Employer-Assisted Housing

Down payment assistance is one of the most common types of employer-assisted housing solutions available. An employer can offer a loan or grant to cover the down payment for a single-family home, down payments are the most common barrier to homeownership.

Employer down payment assistance programs:

• Covenant HealthCare: In Saginaw, Covenant HealthCare is supporting their employees with down payment assistance to buy a home, as well as investing in a comprehensive neighborhood revitalization program in the area surrounding their Cooper and Harrison facilities, in collaboration with Saginaw-Shiawassee Habitat for Humanity. In addition to DPA for employees, Covenant incentivizes employee participation in rehabilitation of aging homes and neighborhood cleanup efforts, and also donated land for two new modular homes recently purchased with MSHDA's financial support.
  • Contact: Ann Szymanowski, Saginaw-Shiawassee Habitat for Humanity (annszymanowski@sshfh.org)
• This can be coupled with MSHDA’s MI 10K DPA, a $10,000 loan offered to qualified homebuyers statewide for down payments, closing costs, and other homebuyer expenses.

An employer may have land to donate to develop into affordable housing.

• University of Michigan Health - Sparrow: University of Michigan Health has donated nine homes adjacent to its Sparrow Hospital campus on Lansing's Eastside to the Ingham County Land Bank and Habitat for Humanity Capital Region. The Land Bank and Habitat for Humanity plan to extensively renovate all of the homes, including converting several duplexes back to single family homes, in preparation to sell them to aspiring homeowners.
  • Contact: Alan Fox, Ingham County Treasurer & Land Bank Chair (AFox@ingham.org)

Employers are exploring a variety of housing solutions to support and retain their workforce, including real estate development.

Real estate development projects:

• Shorts Brewery: Shorts Brewery purchased the Bellaire Inn to address northern Michigan’s seasonal and workforce housing shortage.
• Whirlpool: Whirlpool invested $27 million in the 90,000 sq. ft Emma Jean Hull Flats apartments. An 80-unit waterfront development in downtown Benton Harbor, Michigan, added100 permanent residents who are actively connected to the local community and will add $100K/ year to the city's income tax fund and 3.5 million in discretionary spending to the local community. WHR's global headquarters is located in Benton Harbor.
  • Contacts: Stefanie Harvey Vandenberg (stefanie_r_harvey-vandenberg@whirlpool.com) and Donald D’Anna (donald_b_danna@whirlpool.com)

Employers invest money into an equity fund that uses the capital to make investments in housing developments. These housing investments are generally selected to meet certain criteria and objectives set by the investor.

Companies supporting housing equity fund projects:

• Cinnaire’s Low-Income Housing Tax Credit Investments in Michigan: The federal Low-Income Housing Tax Credit (Housing Credit) is a proven, successful program that was established in 1986 and enjoys broad bipartisan support. It was created to create market incentives to develop and preserve affordable housing. Investors use the Housing Credit to reduce their federal tax liability while also bringing much-needed capital to affordable housing production and preservation.     
  • Contact: Matt Hodges (mhodges@cinnaire.com)
    
    
• Mercantile Community Partners: A subsidiary organization of Mercantile Bank that provides financial solutions to support community development and the growing need for affordable housing.
  • Contact: Emily Cauzillo, VP, Director of Mercantile Community Partners (ecauzillo@mercbank.com)

An employer or organization can also help employees directly, in the form of a stipend, which can cover or offset the cost of housing. This can be used as an incentive for specific working locations, or wage ranges.