Michele schnitker 071210

St. Louis Park’s Live Where You Work Homeownership Assistance Program

Provides employees of St. Louis Park businesses with a grant towards the purchase of a home in St. Louis Park near their place of employment.

The City will provide a grant up to $2,500 to an eligible employee.
An additional $1,000 if purchasing a vacant foreclosed property.
Employers will also be invited to contribute a matching or lesser amount to the City’s contribution.

The employee must obtain a first mortgage through a participating lender or a lender approved to adminster MN Hsg loan products.
The employee assisted grant can be used to assist in financing the down payment, closing costs, gap financing, or to remedy a maintenance ordinance violation.

Employees Benefit
opportunity to attain the “American Dream” of owning a home.
create a positive community-building environment within the company and the City.
reduce commute time and cost.

Employers
impact the operation of St. Louis Park businesses and reduce costs.
can reduce SLP employer’s recruitment and retention costs by attracting and keeping good employees.
gaining public recognition as a business leader by “doing the right thing” for their employees.

Employer/City Collaboration
offers an opportunity for the City to collaborate with local businesses,
to enhance the City’s relationship with employers in the community,
make homeownership more affordable, revitalize SLP neighborhoods and schools,
encourage shorter commutes and set an example for other communities.

Partners
St. Louis Park Employers
Participating Banks:
Associated Bank,
Bremer Bank,
Citizens Independent Bank,
UsBank Home Mortgage, and
WellsFargo

Community Action Partnership for Suburban Hennepin
1st time homebuyers (not had an interest in a home for at least 3 years) will be required to participate in a homebuyer education classes. Completion of the Home Stretch Workshop may qualify persons for special financing, down payment assistance and/closing cost assistance.

Key Program Components
$2,500 deferred loan for the purchase of home in St. Louis Park if you are employed in St. Louis Park.
Employers will be invited to contribute a matching or lesser amount to the City’s contribution.
The homebuyer must have been employed at the St. Louis Park business for at least 6 months.

Key Components
The deferred loan will be forgiven after three years if the buyer remains eligible.
Household income limit of 120% of median area income based on family size.
No limit on property value; limits apply if buyer is utilizing state 1st time homebuyer mortgage products.
Only applies to 1 unit home; must be primary residence (condos & townhomes included).

Foreclosed Properties
buyers purchasing foreclosed properties in St. Louis Park are eligible for an additional $1,000 grant from the City.

To Date
Program has been in place for 1 year.
8 buyers
7 previous rented/1 owned
6 were St Louis Park residents
Average Income: $55,282

Average Purchase Price: $127,025
7 single family homes/1 condo
4 of the homes were foreclosures
7 utilized 1 st time homebuyer products
2 employer participation

Michele schnitker 071210

by National Housing Conference & the Center for Housing Policy on Jul 13, 2010

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Michele schnitker 071210 — Presentation Transcript