Employees: 9,800 (excluding working students)
The University of Cincinnati (UC) has taken a dramatic step to encourage employees to walk to work: they offer a $2,500 loan to any employee willing to buy a home close enough that they can walk to work. The organization created this program out of a belief that helping employees buy homes in the neighborhoods adjoining the campus would make the Uptown and Cincinnati areas a healthier and better place for all university members.
UC first started the home buying effort when the Homeownership Center of Greater Cincinnati (HCGC) approached the University with a partnership opportunity. Through their national organization, the HCGC had $50,000 that could be used in partnership with a major institution to increase homeownership. The program was developed such that UC employees who purchase a home in the nearby “Uptown” neighborhood can receive up to $2,500 in down payment assistance at no interest. Under this program, the employee needed to live in the house for up to 3 years and return the $2,500 when they sell the home.
The Walk-to-Work Program
To further this effort, the UC endowment set aside funds that could be used by employees to purchase homes close enough that the employee could walk to work. Those who qualify for the loan need to purchase their homes in one of seven Uptown neighborhoods near the university.
Applicants must have been approved by the Neighborhood Housing Services of Cincinnati, Inc. and/or another qualified mortgage institution. Applicants must submit a copy of approved loan documents at the time the “Walk to Work” application is made. The loans cannot exceed $2,500 and are only to be used for down payments and/or closing costs.
In a difference from the HCGC program, the UC program requires monthly repayment of the loan. The maximum period of repayment is two years in per pay period installments of principal and interest by payroll deduction, beginning the first pay period in the month after the loan is finalized. Loan applications are processed on a first-come, first-serve basis and as loan funds are available. Loans cannot be refinanced and payments are deducted as scheduled, waivers to defer payments are not granted.
Should the borrower cease employment at the University, any unpaid balance becomes due and payable at the end of the borrower’s full-time employment with the University. Should the borrower be unable to satisfy the loan at that time, such balance may be refinanced at prevailing market rates. The interest rate for loans is 6%.
The university completed all the campus mailings to employees promoting the partnerships and the Walk-to-Work Loan Program. They also established a contact person in the Benefits office to coordinate the loan program and refer employees to appropriate non-profit mortgage counselors and other organizations, where appropriate. They also issued regular reminders about the program to the employees in their payroll stubs.
Results
In the sessions in June 1999, 300 employees responded to information about the program.
In 2001, 11 UC employees went through the Homeownership Center’s program and purchased a home somewhere in Cincinnati, as well as the Uptown area.
Three loans were issued to UC employees who purchased homes in the Uptown area.
Strengths
Innovative Ideas
Lessons Learned
Contact Information
Personnel Asst - HR Service Center
University Of Cincinnati
Phone: 513-556-0370
