REACH Mississippi
Frequently Asked Questions
Q: What does REACH stand for?
A: Regional Employer Assisted Collaboration for Housing
Q: What is EAH?
A: Employer Assisted Housing
Q: What counties are eligible to participate?
A: George, Hancock, Harrison, Jackson, Pearl River and Stone
Q: What is the minimum or maximum an employer may contribute?
A: The minimum contribution is $5000 and the maximum contribution to be matched by REACH is $10,000.
Q: How much will the REACH program contribute?
A: REACH contributes a 3 to 1 match to the employer contribution not to exceed $30,000
Q: As an employer, what are my tax benefits for participating in the EAH and REACH programs?
A: The employer’s funds given are tax exempt at the state level only to employees with income level of 120% Area Median Income or below. Funds are subject to federal tax requirements. Renaissance’s contributions are considered a gift and are non-taxable.
Q: If an employee is eligible for EAH, will the employee automatically be eligible for REACH matching funds?
A: No
Q: Will the employee have any out-of-pocket expense?
A: REACH requires an employee to have a $500 minimum contribution at closing.
Q: As an employer, what is the process to implement an EAH and qualify for the REACH program?
A: Contact Renaissance to set up a meeting with a REACH Coordinator. The Coordinator will assist you in determining your internal eligibility criteria and explain the REACH matching fund criteria for the employee to qualify for the 3 to 1 matching funds.
Q: How do I know if my employees could benefit from these programs?
A: One of the REACH Coordinators can provide the employer with an employee housing needs survey that they may distribute to employees to gauge the current housing needs and income levels.
Q: What is Area Median Income (AMI)?
A: Area Median income is established by the US Department of Housing and Urban Development. It is based on the total number of persons living in a household for a particular area.
Q: Will any cash be disbursed to the employee?
A: No, all funds go directly to the loan closing in the form of a check made payable to the closing agent.
Q: Is the money a grant or loan?
A: Both the employer funds and the REACH funds are forgivable loans.
Q: What is a forgivable loan?
A: A forgivable loan is a loan that does not have to be repaid if certain conditions are met. The EAH loan is forgiven when the years of commitment to the employers are fulfilled by the employee. The REACH match is forgiven if the employee remains the principle occupant and owner of the home for ten years.
Q: Does the entire amount of funds given have to go towards the purchase of the home?
A: Yes. Both the EAH and the REACH Funds must go towards the purchase of the home for down payment, closing costs and other pre-purchase expenses. Any additional amount will go towards
the principle loan amount to reduce the total mortgage amount.
Q: Does the employee need to have good credit to sign up for the EAH program?
A: No. The homeownership counseling partners will help employees overcome credit challenges within reason through credit counseling at no charge to the employee.
Q: What decisions will the employer have to make?
A: 1) How much do you want to contribute? 2) Length of pre-employment to qualify? 3) Length of commitment to the employer in exchange for receiving funds?
Q: Which Homeownership Counseling Agencies are partnered with Renaissance to administer counseling?
A: As of now, the counseling agencies participating are DASH, Enterprise Corporation for the Delta, International Relief & Development, and Hancock Housing Resource Center. Mercy Housing & Human Development, Visions of Hope, Housing 2010, MS Faith Based Coalition & The Resource Foundation.
Q: Who may qualify for the program?
- A: A renter interested in becoming a homeowner (can’t have owned a home in the preceding 6 months); or
- A homeowner that who lost a home in Katrina and wishes to purchase a new home; or
- A person displaced to another state by Katrina who wishes to purchase a home in the six coastal counties; or
- A new resident to the six coastal counties.
Q: Can an employee plus their spouse apply?
A: Both may apply, however only one person per household can qualify for EAH and REACH funds.
Q: Can the employee use the funds to build a new home?
A: Yes. Counseling Partner will provide new construction requirements.
Q: Will the incomes of others be used to compute my household income?
A: Yes, The incomes of all persons who will be living in the home (over the age of 18 and are not full time students) you are purchasing will be included in the household income calculation.
Q: Can a mobile home be purchased using REACH funds?
A: No. Only conventional or modular homes are eligible.
Q: As the employer, what will my responsibilities include?
A: Determining who qualified for your internal EAH program, Maintaining accurate records/files of all participating REACH applicants and having a point of contact (usually an HR representative) to administer and process all paperwork.
Q: What are the legal options I can take to secure the loan given to the employee?
A: 1) The employer can choose to grant the money 2) do an unsecured loan 3) or a secured loan
Q: What happens to the unpaid loan if the employee quits or is terminated?
A: The repayment terms are predetermined by the employer at the time the EAH is set up through a REACH Coordinator.
Q: Do I have to pay for counseling services provided to the employee?
A: No, there is no charge to the employer or the employee for the counseling services provided.
Q: How does the employer’s contribution get to the closing?
A: The employer issues a check directly to the closing agent along with a Promissory Note and Deed of Trust if applicable.
Q: How long will it take for an employee to get to closing after the application and referral form are sent to the homeownership counseling agency?
A: It depends on the applicant’s credit challenges. The length of time is determined by the employee’s current financial situation. If serious credit rebuilding is needed, the process may take longer.
Q: If an employee’s household income is greater than the 120%, can they continue the program but not receive the REACH matching funds?
A: They will no longer be eligible to participate.
Q: If the employer is a developer with available homes, can the employer require their employees to purchase one of the employer’s homes?
A: No. The employee has the right to shop the market for a home of their choice.
Q: How is the lender selected?
A: The employee has the right to choose their lender. The lender must be a Mississippi Home Corporation approved lender to process and close the loan.
Find Out More
Contact the REACH Program Director via e-mail at reach@msgcrc.com, or call 228-896-3386.
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.
