Homeownership help

For businesses owners in a quaint resort town like Sandpoint, one of the biggest obstacles to hiring new employees is the ability to offer them a town in which to live that has affordable housing.

Andy Chapman retired earlier this year as the facilities director for Coldwater Creek. In that role, he witnessed that issue firsthand.

“Recognizing the difficulty that Coldwater Creek employees were having finding decent housing at an affordable price, I joined the Bonner County Economic Development Corporation’s early committee on affordable housing,” said Chapman, whose involvement on that committee led to his service on the Bonner Community Housing Agency’s Board of Directors where he now serves as president. But the issue spreads far beyond the doors of Chapman’s former employer. It has affected many small businesses throughout this area.

Like many areas not only throughout Idaho but also the nation, Bonner County saw a dramatic increase in home construction over the last four years. The result was a sharp increase in land and construction costs. During that time there also was a drastic decline in the unemployment rate in this county.

But unlike many areas, the town of Sandpoint does not have the luxury of being able to expand to surrounding land. With the lake and the mountains encompassing this community, there is a limited area in which to build, which in turn drives up housing costs – providing a prime example of the rule of supply and demand.

According to BCHA, the median home price in Bonner County fluctuates between $245,000 and $265,000 – approximately $10,000 to $15,000 higher than Coeur d’Alene.

Because of all this, workforce housing has been and continues to be one of Bonner County’s biggest challenges. To address this issue BCHA members have made it their mission to educate the community, partner with employers and help fund affordable housing.

According to BCHA, almost one half of the full-time resident homeowners in Bonner County earn less than $35,000 per year, placing them in the low-income category according to industry standards. The statistics for renters is even more disturbing.

“About 37 percent of the county’s renter households earn less than $15,000 per year and another 21 percent earn between $15,000 and $25,000 per year,” said BCHA board member Angela Potts-Bopp.

In a study conducted by BCHA, they found the majority of nonseasonal jobs projected will pay somewhere between $10 and $35 per hour. In order to provide affordable housing for these wage earners, BCHA states there must be rentals priced in the range of $425 to $1725 and homes for purchase to be priced between $157,000 and $287,000.

“Even in today’s market, these prices are hard to come by,” said Potts-Bopp.

To further its mission, BCHA has formed the Employer-Assisted Housing Committee.

“Employer-assisted housing is assistance provided by employers that enable their employees to obtain affordable housing in or near the community in which they work,” said Potts-Bopp. “By becoming a member of the committee, we can create partnerships that combine our competencies and make a difference.”

The reasons to form a program such as this include both recruitment and retention of employees, which results in growth and profitability and ultimately provides value to the employers.

With an increase in homeownership, says Potts-Bopp, communities realize more jobs and an increased tax base.

“It is essential for employers to commit their involvement to make this (employer assisted housing) a reality and secure our local economy,” said Potts-Bopp.

But affordable housing does not only do a great deal to attract employees to a community, it brings new businesses, too. From Schweitzer Mountain Resort to the beauty of Lake Pend Oreille, this town has much to offer and the addition of affordable housing will also provide a great incentive for employers to relocate their business to North Idaho.

BCHA members propose that an employer-assisted housing program can greatly benefit a potential employee by assisting them in the home buying process, providing affordability and availability of cash for down payment. The program can benefit both the employer and employee through increased job satisfaction, increased productivity and loyalty to the employer.

But the reality is that times are tough for everyone. An employer’s first response may be of reluctance. What will it cost the employer? According to BCHA there are a wide range of options from no-cost to high cost.

“Examples of low- or no-cost to an employer are to simply provide homebuyer education, credit counseling and links to existing resources. All of these services are available through BCHA,” said Potts-Bopp.

There are other ways an employer can contribute as well. These include grants to cover closing costs or rental deposits, providing funds for home improvement loans and matched savings accounts.

Some of the examples from other communities that BCHA is looking to incorporate into its employer-assisted housing program include providing down payment assistance and low-interest purchase loans. The employer-assisted housing would also provide loan guarantees and below-market first mortgages with a graduated payment feature. These programs will go a long way toward recruitment and retention of employees according to BCHA.

In order to assist employees in the purchase of homes in high-cost areas, other communities have provided education and down payment assistance in addition to a two-year lease to own program. This will require partnering with a local lender to secure favorable financing for the employees in return for corporate banking arrangements.

BCHA will offer a series of classes on these topics beginning Jan. 24.

“The title of the class is Finally Home,” said Chapman. “It is an eight-hour home buyer education program put together by Idaho Partners for Homebuyer Education.”

Until now the course had been offered by North Idaho College. But when North Idaho College decided not to continue with the program, BCHA applied to take over that mission for both Bonner and Boundary Counties.

“It is a fairly comprehensive program that takes people through all the aspects of homeownership which the first-time home buyer can sometimes find quite daunting,” said Chapman.

The current schedule includes putting on at least 10 classes in 2009. This includes eight in Sandpoint, one in Priest River and one in Bonners Ferry.

“I’m optimistic that major employers may also want us to put together classes for them as well,” said Chapman, who adds that they are working closely with the Selkirk Association of Realtors which is lending its facility to utilize as a classroom.

Instructors for the class are all volunteers and are comprised of lenders, realtors, insurance agents and inspectors who will all share their expertise.

“We really need employers to get involved,” said Potts-Bopp. “Employer-assisted housing is absolutely the best money you will ever spend. It’s an investment in your foundation – your employees.”

The cost of the classes offered by BCHA is $10 per session. One can sign up and learn more about employer-assisted housing by contacting BCHA President Andy Chapman at 255-4264.