The issue: Attracting and retaining a quality workforce
When looking for a home, many people would prefer to live near their workplace—and most employers see the benefits of having a nearby workforce, including reduced costs of absenteeism and turnover.
But a host of factors, ranging from a individual's credit history to the high cost of housing, too often prevent that from happening. The Metropolitan Planning Council (MPC) is advancing a number of strategies to help people, businesses and communities overcome these challenges, including through our Employer-Assisted Housing (EAH) initiative.
The solution: Employer-Assisted Housing
Since 2001, MPC has been promoting EAH, a proven strategy that extends housing affordability for employees while enhancing the competitiveness of businesses. Through EAH, companies provide homeownership counseling and financial assistance to employees who purchase or rent homes in or near communities where they work.
EAH can be designed to fit an employer's personnel objectives and budget. The cost to the employer varies based on the amount of financial assistance offered to employees, plus the costs of administration and housing counseling (which is provided by a HUD-certified agency). Special state incentives, including tax credits and matching funds, make EAH financially attractive for employers.
Employees can benefit from these incentives, too: For families earning up to 80 percent of the area median income, the Illinois Housing Development Authority will provide up to $7,500 as a triple match of employer-funded downpayment assistance.
EAH requires a very limited time commitment from the employer during the initial set-up, when particulars like eligibility criteria and assistance amounts are determined. MPC pairs employers with a nonprofit housing counselor from our network, who handles all administration from then on.
Our guidebook makes it easy for employers to offer EAH—and enjoy its benefits.
The benefits: Dollars and sense
Employers such as the University of Chicago and Medical Center, Loyola University and Robinson Engineering are enjoying the range of benefits that result from EAH:
Recruitment: Offering EAH makes employers more competitive and attracts talented workers.
Retention: Employee turnover is expensive: Human resource studies have shown that it can cost companies between 50 percent and 400 percent of an employee’s salary to replace him or her, making proactive retention strategies essential for an employer’s bottom line.
Revitalization: When employers are located in or near an economically distressed community, the homeownership and investment that EAH promotes can be a part of anchoring and revitalizing that community.
Relations: Because EAH strengthens the community surrounding an employer, it can create a bond or improve the existing relationship between an employer and its neighbors.
For more information