MPC Takes on a New Design

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Metropolitan Planning Council
Employer-Assisted Housing A Proven Workforce
Housing Strategy
www.metroplanning.org
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Who is the Metropolitan Planning Council?

• a nonprofit, nonpartisan group of business and
  civic leaders committed to serving the public
  interest through the promotion of sensible
  growth, economic competitiveness and equity of
  opportunity

• Founded in 1934
• 60 member, business-based board
• 24 professional staff
• Partnership with hundreds of public officials,
  business leaders, community-based organizations
  and other stakeholders

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What is the Metropolitan Planning Council?
Program Areas Housing Regional Development Transpo
rtation Urban Development

• Research MPC begins all efforts with primary
  research.
• Policy Development We formulate independent
  policies based on our research.
• Advocacy/Implementation We activate change
  through coalitions, pilot initiatives, technical
  assistance, and direct lobbying.

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Housing and Growth Facts
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Database Admin. _at_16.79/hr
Medical Assistant _at_10.69/hr and Database
Admin. _at_16.79/hr

Homeownership in High Job Growth Areas is Out of
Reach for the Growing Entry-Level Workforce
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National Trends

• SINCE 1978 . . .
• National increases in homeownership rates overall
• 65.2 to 68
• National decreases in homeownership rates for
  working families
• 62.5 to 56.6.

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Rental Housing is NOT a Safe Back-up Plan
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We need the people who need affordable housing
Neighborhood/ Municipality County Median Home Price1 /Hr. Wage to Buy2 Approx. average monthly rent3, /Hr. Wage to Rent Average /Hr. Wage4 Average /Hr. Wage4 Average /Hr. Wage4 Average /Hr. Wage4 Average /Hr. Wage4 Average /Hr. Wage4 Average /Hr. Wage4 Average /Hr. Wage4
Neighborhood/ Municipality County Median Home Price1 /Hr. Wage to Buy2 Approx. average monthly rent3, /Hr. Wage to Rent All Occupations Waitperson Database Admin. Medical Asst. Firefighter Chemical Technician Retail Sales Manager Pre-school teacher
Uptown, Chicago Cook 265,000 38.44 811.00 17.98 16.18 6.94 30.52 13.45 29.34 20.98 17.48 12.34
Near West Side, Chicago Cook 312,000 45.26 811.00 17.98 16.18 6.94 30.52 13.45 29.34 20.98 17.48 12.34
Oak Park Cook 307,500 44.61 921.00 17.71 16.18 6.94 30.52 13.45 29.34 20.98 17.48 12.34
Riverdale Cook (south) 120,000 17.41 574.00 11.04 16.18 6.94 30.52 13.45 29.34 20.98 17.48 12.34
Elk Grove Village Cook (north) 211,000 30.61 994.00 19.11 16.18 6.94 30.52 13.45 29.34 20.98 17.48 12.34
Naperville DuPage 320,000 46.42 984.00 18.92 16.21 6.86 36.11 12.72 26.78 17.72 17.85 12.42
St. Charles Kane 368,000 53.39 1,119.00 21.51 13.98 6.88 26.71 13.11 25.08 16.86 16.46 13.54
Gurnee Lake 264,000 38.30 939.00 18.05 16.60 10.37 29.20 N/A 27.28 17.07 18.54 22.79
Union McHenry 350,000 50.77 709.00 13.63 15.20 7.58 32.62 13.15 16.05 22.29 18.25 N/A
Bolingbrook Will 238,000 34.53 924.00 17.72 15.22 6.95 37.49 14.84 24.48 18.50 20.24 11.53
Cannot afford to buy or rent Can afford to rent,
not buy Can afford to buy or rent
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Stress Indicators

• Where housing is less expensive, jobs and other
  opportunities are scarce 
• 3 of all metro Chicago housing permits in the
  90s were for multifamily housing compared to
  22 nationwide.

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Non-economic barriers identified in 2000

• Negative public perceptions of affordable
  housing
• 1300 different municipalities, statewide, each
  responsible for housing policy in their own
  backyard
• Lack of community support, state leadership

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• Catalysts for Change

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Catalysts for Change 1 Employer-Assisted Housing
Problem Metro Chicago jobs and population are
growing at a faster rate than the supply of
workforce housing. Issue Workforce problems
result from this Jobs-Housing Mismatch. Solutio
n Employer-Assisted Housing (EAH) Maximizes
employee retention by implementing this
outsourced, easy-to-administer employee benefit.

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Employer-Assisted Housing

• An employer investment that pays many times over
• Supports institutions and corporations by linking
  growing workforce with housing near the job
• Reduces turnover, hiring and training costs and
  creates stable workforce
• Strengthens communities by promoting investment
  and reducing traffic
• Creates partnerships with non-profits housing
  developers and corporations (REACH)
• Cultivates a new constituency of housing
  supporters business leaders!

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System Sensor How One Success Story Leveraged
Resources, Partners, Supporters

• Company contracted with both MPC and local REACH
  partner
• Employees received down payment assistance and
  homeownership counseling
• Company saved 100,000 annually in reduced
  turnover
• 60 homeowners purchased within 15 miles of work
• Company sold to Honeywell
• Inspired new incentives now available through
  State and the engagement of over 60 other
  employers
• Approximately 1,000 employees have since
  purchased homes, thanks to employer assistance

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Employer-Assisted Housing helps with neighborhood
reinvestment.

• An EAH program can
• Assist employees to afford housing in
  high cost areas
• Encourage employees to live in the community
• Engage employees in neighborhood life
• Support community development and reinvestment

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How it Works

• Employer Role
• Identifies targeted population and approximate
  budget
• Provides small grants to employees or local loan
  pool for housing assistance
• Contracts with non-profits for technical
  assistance, education and counseling services and
  evaluation

• REACH (nonprofit counseling) Partner Role
• Administers the EAH program
• Provides credit counseling and housing education
  to employees
• Connects buyers and renters with financing
  products, financial institutions and realtors
• Applies for, administers state tax credits

• Metropolitan Planning Council Role
• Supports partnership development
• Provides assistance in program design, ongoing
  t.a. and resource development
• Coordinates program evaluation
• Facilitates outreach to companies
• Assists in marketing and publicity

• Financial Partner and Developer Roles
• May offer special loan products or other
  incentives
• May provide program support for REACH partners
• Assists in marketing efforts for employees
• Can purchase tax credits
• Are often leading EAH employers

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Nonprofit partner can leverage numerous resources

• State Matching Funds
• State match of 1 for each 1 of down
  payment/closing cost assistance provided to an
  employee
• Reimbursement of some counseling costs for
  successful home purchases by employees
• Participating buyers income restricted to 80
  Area Median Income
• Illinois State Income Tax Credits
• 50 cent tax credit for 1 invested in EAH, for
  both rental and homeownership models, for
  households earning up to 120 AMI
• Credit is transferable if donating entity does
  not have tax liability
• Private, Municipal and County Programs
• First-time homebuyer programs, Federal Homeloan
  Bank AHP dollars, other matching resources
• Federal Tax Benefits
• Federal tax benefit for contributing to
  non-profit organization
• Housing Americas Workforce Act

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Sampling of Companies that have launched EAH
programs

• Illinois Institute of Technology
• Lake Forest College
• MB Financial Bank
• MB Real Estate Services
• Medela Corporation
• Mercy Hospital and Medical Center
• Metropolitan Planning Council
• Midway Moving
• Northwest Community Healthcare
• Robinson Engineering
• Rock Island School District
• Rosenthal Brothers
• Rush University Medical Center
• Seaquist Perfect
• St. James Hospital
• Swedish Covenant Hospital
• The John Buck Company
• The Walsh Group
• University of Chicago/Hospitals

• Advocate Bethany Hospital
• Allstate Corporation
• Bank of America
• Bank One/Chase
• Charter One Bank
• Chicago Draperies and Carpet
• Chicago Public Schools
• Chicago Police and Fire Depts
• Christie Weber Landscaping
• City of Evanston
• City of North Chicago
• City of Peoria
• City of Rock Island
• City of St. Charles
• DeLaSalle Institute
• Draper and Kramer
• First Midwest Bank
• Honeywells System Sensor
• Illinois College of Optometry

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Emerging EAH Models

• EAH in support of the Plan for Transformation
• Rent Subsidies and IDAs
• EAH Small Business Consortia
• Inter-jursidictional EAH programs
• EAH as preservation or development investments

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EAH is a win for everyone.
Why Employer-Assisted Housing?

• EAH benefits . . .
• The COMMUNITY
• The EMPLOYER
• The EMPLOYEE
• The HOUSING POLICY ARENA

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Catalysts for Change 2 The Toolbox Developed by
and for Mayors

• Metropolitan Mayors Caucus Housing Task Force
• Housing Endorsement Criteria
• Housing Action Agenda
• Sensible Tools for Healthy Communities
• Model Housing Plan
• Welcome Home Housing Our Community 12-minute
  housing video and cable TV segment
• Homes for a Changing Region
• Employer-Assisted Housing

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Catalysts for Change 3 Alignment of Advocates
Voice

• Legislative Agenda
• Communications Strategies
• Housing Illinois www.housingillinois.org
• On-the-ground networks
• Community Acceptance Strategy

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• Resulting Statewide Activity

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Catalysts for Change 3 Alignment of Advocates
Voice

• Promoting affordability choice
• Creating preserving affordable and workforce
  housing
• Supporting state local leaders in advancing
  housing solutions
• Coordinating state departments to better link
  housing, economic and transportation development.
• Examples of administrative and legislative
  changes demonstrating that this is real

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Illinois Housing Legislation since 2000

• 2002 Illinois Affordable Housing Tax Credit
• 2003 Housing Opportunity Tax Incentive Act
• 2004 Federally Subsidized Housing Preservation
  Act
• 2004 Affordable Housing Planning and Appeals Act
• 2005 Extension of Illinois Affordable Housing Tax
  Credit
• 2005 Rental Housing Support Bill
• 2006Comprehensive Housing and Planning Act
• 2006 Location Matters Act

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National Opportunity Please Support Housing
Americas Workforce Act

• S1330 in the Senate/ HR 3194 in the House
• Offers .50 federal tax credit on every 1
  employer invests
• Provides 5 million/year for counseling agencies,
  structured as receding grants - - to encourage
  counseling experts to gradually replace federal
  dollars with employer contracts
• Introduces a change in the tax code so that the
  money received by employees from their employers
  for EAH is non-taxable.
• It reframes the national housing dialogue at a
  time when private sector investment is especially
  critical

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For more information, please visit

• www.metroplanning.org
• or
• www.reachillinois.org