NAR Promotes Employer-Assisted Housing

Washington, DC, May 18, 2007--Housing costs in many areas have continued to rise, making it increasingly difficult for many people to live near where they work, said Mike Szymanski, legislative aide to U.S. Sen. Hillary Rodham Clinton (D-N.Y.), during the National Association of Realtors Midyear Legislative Meetings & Trade Expo. 

Syzmanski talked to Realtors about the benefits of expanding employer-assisted housing (EAH) initiatives across the nation and the Housing America’s Workforce Act, which addresses the lack of affordable housing opportunities for private sector workers by promoting EAH programs. NAR supported a similar bill introduced into Congress in June 2005; however, the bill never became law.

Since 2003, NAR has sought enactment of an income tax credit or similar tax incentive for developing entry level and affordable housing. NAR also supports an incentive for employers to provide a downpayment assistance fringe benefit to their employees and to assure that employees will not be taxed on any cash or loan forgiveness benefit provided to them.

The bill was recently reintroduced by Sen. Clinton and U.S. Rep. Nydia Velazquez (D-N.Y.) in both chambers of Congress. The bill would provide tax relief to working individuals by allowing them to exclude funds from EAH programs from their taxable income; current law requires employees to include any housing assistance they receive from an employer as taxable income. The legislation would also encourage businesses to offer EAH programs to their workers by creating an employer tax credit for qualified programs. Finally, the bill would establish a grant program available to nonprofit housing organizations to provide technical assistance, program administration and education to support employers undertaking EAH programs.

"Realtors® build communities and care about the lack of housing opportunities available to a large portion of America’s low- and moderate-income workforce," said NAR President Pat V. Combs of Grand Rapids, Mich., vice president of Coldwell Banker-AJS-Schmidt. "Developing successful EAH programs can help employers reduce turnover, which helps lower training and hiring costs; increase employee morale; support bottom-line business goals and enhance the economic stability of the local community."

In 2006, NAR’s Housing Opportunity Program launched 'Home from Work,' with training and tools to help the nation’s 1.3 million Realtors® create more affordable housing opportunities for public and private sector workers by promoting the benefits of EAH programs. 'Home from Work' teaches and encourages Realtors® nationwide to work with local businesses to develop EAH benefits for their employees. The benefits can include one or all of the following: home buying workshops, one-on-one housing counseling offered by a Realtor® or in partnership with a nonprofit homeownership counseling organization, or an EAH financial incentive. NAR even provides employers with a free technical assistance toolkit to help develop a customized EAH plan for their workers.

"NAR’s 'Home from Work' is providing a valuable benefit to America’s workforce through increased access to more affordable housing and a chance to own their own home," said Combs.

NAR’s Housing Opportunity Program was created in 2002 with the mission of providing Realtors® with the tools and information they need to promote housing opportunities in their community, in both the rental and homeownership sectors of the market. The program encourages local Realtor® associations to create housing opportunity initiatives aimed directly at helping consumers gain access to housing. At this point, more than 600 state and local associations have such programs in place.