Michele schnitker 071210


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Michele schnitker 071210

  1. 1. St. Louis Park’s Live Where You Work Homeownership Assistance Program
  2. 2. <ul><li>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. </li></ul>
  3. 3. <ul><li>The City will provide a grant up to $2,500 to an eligible employee. </li></ul><ul><li>An additional $1,000 if purchasing a vacant foreclosed property. </li></ul><ul><li>Employers will also be invited to contribute a matching or lesser amount to the City’s contribution. </li></ul>
  4. 4. <ul><li>The employee must obtain a first mortgage through a participating lender or a lender approved to adminster MN Hsg loan products. </li></ul><ul><li>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. </li></ul>
  5. 5. Employees Benefit <ul><li>opportunity to attain the “American Dream” of owning a home. </li></ul><ul><li>create a positive community-building environment within the company and the City. </li></ul><ul><li>reduce commute time and cost. </li></ul>
  6. 6. Employers <ul><li>impact the operation of St. Louis Park businesses and reduce costs. </li></ul><ul><li>can reduce SLP employer’s recruitment and retention costs by attracting and keeping good employees. </li></ul><ul><li>gaining public recognition as a business leader by “doing the right thing” for their employees. </li></ul>
  7. 7. Employer/City Collaboration <ul><li>offers an opportunity for the City to collaborate with local businesses, </li></ul><ul><li>to enhance the City’s relationship with employers in the community, </li></ul><ul><li>make homeownership more affordable, revitalize SLP neighborhoods and schools, </li></ul><ul><li>encourage shorter commutes and set an example for other communities. </li></ul>
  8. 8. Partners <ul><li>St. Louis Park Employers </li></ul><ul><li>Participating Banks: </li></ul><ul><li>Associated Bank, </li></ul><ul><li>Bremer Bank, </li></ul><ul><li>Citizens Independent Bank, </li></ul><ul><li>UsBank Home Mortgage, and </li></ul><ul><li>WellsFargo </li></ul>
  9. 9. Community Action Partnership for Suburban Hennepin <ul><li>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. </li></ul>
  10. 10. Key Program Components <ul><li>$2,500 deferred loan for the purchase of home in St. Louis Park if you are employed in St. Louis Park. </li></ul><ul><li>Employers will be invited to contribute a matching or lesser amount to the City’s contribution. </li></ul><ul><li>The homebuyer must have been employed at the St. Louis Park business for at least 6 months. </li></ul>
  11. 11. Key Components <ul><li>The deferred loan will be forgiven after three years if the buyer remains eligible. </li></ul><ul><li>Household income limit of 120% of median area income based on family size. </li></ul><ul><li>No limit on property value; limits apply if buyer is utilizing state 1st time homebuyer mortgage products. </li></ul><ul><li>Only applies to 1 unit home; must be primary residence (condos & townhomes included). </li></ul>
  12. 12. Foreclosed Properties <ul><li>buyers purchasing foreclosed properties in St. Louis Park are eligible for an additional $1,000 grant from the City. </li></ul>
  13. 13. To Date <ul><li>Program has been in place for 1 year. </li></ul><ul><li>8 buyers </li></ul><ul><li>7 previous rented/1 owned </li></ul><ul><li>6 were St Louis Park residents </li></ul><ul><li>Average Income: $55,282 </li></ul>
  14. 14. <ul><li>Average Purchase Price: $127,025 </li></ul><ul><li>7 single family homes/1 condo </li></ul><ul><li>4 of the homes were foreclosures </li></ul><ul><li>7 utilized 1 st time homebuyer products </li></ul><ul><li>2 employer participation </li></ul>