Key Players

Employers. The most compelling reason for employers to participate in EAH programs is enlightened self-interest linked to their financial bottom line, although many certainly also see benefits in “doing good.” The cost savings resulting from reduced turnover and lower costs of recruitment, retention, and training are key selling points, as are greater employee morale and loyalty, and improved community relations. These benefits are real for employers that have created EAH programs—as many spokespersons will attest—and should be well marketed to potential participating employers. It is also important for all partners to recognize how the business climate relates to the ability of employers to participate: While the local economy is hot, employers may be far more willing to contribute than when the market slows. The program should establish a baseline commitment for employers that allows them to remain in the program through periods of expansion and contraction. One additional selling point for employers is that, since the bulk of the program is handled by an outside agency, administrative burden for the employer is minimal.

Some employers are more suited to EAH than others. The employers with the most potential to provide a real community benefit are those that are rooted to the community in which they are located (such as anchor institutions), those that face high workforce retention and recruitment challenges due to the lack of nearby housing for workers, and those that have a demonstrated commitment to community involvement. If there are no large employers that meet these qualifications, a consortium of multiple smaller employers could make sense.

Employees. Although it may seem that employees are the easiest component of the program to enlist, employees may believe they are ineligible, think that the assistance will be ineffective, or may lack information about the program. Effective marketing and outreach to employees is crucial to ensuring participation levels sufficient to ensure program impact and sustainability.

Residents. For EAH to benefit communities, existing residents must be involved. An EAH program must take the needs, desires, and capacities of residents into account. What form of assistance do residents want and need? What can they afford? Even with EAH assistance, will residents be able to afford down payments, or will rental assistance be more effective? In promoting EAH, resident interests must be central to the creation of the program.

Public agencies. Even if not directly administering the program, public agencies can help generate local support, provide data and technical assistance, help overcome development hurdles, provide connections to local businesses, and open up funding avenues that are unavailable to private organizations.

Nonprofit partners. Generally employers do not have the expertise or the resources available in-house to administer a housing benefits program. Nonprofit partner administrators can devote more time and resources to the program than an employer, have an understanding of affordable housing and community development, have expertise in various types of affordable housing subsidies, and can offer adequate financial counseling to program beneficiaries.

Technical assistance providers. While nonprofit administrators are key to the functioning of the program, even local nonprofit housing organizations often do not have experience with the unique nature of EAH programs. Technical assistance providers can provide program start-up and tracking assistance, help tailor the program to meet specific needs, and provide ongoing expertise as needed. Local and national nonprofit organizations can play this role.

Local business groups. Private employers, local chambers of commerce, and other business groups can be key partners in marketing the concept to employers, establishing programs, and advocating for supportive policies.

Lenders. Lenders are important sources of low-cost housing financing products for EAH programs and must be convinced that they can benefit from offering discounted loan products. CRA compliance can be one motivating factor for lenders; increased business volume is another. Standardized lending products can be helpful in obtaining lender participation: Both Fannie Mae and Freddie Mac have a range of very low down-payment loan products that can be used by EAH programs. These products encourage lender participation in EAH programs by minimizing lender risk with the guarantee that low-equity loans will be purchased on the secondary market.