Good Morning, I’m _____________________. I am a ______________________ with ________________________. I am also a trained professional in the Employer Consortium’s housing plan for regional employers. We are going to comprehensively review 9 slides today.These slides will cover what housing plans are and the benefits of a cost effective design for the employer, the employee and to the region. I encourage you to take notes about this housing plan or I can provide this disc to you following this presentation At the conclusions of these slides your questions should all be answered and if they are not I can answer general questions at the conclusion. In the interest of respecting everyone’s time please contact me or the administrator directly with questions unique to your company or your employees.Explain: Consortium (group) of employer, associations (teacher’s unions, Urban League, Chambers) and unionsExplain Supporting Network: Builders, real estate professionals, lenders, administratorExplain: Affordable housing plan for the general WF: Employers have had AFFORDABLE executive relocation for years and back in the 1700 relied on EAH plans to attract general workforce (to Mill towns, Cedar Point employees, Summer Research for Medical Students)The housing plan we will review today is a general workforce housing plan administered by DRH (Data Research & Handling)
Employers traditionally hire an administrator to design, administer and manage their benefits. (Ex. in 401K: Fifth Third’s 401K)Two components of housing plans that are dictated to the employers are: IRS tax regulation and ERISA regulation (this does not require filing, no trust fund)
Employees are the most valuable asset, at the same time offer benefits is such a tremendous expense that many employers in our region cannot afford to offer any benefitsHousing plans address universal concerns for ‘housing’ regardless of age.Typically the more options an employee has the more costly the plan is to the employer. Housing plan designs though can be flexible and cost effective for the employer.One important point about the Consortium’s housing plan is the design. It is intentionally designed to defray the expense of the employer within the transaction. This design is cost effective so every employer regardless of size can acquire the plan and support their employee without incurring administrative expenses.
This group housing plan supports the purchase of a home: 3% of the final purchase price is paid to the employeeNo repayment of the funds, employee will get a 1099 in the same tax year as they receive the fundsFlexible use of the funds means they can use them for down payment, closing costs or discretionary income that strengthens their position to buyThese funds allow the employee to preserve their acquired savings for unforeseen emergencies & helps prevent an unstable new home ownersThis group plan requires self-administered education based on the federal publication: Buying a Home. There is an online tutorial in video formThis group plan requires 6 hours of community reinvestment service donated by the employee to the organization, person or entity of their choosing. The service is verified.Currently there are strong indicating economy factors that indicate a home bought in today’s market will appreciate in the years to come. Currently many of the traditional forms of employer benefits (401K, profit sharing, stock awards) are not as favorable.This group plan assists the employees selling homes and employees buying a homeThe administrator has web site support for the education, the forms, list the supporting network professionals, pre-enrollment
Every benefit has a process to follow.Contact the AdministratorComplete the intake (selections of your lender, selections of a support agent, disclosure of the taxable nature)Write an offer to purchaseComplete the education and community reinvestment prior to the closingFunds are wired to your settlement agent or the employee account
The Consortium’s group plan has been designed as a cost contained benefit which defrays the employer’s expense in the transaction AND it gives the employee flexible options rather than requiring the use of assigned agents or affiliated lenders.Outsourced management eliminates the cost of additional HR staff for administration or HR training AND ensures the tax documentation is prepared and filed.Just like medical plans rely on doctors and dentists, or housing plan has a network of knowledgeable & professional real estate agents, builders and lenders to choose from
The Consortium’s group housing plan supports all size employers, self-employed, members of associations, organizations and unions. The plan can be acquired directly with the administrator or through membership of supporting organizations like the Urban League, Hispanic Chamber or your local Chamber of Commerce.
Employer are wise to pro-actively strengthen their community with programs and benefits like EAH. Historically employers have found that the government will often rely on them to correct negative economic trends in the nation, such as health care, social security and retirement benefits, and shortages in tax revenue. The Consortium’s group plan addresses current economic trends to strengthen a community:This plan provides income tax revenue. While our nation was conceived with voluntary tax for the first 2 years, no one volunteered. These housing funds do not require repayment, they are taxable.This plan supports economic development efforts to attract employers. If a company is relocating to an area and all factors are equal in the two competing communities, the city or state with an employer plan that moves the company’s employees will be selected.City and state governments rely on property tax revenue for services to the taxpayers. Vibrant housing markets create and sustain property tax revenue. Currently a home in Marion county sells for 90% of its listed price which means values are not stabilizing. Home owner education on a buyer’s federal rights reduces violations by interest parties & supports foreclosure preventionStrong regional employers create economically strong communities. Benefits are used to strengthen an employer’s compensation to the employeesOur regional housing market is distressed. The flexible design of this plan ensures the money generated from the sale of the home stays in the community where the home is. The local agents and local lenders receive 100% of their compensation unlike the majority of execution relocation plans. This housing plan design promotes home price stabilization. Just as economic gardening investments in the employers already in a community, this plan invests in the real estate professionals, builders and lenders in the community.When people invest in the community where they live it strengthens the community and provides important services to the residents. The reinvestment component of this plan strengthens the churches, temples, synagogues, schools, hospitals, and organizations that provide these services. The employee’s choice of recipient's is broad and serving individuals in need is also encouraged.
Housing plans are a very flexible employer benefit that have demonstrated success in our communities. Some executive relocation administrators like Cartus report 63,000 assisted home sales from the use of their housing plan. We believe that this group housing plan is a strong resource for meeting the employer’s needs, the employee’s needs, while strengthening our distressed region economically. Are there any questions?
Employer Consortium & Supporting Network Affordable housing plans for the general workforce
EAH has been used in the nation since the 1700’s to support employers & their employee’s needs
Copyright 2010 What is EAH? Most commonly known employer housing assistance plan Executive Relocation Housing Plans
Copyright 2010 3 Employees are a company’s most valuable asset. Housing plans attract and retain valuable employees. Benefits that meet the needs of Generations X, Y, & Z can be difficult to structure. Housing plans assist young professionals, growing families & ‘empty nesters.’ Benefits must be flexible as well as affordable. Housing plans are flexible & can be designed for affordability. What’s the benefit to the employer?
What does the Consortium’s EAH housing plan do for employees? For well-qualified employees who are buying a home these funds can:
Assist in the financial needs that ensure an employee succeeds as a homeowner.
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5 Copyright 2010 Employee responsibilities? DRH, the administrator, will wire your funds to the selected account
The Consortium’s group housing plan & supporting network
Allows the employer to meet their need to relocate an employee.
Allows the employer to support an employee who wishes to relocate to meet their family’s needs.
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7 The Consortium supports employers, the self-employed, associations, labor unions. Organizations and employers can sign up directly by calling the Consortium’s administrator, DRH. The Consortium’s housing plan is often part of an organization’s membership benefits. Check with your Chamber of Commerce, Urban League, Hispanic Chamber, Labor Union, or Association. Contact your organization directly and inquire if they offer the Consortium’s EAH housing plan. Copyright 2010 Acquiring the housing plan
Copyright 2010 8 Strengthen your community with a housing plan that employers can embrace
9 Copyright 2010 Questions? Let’s cover the frequently asked questions More specific questions? Call the administrator at 800-514-7980