HomeMy WebLinkAbout07/18/2006 Blue Sheet Workforce Housing Presentation
TOWN COUNCIL
MEETING
INFORMATION
MEETING DATE: July 18, 2006
TOWN OF MARANA
AGENDA ITEM:
E.1.1
TO: MAYOR AND COUNCIL
FROM: James R. DeGrood, P.E. Assistant Town Manager
SUBJECT: Workforce Housing Presentation
DISCUSSION
The Fiscal Year 2006-2007 Budget includes $100,000 for the establishment of an Employer
Assisted Housing (EAH) program for Marana Staff. This program will be available for all
existing and future full-time employees that meet the income eligibility requirements.
Town staff must expand as the Town continues to grow in order to meet the service needs of the
public. This is particularly true ofthe police, parks and operations and maintenance
departments, where staff growth is proportionate to community growth. These departments have
difficulty recruiting adequate numbers of qualified candidates due to a tight labor market and
competition with the other communities in the region. Most of these positions have salaries
which are below the median family income, and with high housing prices and limited rental units
available in Marana, the Town has difficulty competing for these potential new employees.
Providing a housing benefit to assist Town employees in the purchase a home within the Town
provides a benefit that other communities in the region do not provide and helps employees
become members of the community they work for. Employee home ownership within the Town
reduces commute time and travel costs for the employee. For "on-call" employees, ownership
within the Town reduces the response time and costs to the Town when off-duty employees are
called to work.
The program will be available for permanent Town employees making less than $50,000 per
year or whose family income falls below 120% of the median income for their household size in
the area (see table below).
Family Size
2
3
4
5
6
7
8
Maximum Income (AGI)
$50,280
$56,640
$62,880
$67,920
$72,960
$78,000
$83,040
The EAR program is proposed as a shared equity plan. In this way the Town is investing with
the employee in the employee's home, and also hopefully making homeownership possible for
more Town employees.
The Town will contribute a percentage of the purchase price of an eligible employee's home and
will be repaid the same percentage at such time as the employee sells the home. No repayment
of money to the Town will be required while the home is owned and occupied by the employee.
The maximum benefit amount per employee is the lesser of $12,500, or 5% of the purchase price
of the employee's home.
The employee will be required to execute an agreement at the time of closing the purchase to
establish the Town's interest in the property. This will be recorded as a lien against the property.
The Town will fund the benefit at the time of closing.
The EAR program will be available to eligible employees wishing to purchase a home within the
Town of Marana or: any islands of unincorporated Pima County surrounded by the Town. New,
resale and manufactured homes may be purchased using this program. The homes must be
owner occupied and the employee must have at least a $1,000 down payment and good credit.
The Town's EAR program is being developed in cooperation with Fannie Mae and the Tucson
Association of Realtors. As part of the program, educational classes on preparing for
homeownership, purchasing a home and maintaining a home will be presented for staff and
employees of interested businesses.
ATTACHMENTS
New EAR plan form.
RECOMMENDATION
Presentation only.
SUGGESTED MOTION
Presentation only.
-2-
NEW EAH PLAN FORM
Region WRO
PO Arizona
Fannie Mae Contact Name Daniel Thompson
Announcement Date July 2006
Employer Name Town of Marana
Industry Type I Public
# All Employees wi Employer Approximately 350
City Marana
County Pima
State Arizona
Employer Contact Name James DeGrood
Employer Phone Number 520.382.1900
Employer Fax Number 520.382.1902
Employer Email Address idegrood@marana.com
Partner Name 2 Chicanos por la Causa, Family Housing Resources, Tucson
Association ofREALTORS@
Partner Phone Number 520.882.0018, 520.318.0993, 520.327.4218, respectively
Administrator Name j TBD
B to B Referral - Y or N 4 Y
Benefit Type ~ Shared Appreciation; Education; Counseling
EAH Benefit Description For Marana employees earning up to $50,000 Iyear or
having family incomes up to120 percent ofthe Area Median
Income (AMI), a deferred repayable loan of up to $12,500
will be provided. The total amount of loan available per
employee is not to exceed five percent of the purchase price
of the home. For all eligible employees, the EAH loan will
be due and payable upon either (a) voluntary repayment of
the deferrable loan, with appreciation; or, (b) eventual sale
of the property with repayment at same percentage of the
original purchase price, regardless of sales price.
Maximum Benefit Amount $ $12,500 or 5% of purchase price, whichever is less.
Funding Limits (if any) $100,000, year 1
Use of Funds Down payment/closing cost assistance
I e.g. Private, Public, Health, University, Non Profit, Business Consortium, Quasi Public
2 i.e. if this EAR was done in partnership with another entity
3 i.e. if someone else is administering the EAR for the Employer
4 i.e. can another employer contact them
5Forgivable Loan, Deferred Repayable Loan, Repayable Loan, Forgivable Grant, Grant, In-Kind, Shared
Appreciation, Education, Other -specify
Employee Eligibility Limits6 All employees earning up to $50,000 / year or having family
incomes of up to 120 percent of AMI. Must be in good
standing, not on corrective action and not on probation.
Geographic Limits (Y or N) Y -- Homes purchased must be located in the corporate
limits of Marana.
Property Restrictions? None
6 e.g FTHB, at or below 100% AMI, etc