Helping Your Employees Feel at Home in your

Business

Employer Assisted Housing

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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

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Why EAH Should Interest You

• EAH is a …Win for the EmployerWin for EmployeesWin 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 Process1. HR provides info to Employees

2. Employee Completes EAH Packet

3. Pre-qualification of employee for a loan at

Boulder Valley Credit Union

4. Homebuyer Education

5. House Hunt

6. Make a bid

7. HR Review/Approval

8. Schedule Closing

9. Wire Funds

10. Close on Home

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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

Helping Our Employees Feel at Home in your

Business

Thank you for consideringEmployer Assisted Housing