States have strict zoning laws that make tiny living difficult.

For example, a tiny home village in Phoenix, Arizona was recently shut down due to zoning regulations, leaving 150 people scrambling to find housing.

But since Vermont passed its ADU law in 2020, tiny living has become easier throughout the Green Mountain State.

Vermont’s plan is not the only way housing advocates and companies have leveraged tiny living to build affordable housing.

Some developers have built tiny home villages like Cedar Springs, a lakefront tiny village in Ohio.

Another waterfront village was built outside Tampa, Florida specifically to help provide affordable living spaces.

One storied tiny home titan has gone back to basics.

Even the largest city in the United States offers tiny home living.