Employer Assisted Housing: Providing Tax Incentives for Employers
Congressional Briefing - February 21, 2006
EAH Case Study
Mission Home Help: An Overview
An Employer-Assisted Housing Program Created by Mission Health & Hospitals, Asheville, NC
Executive Summary
Asheville is the most expensive housing market in N.C. For a community with many small businesses and few large employers – Mission Health & Hospitals (Mission) is the largest with 5,300 employees – this is a huge problem. It is hard for a tertiary care center to recruit and retain highly trained staff when housing is so expensive. In response to this growing problem, Mission became the first hospital in N.C. to institute an employer-assisted housing program in October 2001.
The Problem
There is a severe shortage of affordable housing in Asheville. This scenic mountain city now has the dubious distinction of having the highest housing costs in N.C. For Mission this is not just a social and economic development problem. It is an operational problem.
As the tertiary care medical center serving the 17 western counties, Mission must attract highly skilled nurses, pharmacists, technicians and therapists. While the hospital’s compensation and benefits package competes favorably with comparable medical centers in the southeast, housing costs eat up much more of an employee’s paycheck, and they know it. A recent telephone survey of new clinical hires showed that the cost of housing was a major concern. Recruitment costs were rising, particularly among nurses, radiology techs, and respiratory therapists.
The Opportunity
Mission is the largest employer in western N.C. With that in mind, the hospital’s leadership saw an opportunity to take a stand on affordable housing that would make a difference in the lives of its staff and set the pace for the region. The opportunity came in the form of a partnership with Fannie Mae and the Affordable Housing Coalition of Asheville to establish an employer-assisted housing program. In doing so, Mission became the first hospital in N.C. to add a housing benefit to its list of employee benefits.
The Program
Mission Home Help was launched in October 2001 with the goal of encouraging employee retention and promoting financial stability and homeownership. The program costs MSJ $100,000/year, which covers the services provided by the Homebuyer Education team, as well as Consumer Credit Counseling and the matching dollars. It is a turn-key program, requiring no involvement from the Human Resources Department.
Program Details:
1.
Eligibility: To participate in Mission Home Help you have to work at Mission for
one year and be an employee in good standing. Your Mission salary cannot exceed $46,800, although the family income can.
2. Participants must purchase a home in Buncombe County. Mobile homes are not eligible, although modular homes are.
3. Participants must complete the Affordable Housing Coalition’s Homebuyer Education program and continue education for six months following the purchase of a home . This process takes about 18 months. When combined with the one-year employment requirement, this brings staff close to the three-year vesting deadline when they are less likely to leave for other employment.
4. Participants must save a minimum of $50 for 10 consecutive months.
5. When the participant is ready to purchase a home, Mission will match their savings, dollar-for-dollar, up to $2,500. This money can be used to pay closing costs or it can be applied towards the down payment. In the case of Habitat homeowners, the money can be used to purchase appliances and furniture for their new home.
The Results
Response to the Mission Home Help announcement was overwhelmingly positive. Staff said that they liked the benefit, regardless of whether they would use it. They saw Mission Home Help as evidence that Mission’s administrators were listening to staff concerns. In the community, the announcement garnered media attention that included news stories and editorials praising Mission for its leadership. In addition, Mission received the NAACP’s Corporate Award for creating Mission Home Help.
Initial surveys were distributed to determine those housing and financial services most needed by staff. Of the 427 surveys returned, the overwhelming number of staff (70%) indicated that they would be interested in homebuyer education and financial management classes. We have already seen a decrease in the number of employees requesting emergency grants from the Mission Healthcare Foundation. We attribute this change to the outstanding work of Consumer Credit Counseling working with our staff.
Participation Update as of August 2005:
The initial goal was to have 30 homebuyers ready at the end of the first two-year pilot program. This goal proved to be unrealistic. The pilot predominantly focused on developing and marketing the program. While the national average for purchasing after completing a home ownership education program is 18% within two years, Mission Home Help participants are averaging 30% within two years. Other statistics that attest to the program’s success include:
- 17 Mission Home Help participants have purchased new homes.
- 34% of program participants have purchased a home within two years of taking the homebuyer education classes and credit counseling support, exceeding the national average of 18%.
- 540 inquiries from employees asking for eligibility requirements
- 320 employees have gone through program orientation
- 50 employees chose to enroll in the program
- Participants have come from throughout the organization: lab, nursing, Fullerton Genetics Center, social work/discharge planning, radiology, food and nutrition, computer services, environmental services
- Participants are staying at Mission and buying homes in the community:
- Prices range from $97,000 to $197,000
- All of the houses are in either Buncombe County or in a surrounding county that is closer to the participant’s work site.
- All participants that purchase are building assets in the community.
Comments from Mission Home Help participants:
“I never owned a home before and participating in the program will educate me and teach me how to manage my property.”
“Mission Home Help helps me to save so that I can buy a home for me and my two children.”
“I am very interested in settling in Asheville and buying my first home. The matching funds will help me achieve this goal.”
For more information:
Janet Moore
Director of Community Relations and Marketing
Mission Health & Hospitals
345 Biltmore Avenue
Asheville, NC 28801
828-213-3502 or
janet.moore@msj.org
