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An innovative program to help employees buy homes
close to the University of Chicago and the University’s Hospitals was announced
today. The new initiative will help
cut lengthy commutes, encourage investment in the surrounding neighborhoods and
increase employee access to nearby housing opportunities.
The EAHP, as the University has nicknamed it, offers a
$7,500 forgivable loan for qualified employees to use toward down payment or
closing costs of homes purchased in Hyde Park, North Kenwood-Oakland, Washington
Park or Woodlawn neighborhoods that surround the campus. The loan will be forgiven over five
years at 20 percent per year, provided the employee remains in the home and
continues working at the University of Chicago or its Hospitals. Employees will also receive
homeownership education and assistance through the home buying process. The institution will help 90 employees
to become homeowners over the next two years.
“We are pleased to show our commitment to our employees
and local communities by investing in a program that will help our faculty and
staff purchase a home close to work,” said University President Don Randel. Added Hospitals President Michael
Riordan, “We are thrilled to help turn the dream of homeownership into a reality
for our employees and want to encourage them to consider a new home in these
quickly redeveloping areas of the city.”
The program was developed in partnership with the
Metropolitan Planning Council (MPC), Neighborhood Housing Services of Chicago
(NHS) and City of Chicago. “We
commend the University of Chicago and its Hospitals for their leadership in
helping their employees realize the dream of homeownership. We’re happy to be
their partner on this outstanding initiative,” said Chicago Mayor Richard M.
Daley. “Our own programs offered
through the Department of Housing will make more homes affordable for working
families.” The City will help
University and Hospital employees access its homebuyer assistance programs,
including City Mortgage, the Mortgage Credit Certificate and New Homes for
Chicago.
“Owning a home strengthens families, stabilizes
neighborhoods and builds communities.
A home is a place of comfort, security and independence,” said Chicago
Housing Commissioner John Markowski.
“We are especially pleased to continue this tradition of helping families
and individuals become homeowners by offering our homeownership programs to
employees of the University of Chicago and its Hospitals. The new plan will make it possible for
employees to purchase affordable homes and at the same time show dedication to
retaining good employees.”
MPC and NHS worked with the University and its
Hospitals to design and implement the EAHP. MPC has worked with 15 employers around
the region since 2000 to craft employer-assisted housing initiatives. MPC’s model pairs an employer with a
nonprofit housing counseling organization to help with program administration
and provide homeownership education to the participants. At the University of Chicago, NHS will
provide homeownership education and links to other homebuyer assistance programs
offered through financial institutions, the Illinois Housing Development
Authority (IHDA) and Chicago Department of Housing (DOH). IHDA has set aside funds to match an
employer’s down payment assistance to its workers, offering up to an additional
$5,000 per qualified homebuyer. In
addition, IHDA and DOH administer state tax credits that provide a 50 percent
credit for investments in employer-assisted housing. These credits are transferable, allowing
the nonprofit University of Chicago and University of Chicago Hospitals to
“sell” them to an individual or corporation with state tax liability.
“The assistance the
University of Chicago and its Hospitals is now offering its faculty and staff
will make a real difference in achieving homeownership,” said NHS Executive
Director Bruce Gottschall. “The homebuyer assistance plus homeownership
education provided by experienced NHS counselors puts employees on the right
track to owning their own homes.”
The University of Chicago and its Hospitals join a growing
list of area employers participating in employer-assisted housing, including
Advocate Bethany Hospital (Chicago), Bank One (Chicago region), the City of
Evanston, City of St. Charles, Illinois Institute of Technology (Chicago),
Medela Corporation (McHenry), National Interfaith Committee for Worker Justice
(Chicago), Northwest Community Hospital (Arlington Heights), Seaquist Perfect
(Cary), System Sensor (St. Charles), Village of Riverdale and others.
“Employers recognize the benefits to their own
bottom-line by boosting retention and saving on turnover costs,” said
Metropolitan Planning Council Vice Chair and University of Chicago Trustee King
Harris. “Employer-assisted housing
also improves the quality of life for everyone in our region by reducing traffic
and air pollution and building healthy communities.”
“We are committed to our employees and to our
communities,” said Hank Webber, vice president for community and government
affairs for the University.
“This program and ultimately our employees’ investment in the
neighborhoods are essential elements of our goal to help improve urban life for
all community residents, including our world-class students and faculty.”
“This unique program will enable employees to take
advantage of the many benefits of our surrounding communities, which are
walkable, livable neighborhoods that offer easy access to the lake and
downtown,” said University of Chicago Assistant Vice President and Director of
Community Affairs Sonya Malunda, who helped develop the program for the
University.
Founded in 1934, MPC is a nonprofit, nonpartisan group of
business and civic leaders committed to serving the public interest through the
promotion and implementation of sensible planning and development policies
necessary for a world-class Chicago region.
The University of Chicago, established in 1890, is one
of the world’s great centers of learning. Six Nobel laureates are currently on
the faculty, and 74 laureates have been students, faculty or researchers at
Chicago. Twenty of the University’s academic departments rank nationally in the
top ten, according to National Research Council ratings, and five of those hold
the number one ranking: anthropology, ecology and evolution, economics, religion
and sociology.
Neighborhood Housing Services of Chicago, Inc., has
more than 27 years of experience in educating residents of Chicago on home
ownership as well as offering residents affordable ways to rehab their
homes. Through their NeighborWorks
Homeownership Center, NHS offers all of the services and training that customers
need to shop for, rehabilitate, insure and maintain a home. Chicago residents
can contact Neighborhood Housing Services of Chicago at 773-329-4010 to learn
more about their programs.
For more information, contact Kim Grimshaw Bolton at
MPC at (312) 863-6020, Bill Harms at the University of Chicago at (773)
702-8356, or Jim Wheaton at NHS at (773) 329-4103