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 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.
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Provide tax credits to participating employersIn
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.
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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.
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