James City County Employer Assisted Home Ownership Program
Participating employees’ savings are matched on a dollar for dollar basis up to a maximum of $3,000 to assist the employee to purchase a primary residence in James City County or the City of Williamsburg.
Program Objectives:
- To have County employees live in the County they serve, which has a value to the community.
- To assist in the retention of employees by securing their proximity to their County workplace in housing which is affordable over the long term.
- To serve as a demonstration project for other employers in the area, which would provide:
- A workable model to assist existing employers experiencing retention problems.
- A means to encourage employers to participate financially in securing affordable housing for their employees.
- A means to leverage other resources for affordable housing finance as well as CDBG funding for continuing the current Countywide Home Ownership Program.
Design:
- Elements of this program are patterned after the successful Community Development Block Grant (CDBG) Home Ownership Program currently administered by James City County’s Office of Community Development.
Eligibility and Selection Criteria:
- Permanent or limited-term full-time employees of James City County, James City Service Authority, James City County Transit, Williamsburg Regional Library, James City County Constitutional Officers, and the Office of the General Registrar
- Maximum household income 110% of the area median income adjusted for family size as established by HUD at the time of enrollment in the program
- Employees who do not own a primary residence in James City County or City of Williamsburg
- Applicant must meet or must agree to actions necessary to meet mortgage loan eligibility and qualification criteria at the end of the savings term. Income, household budget, debt payments, credit and other qualification criteria will be assessed.
Program Policies:
- Applicants must first attend an informational meeting and then complete an application including credit report release form.
- If more than ten applications are received by the specified application deadline, a lottery will be used to rank applications for processing.
- Selected applicants must meet with a counselor to review eligibility to receive the match of existing savings or to establish savings and associated goals, and to review program requirements. Advisory Board reviews application, documented savings, and/or savings goals, and approves enrollment of employees for either immediate match or savings program. Advisory Board also reviews staff recommendation to suspend or terminate employee contracts.
Program Contract Terms and Requirements:
- If employee is a first-time homebuyer, participant must attend a first-time homebuyer class.
- If approved for immediate match, employer match funds will be available to participant for an initial period of six months renewable in six month increments for up to two years following enrollment into the program and completion of first-time homebuyers class, if applicable.
- If approved for savings program, participant must:
- Deposit agreed upon amount, not less then $25 per month, in a savings account. Participant shall select their own financial institution. Savings by the participant prior to the contract date may be counted towards a maximum of 50% of the savings goal.
- Meet with counselor on a quarterly basis to review goals and savings account transactions.
- Complete financial planning and home buying education seminars.
- Agree to a contract term with a minimum of six months and a maximum of three years to meet savings and education requirements. Employer match funds to be available to participant for a period of two years following completion of savings and education requirements.
Matching Funds Terms:
- Match funds must be used along with matched employee savings to pay closing cost and/or used as a down payment to purchase a primary residence in James City County or the City of Williamsburg.
- Match funds will be disbursed at closing of the home purchase after examination of the closing statement.
- Match funds to be provided in the form of a non-interest bearing forgivable loan secured by a personal note. Loan indebtedness to be forgiven over 50 months (1% per pay period). Participant qualifies for forgiveness of debt as long as he/she remains a full-time employee of JCC/JCSA and owns and occupies as his/her primary residence a home in JCC and Williamsburg.
- Match funds are taxable as the debt is forgiven (i.e. Participant who received $3,000 in match funds would have taxes deducted on $30 per pay period for 50 months following disbursement of the match funds.)
Area Median Family Income Limits for 2006 |
||||||||
Household Size |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
110% |
46,420 |
53,020 |
59,730 |
66,330 |
71,610 |
76,890 |
82,280 |
87,560 |
Call Shirley Johnston at 220-1272 for more information.