Wednesday, July 27, 2005
A Big Thank You!
We would like to express our thanks to the Community Foundation of Northern Illinois for their recent grant commitment. The Community Foundation has commited $1,343 to cover the cost of transportation, room and board for Bob Campbell's training in August. Bob is our new executive director, and will be traveling to Washington DC to attend the NeighborWorks Institute workshop on homebuyer education. This training will enable the Coalition to serve more clients through our homebuyer education classes as well as our one-on-one counseling. The Coalition has already received a grant from NeighborWorks to cover the tuition for the training. The Coalition qualified for that grant because of its status as a HUD-approved Housing Counseling Agency. The Community Foundation grant will cover the rest of the costs associated with the training. Thanks again to the Community Foundation of Northern Illinois!
Tuesday, July 19, 2005
Facing Foreclosure?
The US Department of Housing and Urban Development has an outstanding resource for families who are facing the loss of their home to foreclosure. Check out this resource for assistance. One of the steps that HUD recommends is to contact a HUD-certified housing counseling agency. The Rockford Area Affordable Housing Coalition is a HUD-certified housing counseling agency. If you are facing foreclosure, we may be able to help you. Feel free to call our office or send us an email.
Monday, July 18, 2005
EAH Makes the Paper
The Rockford Register Star posted their article on employer assisted housing today. The program sounds OK in the article. Fortunately, the program is MUCH better than the article implies. First, Housing Action Illinois is not providing the tax breaks or tax credits. The State Donation Tax Credit program is administered by the Illinois Housing development Authority. The tax deduction applies to the federal taxes that a company must pay, and it is due to the donation that the employer makes to their employee through the Rockford Area Affordable Housing Coalition.
Second, it is implied that an employer must give $10,000 in assistance to employees. That is not true. There must be a $10,000 minimum investment overall in a program, but a group of employers can create a pool in order to reach that minimum investment. For example, a group of five employers can create a group and each will invest $2,000. That group will have the $10,000 minimum requirement met by their pool.
Finally, the article discusses this as an opportunity to revitalize downtown. That is true, but it is much more than that. This is not a development program, it is a program that allows employers an extra benefit to their employees. Those companies can be of any size and any location in Illinois. This is a benefit that helps employees get into their own housing and it is a benefit that helps employers recruit and retain employees.
If you are interested in learning more, please call our office at 815/962-2011 or drop us an email. We'd be happy to send you some information and meet with you to discuss this opportunity in more detail.
Second, it is implied that an employer must give $10,000 in assistance to employees. That is not true. There must be a $10,000 minimum investment overall in a program, but a group of employers can create a pool in order to reach that minimum investment. For example, a group of five employers can create a group and each will invest $2,000. That group will have the $10,000 minimum requirement met by their pool.
Finally, the article discusses this as an opportunity to revitalize downtown. That is true, but it is much more than that. This is not a development program, it is a program that allows employers an extra benefit to their employees. Those companies can be of any size and any location in Illinois. This is a benefit that helps employees get into their own housing and it is a benefit that helps employers recruit and retain employees.
If you are interested in learning more, please call our office at 815/962-2011 or drop us an email. We'd be happy to send you some information and meet with you to discuss this opportunity in more detail.
Friday, July 15, 2005
REACH Illinois
REACH Illinois is a State supported employer-assisted housing program. In the Chicago area the effort is being led by the Metropolitan Planning Council. Housing Action Illinois is spearheading the efforts throughout the rest of the state. If you are an employer, here's the scoop:
Say you want to help 20 of your employees with down payment assistance of $3,000.
Down Payment Assistance: $60,000
Program Administration: $40,000 (includes homebuyer counseling and education, evaluation, etc.)
Gross employer investment: $100,000
Tax Benefits (for the company with employees' household income up to 120% of area median income ($72,600 for a family of four in 2005):
State of Illinois Tax Credit: $50,000
Federal Tax Deduction: $19,000
Total Tax Benefits: $69,000
Employer Net Cost: $31,000
(Source: REACH Illinois brochure published by Metropolitan Planning Council, Housing Action Illinois, and IHDA)
Now, add in the State's willingness to assist families at 80% or lower of the area median income (in Rockford, that figure is $48,400 for a family of four in 2005), and your employees who meet that criterion may end up with $6,000 in benefit. That comes to $120,000 in benefits for the price of $31,000!! Not only that, but you can build in a recapture agreement that encourages your employees to stay with your business. If they leave your company within that recapture period, they must repay your investment. This will encourage employees to stay with your company, saving you money in recruitment and training costs.
So, what's the downside?!? For an employer it is the upfront investment. If an employer does not pay state taxes, they can sell their tax credits to a company that does have such a burden. The value of the tax credits will vary with the market, right now they are about $.80/dollar of value.
Is anyone doing this? Absolutely. Visit the Metropolitan Planning Council or Housing Action Illinois for more information on companies who are taking part in this initiative. If you would like more information, call the Rockford Area Affordable Housing Coalition and ask for Bob. We'd be more than willing to set up an appointment to discuss this awesome opportunity with you!
Say you want to help 20 of your employees with down payment assistance of $3,000.
Down Payment Assistance: $60,000
Program Administration: $40,000 (includes homebuyer counseling and education, evaluation, etc.)
Gross employer investment: $100,000
Tax Benefits (for the company with employees' household income up to 120% of area median income ($72,600 for a family of four in 2005):
State of Illinois Tax Credit: $50,000
Federal Tax Deduction: $19,000
Total Tax Benefits: $69,000
Employer Net Cost: $31,000
(Source: REACH Illinois brochure published by Metropolitan Planning Council, Housing Action Illinois, and IHDA)
Now, add in the State's willingness to assist families at 80% or lower of the area median income (in Rockford, that figure is $48,400 for a family of four in 2005), and your employees who meet that criterion may end up with $6,000 in benefit. That comes to $120,000 in benefits for the price of $31,000!! Not only that, but you can build in a recapture agreement that encourages your employees to stay with your business. If they leave your company within that recapture period, they must repay your investment. This will encourage employees to stay with your company, saving you money in recruitment and training costs.
So, what's the downside?!? For an employer it is the upfront investment. If an employer does not pay state taxes, they can sell their tax credits to a company that does have such a burden. The value of the tax credits will vary with the market, right now they are about $.80/dollar of value.
Is anyone doing this? Absolutely. Visit the Metropolitan Planning Council or Housing Action Illinois for more information on companies who are taking part in this initiative. If you would like more information, call the Rockford Area Affordable Housing Coalition and ask for Bob. We'd be more than willing to set up an appointment to discuss this awesome opportunity with you!
Wednesday, July 13, 2005
Welcome!
Welcome to the Rockford Area Affordable Housing Coalition blog. We will be looking at issues that impact affordable housing in Rockford, Illinois.
Our primary work at the Coalition is to provide home buyer education and counseling. We are the area's only HUD certified housing counseling agency. We assist residents of the Rockford area with pre-purchase counseling and education class so that they are able to make wise decisions in the purchase of their homes. We also provide post-purchase counseling for families who are at risk of losing their homes to foreclosure.
We are currently a staff of three, but that is a significant increase over our staff size even a few months ago. We keep very busy with the many opportunities that we have to help people purchase or keep their own home. Thank you for joining us as we promote the importance and need for affordable housing in our community.
Our primary work at the Coalition is to provide home buyer education and counseling. We are the area's only HUD certified housing counseling agency. We assist residents of the Rockford area with pre-purchase counseling and education class so that they are able to make wise decisions in the purchase of their homes. We also provide post-purchase counseling for families who are at risk of losing their homes to foreclosure.
We are currently a staff of three, but that is a significant increase over our staff size even a few months ago. We keep very busy with the many opportunities that we have to help people purchase or keep their own home. Thank you for joining us as we promote the importance and need for affordable housing in our community.
