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Housing Program for Low Wage Workers

Milwaukee's Alexian Village addresses employee and community needs through innovative housing project
www.alexianvillage.org

MILWAUKEE — Benefits offered by employers tend to fall into standard categories such as health insurance, paid vacation and sick time, and retirement plans. In addition to these commonly expected programs, Alexian Village of Milwaukee—a long-term care facility and part of Alexian Brothers Health System—offers its more than 300 employees an unusual perk: financial assistance in purchasing their first home.

"About eight years ago we looked at community needs and realized that housing was an important need for our employees as well as the community at large," said Gary Mohn, president/CEO of Alexian Village. "Our employees typically had long commutes and paid high rents for small apartments; in addition, the neighborhood surrounding our facility had deteriorated."

After considering these situations, administrators came up with a unique plan to both revitalize the neighborhood and assist employees in obtaining more affordable and permanent housing. North Meadow Homes, a deteriorating 570-plus-unit condominium complex less than a mile from Alexian Village, was an ideal site.

The long-term care facility's administrators determined it was necessary to take a collaborative approach to the project. Alexian Village worked with many groups, including the city of Milwaukee, Fannie Mae, and local financial institutions, to develop a long-range plan to redevelop the condominiums.

"The plan was to renovate units and work with Fannie Mae to make mortgage payments more accessible," said Mohn. "We also developed and offered a financial counseling process [for prospective buyers], which made it possible for employees who probably never aspired to own a home to participate in the program."

Alexian Village has helped clean up and improve the site, including adding landscaping and lighting and improving the roadway and parking lot. "The renovation of individual units is ongoing," said Mohn. "A total of 220 are now owner-occupied. The long-term goal is to have each unit owner-occupied."

Employees with no credit history or a poor credit history can become eligible for a mortgage by completing classes on financial topics related to home ownership. In addition, they are given assistance in cleaning up their credit history and resolving any outstanding debts. Successful completion qualifies the applicant to receive a down-payment grant from the state to purchase a renovated three- or four-bedroom condominium at below-market cost.

"Alexian Village provides financial incentives for participation in this project," said Julie Pommering, director of human resources. "If an employee saves $1,000, then Alexian Village provides $2,000 and the federal government provides $2,000. [The initial $1,000] comes out of their paycheck and is put in a special account during the year before purchase of the home."

This process, according to Mohn, is vital to the success of the project. "We don't want to set them up to fail," he said. "The process improves their self-control and pride, gives them a sense of hope, and eases anxiety."

Because of the importance of the topics covered, Alexian Village encourages all employees to attend the financial concepts classes, regardless of whether or not they intend to purchase a home through the program. "Many are single moms, living paycheck to paycheck," said Mohn. "Working toward a better future is often not part of their thought process."

One long-term goal of the program is to expand it to other local businesses; Alexian Village has created a civic group to encourage this growth. "There is lots of development in the area now," said Mohn. "The project has improved employee satisfaction as well as the local community. With the city's help, financial institutions are more willing to take these sorts of risks."

According to Mohn, the housing program fits the Brothers' mission well. "The values behind the program are dignity and care of the poor and care for the holistic health of the community. If you support employees, you make them better employees; this type of project has an emotional impact because it is not an expected benefit."

Pommering agrees. "This program helps them feel a sense of accomplishment—not just in their day-to-day work, but also in their personal lives."