EmployerAssisted Housing - PowerPoint PPT Presentation

Title: EmployerAssisted Housing


1
Employer-Assisted Housing An Investment That
Pays Many Times Over

Metropolitan Planning Council

www.metroplanning.org or
www.reachillinois.org
2
Jobs-Housing Mismatch
Problem Metro Chicago jobs and population are
growing at a faster rate than the supply of
workforce housing. Issue Workforce problems
result from this Jobs-Housing Mismatch. Solution
Employer-Assisted Housing (EAH) Maximizes
employee retention by implementing this
outsourced, easy-to-administer employee benefit.

Metropolitan Planning Council

www.metroplanning.org or
www.reachillinois.org
3
EAH is a win for everyone.
Why Employer-Assisted Housing?

• EAH benefits . . .
• The EMPLOYEE
• The EMPLOYER
• The COMMUNITY
• The HOUSING POLICY ARENA

Metropolitan Planning Council

www.metroplanning.org or
www.reachillinois.org
4
How it Works

• Employer Role
• Identifies targeted population and approximate
  budget
• Provides small grants to employees or local loan
  pool for housing assistance
• Contracts with non-profits for technical
  assistance, education and counseling services and
  evaluation

• REACH (nonprofit counseling)Partner Role
• Administers the EAH program
• Provides credit counseling and housing education
  to employees
• Connects buyers and renters with financing
  products, financial institutions and realtors
• Applies for, administers state tax credits

• MPC/Housing Action IL Role
• Supports partnership development
• Provides assistance in program design, ongoing
  t.a. and resource development
• Coordinates program evaluation
• Facilitates outreach to companies
• Assists in marketing and publicity

• Financial Partner and Developer Roles
• May offer special loan products or other
  incentives
• May provide program support for REACH partners
• Assists in marketing efforts for employees
• Can purchase tax credits
• Are often leading EAH employers

Metropolitan Planning Council

www.metroplanning.org or
www.reachillinois.org
5
Nonprofit partner can leverage numerous resources

• State Matching Funds
• State match of 1 for each 1 of down
  payment/closing cost assistance provided to an
  employee
• Reimbursement of some counseling costs for
  successful home purchases by employees
• Participating buyers income restricted to 80
  Area Median Income
• State Income Tax Credits
• 50 cent tax credit for 1 invested in EAH, for
  both rental and homeownership models, for
  households earning up to 120 AMI
• Credit is transferable if donating entity does
  not have tax liability
• Private, Municipal and County Programs
• First-time homebuyer programs, Federal Homeloan
  Bank AHP dollars, other matching resources
• Federal Tax Benefits
• Federal tax benefit for contributing to
  non-profit organization
• Housing Americas Workforce Act

Metropolitan Planning Council

www.metroplanning.org or
www.reachillinois.org
6
Achievements and Potential

• Concrete
• Nearly 60 employers signed-on to EAH
• Nearly 600 employees purchased homes with
  employer downpayment assistance
• Over 1200 employees received counseling --
  homebuyer education and credit clean-up, thanks
  to employer
• In 2005, the median employee income was 41,000,
  median household income was 50,000,
• 23 companies supporting the CHA Plan for
  Transformation
• New small business, rent subsidy and
  inter-jurisdictional models forming

• Strategic
• Metropolitan Mayors Caucus Housing Endorsement
  Criteria and Housing Action Agenda
• First Ever State of Illniois Housing Policy and
  Comprehensive Housing Plan
• Local Ordinances and State Legislation to Back up
  the Above
• At the national level, new legislation introduced
  largely inspired by Illinois Housing
  Americas Workforce Act

Metropolitan Planning Council

www.metroplanning.org or
www.reachillinois.org