Calvert County Board of County Commissioners First to Join with State in Implementing Workforce Housing Initiative

Board to Provide Additional Incentives for Private Employer Participation Through Calvert Housing Opportunities Fund

PRINCE FREDERICK, Md., -- December 20, 2005 - The State of Maryland’s Department of Housing and Community Development (DHCD) recently reported that housing prices in Calvert County for the period 2000-2004 rose by 58 percent, while median incomes increased by only 13 percent. Clearly, while the cost of home ownership has risen dramatically, it is difficult for individuals such as police, teachers, firefighters, nurses and others upon whom our local economies, businesses and communities depend to afford home ownership. This is a problem throughout Maryland, with other jurisdictions reporting even higher housing price increases and lower median income increases.

In an effort to provide alternatives and assistance to the County’s private sector, local government and public school employees, the Calvert County Board of County Commissioners (BOCC) demonstrated their support today by signing a Memorandum of Agreement with the State of Maryland to participate in the State’s new “House Keys 4 Employees” (HK4E) program and also becoming a participating employer.

In 2003, efforts to increase home ownership for the workforce were launched by Lt. Governor Michael S. Steele through DHCD and the “More House 4 Less” program. Under this initiative, alternative mortgage options were made available for homebuyers to make financing more affordable in a rising housing market.

The new HK4E project creates an additional level of opportunity for affordable home ownership for the State’s working population. It is an employer partnership initiative that matches funds for closing costs and down payments for eligible employees who want to purchase a home. Eligible employees are those who have not owned a principal residence in the last three years, have a combined income limit of $89,300 for a one or two-person household or $102,695 for a three-person household and whose total home purchase price does not exceed $370,533 (with a maximum mortgage price of $312,895).

HK4E provides State matching funds up to $5,000 for employer and other local contributions to make the cost of buying a house more affordable for working people. The new partnership with DHCD will enable the County to incorporate the use of grants of up to $5,000 from the Calvert Housing Opportunities Fund (formerly the Affordable Housing Loan Fund).

For example, through a combination of State and local funds, eligible Calvert County employees could receive up to $15,000 toward closing and down payment costs for the purchase of a home:

• Participating Employer Contribution $ 2,500
• Calvert Housing Opportunities Fund Grant $2,500
• HK4E State Match $ 5,000
• Additional Available State DSELP/MMP Plus Loan $ 5,000
• TOTAL CLOSING COST/DOWN PAYMENT ASSISTANCE $15,000

David Hale, president of the BOCC, agrees that this is an initiative whose time has come. “'House Keys 4 Employees’ is designed to engage employers, realtors and employees to maximize the State grant contribution through the use of the Calvert Housing Opportunities Fund. We recognize the challenge that home ownership presents to many hard-working citizens in our County and, to demonstrate our support and commitment to this initiative, the BOCC will provide additional local match to private sector employers who participate. The BOCC will also join the program as a ‘participating employer’.” As a participating employer, the BOCC will provide matching funds for eligible County government and public school system employees. Local match for the private sector and public sector employees could total $5,000, equivalent to the State benefit/contribution.

Lloyd Harrison, Chair of the Calvert County Chamber of Commerce and President/CEO of Mercantile Southern Maryland Bank, agrees that this is an important benefit for the County. “Any assistance the County and State can provide to increase home ownership for our workforce is welcomed. From the Chamber of Commerce’s perspective, this initiative will be a valuable tool in our County’s ability to recruit and retain the very best employees,” he said.

For more information on “More House 4 Less” and affiliated programs, visit www.morehouse4less.com.

For more information on the Calvert County, Maryland Department of Economic Development, our visitor sites and attractions and the services available to assist County businesses, call 410.535.4583, 800.331.9771 or 301.855.1880; or send an e-mail to info@ecalvert.com