Employer Assisted Housing

Employment growth in communities is a large factor related to housing demand. Employers around the state have participated in housing efforts due to the connection between the need for affordable housing and their interests in having a stable workforce close to their places of employment. Major reasons that employers participate in local housing initiatives include:

• Recruit and retain new employees
• Meet community need
• Increase employee productivity
• Increase workforce stability
• Strengthen community relations
• Leverage other public/private resources

Employer assisted housing can be developed in two ways. The first is project-specific assistance whereby assistance is targeted to a specific project. The second method is to create a community pool of resources similar to a local housing trust fund that can be targeted for various uses or distributed through an application process as projects arise. This method would likely involve an application process and review by committee but would allow a pool of resources that can serve as a match to local initiatives.

Employers will need clear guidance related to the financial and other types of assistance that is being requested of them. The Housing Committee will therefore need to make the following decisions if employer assisted housing is viewed as a priority.

1. What type of employer assistance does the community want?
   
   i. Project Specific: this would be determined based on a review of the housing plan and the selection of a few key projects and defining the assistance needed from employers.
   ii. Local Housing Trust Fund: the committee would establish a financial and production goal for the fund and then establish guidelines for its usage. These funds would essentially serve as a local match to initiatives surrounding new development, preservation, and rehabilitation of affordable housing.
    
2. Create a plan that outlines the specific assistance that is being requested of employers as well as fact sheets and information that can be distributed to area employers.
    
3. Meet with employers to make requests.
    

Part of the community discussion surrounded the best approach to take in Albert Lea related to employer assisted housing. The consensus was to start with a concept that has the largest gap and is greatly needed and then build on the success of one initiative to make larger requests with an example being a down payment assistance program. The Housing Committee will coordinate with relevant groups such as the EDA on areas of employer assistance, tax increment financing districts, etc.

A local housing trust fund would be solicited as financial support. Project specific assistance however can vary based on the type of project. There are a variety of methods in which employers can participate in specific projects including:

• Cash contributions
   Charitable or corporate contribution
   Low interest and/or deferred loan
   Equity contribution
   
• Low interest construction financing
   Low or zero interest construction loan
   Loan guarantee
   
• Downpayment, closing cost, and gap financing assistance
   Grants, forgivable loans, and deferred loans
   Payroll savings matches
   
• Homeownership training for employees
   
• Land donation
   
• Housing development and ownership
   
• Project/program marketing