1. Metropolitan Planning Council www.metroplanning.org Employer-Assisted Housing A Proven Workforce Housing Strategy

2. “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 Metropolitan Planning Council Page 2 Who is the Metropolitan Planning Council?

3. Program Areas Housing Regional Development Transportation Urban Development What is the Metropolitan Planning Council? Metropolitan Planning Council Page 3  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.

4. Housing and Growth Facts Metropolitan Planning Council Page 4

5. * Database Admin. @16.79/hr ** Medical Assistant @$10.69/hr and Database Admin. @16.79/hr Homeownership in High Job Growth Areas is Out of Reach for the Growing Entry-Level Workforce Metropolitan Planning Council Page 5

6. 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%. National Trends Metropolitan Planning Council Page 6

7. Metropolitan Planning Council Page 7 Rental Housing is NOT a Safe Back-up Plan

8. Neighborhood / Municipality CountyMedian Home Price 1 $/Hr. Wage to Buy 2 Approx. average monthly rent 3, $/Hr. Wage to Rent Average $/Hr. Wage 4 All Occupations WaitpersonDatabase Admin. Medical Asst. FirefighterChemical 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 ParkCook $307,500$44.61$921.00$17.71$16.18$6.94$30.52$13.45$29.34$20.98$17.48$12.34 RiverdaleCook (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$29.20N/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$18.25N/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 Metropolitan Planning Council Page 8 “We need the people who need affordable housing” Cannot afford to buy or rent Can afford to rent, not buy Can afford to buy or rent

9.  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. Stress Indicators Metropolitan Planning Council Page 9

10.  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 “ Non-economic” barriers identified in 2000 Metropolitan Planning Council Page 10

11. Catalysts for Change Metropolitan Planning Council Page 11

12. 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’. Solution Employer-Assisted Housing (EAH) – Maximizes employee retention by implementing this outsourced, easy-to-administer employee benefit. Catalysts for Change 1: Employer-Assisted Housing Metropolitan Planning Council Page 12

13.  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! Employer-Assisted Housing Metropolitan Planning Council Page 13

14.  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 System Sensor: How One Success Story Leveraged Resources, Partners, Supporters Metropolitan Planning Council Page 14

15. 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 Employer-Assisted Housing helps with neighborhood reinvestment. Metropolitan Planning Council Page 15

16. 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 How it Works 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 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 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 Metropolitan Planning Council Page 16

17. 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 America’s Workforce Act” Nonprofit partner can leverage numerous resources Metropolitan Planning Council Page 17

18.  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  Honeywell’s System Sensor  Illinois College of Optometry 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  Village of Riverdale Metropolitan Planning Council Page 18

19.  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 Emerging EAH Models Metropolitan Planning Council Page 19

20. Why Employer-Assisted Housing? EAH benefits...  The COMMUNITY  The EMPLOYER  The EMPLOYEE  The HOUSING POLICY ARENA EAH is a win for everyone. Metropolitan Planning Council Page 20

21.  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 Catalysts for Change 2: The Toolbox Developed by and for Mayors Metropolitan Planning Council Page 21

22.  Legislative Agenda  Communications Strategies  Housing Illinois www.housingillinois.orgwww.housingillinois.org  On-the-ground networks  Community Acceptance Strategy Catalysts for Change 3: Alignment of Advocates’ Voice Metropolitan Planning Council Page 22

23. Resulting Statewide Activity Metropolitan Planning Council Page 23

24.  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” Catalysts for Change 3: Alignment of Advocates’ Voice Metropolitan Planning Council Page 24

25.  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 Illinois Housing Legislation since 2000 Metropolitan Planning Council Page 25

26. National Opportunity: Please Support Housing America’s 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 Metropolitan Planning Council Page 26

27. For more information, please visit www.metroplanning.org or www.reachillinois.org