Regional Employer-Assisted Collaboration for Housing (REACH)
Employer-assisted housing (EAH) is a cost effective, easy to administer, hassle free way for employers to help their employees buy or rent homes close to work. In Illinois, the Metropolitan Planning Council, Housing Action Illinois, and more than a dozen REACH partners make it easy and financially compelling for employers to offer EAH programs to their employees. These local housing experts administer the program, provide homeownership education and financial counseling, and manage the down payment or rental assistance provided by employers. Special state incentives, including tax credits and matching funds, make REACH Illinois even more compelling. Proposed federal legislation would provide more reasons to invest in employer-assisted housing. Through REACH Illinois, more than 1,300 employees have bought homes since 2000.
In recent years, employers have experienced tremendous advantages through EAH, including:
- Improved employee retention.
- Reduced recruitment and training costs.
- A benefits package with a competitive edge.
- Subsidized assistance for relocating employees.
- Reduced commutes, stress and absenteeism for staff.
- State and federal tax benefits.
- Leveraged state assistance for employees.
- Community reinvestment.
Through employer-assisted housing initiatives, employees have benefited from programs that:
- Provide down payment and closing cost assistance or rental assistance.
- Help resolve poor credit history.
- Enable them to live closer to work (reducing stressful commutes).
- Allow them to put down roots through homeownership.
- Prepare them for homeownership with step-by-step homeownership education course.
How the EAH model works
Down payment assistance is usually structured as a five-year forgivable loan and secured by a lien on the new home. The State of Illinois has become a national leader of employer-assisted housing, providing a 50 percent tax credit for every dollar that an employer invests in the EAH program, and matching down payment assistance provided to eligible employees. These incentives have made employer-assisted housing a very attractive and cost-effective program.
Federal employer-assisted housing proposal
In Spring 2007, the Housing America's Workforce Act was re-introduced in Congress to support employer-assisted housing nationwide. The bill is co-sponsored in the Senate (SB 1078) by Hillary Rodham Clinton (D-NY), Mel Martinez (R-FL), Edward Kennedy (D-MA), Richard Durbin (D-IL), Joseph Lieberman (I-CT), Jack Reed (D-RI) and Gordon Smith (R-OR) -- and in the House (HR 1850) by Nydia Velasquez (D-NY), Joe Baca (D-CA), Gwen Moore (D-WI), Silvestre Reyes (D-TX), Edolphus Towns (D-NY), Charles A Gonzalez (D-TX), Jim Ramstad (R-MN), Loretta Sanchez (D-CA), and Charles Rangel (D-NY).
Modeled on the Illinois Affordable Housing Tax Credit, this bill proposes a 50 percent tax credit (against one's federal income tax) for every dollar an employer spends on the EAH program, makes the down payment assistance tax exempt (for the employee), and provides financial support for nonprofits that facilitate the program.
National allies embrace employer-assisted housing
New publications feature Illinois successes and advocate for more incentives and champions.
HousingPolicy.org launches inaugural podcast featuring MPC and its partners.
