311 for Cities: Encouraging Local Businesses to Subsidize Employees’ Mortgages
In October 2015, a city submitted a request for assistance to the National Resource Network’s 311 for Cities feature with a question about programs utilized by other municipalities or housing agencies that would incorporate a payroll deduction by local employers for payment of the mortgage obligation of their employees purchasing properties within the business locale as an incentive for newly arriving workforce to put down roots and live locally. The city also wanted to be sure to find enough qualified buyers for HOME subsidized rehab properties. The National Resource Network conducted research and prepared the attached report for the city.
The Network did not find any cities implementing a program like this, but did find cities in which the city serves as a guarantor of the loan. There are lending institutions that accept payroll deduction and offer a discount on interest as an incentive.
Network staff believe that a key initial step will be engaging with the local financial institutions to determine what it would take for them to see these applicants in a more favorable way. The Network also recommends the city consider other programs such as a local loan guarantee program or down payment and closing cost assistance.
311 for Cities launched with the Network in 2014 and – at its peak – was available to more than 600 cities around the country. Local government staff in these communities could submit a question on any challenge they were facing and the Network team would develop a written response highlighting recent research, relevant case studies and best practices. This is one of those responses. The Network no longer offers 311 for Cities, but please contact us at email@example.com if you think we can be of help to your community.
311 for Cities: Encouraging Local Businesses to Subsidize Employees’ MortgagesDownload