Helping Your Employees Feel at Home in your Business

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Employer Assisted Housing

• Helping Your Employees Feel at Home in your
  Business

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Why is housing an issue?

• Areas 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

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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
2. Employee Completes EAH Packet
9. Wire Funds
3. Pre-qualification of employee for a loan
at Boulder Valley Credit Union
8. Schedule Closing
7. HR Review/ Approval
4. Homebuyer Education
5. House Hunt
6. Make a bid
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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 UnionEAH 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