City of Alexandria, Virginia
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MEMORANDUM
DATE: SEPTEMBER 4, 2020
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Public Hearing, Second Reading, and Final Passage of an Ordinance to Amend City Code Section 2-5-31 Regarding the Employee Homeownership Incentive Program to Update Assistance Amounts Pursuant to FY 2021 Budget.[ROLL-CALL VOTE]
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ISSUE: Consideration of amendments to City Code Section 2-5-31 regarding the Employee Homeownership Incentive Program to revise assistance amounts pursuant to the FY 2021 budget.
RECOMMENDATION: That City Council hold a public hearing, second reading and final passage of the ordinance amending one Employee Homeownership Incentive Program on September 12, 2020.
BACKGROUND: In the proposed FY 2021 budget, the City Manager recommended that the levels of down payment and closing cost assistance provided through the EHIP to eligible employees be increased to induce and enable more City employees to live where they work. The recommendation was among a group of enhancements to the overall employee benefit package. Currently, only 13% of City employees live in Alexandria, and having sufficient savings for down payment and closing costs is among the most frequently cited barriers to employees deciding to buy homes here.
The current ordinance designates a maximum amount loan amount of $10,000. The intent at this time is that EHIP assistance be provided on a tiered basis, depending on the employee-applicant's household income, as shown below. As proposed, the maximum EHIP assistance would increase to $15,000.
(1) $15,000 for applicants with household incomes up to or below 80% of the Area Median Income (AMI)
(2) $11,500 for applicants with household incomes ranging from 80 - 120% AMI
(3) $7,500 for applicants with household incomes greater than 120%+ AMI
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