A powerful new tool to help you retain and recruit employees in today's tight labor market
More employers are beginning to recognize that the availability of nearby housing their workers can afford is important to the success of their business. Recent Metropolitan Planning Council (MPC) publications, including Housing for a Competitive Workforce: Homeownership Models that Work and For Rent: Housing Options in the Chicago Region, demonstrate the need for housing options close to employment and provide examples from around the country of employers working to help their employees achieve homeownership. None of these companies is in the housing business, but each recognizes that by decreasing worker commute times and helping workers become homeowners, employer-assisted housing programs can help companies save money. This sample program offers a way to envision an employer-assisted housing program, including potential program partners and their roles. Employer-assisted housing is a flexible program that can be tailored to meet the needs of a particular employer.
Program Components
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A special first mortgage loan product and a conventional second mortgage product,
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Downpayment/closing cost assistance provided by the employer,
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A community-based nonprofit Regional Employer-Assisted Collaboration for Housing (REACH) partner who provides homebuyer education and program administration, and
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Government support in the form of deferred second mortgages to buyers earning less than 80 percent of median income.
Potential Partners and their Roles
1. Participating companies
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Promote homebuyer education
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Provide grants to employees for downpayment/closing costs
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Demonstrate leadership in considering housing as an issue for their workers
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Contract with a REACH partner for counseling services and program administration
2. Community-based REACH partners
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Provide homebuyer education to employees of participating companies
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Conduct follow-up with interested employees
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Administer the EAH program
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Serve as liaison to financial services industry, realtors, etc.
3. The Metropolitan Planning Council
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Provides assistance in program design and development
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Assists in outreach/presentation
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Conducts regular program evaluation
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Assists in positive public relations and press coverage
4. Banks
5. Illinois Housing Development Authority (IHDA)
6. Local governments
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Provide a soft subordinate mortgage
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Offer downpayment assistance to its employees
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Make available operating support for the REACH partner working with local employers
These components, in various combinations, are used in various programs locally and across the country. Consider how a model could be modified to serve your community and work with your partners.
For more information, contact Samantha DeKoven, MPC housing associate, at 312/922-5616, ext. 145, or sdekoven@metroplanning.org.