Economic Development Through Public / Private Partnerships Retaining and Recruiting Qualified Employees

The Long Island Housing Partnership Mission To provide affordable housing opportunities to those who, through the ordinary marketplace, would be unable to secure decent and safe homes. LIHP accomplishes this through development, technical assistance, education and advocacy.

Government Participation through grants Federal “HOME” Funds through Nassau & Suffolk Counties New York State Affordable Housing Corporation (AHC) Grant Special $25,000,000 Allocation “HELP” from State Senate Delegation members Joint NFP & Government Program Administration LIHP administers Nassau County “HOME” funds New York State Affordable Housing Corporation Funds New York State Senate “HELP” Suffolk County administers its own “HOME” funds

Employer misconceptions Too costly Only costs to employer are the matching grant funds Very limited administration costs Too complicated Employee education for programs handles by LIHP Counseling for homebuyer education done at no cost by LIHP Time Consuming LIHP handles all employee calls, questions and concerns Administrative drain LIHP administers the program after employer qualifies the employee up to the closing and rehab of the home

Goals of a successful program Retain qualified employees Recruit new employees Improve employee moral Improve corporate image

Benefits to the Company Retain competitive edge Reduce employee turnover Save on hiring costs Save on training costs Increase loyalty Improve employee morale Increase worker performance “Great Place to Work” Company branding

Suggested Housing Benefit Program Guidelines Longevity / attendance requirement: Employee must have 1(any #) year of service in “good standing” (absences, yearly reviews, etc.) Category of employee: Select category of employees (full time or part time) be sure the category is non-discriminatory Grant availability: Employer can limit grants to any number per year (allows budgeting impact calculations) Employee requirements: Qualifies employees for their requirements before requesting inclusion in the program Repayment of grant after X years if separated

Sample Housing Benefit Program XYZ Company Housing Benefit Program Full time employees who have 1 year of employment are eligible for XYZ’s benefit and will receive $5,000 (net) in a down payment assistance grant. Full time employees who have 3 years of employment are eligible for XYZ’s benefit and will receive $7,500 (net) in a down payment assistance grant. Full time employees who have 5 years of employment are eligible for XYZ’s benefit and will receive $10,000 (net) in a down payment assistance grant. Employees must qualify under the income guidelines of the program Employees must purchase a home on Long Island (Nassau or Suffolk County) The home must be their primary residence Employees must remain an XYZ’s employee for at least 3 years or the grant must be repaid in full Employees will be considered for the yearly grant on a first-come first serve basis The grant funds will be distributed to the employee at the closing

Layering Subsidies Guidelines Nassau / Suffolk HOME $ New York State AHC $ New York State Senate Majority Delegation “HELP” $ Employee income (2010 HUD AMI family of 4) Up to 80% AMI ($82,900) Up to 120% AMI ($124,300) Up to 130% AMI ($134,700) Employer “NET” Contribution Minimum $3,000 1-49 employees $ 3,000 50 + employees $ 5,000 (Maximum of $10,000) Maximum Home Prices (Varies by jurisdiction) Nassau $446,500 Suffolk $380,000 $425,000* *Including rehab amount $410,000 Type of Home (Must be Principal Residence, no rental unit allowed) New and pre-existing Single family, Condos, Co-ops and Manufactured NO New – Only pre-existing Grant Assistance $12,000 $5,000 3X employer contribution First-time Homebuyer Limit No Asset Test / Min. % of Income Yes/Yes No/No Homebuyer Counseling Yes Rehabilitation grant -0- $15,000 $20,000 Terms of grant forgiveness 5 years 10 years Minimum Employee funds $3,000

Nassau / Suffolk HUD Income Limits Updated – June 27, 2011   Median Income HOUSEHOLD SIZE 30% 50% 60% 80% 100% 120% 130% 1 2 3 4 5 6 7 8 $ 22,300 $ 37,150 $ 44,550 $ 59,400 $ 74,250 $ 89,100 $ 96,550 $ 25,500 $ 42,450 $ 50,900 $ 67,900 $ 84,900 $101,850 $110,350 $ 28,700 $ 47,750 $ 57,300 $ 76,400 $ 95,500 $114,600 $124,150 $ 31,850 $ 53,050 $ 63,650 $106,100 $127,300 $137,950 $ 34,400 $ 68,750 $ 91,700 $137,500 $149,000 $ 36,950 $ 61,550 $ 73,850 $ 98,500 $123,100 $147,700 $160,000 $ 39,500 $ 65,800 $ 78,950 $105,300 $131,550 $157,900 $171,050 $ 42,050 $ 70,050 $ 84,000 $112,000 $140,050 $168,050 $182,050

How it works for the different income groups with a $3,000 employer grant: Household Income 80 % AMI 120% AMI 130% AMI Employer Grant $3,000 Federal HOME $$ $12,000 Not eligible New York State AHC $$ $5,000 NYS “HELP” $$ (3x $3k) $9,000 Total Down Payment $$ $29,000 $17,000 NYS Rehab $$ $15,000 “HELP” Rehab $$ $20,000 Total Rehab $$ $35,000 Total Assistance $64,000 $52,000 $32,000

How it works for the different income groups with a $5,000 employer grant: Household Income 80 % AMI 120% AMI 130% AMI Employer Grant $5,000 Federal HOME $$ $12,000 Not eligible New York State AHC $$ NYS “HELP” $$ (3x $5k) $15,000 Total Down Payment $$ $37,000 $25,000 $20,000 NYS Rehab $$ “HELP” Rehab $$ Total Rehab $$ $35,000 Total Assistance $72,000 $60,000 $40,000

How it works for the different income groups with a $7,500 employer grant: Household Income 80 % AMI 120% AMI 130% AMI Employer Grant $7,500 Federal HOME $$ $12,000 Not eligible New York State AHC $$ $5,000 NYS “HELP” $$ (3x $5k) $22,500 Total Down Payment $$ $47,000 $35,000 $30,000 NYS Rehab $$ $15,000 “HELP” Rehab $$ $20,000 Total Rehab $$ Total Assistance $82,000 $70,000 $50,000

How it works for the different income groups with a $10,000 employer grant: Household Income 80 % AMI 120% AMI 130% AMI Employer Grant $10,000 Federal HOME $$ $12,000 Not eligible New York State AHC $$ $5,000 NYS “HELP” $$ (3x $10k) $30,000 Total Down Payment $$ $57,000 $45,000 $40,000 NYS Rehab $$ $15,000 “HELP” Rehab $$ $20,000 Total Rehab $$ $35,000 Total Assistance $92,000 $80,000 $60,000

Long Island Housing Partnership’s EAH Program Over $12 million awarded in grants Over $1.5 million in employer matching grants Over $100 million in home mortgages generated Over 330 employees assisted Over 130 employers with from 3 to 22,600 employees Large Multinationals Northrop Grumman BAE Systems Brookhaven National Laboratory Unions, Not-For-Profits & Hospitals Local 25 IBEW Nassau County Coalition Against Domestic Violence North Shore LIJ Hospital System (LI largest Employer) Universities Adelphi University Stony Brook University Hofstra University Financial Institutions Bethpage Federal Credit Union Bridgehampton National Bank Citizens Bank RBS (Long Island) Small Entrepreneurs, Professionals Starlite Auto Body Inc. Kandall Farnworth & Pubins CPA's PC Powerhouse Gym of Lindenhurst Summary Productive Economic Development Tool Successful Public/Private Partnership