City approves new Employee Home Ownership Program
EAST LANSING, Mich. — The city of East Lansing and Michigan State University have announced a new program which will make living within East Lansing’s boundaries more affordable for employees.
The Employee Home Ownership Program was approved by the East Lansing City Council’s at its July 29 work session. The program encourages employees of the city and university to purchase a home in East Lansing and will award $5,000 loans to be used for closing costs on homes in the Bailey, Southeast Marble, Red Cedar, Chesterfield Hills/Central and Oakhill neighborhoods.
“This exciting, new joint initiative will offer city of East Lansing and MSU employees a new incentive to purchase a home in the community in which they work,” said East Lansing Mayor Victor Loomis. “The EHOP program will allow a larger base of city and MSU employees to experience the high quality of life East Lansing has to offer, while simultaneously encouraging retention of the East Lansing work force and reinvestment in East Lansing's older, historic neighborhoods.”
MSU President Lou Anna K. Simon said: “Michigan State University is pleased to partner with the city of East Lansing on programs like EHOP that encourage employees of the city and the university to purchase homes and live in our shared community. East Lansing is a wonderful home for MSU, our students and employees. Collaborating on initiatives such as this help to build a stronger, more unified and inclusive community in which to live and work.”
The city and MSU will each contribute $15,000 to Hometown Housing Partnership Inc., a nonprofit housing organization that will administer the program for fiscal year 2008-09. Three qualified city and three qualified MSU employees will be selected on a first-come, first-served basis after turning in a completed and approved application packet.
The loan will be forgiven at a rate of 20 percent each year. After five years of living in a home purchased under the assistance program, the forgivable loan will be considered paid in full if all of the requirements of EHOP have been met. Participating employees must be preapproved for a conventional mortgage and each purchased home will be deed restricted for 15 years for nonrental occupancy. Employees also will need to identify a home for purchase in one of the target areas.
Application packets will be available Aug. 18. Packets can be picked up in the East Lansing Department of Human Resources at City Hall, 410 Abbot Road; or in the MSU Department of Human Resources, located in room 110 of the Nisbet Building, 1407 S. Harrison Road.