Helping Your Employees Feel at Home in your Business

1. Employer Assisted Housing Helping Your Employees Feel at Home in your Business

2. 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

3. Why EAH Should Interest You • EAH is a … • Win for the Employer • Win for Employees • Win for the Community

4. 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

5. 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

6. 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.

7. Employer Assisted Housing Design Options • Grant/loan • 401(k) program • Interest rate buy down • Employer paid mortgage insurance • Leveraging other down payment $ • Homebuyer Education

8. 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

9. 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 6. Make a bid 5. House Hunt

10. 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%

11. 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

12. 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

13. 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

14. 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

15. 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

16. Thank you for considering Employer Assisted Housing Helping Our Employees Feel at Home in your Business