Gulf Coast Renaissance Corporation

REACH Mississippi - Resources for Employers

The Gulf Coast Renaissance Corporation launched its REACH Mississippi program on Monday, Aug. 25, with a media campaign that includes television and print advertising. Employers may get questions from their employees about this program that will provide about 2,000 working families on the Mississippi Coast up to $40,000 in down payment assistance to help purchase homes. To help employers prepare for these questions, Renaissance has prepared a Guide for Employers. Click here for a pdf of the Guide.

Click here to contact the REACH Coordinator for your area.

Start by assessing the needs of your employees using a employee housing needs survey. Sample.

SAMPLE REACH FORMS, DOCUMENTS AND LEGAL AGREEMENTS download explanation of documents
Memorandum of Understanding - Renaissance, Employer & Community Housing Partner	The Memorandum of Understanding (MOU) is between the Renaissance Corporation, the employer and the non-profit community housing partner. The MOU indicates the eligibility requirements for the Renaissance matching funds and the employer’s forgivable loan. It also details the roles and responsibilities of each party in administering the REACH Program.
Employee Housing Survey - Employer & Employee	The Employee Housing Survey is administered by the employer to assist in determining the housing needs and employee interest in receiving assistance. The survey is conducted during the initial program set up time period.
Eligibility Application Form - Employer & Employee	The Eligibility Application Form is made available to employees at their place of employment to complete and submit requesting participation in the REACH Program. The form is reviewed to determine whether or not the employee meets the employer’s internal eligibility requirements. The form is sent to Counseling Partner along with the Employee Referral Form.
Employee Referral Form - Employer & Counseling Partner	The Employee Referral Form is completed by the employer. The form confirms the employee meets the internal eligibly requirements to enter the REACH Program. The form is sent to the Counseling Partner along with the Eligibility Application Form.
Release and Authorization Form - Counseling Partner & Employee	The Release & Authorization Form is signed by the employee giving approval to the counseling partner to obtain financial information on the employee and co-applicant.
Approval of Funds Form – Counseling Partner & Employee	The Approval of Funds Form is completed by the Counseling Partner once the employee has fulfilled all the counseling and education requirements. The form lists the funds that the employee is eligible to receive from the REACH MS Program. The lender will include this form in the reservation package to MS Home Corporation as verification for REACH matching funds.
Initial Funds Reservation Form - Employer & Counseling Partner	The Initial Funds Reservation Form is complete by the counseling partner and sent to the employer. The form indicates the employee has met the eligibility requirements and requests funds to be held for an indicated number of days.
Confirmation or Cancellation of Reservation Form - Employer & Counseling Partner	The Confirmation or Cancellation of Reservation Form is complete by the employer and sent to the counseling partner. The form indicates that the loan funds have been reserved for the employee for 90 days. The employer would send the form to the Counseling Partner if the employee is no longer eligible for funds due to expiration date or employment status change.
Notification of Closing Form - Counseling Partner & Renaissance	The Notification of Closing Form is complete by the counseling partner and sent the Renaissance Coordinator. The form indicates the closing date for the employee’s home purchase and the closing attorney information.
Release of Funds Authorization Form - Counseling Partner & Employer	The Release of Funds Authorization Form is complete by the counseling partner and sent to the employer. The form indicates the closing date for the employee’s home purchase and a request for the employer to send the fund check, Deed and Promissory Note if applicable directly to the closing attorney.
Promissory Note - Employer & Employee	The Promissory Note is between the employer and the employee. The note indicates the loan value and terms of repayment on the 2nd mortgage. The document is executed at closing by the closing agent and held on file.
Land Deed of Trust - Employer & Employee	The Land Deed of Trust is between the employer and the employee. The note indicates the location and description of the property, loan value and terms of repayment. The document is executed at closing by the closing agent and held on file.

How the program works:

As proposed, Renaissance will assist employers in setting up an Employer Assisted Housing (EAH) program. A designated community partner, such as DASH for the Gulf Coast, Enterprise Corporation for the Delta or International Relief and Development, will guide employees step-by-step through the application and home buying processes reducing the in-house resources needed to maintain the program.

Based on employer-determined criteria, EAH-qualified employees will be offered a pre-determined amount to help them purchase homes. This amount will be a second mortgage on the home structured according to employer’s specifications, but will typically be forgivable over a five-year period of employment.

Under the proposed REACH program, employees earning less than 120 percent of the area median income could then qualify for three-to-one matching funds to further offset the costs of home ownership. This third interest-free mortgage will be silent, coming due only when the home was sold or refinanced.

If an employer were to offer a $5,000 EAH benefit, the employee could then qualify for $15,000 in matching REACH funds, giving him/her a total of $20,000 to help offset the rising costs of homeownership in South Mississippi.

REACH also includes a proposed rental component, offering three-to-one matching funds for one year of rental assistance to qualified employees. Rental funds would be gifts, rather than loans.

*The availability of State and Renaissance funds to a qualified home buyer are limited and subject to availability at the time the request is received.

Employer Benefits

Improved employee retention
Reduced recruitment and retention costs
A benefits package with a competitive edge
Subsidized assistance for relocating employees
Reduced commutes, stress and absenteeism for employees
State and federal tax benefits
Leveraged state assistance for employees
Community reinvestment
Reduction in turnover
Increased employee homeownership and workforce stability

Employee Benefits

Down payment and closing cost or rental assistance
Help with resolving poor credit history
Ability to live closer to work (reducing stressful commutes)
Allows employees to put down roots through homeownership
Prepares them for home ownership with step-by-step homeownership education course

Reach Partner Roles

Renaissance Corporation will serve as sponsor and program coordinator. Its role will include helping employers develop and support EAH programs, marketing the REACH program, tracking outcomes, recycling funds and auditing the program.
Employers will establish EAH programs and work with Community Partners to ensure employee compliance with counseling requirements.
The State of Mississippi will provide matching funds through Community Development Block Grants.
Mississippi Home Corporation will administer REACH homeownership funds. MHC will review loan documentation, amount needed for down payment and closing costs, REACH eligibility, and monitor the loan during the compliance period. MHC issues a check to the closing attorney out of MHC funds and is reimbursed by Renaissance after the loan closes.
Community Partners will provide assistance directly to employees, guiding them step-by-step through the process.

EAH Employee Criteria

The criteria for employees to participate in the EAH program will be shaped by employers’ internal assessments of employee needs and may include:

The need to rebuild a storm-damaged home
Length of time the employee has been with the company
Employee/household income limit
Employee is first-time home buyer
Location of home to be purchased is within specific neighborhoods or a certain distance of the work place

Five Steps to Implement an EAH

Step 1 – Create an EAH Team:

Internal – Should consist of key decision makers such as Human Resources, Finance, Legal, Communications & Senior Management.
External – Renaissance & Non-profit Community Partner

Step 2 – Conduct a Needs Assessment:

Distribute an Employee Housing Survey to understand the needs of the employees.
What are the employer’s recruitment and retention goals?
Are there specific recruitment or retention issues for certain groups?
What are the employer’s budget options?

Step 3 – Developing the EAH Employee Plan:

Determine employee benefits and eligibility requirements to qualify for EAH program participation
Get approval of senior management
Select staff to manage the EAH benefit program (usually a Human Resource staff member).
Finalize annual budget
Finalize service fees to community non-profit partner.

Step 4 – Announcing the EAH Employee Plan:

Create brochure and flyers for in house employees
Issue external press release
Hold in house event to launch the program with community partners, lenders and Renaissance staff participating in question and answer opportunity.

Step 5 – Implement the EAH Employee Plan:

Verify employee eligibility once application is received.
Forward eligible employees to non-profit community partner to begin homeownership counsel process.
Provide funds at closing for each employee that completes the counseling process and purchases a home.
Maintain tracking reports on employee status.

Employee Qualification Process

Employee completes eligibility application in Human Resources.
Employer verifies employee is eligible to participate and forwards referral application to Community Partner
Community Partner enters employee into pre-purchase homebuyer education classes.
Lender determines what type of loan is available to employee and if they are eligible for Renaissance matching funds.
Employee selects and makes offer on home.
Community Partner contacts employer to reserve funds for employee.
Lender collects all information necessary to qualify employee for REACH matching funds and submits documents to MS Home Corporation*.
Lender schedules closing date.
Employer issues check to closing agent.
Employee closes on home purchase.
Employee attends post-purchase homeownership education classes with Community Partner.

*The availability of State and Renaissance funds to a qualified home buyer are limited and subject to availability at the time the request is received.

Area Median Income:

Employees must earn less than 120 percent of the area median income to qualify for REACH funds. Workers living in Harrison or Hancock counties with a household income less than $58,800 (family of four) qualify for the program. In Jackson County, the household income (family of four) cannot exceed $64,320.

The following chart shows qualifying incomes based on household size:

Household Size

Jackson Co.

Harrison and Hancock Co.

Individual

$45,000

$41,150

Two People

$51,450

$47,050

Family of three

$57,900

$52,900

Family of Four

$64,300

$58,800

Family of Five

$69,450

$63,500

Family of Six

$74,600

$68,200

*The availability of State and Renaissance funds to a qualified home buyer are limited and subject to availability at the time the request is received.

Please contact the REACH Program Director at reach@msgcrc.com or 228-896-3386 for more information regarding the REACH Mississippi Employer Assisted Housing Program.

Equal Housing Opportunity Statement:
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin.