HOUSING POLICY AS WORKFORCE POLICY A Presentation at Housing Opportunity 2013 March 21, 2013 Seattle, WA
Agenda Moderator: Lora McCray, Manager, Housing Opportunity National Association of Realtors Panelists: William Kohn Fleissig Communitas Development Anthony Marchetta New Jersey Housing and Mortgage Finance Agency Todd Johnson Seattle Children s Hospital Jeanette Henderson University of Washington
Housing Policy as Workforce Policy What s the connection between Housing and Workforce? Providing affordable workforce housing can help stabilize and revitalize communities by: Attracting and retaining businesses Providing increased tax revenue from residents and retained businesses Providing increased residential involvement in the community Increasing property values of rehabbed/revitalized properties Affordable housing boosts the economy. Research estimates that local economies gain over $800,000 in revenue from construction of 100 LIHTC housing units (NAHB). Research estimates that each home sale contributes about $60K to the local economy (NAR).
Housing Policy as Workforce Policy What s the connection between Housing and Workforce? Affordable housing impacts an employer s ability to attract and retain workers. In a 2006 survey in Miami 59% of Chamber of Commerce members reported that high housing costs made recruiting employees difficult. A 1999 study in New York found that 64% believed that high housing costs negatively impacted their recruitment efforts. In 2007 Harris Interactive Survey of 300 companies, two-thirds of companies stated a shortage of affordable housing near work was having a negative impact on retaining qualified employees.
Partnerships Needed for Success Non-Profit Organizations Education, counseling & plan administration Real Estate Professionals Homebuyer/homeownership education & sales Lenders Flexible loan programs & products, education Developers Construction/renovation of affordable housing Government Tax credits, matching programs, zoning, land donation Employers Plan implementation
Employer-Assisted Housing EAH is an Employer-provided Benefit State or Local Government Housing Strategy Addresses Employees & Communities Housing Needs Assists with barriers to homeownership Creates opportunities for affordable homes close to work or near transit Pioneers: Senator Clark provided housing for his workers at his copper mine in Clarkdale, AZ by building housing stock to ensure workers lived close to the mine. George L. Carter, provided homes to his workers in Coalwood, WV as he wanted "his miners to have a decent place to live".
Types of EAH Benefits Homebuyer and Homeownership Education One-on-one Counseling Financial Assistance Construction/Renovation of Housing for Employees Shared Equity Rental Assistance Land Donation for Housing Contributions to a Housing Fund
Benefits of EAH to Employee Overcome homeownership barriers Improve knowledge of the homebuying process and homeownership concerns May avoid foreclosure Secure financial assistance Enhance quality of life More time with families Build wealth and equity appreciation Live closer to their workplace Less stress, more productive Reduces long commutes & increased transportation costs Buy in a desirable & safe neighborhoods My benefit coordinator helped me to apply for other funds and walked me through the whole process. Advance Food Company is very generous to offer this benefit. Without it, I would not have been able to purchase my home. -- Advance Food Company Employee
Benefits of EAH to Employer Retain existing employees & reduce turnover Decrease training costs Recruit new employees Increase productivity Build staff loyalty to the employer Generate positive publicity Employees know the customers they serve We provide the employee with a $2,500 loan that is forgiven after 3 years of continuous service. What better way to build loyalty and pride, than to create an avenue for home ownership. -- Advance Food Company If employees are happy, they stay longer and move up the career path. It s a good return on investment. -- CVS, Prescription for Homeownership
Benefits of EAH to a Community Attracts and keeps a local workforce in the community Ensures that critical workers and emergency responders can live nearby Reduces traffic and air pollution Assists with community economic goals Stabilizes & revitalizes the community Increases population Increases the tax base University of Pennsylvania Revitalization of the area around the University (West Philadelphia) included 25 new retail stores, 86% increase in foot traffic, 40% reduction in crime & 200 new jobs for local residents.
Public and Private Incentives & Programs Tax Credits & Exemptions Illinois affordable housing tax credit program Mississippi tax exemption for employees Financial Assistance Programs Maryland, Illinois, Baltimore, Philadelphia & DC: Matching Programs Detroit: Live Downtown and Midtown Programs Lender Programs HomeStreet Bank s Hometown Home Loan Program Affordable Housing Development Projects Miller s Court Baltimore, MD
National Association of Realtors Activities Employer-Assisted Housing Class For REALTORS, non-profits, lenders, public officials Ira Gribin Grant Workforce Housing Grants $5 million to states to address workforce housing issues Created 52 programs: websites, grants, education. Program provide workforce housing program models. Bring Workers Home Workforce Housing Forums 11 forums over 4 years Bring together key stakeholders Resources EAH Initiatives Guide Workforce Housing Forum Guide Workforce housing online community
Lora McCray Manager, Housing Opportunity National Association of REALTORS lmccray@realtors.org www.realtor.org/eahclass eah@realtors.org