jennifer larsen_bwh portland 2011
TRANSCRIPT
Workforce Housing in Action: The Hometown Home Loan Program
Program History
• The Hometown Home Loan Program was created in 1994.
• Began as a partnership with the City of Seattle for Police & Fire
• Goals
Improve emergency response
Reduce commute times
Increase homeownership opportunities in Seattle
• Addresses 3 main barriers to homeownership
Confusion about the homebuying process and how to get started
Money for a down payment and closing costs
Affordability
Program Benefits
The Hometown Home Loan Program is a no-cost benefit that is
valuable to both the employer and the employee
• Reduced loan fees & closing costs for purchases and refinances
• Free, onsite homeownership education and homeownership counseling
• Flexible loan programs and down payment assistance
• Experienced and knowledgeable staff that is dedicated to supporting the program
• Dedicated marketing and outreach coordinator minimizes administrative burden
for the employer
Community Partnerships
HomeStreet Bank partners with several nonprofit organizations that provide comprehensive homeownership education and counseling.
• Portland Housing Center-certified HUD counseling agency, teaches financial literacy and comprehensive first-time buyer classes, offers matched savings and down payment assistance, EAH advocate
We also partner with organizations and municipalities who offer down payment assistance programs or affordable housing advocacy.
• Community Land Trusts• Educational and Cultural Centers• City of Beaverton• City of Portland
Services to Participating Employers
• Comprehensive reports on program usage and demographics
• Assistance in developing a customized EAH program
• Specialized events and services
• Individual web pages that detail housing benefits
• No cost marketing materials
How does an EAH program benefit an employer?
• Enhances benefits packages
• Assists with recruiting and retention efforts
• Stabilizes the workforce
• Increases community standing
EAH for Municipalities
An Employer-Assisted Housing (EAH) program can work two ways for cities and counties.
• An enhancement that makes their benefits package more competitive• A tool for accomplishing their housing goals
• Increased affordable housing • Increase homeownership rates• Reduce commute times• Reduce emergency response times
Examples: The Cities of Seattle, Beaverton, and Portland
Program Results
• The Hometown Home Loan Program is offered to over 45 employers
& labor unions
• Partnerships in Washington, Oregon, and Hawaii
• 9,182 Loans and over $11.8 million in closing cost savings
• 3,839 First-time buyers and $17.2 million in down payment assistance
Why does HomeStreet Bank offer an EAH program?
• We fill a need in our community
• It supports our CRA Rating which has been “Outstanding” since
1989
• Since it’s inception, we have served over 9,000 customers
42% of them are first-time buyers
44% of our customers are from low-to-moderate income households
What are the main challenges as a lender to offering an EAH program?
• The length of time it takes before the program is profitable
• Maintaining visibility for our program with the workforce
• Changing administrators, benefits staff, and communication
policies
• Supporting a workforce that is spread out over multiple
locations or different shifts
Why is the Hometown Home Loan Program Successful?
• The Program is easy to understand and easy to adopt
• There is no cost to implement the program
• We are advocates for our customers
• We have a dedicated team of noncommissioned loan officers
whose only focus is the support of this program
• We deliver unparalleled customer service
• We employ a full-time marketing person to provide support to the
participating employers to minimize their administrative burden
Summary
An Employer-Assisted Housing (EAH) program can:
• Enhance an employer’s benefit package
• Provide a tool for recruitment and retention
• Help to support local housing policies
• Help low-income buyers to access down payment assistance