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Mayor pushes employer-assisted housing
Plan encourages Downtown workers to live in city limits
Thursday, March 26, 2009

Hey, boss, can you help me buy a house?

That would be an oft-heard question in city workplaces if Pittsburgh Mayor Luke Ravenstahl has his way, and employers got back into the business of helping their employees to buy homes.

He's not looking for a return to the days when the mills built row houses for the workers. But by introducing employers, foundations and developers to employer-assisted housing yesterday, he put a new spin on the concept.

"One of our goals has continued to be keeping people in the urban core, and living close to work, and if we have any assistance from employers, it's a win-win for us," said Mr. Ravenstahl, after bringing a Chicago-based employer-assisted housing consultant to town for a day.

Dawn Stockmo, with Chicago's Metropolitan Planning Council, brought success stories like the Illinois Institute of Technology to an audience that included representatives of PNC Financial Services, U.S. Steel, the University of Pittsburgh Medical Center, the West Penn Allegheny Health System and Federated Investors.

IIT worked with the Chicago Housing Authority, which was transforming the nearby Michigan Place public housing towers into the mixed-income Stateway Gardens community. It offered staff members $2,500 toward down payments on homes in the development.

"We wanted to encourage faculty and staff to move into the community where the university is," said Leroy Kennedy, vice president of community affairs for IIT.

IIT has increased the amount to $10,000 while broadening the area in which workers can buy houses with the benefit.

Mr. Ravenstahl said it can happen here, too, and the city's Urban Redevelopment Authority will help any employer interested in setting up a program. URA Executive Director Rob Stephany said the agency might be able to shift federal funds to help bolster the benefit.

"We think that $2,500 or $5,000 or whatever the number may be is that carrot at the end of the stick that is going to help people make the decision to live near their place of employment, to continue to live in the city," the mayor said.

Ms. Stockmo painted a portrait of a program that doesn't cost much, but steadily builds employee loyalty and community population. Her agency has helped put 1,500 people into homes in 10 years.

The Chicago Public Schools, for instance, offer new teachers as much as $7,500 in loans -- forgiven after five years if they're still with the district -- to cover costs of buying a home in an otherwise expensive market. They also get credit counseling and help finding solid mortgages.

Of the 23,000 teachers in the city, 770 have used the program since 2005, and 94 percent have stayed with the district. Just two have been foreclosed.

The district defrays the cost using a state tax credit.

Loyola University lends as many as 25 staff members each year as much as $10,000 each to buy homes in areas around its campus or near the transit line that runs through it.

"It really does help stabilize the workforce," said Ms. Stockmo. "It helps revitalize a neighborhood around a campus."

A few local employers have started employee-housing programs.

Allegheny General Hospital began in 2005 to coordinate a program in which employees who save money to buy a home can get a $2,000 grant from the state, plus a favorable mortgage through a program run by the Northside Leadership Conference. Fourteen employees have bought homes through the program.

West Penn Hospital offers employees all of that, plus $1,000 toward closing costs for first-time homebuyers if they're buying in five ZIP codes around Bloomfield. So far, only one employee has been approved for the first-time homebuyer grant, and the hospital is considering loosening eligibility rules.

"We think this is a great program and we are committed to encouraging our employees to stay active in the surrounding communities," said Stephanie Waite, a West Penn spokeswoman.

"The success of the program is going to be based in large part on you folks' interest in participating," Mr. Ravenstahl told attendees at the employer meeting. He later met with foundations and housing developers, groups that can help fund or support employer-assisted housing, according to Ms. Stockmo.

Rich Lord can be reached at rlord@post-gazette.com or 412-263-1542.
First published on March 26, 2009 at 12:00 am