Workforce Housing in Action: The Hometown Home Loan Program

Program History

• The Hometown Home Loan Program was created in 1994.

• Began as a partnership with the City of Seattle for Police & Fire

• Goals

Improve emergency response

Reduce commute times

Increase homeownership opportunities in Seattle

• Addresses 3 main barriers to homeownership

Confusion about the homebuying process and how to get started

Money for a down payment and closing costs

Affordability

Program Benefits

The Hometown Home Loan Program is a no-cost benefit that is

valuable to both the employer and the employee

• Reduced loan fees & closing costs for purchases and refinances

• Free, onsite homeownership education and homeownership counseling

• Flexible loan programs and down payment assistance

• Experienced and knowledgeable staff that is dedicated to supporting the program

• Dedicated marketing and outreach coordinator minimizes administrative burden

for the employer

Community Partnerships

HomeStreet Bank partners with several nonprofit organizations that provide comprehensive homeownership education and counseling.

• Portland Housing Center-certified HUD counseling agency, teaches financial literacy and comprehensive first-time buyer classes, offers matched savings and down payment assistance, EAH advocate

We also partner with organizations and municipalities who offer down payment assistance programs or affordable housing advocacy.

• Community Land Trusts• Educational and Cultural Centers• City of Beaverton• City of Portland

Services to Participating Employers

• Comprehensive reports on program usage and demographics

• Assistance in developing a customized EAH program

• Specialized events and services

• Individual web pages that detail housing benefits

• No cost marketing materials

How does an EAH program benefit an employer?

• Enhances benefits packages

• Assists with recruiting and retention efforts

• Stabilizes the workforce

• Increases community standing

EAH for Municipalities

An Employer-Assisted Housing (EAH) program can work two ways for cities and counties.

• An enhancement that makes their benefits package more competitive• A tool for accomplishing their housing goals

• Increased affordable housing • Increase homeownership rates• Reduce commute times• Reduce emergency response times

Examples: The Cities of Seattle, Beaverton, and Portland

Program Results

• The Hometown Home Loan Program is offered to over 45 employers

& labor unions

• Partnerships in Washington, Oregon, and Hawaii

• 9,182 Loans and over $11.8 million in closing cost savings

• 3,839 First-time buyers and $17.2 million in down payment assistance

Why does HomeStreet Bank offer an EAH program?

• We fill a need in our community

• It supports our CRA Rating which has been “Outstanding” since

1989

• Since it’s inception, we have served over 9,000 customers

42% of them are first-time buyers

44% of our customers are from low-to-moderate income households

What are the main challenges as a lender to offering an EAH program?

• The length of time it takes before the program is profitable

• Maintaining visibility for our program with the workforce

• Changing administrators, benefits staff, and communication

policies

• Supporting a workforce that is spread out over multiple

locations or different shifts

Why is the Hometown Home Loan Program Successful?

• The Program is easy to understand and easy to adopt

• There is no cost to implement the program

• We are advocates for our customers

• We have a dedicated team of noncommissioned loan officers

whose only focus is the support of this program

• We deliver unparalleled customer service

• We employ a full-time marketing person to provide support to the

participating employers to minimize their administrative burden

Summary

An Employer-Assisted Housing (EAH) program can:

• Enhance an employer’s benefit package

• Provide a tool for recruitment and retention

• Help to support local housing policies

• Help low-income buyers to access down payment assistance