Employer Assisted Housing Programs November 19, 2009The Long Island Housing Partnership Long Island Housing Partnership, Inc. Building Long Island’s Future

Employer Assisted Housing Programs November 19, 2009The Long Island Housing Partnership Economic Development Through Public / Private Partnerships Retaining and Recruiting Qualified Employees

Employer Assisted Housing Programs November 19, 2009The Long Island Housing Partnership 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.

Employer Assisted Housing Programs November 19, 2009The Long Island Housing Partnership Not-For-Profit –LIHP Board of Directors – Regional Policy Makers Long Island Board of Realtors (LIBOR) Real Estate Practitioners Institute (REPI) Former County Executives Banking Partners Long Island Builders Institute (LIBI) Bi-County Religious Organizations Utilities (LIPA & National Grid) and Transportation (MTA) Labor / Unions Long Island Association (LIA) Bi-County Business Organization Educational Community –LIHP is a Membership Organization Private Businesses (Law firms, CPA firms, Developers, all facets) Media Education Religion Finance Labor / Unions

Employer Assisted Housing Programs November 19, 2009The Long Island Housing Partnership 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 Assisted Housing Programs November 19, 2009The Long Island Housing Partnership Advertising – Outreach (Joint Efforts) Real Estate & Lender Informational Training Personal Business Presentations Chambers of Commerce, Rotaries, Trade Groups Other Business groups Society of Human Resource Managers (SHRM) events & meetings Economic Development Departments (Both Counties) Printed Materials, Brochures Media – Articles, Stories Church Groups Business Expos (Private and Governments) Business Breakfasts and Seminars

Employer Assisted Housing Programs November 19, 2009The Long Island Housing Partnership Obstacles –Sufficient Funding Sources for all income levels –Limited Advertising Budgets –Sufficient Administrative Funds –Proper Staffing –Employer misconceptions Too costly Too complicated Time Consuming Administrative drain

Employer Assisted Housing Programs November 19, 2009The Long Island Housing Partnership Goals of a successful program –Retain qualified employees –Recruit new employees –Improve employee moral –Improve corporate image

Employer Assisted Housing Programs November 19, 2009The Long Island Housing Partnership Sell the “Sizzle” not the “Steak” – Most employers are busy and do not want to establish a program that is cumbersome and costly to administer. –Keep employer participation simple –A minimum of paper work –Emphasize that they customize the program to their company’s specific needs –Sell the benefits to the company –Assist in program roll-out to employees Literature distribution Lunch and Learn sessions Counseling

Employer Assisted Housing Programs November 19, 2009The Long Island Housing Partnership 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

Employer Assisted Housing Programs November 19, 2009The Long Island Housing Partnership 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 Loan repayment requirement, if a repayable loan

Employer Assisted Housing Programs November 19, 2009The Long Island Housing Partnership 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

Employer Assisted Housing Programs November 19, 2009The Long Island Housing Partnership Sample employee procedures: Your employer has established a housing benefit grant to help you purchase a home. This grant will allow the Long Island Housing Partnership (LIHP) to match your employer’s contribution with other monies from federal and state sources, including the “HELP” program, to assist you with a down payment. In addition, you may qualify for funds to help you fix your home with a rehabilitation grant. Here’s what you need to do: 1) Do not start looking for a home until you know you are fully qualified by your employer and LIHP. 2) If you are interested in participating in the program you must speak to the human resources department or your supervisor. You must first qualify for your employer’s program to get the employer’s grant. 3) Your employer will contact LIHP, in writing, with your information. 4) When LIHP receives the letter from your employer, they will send you an application for the program. 5) You must fill out the application and provide all the documentation requested. When completed, please return it to LIHP. 6) When your application is received, it will be reviewed for all the program requirements and a letter of ‘eligibility’ will be sent to you asking you to call for a counseling appointment at LIHP. This service will assist you in finding the best available mortgage products for you, which may include low rates and other grant opportunities. Please allow two hours for this appointment. 7) After your mortgage counseling appointment, you will be fully informed of the process and of all the grants you are eligible for. You will also know how much you can comfortably qualify for as you start looking for a home. 8) When you have found a home, contact LIHP and follow the process, given to you at your counseling appointment, so that the funds from your employer and other sources can be set-aside for your closing date. 9) The Long Island Housing Partnership will work with you throughout the whole process and help you, in every way possible, to make your home-buying experience satisfying and successful.

Employer Assisted Housing Programs November 19, 2009The Long Island Housing Partnership Guidelines Nassau / Suffolk HOME $ New York State AHC $ New York State Senate Majority Delegation “HELP” $ Employee income (2009 HUD AMI family of 4) Up to 80% AMI ($81,450) Up to 120% AMI ($122,200) Up to 130% AMI ($132,350) Employer “NET” Contribution Minimum $3, employees $ 3, employees $ 5,000 (Maximum of $10,000) Maximum Home Prices (Varies by jurisdiction) Nassau $463,220 Suffolk $396,150 $425,000* *Including rehab amount $450,000 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 Single family, Condos, Co-ops and Manufactured New and pre-existing Single family, Condos, Co-ops and Manufactured Grant Assistance$12,000$5,0003X employer contribution First-time Homebuyer LimitNo Asset Test / Min. % of IncomeYes/YesNo/NoYes/Yes Homebuyer CounselingYes Rehabilitation grant-0-$15,000$20,000 Terms of grant forgiveness5 years10 years Minimum Employee funds$3,000 Layering Subsidies

Employer Assisted Housing Programs November 19, 2009The Long Island Housing Partnership How it works for the different income groups with a $3,000 employer grant: Household Income80 % AMI120% AMI130% AMI Employer Grant$3,000 Federal HOME $$$12,000Not eligible New York State AHC $$$5,000 Not eligible NYS “HELP” $$ (3x $3k)$9,000 Total Down Payment $$$29,000$17,000$12,000 NYS Rehab $$$15,000 Not eligible “HELP” Rehab $$$20,000 Total Rehab $$$35,000 $20,000 Total Assistance $64,000$52,000$32,000

Employer Assisted Housing Programs November 19, 2009The Long Island Housing Partnership How it works for the different income groups with a $5,000 employer grant: Household Income80 % AMI120% AMI130% AMI Employer Grant$5,000 Federal HOME $$$12,000Not eligible New York State AHC $$$5,000 Not eligible NYS “HELP” $$ (3x $5k)$15,000 Total Down Payment $$$37,000$25,000$20,000 NYS Rehab $$$15,000 Not eligible “HELP” Rehab $$$20,000 Total Rehab $$$35,000 $20,000 Total Assistance $72,000$60,000$40,000

Employer Assisted Housing Programs November 19, 2009The Long Island Housing Partnership How it works for the different income groups with a $10,000 employer grant: Household Income80 % AMI120% AMI130% AMI Employer Grant$10,000 Federal HOME $$$12,000Not eligible New York State AHC $$$5,000 Not eligible NYS “HELP” $$ (3x $10k)$30,000 Total Down Payment $$$57,000$45,000$40,000 NYS Rehab $$$15,000 Not eligible “HELP” Rehab $$$20,000 Total Rehab $$$35,000 $20,000 Total Assistance $92,000$80,000$60,000

Employer Assisted Housing Programs November 19, 2009The Long Island Housing Partnership Long Island Housing Partnership’s EAH Program –Over $4,000,000 awarded in grants –Almost $1,000,000 employer matching grants –Over $54,000,000 in home mortgages generated –Over 200 employees participated –Over 130 employers enrolled Companies with 3 to 22,600 employees –Small private entrepreneurs –Large Multinationals –Unions and Not-For-Profits Summary –Productive Economic Development Tool –Successful Public/Private Partnership

Employer Assisted Housing Programs November 19, 2009The Long Island Housing Partnership The Long Island Housing Partnership, Inc. 180 Oser Avenue – Suite 800 Hauppauge, New York fax Peter J. Elkowitz, Jr. Diana Weir James Britz President & CEO Executive Vice President Vice President