Homeownership Within Reach: City Employees Get $10K Incentive Boost
Over the past several decades, the city of Baltimore has faced the significant challenge of a dwindling population, a trend mirrored in many of its industrial-age peers such as Cleveland and Detroit. From 2010 to 2020 alone, Baltimore witnessed an exodus of around 35,000 people, translating to a concerning 6% dip in its population. This decline parallels the loss of a considerable portion of manufacturing jobs that have sustained the city’s economy for generations. It is within this backdrop that the homeownership landscape in the city has contracted, prompting renewed efforts to bolster the housing sector, with a notable emphasis on municipal workers and “middle neighborhoods.”
Earlier in the month, Mayor Brandon Scott heralded an ambitious expansion of the City Employee Homeownership Program. This move seeks to rejuvenate these “middle neighborhoods” — pockets of the city that are characterized by moderate affluence and hence hold a pivotal role in fostering urban stability and promoting community welfare. Traditionally home to working and middle-class families, these areas offer affordable housing options, a feature that the revamped program aims to capitalize on to entice municipal employees to plant roots in Baltimore.
The revamped initiative represents a substantial enhancement of the existing provisions, effectively doubling the down-payment assistance from $5,000 to a remarkable $10,000 for homes in selected middle neighborhoods. This amplified assistance, slated to run for a year, embodies the city’s strategic vision to spotlight these critical neighborhoods while empowering its dedicated cadre of city workers. According to a press statement, this is a deliberate endeavor to “highlight the city’s middle neighborhoods strategy and empower its dedicated city workforce.”
Looking at the broader picture, this initiative by Baltimore could potentially spearhead a trend amidst the ongoing affordable housing crisis, leveraging housing incentives to attract and retain government workers, posits Cara Welch, the CEO of the Public Sector HR Association. Despite only about 3% of state and local agencies offering homebuying assistance according to a June report, there is a noticeable uptick in governments facilitating financial literacy and assistance encompassing debt management and large-scale purchases including home acquisitions.
Baltimore’s approach distinctly stands out in its inclusivity, extending homebuying support to all city employees, transcending the conventional beneficiaries like law enforcement and teaching professionals. This groundbreaking approach is “fairly new,” acknowledges Welch, and undeniably on the radar of local governments evaluating innovative solutions to foster community development and employee retention.
Furthermore, it appears that Baltimore isn’t alone in this endeavor. Hartford, Connecticut, under the stewardship of Mayor Luke Bronin, has embarked on a comparable path, launching a generous $1.25 million forgivable loan program. Echoing Baltimore’s initiative, it pledges up to $10,000 in down payment assistance for municipal employees choosing to purchase homes in the city, underscoring a growing consensus on the potent role of housing incentives in urban revitalization.
