Recommended Actions

Review your financial compensation in light of housing costs in your specific area. The National Housing Conference’s Paycheck to Paycheck database is a useful data tool that illustrates the affordability, or lack thereof, of typical housing across the country for working families. To get a more complete picture of whether employees at all levels are earning a living wage (including the ability to afford housing) use  MIT’s living wage calculator. Based on these insights, determine if wages are keeping pace with local market costs and if there are inequities within a specific demographic category.

Some specific measures that can shed light on the current situation include the following:

• Ratio of housing costs to income

• Percentage of homeowners vs. renters broken down by race, gender, etc.

• Percentage of employee turnover broken down by race, gender, etc.

Engage with your employees (for internal work) or employer partners (if using this as a business service) to share housing challenges. Review this feedback in light of retention trends, including any learnings from exit interviews, as well as existing benefits offered to  employees. Neighborhood Housing Services of Chicago, a nonprofit neighborhood revitalization organization, has a sample employee survey to help organizations better collect and understand employee housing needs. 

This 2018 article by the University of Pennsylvania provides a good overview of the most common issues with links to studies supporting the benefits to employers and workers.

Take time to understand the different employee-assisted housing (EAH) options and decide which approach is the best fit for your organization. There are two types of mechanisms: demand-side mechanisms make existing housing options more affordable for employees, and supply-side mechanisms increase the stock of affordable housing options in the market. Employer-assisted housing programs may include:

• Homeownership counseling and education (similar to other types of financial or personal counseling often provided through employee assistance programs)

• Down payment grants (similar to grants provided for education)

• Loans that are forgiven over a period of employment (may include salary advance style model)

• Rental subsidies (akin to subsidies used in some communities for commuting expenses)

• Direct investment in the construction of rental housing (less common)

For more details on the various options, see this overview from Local Housing Solutions, the Harvard report on EAH (Appendix A: EAH Mechanisms) and the Greater Minnesota Housing Fund’s EAH Resource Guide.

Explore partnerships with local business alliances, chambers of commerce, realtor associations, nonprofit housing organizations, community development corporations and the like to create, promote and incentivize employers to offer employer-assisted housing.

If you are considering employer-assisted housing (EAH) as a service to your employer partners, think about providing incentives for private employer programs to help small or businesses owned by individuals identifying as Black, Indigenous, or people of color (BIPOC) using Small Business Administration grants or investment capital, community block development grants (CDBGs), or American Recovery Act (ARP) funds. Communities can encourage employers to adopt EAH programs by offering matching funds, where employer contributions are matched by an equivalent contribution from the state or local government agencies. Often matching funds include stipulations such as the requirement that the employee must receive homeownership counseling or work only with an approved lender. You can also consider leveraging Workforce Innovation and Opportunity Act rapid response/layoff aversion funds, as outlined in the Code of Federal Regulations, to help companies perform feasibility studies related to EAH as a mechanism to help attract and retain workers.

The Baltimore (MD) Live Near Your Work program partners with first-time home buyers by matching $2,500 from the employer with $2,500 from the city (for a combined total of $5,000 in employee assistance) to be applied to down payment and closing costs. Currently more than 100 employers are enrolled in the program.

Landed partners with employers of essential professionals in health care, education, and public administration to provide down payment assistance through a shared equity program. Landed invests up to $120,000 toward down payments and shares in future gain or loss in the employee’s home value.

Identify partners for homebuyer education and counseling, such as those available through the US Department of Housing and Urban Development (HUD). Many employee-assisted housing (EHA) programs, especially those with government-funded matching funds, include a component of homebuyer counseling that guides buyers throughout the process, from helping understand options to finding a lender and real estate agent. This is usually done through a partnership with a local nonprofit with specialized knowledge in this space. Work with housing agencies in your jurisdiction to identify the best resources and partners for EAH programs. This list of partners can be both leveraged  internally as a resource for staff and included in business services materials to assist other employers.

Begin to spread the word to employers about the lessons you have learned and resources that are available to help employers implement employer-assisted housing (EAH) as a benefit. Partnerships with chambers of commerce and business associations are especially helpful to get the information into the hands of your target employers. See this session hosted by the US Chamber of Commerce on the role of employers in solving the housing crisis as an example of how to raise awareness.

Highlighting employers who successfully implemented EAH programs can inspire others to do the same. Encourage local officials to recognize contributions by employers, and consider similar promotions at business forums or community groups.

Aurora Health Care (WI) is a not-for-profit integrated health care provider based in Milwaukee that helps employees with down payments for housing close to the hospital. A 2008 evaluation showed participating employees performed better, stayed with the company longer and had lower turnover. 

The Chicago (IL) Metropolitan Planning Council partners with Chicago employers to provide employees with homeownership counseling and/or financial assistance. Chicago Neighborhood Housing Services produced this guidebook for employers interested in setting up an EAH program, including financial and nonfinancial support.

Implementation will involve:

• Planning: Determining the employer’s and employees’ needs and concerns and customizing the employer-assisted housing program (services offered, scope of availability, target populations, etc.). Employer needs may include growth (attracting new employees), retention and/or community stabilization. Employee issues may include general income challenges, lack of affordable housing in the area, low inventory or low desirability of housing in the area and/or a need for better understanding of the homebuying process and available programs.

• Communication: Notifying employees/employer partners about the program and its benefits and how they can engage.

• Delivery: Providing services and/or financial assistance to employees and/or employer partners.

• Monitoring and evaluation: Tracking usage and reporting on impact.

• Continuous improvement: Adjusting as needed based on employee/employer partner feedback to ensure that the results are serving your target population.