1. Helping Your Employees Feel at Home in your Business Employer Assisted Housing

2. 2 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

3. 3 Why EAH Should Interest You EAH is a … 4W4Win for the Employer 4W4Win for Employees 4W4Win for the Community

4. 4 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

5. 5 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

6. 6 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.

7. 7 Employer Assisted Housing Design Options Grant/loan 401(k) program Interest rate buy down Employer paid mortgage insurance Leveraging other down payment $ Homebuyer Education

8. 8 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 2 nd 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

9. 9 EAH Process 1. 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 Hunt6. Make a bid 7. HR Review/ Approval 8. Schedule Closing 9. Wire Funds 10. Close on Home

10. 10 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%

11. 11 Boulder Valley Credit Union EAH Components Full time employee in good standing Eligible after 6 months of employment Only one EAH loan per household Secured 2 nd 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

12. 12 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

13. 13 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

14. 14 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

15. 15 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

16. Helping Our Employees Feel at Home in your Business Thank you for considering Employer Assisted Housing