Goal: Increase the Availability of Affordable Homes
Role: Generate Capital
Policy: Leverage Employers' Commitment to Affordable Homes for Workers


How can state and local governments leverage employers' commitment to affordable homes for workers?

Employers have a vested interest in making sure their workers can afford decent homes close to the workplace, which can help them attract and retain necessary employees. However, most employers are unlikely to take the initiative to invest in affordable housing strategies for their workers without some encouragement from the public or non-profit sectors. Communities can leverage employers' support for affordable housing in a variety of capacities.  State and local governments can maximize the likelihood of employer involvement in housing by offering financial incentives to augment or offset private contributions, and by facilitating collaboration with non-profit organizations that work with interested employers to design and manage housing benefit programs. Communities with limited funds can encourage employers to take a leadership role in advocating for new development and policy changes that can help meet local needs.

What problems do these policies solve? When employers work with state and local governments to increase the supply of homes affordable to their workers, they address more than just the housing shortage. By improving access to nearby housing, employers can substantially reduce workers' commute times, removing a major obstacle to new employee recruitment and improving existing employee retention, morale, and productivity. When workers are able to live closer to their jobs, local residents benefit from decreased traffic congestion and reduced air pollution. Employer involvement in housing initiatives can also contribute to community development in and around workplace facilities; for example, an influx of new homeowners and renters may help to stabilize nearby neighborhoods in need of reinvestment or areas with high rates of foreclosed properties, increasing the desirability of the surrounding environment. Where are these policies most applicable? Policies and programs that leverage employers' commitment to affordable homes are applicable in a wide range of communities. Without employer support, workers holding low-wage jobs may be unable to find decent housing in high-cost areas and resort towns. In rural communities, employers may need to be involved in housing production programs to ensure there is an adequate supply of housing to support economic development initiatives and attract employees. In declining urban and suburban areas, employer investment in housing can help stabilize neighborhoods and spur revitalization.

Solutions in Action

Photo credit: Curtis Hall, courtesy of Fairfax County Department of Housing and Community Development The Westcott Ridge Condominiums were purchased by the Fairfax County, Virginia Redevelopment and Housing Authority as part of the Magnet Housing Program, which provides an affordable housing option for participants in the County's Fire and Rescue training program. Visit the Gallery to learn more about Westcott Ridge, or click here to view case studies of employers that have established housing benefits programs.

Read Quantifying the Value Proposition of Employer-Assisted Housing: A Case Study of Aurora Health Care [PDF] to learn more about the impacts of a homeownership benefits program offered by one employer.

Learn more about leveraging employers' commitment to affordable homes for workers Go back to learn about other policies that help generate capital

Goal: Increase the Availability of Affordable Homes
Role: Generate Capital
Policy: Leverage Employers' Commitment to Affordable Homes for Workers

In-Depth Case Studies


The table below provides basic information about 10 employer-assisted housing programs in communities across the country. Click on the "View case study" link to learn much more about each entry, including an overview of the company and reasons for initiating an employer-assisted housing program, program details, and information on outcomes, benefits, and insights gained as a result of its implementation.

All case studies were prepared by Homes for Working Families and the Metropolitan Planning Council, and were originally published in Understanding Employer-Assisted Housing: A Guidebook for Employers, published by Homes for Working Families in February 2008. View the full Guidebook [PDF] to learn more about employer-assisted housing, its benefits, and how to create and administer a housing benefit program.

Click here, or on the blue Policy heading at the top of the page, to go to the beginning of this section.

Employer	Location(s)	Employer & Program Highlights
American Family Life Assurance Company, Inc. (Aflac) View case study [PDF]	Columbus, Ga.	Employs 4,400 in Columbus. Provides education and counseling, and downpayment and closing cost assistance. 72 percent of program participants cite EAH as an incentive for remaining with the company
Applied Materials, Inc. View case study [PDF]	Santa Clara, Calif.	Employs 4,000 in Silicon Valley Contributes funds to the Housing Trust of Santa Clara County, a public-private partnership Trust provides downpayment assistance for first-time homebuyers and low-cost financing for developers of affordable homes.
Citizens Financial Group, Inc. View case study [PDF]	Providence, R.I.	Employs 24,500 nationwide. Provides forgivable loans for downpayments and closing costs. Used research to design a program that increases retention.
CVS/Caremark View case study [PDF]	Washington, D.C.	Employs 3,000 in D.C. Provides homeownership education and grants toward home purchases. Program designed to recruit and retain pharmacists and other management-level employees.
Harley-Davidson Motor Company View case study [PDF]	Milwaukee, Wis.	Employs 3,900 at Milwaukee-area facilities. Provides downpayment assistance and credit counseling for employees. "Walk to Work" program encourages employees to invest in transitioning neighborhoods.
Brownstein Hyatt Farber Schreck, LLP (Formerly Hatch & Parent) View case study [PDF]	Santa Barbara, Calif.	Employs 64 in Santa Barbara. Third-party partner provides a variety of discounts for home purchase, refinancing or rent. Each employee retained equals a 60-to-1 return on program investment.
Northrop Grumman Corporation View case study [PDF]	Long Island, N.Y.; Pascagoula, Miss.	Employs 2,000 at Long Island facility; 11,000 in Gulf Coast region. Provides forgivable loans toward employees' home purchases. Long Island program helps younger, skilled workers live closer to the facility.
The Schwan Food Company View case study [PDF]	Marshall, Minn.	Employs 2,500 in Marshall. Develops affordable homes, and provides homebuyer education and assistance. Program designed to maintain a stable workforce and recruit employees.
System Sensor View case study [PDF]	St. Charles, Ill.	Employs 500 in St. Charles area. Provides downpayment assistance and homeownership education. Program has reduced turnover and decreased workers' compensation claims.
University of Chicago and University of Chicago Medical Center View case study [PDF]	Chicago, Ill.	Employ 14,000. Provide interest-free forgivable loans and homeownership counseling for employees. Program encourages investment in transitioning neighborhoods.

Excerpted from Understanding Employer-Assisted Housing: A Guidebook for Employers. 2007. Prepared by Homes for Working Families and Metropolitan Planning Council.

Goal: Increase the Availability of Affordable Homes
Role: Generate Capital
Policy: Leverage Employers' Commitment to Affordable Homes for Workers


How do these strategies work?

State and local governments use a variety of approaches when working with employers to improve the availability of affordable housing. In addition, as employers themselves, states and localities can help address unmet housing needs and set an example for the private sector by offering their own employer-assisted housing programs to public workers.

Listen to a podcast from April 2008 with Robin Snyderman, housing director for the Metropolitan Planning Council, who talks about the many ways EAH can benefit both families and communities nationwide. Also in this episode, Ray Schmidt, executive director of Select Milwaukee, discusses how key Milwaukee employers are using EAH to recruit and retain quality employees.

Click on the links below to learn more about ways that state and local governments can leverage employers' commitment to affordable homes for workers: Adopt employer-assisted housing strategies for public workers In some communities the public sector is one of the largest employers. By offering housing assistance programs for their workers, state and local governments set an example for private sector employers to emulate and help ensure that public employees can live near where they work. Provide incentives for employer investment in affordable homes While participation in a housing program can lead to reduced staff turnover, greater productivity and an improved corporate image, financial incentives may still be needed to engage employers and increase private sector involvement in workforce housing initiatives. Provide organizational support to interested employers Design and administration of an employer-assisted housing program can take a substantial amount of time and require expertise that many businesses do not have. Some communities have found it useful to fund local nonprofit organizations to make these services available to interested employers. Enlist employers to build a constituency for affordable homes Elected officials can use their influence to mobilize private sector support for affordable housing initiatives, thereby raising the profile of businesses that take the lead in offering employer-assisted housing programs and prompting others to follow suit. Click here to review case studies of employers who have established employer-assisted housing programs, or click here to view other resources on working with employers to improve the availability of affordable homes.

Goal: Increase the Availability of Affordable Homes
Role: Generate Capital
Policy: Leverage Employers' Commitment to Affordable Homes for Workers

Adopt Employer-Assisted Housing Strategies for Public Workers

Communities that are interested in promoting employer-assisted housing initiatives can set an example for the private sector by adopting their own programs for public workers. In many cases these programs target emergency response workers, such as firefighters and police officers, whose response times are likely to suffer when they cannot afford to live in the neighborhoods they serve. Similarly, communities facing employee shortages in specified occupations may choose to offer housing benefit programs to new applicants in order to improve recruitment. While many communities focus housing assistance programs on emergency response workers or in-demand occupations, such as teachers or health care workers, some localities extend the benefits of assisted housing programs to all public workers who are likely to have challenges finding an affordable home. Facing a shortage of qualified employees, New York City created the Housing Support Program to encourage experienced math, science and special education teachers to work in one of the City's middle- or high-schools.

Photo credit: Fusco, Shaffer & Pappas, Inc. courtesy of Presbyterian Villages of Michigan

Teachers that make a 3-year commitment to working for the Department of Education are eligible to receive up to $14,600 in housing subsidies over a 2-year period. An up-front award of $5,000, which is fully forgiven over the 3-year period, can be applied to mortgage payments or a downpayment on a new home or, for renters, to cover broker fees, rental payments and/or security deposits. New residents can also use the funds to help pay for relocation to New York. A monthly stipend of $400 helps reduce ongoing housing costs over the subsequent two years. Click here to leave the site and learn more about the Housing Support Program.

In San Mateo, California, where the household income required to purchase a median-priced home exceeds $200,000, the San Mateo Community College District provides affordable homes for its staff and faculty.  Through a partnership with a luxury apartment developer and financial consultant, in combination with strong community outreach efforts, the college district built 44 affordable rental units for employees on a former parking lot owned by the college.  Monthly rents in the residential development, called College Vista, are half the cost of market rate housing in the area.  The college district also administer a mortgage assistance program for employees interested in purchasing a home, offering up to $75,000 in the form of an interest-free soft second loan.  Read more about the College Vista homes.

Click here for more examples of employer-assisted housing strategies for public workers.

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You are currently reading: Adopt employer-assisted housing strategies for public workers In some communities the public sector is one of the largest employers. By offering housing assistance programs for their workers, state and local governments set an example for private sector employers to emulate and help ensure that public employees can live near where they work. Other pages in this section: Provide incentives for employer investment in affordable homes While participation in a housing program can lead to reduced staff turnover, greater productivity and an improved corporate image, financial incentives may still be needed to engage employers and increase private sector involvement in workforce housing initiatives. Provide organizational support to interested employers Design and administration of an employer-assisted housing program can take a substantial amount of time and require expertise that many businesses do not have. Some communities have found it useful to fund local nonprofit organizations to make these services available to interested employers. Enlist employers to build a constituency for affordable homes Elected officials can use their influence to mobilize private sector support for affordable housing initiatives, thereby raising the profile of businesses that take the lead in offering employer-assisted housing programs and prompting others to follow suit. Click here to review case studies of employers who have established employer-assisted housing programs, or click here to view other resources on working with employers to improve the availability of affordable homes.

Goal: Increase the Availability of Affordable Homes
Role: Generate Capital
Policy: Leverage Employers' Commitment to Affordable Homes for Workers

Provide Incentives for Employer Investment in Affordable Homes

States and localities have developed a number of financial incentives to encourage employers to provide housing benefits for their employees or the larger workforce:

Portland Place, Minneapolis MN -- Photo courtesy of LHB, Inc.

Click on the links below to learn more: Offer matching funds for employer contributions Leverage public funds by offering matching programs where every dollar of housing assistance provided to employees by participating employers is matched with a public contribution Provide tax credits to participating employers Encourage employer investment in affordable homes with tax credit programs

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You are currently reading: Provide incentives for employer investment in affordable homes While participation in a housing program can lead to reduced staff turnover, greater productivity and an improved corporate image, financial incentives may still be needed to engage employers and increase private sector involvement in workforce housing initiatives. Other pages in this section: Adopt employer-assisted housing strategies for public workers In some communities the public sector is one of the largest employers. By offering housing assistance programs for their workers, state and local governments set an example for private sector employers to emulate and help ensure that public employees can live near where they work. Provide organizational support to interested employers Design and administration of an employer-assisted housing program can take a substantial amount of time and require expertise that many businesses do not have. Some communities have found it useful to fund local nonprofit organizations to make these services available to interested employers. Enlist employers to build a constituency for affordable homes Elected officials can use their influence to mobilize private sector support for affordable housing initiatives, thereby raising the profile of businesses that take the lead in offering employer-assisted housing programs and prompting others to follow suit. Click here to review case studies of employers who have established employer-assisted housing programs, or click here to view other resources on working with employers to improve the availability of affordable homes.

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Offer matching funds for employer contributions Many communities leverage public funds by offering matching programs where every dollar of housing assistance provided to employees by participating employers is matched by an equivalent contribution from the state or local government (up to a specified limit). Matching funds tend to be relatively modest and are generally used for downpayment or closing cost assistance, although they may also be structured to allow use of funds for renter security deposits and other purposes. While matching programs do not directly benefit businesses (as funds pass directly to the beneficiaries), their availability gives participating employers a competitive edge in recruiting new employees by allowing them to offer a more attractive benefit package. In addition, assistance can be structured as a loan that is forgiven over time, an arrangement that provides an incentive for program beneficiaries to stay with the company. To be eligible for participation in the program, most jurisdictions require employers to make a minimum per-employee contribution, and may also stipulate that employees receiving the benefit receive homeownership counseling and financing from an approved lender.

Solutions in Action

Delaware's Live Near Your Work program, launched by the State Housing Authority in 2003, provides matching downpayment or closing cost assistance to the staff members of participating employers. To qualify, employee household income and home purchase prices cannot exceed specified thresholds, and homes must be located in proximity to the workplace -- typically within a 3-mile radius. Employers contribute $1,000 per participating employee, which is then supplemented with an equivalent state contribution and matching funds from the local community, if it's also a program participant. Slightly higher grants are available for homes purchased in targeted revitalization areas. Employees who receive the grants must add $1,000 from their personal savings, complete a HUD-approved housing counseling course, and secure financing from an approved lender. Click here for more information on the program.

This strategy works best when there are adequate resources committed to match funding programs.  The recent economic downturn has strained many government budgets, limiting the ability for some communities to continue this type of support to supplement employer housing benefits.  For example, the City of Philadelphia's Home - Buy -  Now program was suspended in the spring of 2009 due to a lack of city funds.  Prior to suspension, the 4-year old program offered matching funds of up to $5,000 for homebuyers employed at one of 35 participating Home - Buy - Now workplaces.  In 2009 alone, the city assisted 61 homebuyers purchase homes in Philadelphia.   Due to the program's success and small share of the overall city budget, the city plans to restore funding to the Home - Buy - Now program and reach the  mayor's goal of growing the city population by 75,000 people over a 10-year period. 

Although Home - Buy - Now matching grants are not currently being offered by the City as of January 2010, the program's 35 partners continue to offer EAH benefits to their employees.  Click here to learn more about Home - Buy - Now.  

Click here to read a case study, prepared by Abt Associates for the National Association of Home Builders, describing the Live Near Your Work program in Baltimore, Maryland.

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Goal: Increase the Availability of Affordable Homes
Role: Generate Capital
Policy: Leverage Employers' Commitment to Affordable Homes for Workers

Case study: Baltimore Maryland's Live Near Your Work program

Baltimore's Live Near Your Work program helps 150 to 200 local workers achieve homeownership each year by matching contributions from participating employers with grants of up to $1,000 per employee that may be applied to settlement and closing costs. To learn more about the program, view a case study [PDF] excerpted from a new guide to state and local housing affordability solutions prepared by Abt Associates for the National Association of Home Builders.

Click here to go back to the previous page, or click here to learn more about employer-assisted housing.

Goal: Increase the Availability of Affordable Homes
Role: Generate Capital
Policy: Leverage Employers' Commitment to Affordable Homes for Workers

Provide Organizational Support to Interested Employers


Employers may be interested in offering an employee housing benefit but lack the capacity or resources to design their own program. To address this need, state and local government agencies have formed partnerships with nonprofit organizations that have expertise in delivering related services, including homeownership education and counseling, downpayment assistance, below-market mortgages, assistance with security deposits and rental subsidies. Employers can "outsource" their housing programs to these organizations to ensure efficient delivery of services and remain free to concentrate on running their businesses.

Hastings Marketplace, Hastings MN -- Photo courtesy of LHB, Inc.

Click here to learn more the variety of ways in which local communities can work with the private sector to support organizations that provide housing assistance, including: Offer financial and other support to housing support organizations Localities can help existing organizations build capacity so they can work with employers interested in a offering a housing benefit. Work with organizations to build an incentive package By offering incentives to work with housing support organizations, states and localities can make their programs more attractive to area employers. Facilitate connections with interested employers Government officials are in a unique position to encourage interaction and collaboration among housing support organizations and local businesses.

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You are currently reading: Provide organizational support to interested employers Design and administration of an employer-assisted housing program can take a substantial amount of time and require expertise that many businesses do not have. Some communities have found it useful to fund local nonprofit organizations to make these services available to interested employers. Other pages in this section: Adopt employer-assisted housing strategies for public workers In some communities the public sector is one of the largest employers. By offering housing assistance programs for their workers, state and local governments set an example for private sector employers to emulate and help ensure that public employees can live near where they work. Provide incentives for employer investment in affordable homes While participation in a housing program can lead to reduced staff turnover, greater productivity and an improved corporate image, financial incentives may still be needed to engage employers and increase private sector involvement in workforce housing initiatives. Enlist employers to build a constituency for affordable homes Elected officials can use their influence to mobilize private sector support for affordable housing initiatives, thereby raising the profile of businesses that take the lead in offering employer-assisted housing programs and prompting others to follow suit. Click here to review case studies of employers who have established employer-assisted housing programs, or click here to view other resources on working with employers to improve the availability of affordable homes.

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Offer financial and other support to housing support organizations

Employers feel the effects of an affordable housing shortage when they have trouble recruiting and retaining employees; however, they may be deterred from providing a housing benefits package because they lack expertise in setting one up and cannot efficiently develop the necessary skills. Small businesses that are the most likely to be crippled when key employees leave are also least likely to be able to implement a housing benefits program on their own. State and local governments can address this problem by providing seed money, staff assistance and other support to organizations that administer employer-assisted housing programs on behalf of participating employers.

In areas where an existing nonprofit organization has the necessary experience and capacity to grow, localities can provide operating support for such organizations to take on the additional work of administering employer-assisted housing programs. This support can take the form of funding to build organizational capacity or defray initial costs until such time as enough employers are on board to cover the ongoing costs. Alternatively, communities may wish to fund new organizations -- perhaps operated by or associated with a business organization -- to fulfill these roles.

In Illinois, nonprofit organizations Housing Action Illinois and the Metropolitan Planning Councilwork with a network of more than a dozen other partners in the Regional Employer-Assisted Collaboration for Housing (REACH). Employers that contact REACH are paired with one of more than two-dozen partner organizations, which help develop a customized housing program that meets the company's needs and budget. The program is then fully implemented by the REACH partner organization, with technical assistance and program review from Housing Action Illinois and the Metropolitan Planning Council. REACH has launched a special effort to target small businesses that need assistance implementing housing benefit programs. To leave this site and learn more about REACH, click here.

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Work with organizations to build an incentive package

State and local governments can work with the nonprofit organizations that administer employer-assisted housing programs to build an incentive package that increases the organizations' effectiveness and attractiveness

to local businesses. By limiting eligibility for exclusive benefits and other incentives to businesses that participate in programs administered by designated organizations, local officials can help promote employer enrollment and ensure that funds are used in conjunction with a well-managed housing program. Linking benefit eligibility to participation in approved programs also helps to indirectly fund the operations of the organization(s) administering the programs. For example, employers that participate in an approved REACH Illinois program (see blue box above) can access a dollar-for-dollar match from the state's Housing Development Authority to supplement private employee housing benefits. The State will match up to $5,000 in employer-provided downpayment assistance for households earning less than 50 percent of the region's area median income (AMI), or $3,000 for those earning between 50 and 80 percent of AMI. To be eligible, the homebuyer must work for an employer participating in the REACH Illinois program and contribute at least $1,000 in personal savings to downpayment and closing costs. Employers may impose additional requirements, such as time worked before the worker can receive the benefit.

The Times Square, New York NY -- Photo credit: Chris Callis Photography, courtesy of Common Ground

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Facilitate connections with interested employers

While the availability of matching funds and other incentives can stimulate participation in employer-assisted housing programs, some communities take more direct steps to encourage employers to offer housing assistance. State and local officials are in a unique position to explicitly encourage collaboration between nonprofit organizations and area employers, facilitating connections that might not have otherwise been made. Select Milwaukee is a nonprofit organization that, among other functions, administers employer-assisted housing programs for businesses in Milwaukee, Wisconsin. In 1996, local officials brought together representatives from Select Milwaukee and motorcycle manufacturer Harley-Davidson. The meeting was arranged in the context of a larger effort to revitalize and increase owner-occupancy on the Near West Side, where Harley-Davidson's corporate headquarters are located. With housing renovation resources and capital improvement projects already focused in the area, Select Milwaukee was brought to the table to work with Harley-Davidson to cultivate more demand for homeowner housing.  The result was development of the Walk to Work Program,

From the forum: Do any employer-assisted housing programs target neighborhoods in need of stabilization? Employer-assisted housing programs (EAH) have the capacity to revitalize neighborhoods in need of reinvestment. Is anyone away of employers or EAH programs that have specifically targeted areas with high foreclosure rates as a way to encourage neighborhood stabilization? See what other people said and sign in to add your response. The HousingPolicy.org Forum is a place to pose questions, exchange ideas, and learn from the experience and expertise of others.

which offers $2,500 loans from the company to employees who buy a home within a 40-square block radius of Harley-Davidson headquarters. Loans are forgiven over a three-year period, during which employees must remain with Harley-Davidson and live in the homes they have purchased.

Even with the recent economic downturn, Select Milwaukee reports that interest in employer assisted housing programs is rising and that in 2009, they assisted up to 170 home closings, up significantly from previous years. Harley-Davidson and other employers that partner with Select Milwaukee have remained committed to offering employee benefits to support homeownership, even in the case the companies have downsized staff. Click here to leave the site and learn more about Select Milwaukee.


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Goal: Increase the Availability of Affordable Homes
Role: Generate Capital
Policy: Leverage Employers' Commitment to Affordable Homes for Workers

Enlist Employers to Build a Constituency for Affordable Homes


To build support for housing initiatives, state and local leaders can encourage members of the business community to assume a leadership role in efforts to increase the availability of affordable homes. Employers interested in providing homes for their workers can be a powerful constituency, and have the capacity to apply a great deal of political pressure to secure the approval of specific developments, as well as needed changes in state and local housing policy. State and local officials can also use the public platform to elevate the profile of employers that have made exemplary efforts to provide employee housing benefits, and persuade others to follow their lead.

Photo credit: Fusco, Shaffer & Pappas, Inc., courtesy of Presbyterian Villages of Michigan

Click on the links below to learn more about ways to build a private sector constituency for affordable homes: Promote employer engagement in the political process Recognize exemplary employer participation

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You are currently reading: Enlist employers to build a constituency for affordable homes Elected officials can use their influence to mobilize privatesector support for affordable housing initiatives, thereby raising the profile of businesses that take the lead in offering employer-assisted housing programs and prompting others to follow suit. Other pages in this section: Adopt employer-assisted housing strategies for public workers In some communities the public sector is one of the largest employers. By offering housing assistance programs for their workers, state and local governments set an example for private sector employers to emulate and help ensure that public employees can live near where they work. Provide incentives for employer investment in affordable homes While participation in a housing program can lead to reduced staff turnover, greater productivity and an improved corporate image, financial incentives may still be needed to engage employers and increase private sector involvement in workforce housing initiatives. Provide organizational support to interested employers Design and administration of an employer-assisted housing program can take a substantial amount of time and require expertise that many businesses do not have. Some communities have found it useful to fund local nonprofit organizations to make these services available to interested employers. Click here to review case studies of employers who have established employer-assisted housing programs, or click here to view other resources on working with employers to improve the availability of affordable homes.

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Promote employer engagement in the political process While other policies in this section describe the ways in which the public, nonprofit and private sectors can work together on "demand side" programs -- those that enhance the purchasing power of employees -- local business leaders can also help to increase the availability of affordable homes by supporting efforts to increase the supply of homes. State and local governments have the authority and organizational capacity to approve new development proposals, but their efforts may be hampered by lack of public will and support or even opposition from those who say not in my back yard (NIMBY). Private sector employers can play a powerful role in countering this NIMBY sentiment and building support for particular developments, or for the necessary public policies, such as changes in zoning or other regulations, to support affordable housing more broadly. Chicago Metropolis 2020 is a business-backed civic organization that has its beginnings in the Commercial Club of Chicago, a civic organization whose members are drawn from the business, professional, cultural and educational sectors. Chicago Metropolis 2020 was convened to implement recommendations put forth by the Commercial Club in 6 issue areas, including housing, and its leadership consists of senior business executives who volunteer their time to work on policy initiatives and support the organization's regional agenda. As members of Chicago Metropolis 2020, business leaders lend support to proposed housing legislation through testimony before state committees. The group also issues reports documenting best practice housing strategies and identifying recommendations for development of workforce housing. Click here to leave the site and learn more about Chicago Metropolis 2020.

Solutions in Action

The Silicon Valley Leadership Group is a business-related organization whose members are senior executives drawn from more than 200 companies in the area. Founded in 1977, the Group was convened to address regional public policy issues, including housing. Through the Housing and Land Use Committee, business leaders encourage the construction of new homes near transit and employment opportunities, assist local workers in attaining homeownership and advocate for appropriate funding for housing at all levels of government. In 2006, the Committee co-chaired a successful statewide campaign to pass Proposition 1C, the Housing and Emergency Shelter Trust Fund Act, which brought nearly $3 billion in bond funding for housing for lower-income residents. To learn more about the Silicon Valley Leadership Group, click here.

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Recognize exemplary employer participation

Communities can encourage greater employer involvement in employee housing initiatives, as well as broader political engagement around housing, by recognizing the contributions of employers who play a leadership role in the area. There are a variety of ways in which public officials can highlight local business leaders and encourage others to act. For example, communities can convene business leaders to discuss housing issues and the role of the private sector or to ask for their support in housing-related initiatives. In addition, local officials may choose to publicly acknowledge exemplary employer participation in housing initiatives, underscoring the importance of their actions and stimulating others to act.

For example, in February 2005, Chicago's Mayor Richard M. Daley met with over 120 business leaders at a breakfast to spotlight employer-assisted housing programs. By recognizing the business leaders that had already agreed to participate, and publicly encouraging other leaders to follow suit, Mayor Daley elevated the profile of employer-assisted housing within the business community. Click here to leave the site and learn more about the event.


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Goal: Increase the Availability of Affordable Homes
Role: Generate Capital
Policy: Leverage Employers' Commitment to Affordable Homes for Workers

Examples of Employer-Assisted Housing Programs


Employer-assisted housing programs have been successfully implemented in many communities. Click on the links below to learn more about specific types of programs discussed in this section:

• Employer-assisted housing strategies for public workers
• Provide tax credits to participating employers
• Provide organizational support to interested employers

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Employer-assisted housing strategies for public workers

Chicago Public Schools' Teacher Homebuyer Assistance Program and Public Safety Officer Homeownership Incentive Program provide qualified teachers, police officers, firefighters, and paramedics with $3,000 in downpayment and closing cost assistance for homes purchased in the City. The loans are interest-free and fully forgiven after fulfillment of a five-year service commitment. For qualified applicants who purchase homes in a Chicago Housing Authority (CHA) Redevelopment Property (those constructed as part of the CHA's Plan for Transformation of public housing) the award increases to $7,500. Both programs are offered in partnership with the Chicago Department of Housing.  Learn more about the Teacher Homebuyer Assistance Program.


The Police Homeowner Loan Program in Columbia, South Carolina, administered in partnership with the City's Community Development Department, offers police officers 20-year low-interest, zero downpayment mortgages to purchase rehabilitated homes in the City's low-income neighborhoods. This program, which won a 1993 Innovations in American Government Award, is intended both to promote affordable homeownership and to increase police presence in higher-crime areas. Participating officers also receive additional incentives in the form of bonuses and increased promotion eligibility. Click here or here for more information.


In Kentucky, the Lexington-Fayette Urban County Government's Live Where You Work program offers forgivable loans of up to $7,400 for downpayments on homes purchased by full-time employees of the County. Lower-income employees qualify for larger loans, up to $14,999. The University of Kentucky also administers a Live Where You Work program offering downpayment loans of up to $15,000. Under each program, the loans are forgiven after five years of owner-occupancy. For more information, click here. (As of 2011, the program has been temporarily suspended due to lack of funding availability.)


Through Maryland's House Keys 4 Employees (HK4E) program, state government employees can receive up to $5,000 in downpayment and closing cost assistance from the state. The HK4E program also provides up to $2,500 in funds to match contributions from other participating employers in Maryland. Many county and local governments, as well as nonprofit and for-profit business, participate in the program. HK4E assistance is provided as a zero percent deferred loan, which is payable upon sale or refinancing of the property. For more information, click here.

The Wyoming Community Development Authority offers mortgage loan financing through the Spirit! of Wyoming Homeownership Initiative, to help recruit and retain workers in the social services, education, healthcare, and protective service sectors.  Click here for more information.

Continue learning about employer-assisted housing strategies for public workers.


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Provide tax credits to participating employers

In Connecticut, employers that make contributions to non-profit affordable housing programs are entitled to a dollar-for-dollar reduction in their corporate business taxes through the state Housing Finance Authority's Housing Tax Credit Contribution program. Non-profit housing providers are responsible for applying to the program and securing commitments for cash contributions from businesses once they have been allocated tax credits. Participating businesses receive a voucher for the credit amount, which can be applied to a range of corporate taxes. In 2006, legislation doubled the available program funding from $5 million to $10 million, and increased the annual award organizations are eligible to receive to a maximum of $500,000. Click here for more information on the program.


The Oregon Farmworker Housing Tax Credit Program provides a 50 percent state income tax credit to individuals or organizations that invest in the construction, installation, or acquisition and rehabilitation of farmworker housing. One-quarter of the beneficiaries of the tax credit are growers who build housing for their employees, with developers, community development groups, and other organizations making up the balance of awardees. Total annual costs for all approved projects may not exceed $7.25 million (approximately $3.6 million in state tax credits are available each year). To be eligible, housing must only be occupied by farmworkers and their immediate families, and must remain reserved for farmworker use for at least 10 years. Click here for more information.


Florida's Community Contribution Tax Credit Program, administered by the Office of Tourism, Trade and Economic Development, allows businesses to receive a 50-cent tax credit for every dollar donated to eligible organizations and government bodies that administer community development and low-income housing projects. A business may receive up to $200,000 in credits each tax year, which may be applied to corporate income taxes, franchise taxes or insurance premium taxes. The total annual allocation is $5 million in state tax credits. Click here for more information on the program.


Continue learning about providing tax credits as an incentive to offer housing benefits to employees.


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Provide organizational support to interested employers

Working families in Charlottesville, Virginia are benefiting from an affordable housing trust fund established by the Charlottesville Area Association of Realtors (CAAR). The trust fund finances the CAAR Workforce Housing Plan, a program that provides no-interest second mortgages to help local teachers, police, nurses and firefighters bridge the gap between the cost of housing and the amount they can afford. Homes must be purchased in the jurisdiction where the borrower works. The loan is due upon sale of the home, and the funds are then available to assist another family. The program demonstrates the capacity of the Realtors to assist in working families' search for affordable homes. Contributors to the trust fund include foundations, corporate donors, individuals and the CAAR.


Rochester, MN -- Recognizing the need for more affordable homes for its 26,000 employees and other community residents, the Mayo Clinic pledged $7 million toward a regionwide affordable housing effort. Supplemented with $3 million in contributions from other employers, $1 million from local foundations, $3 million from the state's housing finance agency and $5.5 million in financing from the Greater Minnesota Housing Fund, leaders of the project raised $19.5 million to support their ambitious goals. By year end 2006, the effort produced 486 affordable single-family homes and 313 affordable multifamily homes. Local leadership by the city of Rochester and the Rochester Area Foundation were key to the success of the project.

Since 1994, the City of Seattle, Washington has partnered with HomeStreet Bank to offer the Hometown Home Loan Program, an employer-assisted housing benefits program.  Any area employer can offer the Hometown Home Loan Program as a no-cost benefit for their employees, which includes free homeownership education, savings on purchases and refinances, and access to downpayment assistance programs.  For more information, click here. 

Continue learning about providing organizational support to interested employers.


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Goal: Increase the Availability of Affordable Homes
Role: Generate Capital
Policy: Leverage Employers' Commitment to Affordable Homes for Workers

Key Resources


The following is a list of key resources on topics related to employer-assisted housing. If you're aware of other resources that should be added, please contact us.


Websites

The Employer-Assisted Housing section of PolicyLink's Equitable Development Toolkit provides an overview of Employer-Assisted Housing and the considerations involved in developing an EAH policy. The toolkit covers the benefits of EAH programs, supportive policies, financing, keys to success, a case study, and links to other resources.

The Metropolitan Planning Council in Chicago specializes in employer-assisted housing programs. While directed primarily at Illinois residents and employers, the Council's site also has information on efforts at the national level.

The National Association of Realtors Field Guide to Employer-Assisted Housing consists of an "Employer-Assisted Housing Basics" section with links to articles and reports on EAH, and an "Employer-Assisted Housing Plans Across the Country" section with links to examples of EAH programs.


Articles & Reports

Connecting Working Families to Economic Opportunities in the Philadelphia Region: The Role of Employers. [PDF] 2007. By Sarah Treuhaft. PolicyLink and Greater Philadelphia Urban Affairs Coalition.
This policy brief describes the economic challenges faced by working families and examines four strategies businesses are using to add to their bottom line by strengthening the workforce: employee training programs, transportation benefits, housing benefits, and community revitalization partnerships. The author notes that Employer-Assisted Housing (EAH) initiatives can be supported through policies such as state and local matching funds, state and federal tax credits, and integrating EAH into state or local economic development plans. Recommendations for Philadelphia include launching a marketing campaign to raise employers' awareness of the strategies available to them, and implementing policy incentives such as a state tax credit.

Employer Assisted Housing: An Old Concept Gaining New Momentum. 2006. By Lynn Ross. American Planning Association PAS Memo. Available to subscribers to the APA's Planning Advisory Service.
This essay provides an introduction to employer-assisted housing, including an explanation of the benefits of EAH programs, the ways in which programs are designed and the evolution of EAH. Case studies of the Long Island HomeWorks Partnership and REACH Illinois give further detail on the specifics of these programs.

Employer-Assisted Housing: Competitiveness through Partnership. [PDF] 2000. Joint Center for Housing Studies of Harvard University and Neighborhood Reinvestment Corporation.
This working paper describes employer-assisted housing and argues that partnerships including businesses, nonprofits, and public agencies can promote the use of EAH most effectively. EAH remains a rare benefit largely because employers lack the information and expertise to institute an EAH program. Public agencies can enhance the use of EAH by facilitating partnerships between employers and nonprofit service providers.

Employer-Assisted Housing: Improving the Bottom Line and Unlocking Doors to Homeownership for Your Employees. [PDF] 2003. Washington, DC: Fannie Mae.
This report provides an overview of Employer-Assisted Housing programs. It lists the benefits to employers; describes the relationship between the employer, employee, lender, and Fannie Mae; and discusses the EAH options, including grants, forgivable loans, deferred loans, matched savings, and home-buyer education.

Employer Assisted Housing Resource Guide. [PDF] 2002. By Jennifer Larson. Saint Paul, MN: Greater Minnesota Housing Fund.
This booklet provides a comprehensive overview of employer-assisted housing, including a survey of the various roles employers can play, options for structuring a housing benefit and examples of successful programs.

Employer-Based Homeownership Programs: A Business Case. 2004. By Amy Brown. Washington, DC: Fannie Mae Foundation.
This report makes a business case for the inclusion of homeownership assistance as a component in the benefits package offered to employees. The paper also describes the steps that need to be taken to establish a homeownership assistance program, and provides case examples for each. Related documents include the series of case studies of employer-based homeownership programs on which this analysis is based.

Making the Case for Employer-Assisted Housing. 2005. By Robin Snyderman. Shelterforce Online #141. National Housing Institute.
This article reviews the benefits of Employer-Assisted Housing such as lower turnover, reduced recruitment, and shorter commutes.  The article features the REACH Illinois EAH program, highlighting strategies adopted in different parts of the state.

New Arguments for Employer-Assisted Housing. [PDF] 2006. By Anna Afshar. New England Community Developments, Issue 1. Federal Reserve Bank of Boston.
This article discusses EAH programs and describes how EAH is being implemented in New England through tax credits, matching funds, and private efforts by employers. Examples of successful EAH programs in other parts of the country are included to highlight strategies for New England jurisdictions to consider.

Private Sector Partnerships: Investing in Housing and Neighborhood Revitalization. [PDF] 2004. Edited by the National Housing Conference. NHC Affordable Housing Policy Review 3(2).
This collection of short essays offers case studies that illustrate the ways in which collaboration between the public and private sectors, including employer-assisted housing, can be used to achieve housing affordability and neighborhood revitalization goals. Profiles of the Metropolitan Planning Council in Chicago, Select Milwaukee and Seattle's Hometown Home Loan Program demonstrate how employer-assisted housing programs have worked in local communities.

Private Sector Solutions for Workforce Housing: What REALTORS and their Partners Can Do. [PDF] 2006. By Barbara Lipman. Washington, DC: Center for Housing Policy. (The section on employer-assisted housing begins on page 23)
Written for the National Association of REALTORS, this handbook includes a description of employer-assisted housing and references to additional resources that offer more information to employers interested in creating a program of their own. Profiles of REACH Illinois and the Chicago Small Business Consortium for Employer-Assisted Housing provide more in-depth discussion of local programs, and a discussion of federal EAH legislation gives perspective on efforts at the national level.

Quantifying the Value Proposition of Employer-Assisted Housing: A Case Study of Aurora Health Care. [PDF] 2008. By Lynn M. Ross. Washington, DC: Center for Housing Policy.
This case study attempts to quantify the relationship between employer-assisted housing programs and employee performance and turnover, by analyzing data collected on participants in the 15-year-old Aurora Employee Homeownership Program. Findings presented in the report indicate that participants in the health care provider's Homeownership Program received higher-than-average performance rankings and exhibited lower levels of turnover than other employees.

Right at Home: Local Support for Employer-Assisted Housing. [PDF] 2003. By Samantha DeKoven. ideas@work 2(6). Campaign for Sensible Growth.
This article provides information on EAH strategies in Illinois, including matching funds and tax credits, and policies jurisdictions can adopt to facilitate these strategies. Several case studies are featured to illustrate how local governments and employers have used EAH strategies. One business, for example, saved $125,000 in 2001 through reduced turnover, recruiting and training after adopting a housing assistance program.

Understanding Employer Assisted Housing: A Guidebook for Employers. 2007. Prepared by Homes for Working Families (Washington, DC) and Metropolitan Planning Council (Chicago, IL).
This guidebook describes the basics of employer-assisted housing and its benefits to employers, employees, and the surrounding community. The book also features detailed case studies of 10 employers that have successfully implemented a housing benefits program, including program specifics, outcomes, and insights gained.

Understanding Employer-Assisted Mortgage Programs: A Primer for National Banks. [PDF] 2007. Community Development Insights. Washington, DC: Community Affairs Department, Comptroller of the Currency.
This report examines how banks can offer loan products to complement employer-assisted home purchase programs, also called Employer-Assisted Mortgage (EAM) programs. The report also discusses EAM programs offered in the conventional secondary mortgage market and provides a template for how a bank might establish its own EAM program.


Go to the Employer-Assisted Housing main page.