By Molly Matthews
  Thirty-four teachers in the Mississippi Delta are living in new homes, thanks to Fannie Mae's Employer-Assisted Housing programs, said Bruce Crain, director of Fannie Mae's Mississippi Partnership Office.
Recently, film crews were sent from Fannie Mae's Washington, D.C. office to highlight the Delta as one of the program's success stories. In this case, the 34 teachers participated through the teacher-assisted home loan program, but EAH applies to many industries and trades.
  "The program has given people who could not otherwise afford a new home an opportunity to buy one," Crain said. "This program in particular brought new teachers to the Delta. It's a win-win deal."
The Employer-Assisted Housing Program was developed in part because of Fannie Mae's ability to set secondary market standards and to provide liquidity for lenders.
  Fannie Mae, the nation's largest provider of home mortgage funds, partners with lenders and employers to make EAH loans possible. "When Mississippi employers factor in recruitment and training costs, loss of productivity associated with new hires, the EAH program can benefit employees, create better morale and loyalty and reduce overhead at the same time," said Crain. "In turn, it benefits the community with new taxpayers."
  Since Fannie Mae started EAH in 1991, more than 1,000 employees nationwide, who generally receive assistance with the down payment, closing costs and homebuyer seminars, have participated. EAH programs have been utilized in several Delta counties, including Yazoo, Sunflower, Leflore and Washington.
  The EAH program has been particularly attractive to healthcare companies that generally assist with the down payment and closing costs in communities near healthcare facilities, Crain said.
  "Hospitals, in particular, like having employees live close by," he said. Employers can design the program to attract the type of employees they need, he said. "EAH programs can apply to casinos, high-tech manufacturing firms, processing plants or wherever there is a need," Crain said.
  EAH options include a grant, a forgivable loan, deferred or repayable loans, matching savings, a loan guarantee or educational assistance in home ownership. Fannie Mae's EAH program requires employees to work two years to become eligible and to remain with company for additional five years to receive full forgiveness on loan.
Administrative costs differ according to the plans. An average company with 3,000 employees would typically require a part-time employee. "If you structure this like a second mortgage, there are some administrative costs associated with it," said Greg Awad, senior business manager for Fannie Mae. "If you structure it as a forgivable loan or a grant, the administrative costs are minimal. The most common option is down payment and closing cost assistance. It's easier to administer and less of a risk for the employer."
  The biggest hurdle selling EAH to employers is money spent, said Awad.
  "Benefits through savings in reduced turnover, increased employee morale and reinvestment in the community don't always translate back to dollars," he said. "The more common questions employers ask is 'How do I weave this into my benefits package and justify the additional cost?' This program was worked very well for employers in today's tight labor market."