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What is Employer Assisted Housing _EAH__

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					Employer Assisted Housing

Helping Your Employees Feel at Home in your Business

Why is housing an issue?
• Area’s housing costs are rising faster than the nation • Incomes and wages are not keeping pace with housing costs • Colorado is losing its competitive advantage as a low-cost area for potential employers • Housing that people can afford is disappearing 2

Why EAH Should Interest You
• EAH is a … Win for the Employer Win for Employees Win for the Community
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A Win for Employers
• EAH pays for itself through  retention and  recruitment costs • EAH sets employers apart - helping them attract the best and brightest • EAH is easy to administer • Bottom line, EAH is good business
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A Win for Employees
• Housing ranks as one of the top 3 most desired benefits • Cash for down payment and closing costs is one of the biggest obstacles to homeownership • EAH helps bring affordable housing within reach for more employees
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A Win for the Community
• More citizens can become homeowners, which means…
 More housing starts = more jobs = more home sales = broader tax base = better economic environment = better business environment.

• The higher the rate of homeownership in a community, the greater the stability of that community.
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Employer Assisted Housing Design Options
• Grant/loan
• 401(k) program

• Interest rate buy down
• Employer paid mortgage insurance • Leveraging other down payment $ • Homebuyer Education
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EAH Components
• • • • • • • First-time homebuyer and/or single head of household Full time (40 hours) employee in good standing Eligible after 6 months of employment Only one EAH loan per household Employee must qualify for mortgage Secured 2nd mortgage Employees at or below 80% of medium income are eligible for $5,000, $10,000, or other amount • No interest on loan unless employee leaves before 5 years; loan rate is prime plus 1% for loan not forgiven • Homebuyer education is required • Hardship clause included
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EAH Process
1. HR provides info to Employees 10. Close on Home 9. Wire Funds 8. Schedule Closing

2. Employee Completes EAH Packet
3. Pre-qualification of employee for a loan at Boulder Valley Credit Union 4. Homebuyer Education 5. House Hunt
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7. HR Review/ Approval

6. Make a bid

50% Forgiven EAH Components
• Same criteria as forgivable to qualify • 10% of the loan is forgiven each year for five years up to 50% • If employee leaves before 5 years the total loan is due in ? months • If employee sells or refinances the loan is due • Interest rate is prime plus 1%
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Boulder Valley Credit Union EAH Components
• • • • • • Full time employee in good standing Eligible after 6 months of employment Only one EAH loan per household Secured 2nd mortgage Employee must qualify for mortgage Employees at or below 80% of median income are eligible up to $10,000 • Employees above 80% of median income are eligible up to $5,000
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Boulder Valley EAH Components Continued...
• Homebuyer education is required
• Median Income for Boulder is $82,000 (80% of median income $65,600)

• 20% of EAH loan is forgiven each year over 5 years
• No interest on loan unless employee leaves before 5 years; loan rate is prime plus one with 10 year amortization with a five year balloon
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Benefits to Employer
• Assists in recruiting and retaining the best and brightest staff • Dedicated downpayment resources and team to assist staff through home buying process • Dedicated home buying classes
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Employer Role
• HR and designated management assist in developing options • Gateway for communication to staff • HR Limited Role – planning announcement/referring to Boulder Valley Credit Union • Employer web site
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Action Items
• Establish EAH team to work with Boulder Valley Credit Union
• Develop EAH with Boulder Valley Credit Union • Modify and/or approve EAH program • Assist in developing marketing materials • HR distribute EAH information
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Thank you for considering Employer Assisted Housing

Helping Our Employees Feel at Home in your Business


				
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posted:11/19/2009
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