A plan to increase affordable homeownership opportunities, including financial aid, will be available in California for the first time through a partnership established between two major players in the market.
The Employer Assisted Housing Program was announced by the California Association of Realtors, Fannie Mae and Assemblyman Juan Vargas (D-Chula Vista) during the association’s annual convention in San Diego.
It’s designed to increase housing and economic development opportunities throughout the state.
“If you can’t find housing for your employees, you’re not going to have any employees. Houses are where jobs go home to at night,” said Jim Hamilton, president of the Los Angeles-based association.
The association is forming a way to pitch the plan to businesses, but Hamilton said individual Realtors will be involved.
Information, education, financial aid and low-cost financing options will be included.
Hamilton thinks companies have been looking for ways to help their workers find affordable housing, and he hopes for some creative thinking toward that goal, as well as cooperation from municipal governments throughout the state.
For instance, Hamilton wonders why companies with a lot of land that’s being used for parking couldn’t put housing on some of it.
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“It could be set aside for employee housing, or it could be equity housing or rental. That’s just one example of where we need to get creative to provide housing,” he said.
This might not be a tough sell to the business community.
“I love what you’re saying. I love the angle of tying it to the employers,” said Bruce Ackerman, president and chief executive officer of the Economic Alliance of the San Fernando Valley. “From the employers’ standpoint, it’s a great retention tool.”
Here are some other ways the assistance effort could work.
– Realtors could put company workers in touch with Fannie Mae and its host of lending partners.
– Fannie Mae could help employees through the loan qualification process and possibly get some requirements relaxed.
– Employees would learn how to upgrade their credit record.
– Companies could help with the financing through grants, participate as equity partners to some degree or make loans for part of the down payment.
In some cases an employee might have the money for the down payment but not enough for the closing costs. This is one example of where the assistance program could kick in, Hamilton said.
“Five thousand dollars can be the difference between buying a house and not buying a house.”