Otsego County Vacant Rental Program

The Otsego County Vacant Rental Program

The Otsego County Vacant Rental Program (VRP) is a local grant program funded by the New York State Homes and Community Renewal’s New York Vacant Rental Program, which funds the rehabilitation of vacant properties for use as affordable long-term rental units for low- and moderate-income households.

ORHA and our partner Opportunities for Otsego (OFO) have teamed up to bring this grant program to Otsego County. We plan to rehabilitate at least 9 units into affordable rental housing!

ORHA is accepting applications on a rolling basis for this program!

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What does the Otsego County VRP do?

The Otsego County VRP funds the rehabilitation of vacant units/spaces in 1-5 unit buildings into decent, affordable rental housing. Property owners can receive up to $50,000 or $75,000 per unit, depending on the type of award they select.

Rehabilitation is performed by contractors selected through a competitive bidding process, and grant funds are paid directly to contractors.

Standard Award

  • Maximum Award: $50,000 per unit, up to $250,000
  • Tenant Income Limit: 80% AMI
  • Maximum Rent: Standard Limit, calculation based on affordability for 80% AMI and utility allowance

Enhanced Award

  • Maximum Award: $75,000 per unit, up to $375,000
  • Tenant Income Limit: 60% AMI
  • Maximum Rent: Enhanced Limit, calculation based on 60% AMI and utility allowance

Example Income Limits

Family Size 80% AMI 60% AMI
1
$50,900
$38,220
2
$58,200
$43,680
3
$65,450
$49,140
4
$72,700
$54,540
5
$78,550
$58,920

Based on 2026 HUD income limits.

Example Rent Limits

Unit Description Standard Limit Enhanced Limit
Studio apartment, all utilities included
$1,272
$954
1 bedroom unit in a 2-unit building, tenant pays for propane heat
$1,218
$877
1 bedroom unit, all utilities included
$1,363
$1,022
3 bedroom house, tenant pays electric (including heat, cooking, water heater)
$1,544
$1,071

Based on 2026 HUD income limits and 2026 utility allowances.

Program Details

What projects would be eligible?

  • Residential or mixed-use building, or any building that will be converted to a mixed-use or residential building by the project, in Otsego County
  • Maximum of 5 residential units in the property, before and after the project
  • Unit is vacant because it is in unmarketable or uninhabitable condition
  • Current on mortgage, property taxes, & utility payments
  • Property owner(s) is/are responsible
  • Priority will be given to local property owners
  • Priority will be given to property owners who own or control 20 or fewer residential units
  • Priority will be given to projects and owners who meet certain other requirements

For full eligibility requirements and priority details, review the program’s Eligibility and Prioritization Policies.

Ineligible Projects

We can’t fund these types of projects:

  • Any project in a mobile or manufactured home
  • Construction of new accessory dwelling units (ADUs)—but rehab of an existing ADU is eligible
  • Turning vacant space in a single-family, owner-occupied home into a rental unit for the first time—but rehab of an existing separate housing unit is eligible

Program Requirements for Participants

In return for the help, for 10 years, property owners must:

  • Rent only to tenants with a household income below the required income limit
    • Income calculations would be performed by ORHA and are only required when a tenant FIRST moves into a unit. Tenants whose incomes increase would be able to continue living in the unit.
    • ORHA and our partners are prepared to help you market your units to eligible households, including by sharing information about available units with our clients.
  • Charge rent within a maximum limit given to you by ORHA
    • Maximums are calculated depending on unit size and utilities.
    • ORHA would provide property owners with the maximum allowable rent each year.
  • Offer 12-month leases for the assisted units. No assisted unit can be used for short-term rentals.
  • Comply with all federal, state, and local housing laws, including Fair Housing Laws.
  • Maintain the unit in good condition. ORHA would periodically confirm compliance through property inspections.
  • Abide by restrictions on sale or transfer of the property.
  • Submit an annual re-certification confirming you are following program rules.

Program participants sign a Participant Agreement with ORHA, and they also execute a Declaration of Interest in Property, which gets filed with the County Clerk. Failure to follow program requirements could result in full repayment of grant funds.

For full program requirements, review our policies and procedures.

Program Documents

How to Apply

ORHA is now accepting applications on a rolling basis! Property owners can apply at any time.

All owners of properties containing vacant units/spaces in Otsego County are encouraged to apply for Otsego County VRP assistance.

Projects will not be selected on a “first come, first served” basis. Applications meeting threshold eligibility requirements will be scored based on ORHA’s Otsego County VRP Prioritization Policy. 

This program has an existing waiting list, built from deferred applications from the first, time-limited funding round. Eligible applications will be placed on this waiting list for consideration of an award. Applications will be selected for further review based on overall score, with time of application breaking ties.

A minimum funding threshold of $25,000 is currently in effect. Only projects that require at least $25,000 in assistance will be selected. All others will be deferred.

Important Note: There is no fee to apply. Awardees will be required to deposit a $5,000 commitment fee to secure their place in the program once selected. This fee is fully refunded upon project completion, provided there is room in the project budget. If a project is not completed, ORHA will subtract the money it has already spent on the project from the commitment fee and refund anything remaining.

Tips for Achieving a High Score

There is a current waiting list for Otsego County VRP awards. To make your application stand out with a score higher than applications submitted earlier, consider some of these tips.

  • STRONGLY RECOMMENDED: Consult with the relevant code enforcement office and find out whether your project will need plans/drawings stamped by a professional to secure a building permit. If so, obtain those plans first and submit them with your application. This is the most common reason applications lost out on points available for project readiness.
  • Secure early approvals that would apply to your project, like site plan, historic review board, or zoning approvals. Submit proof with your application. Note: building permits are not necessary just yet!
  • Develop a solid, realistic plan for the work that needs to be completed at the property. This will help you identify whether your project will need plans or special approvals, and it will help us review your project more efficiently.
  • Is the unit on the first floor of a building? Review the Minimum Accessibility priority requirements and consider working them into your proposed project.
Click Here for Application Packet
Click Here for Owner Information Packet

Application Instructions

  1. Review the Owner Information Packet. This contains detailed instructions and information about program requirements.
  2. Download the Application Packet. If you are unable to print it at home, your local library or copy shop will be able to. You may also ask ORHA to send you a copy if needed.
  3. Fill out the application and all other required forms. Collect the required verification documents.
  4. Submit to ORHA by email, by mail, or in-person. See the Application Instructions for submission instructions.
  5. Within 30 business days of receiving your application, ORHA will notify you of whether you are eligible and being placed on the program waiting list for consideration for an award or are ineligible for the program.

Contact Us About the VRP

Have questions about the program or your application? Want to run a project idea by us? Please reach out! ORHA is here to work with you to develop the best possible project.

Direct all questions to Bridget Stith, Executive Director.