HomeMy WebLinkAboutCOM 0934.001 2006-2008
Councilwoman Emily Naeole's Proposed
"Silent Second" Residential Assistance Program
This is a county loan program for public employees, serving as a helpful tool
for departments and agencies to recruit and retain high quality public
employees.
Details of the loan program are yet to be worked out and should be worked
out with the input of the Finance Department and Human Resources and the
Mayor. Ms. Naeole's office has been making efforts to meet with Human
Resources, Finance and the Mayor to make them aware of my intention to
put forth legislation calling for this loan program to be implemented.
The proposed legislation is still in its draft stages, but for now, this is what
the "Silent Second" Residential Assistance Program would look like:
All 20 departments and agencies would receive a set amount of funds per
year to loan out for the purpose of recruitment and retention.
There would be limited participation amongst county employees one time
only.
The loan application would have to be submitted after successful completion
of 12 months of employment. The mayor may waive 6 of the 12 month
period at his or her discretion on a case-by-case basis.
The loan would be toward the purchase of a home.
L
The home purchased is not required to be "new" construction.
A second deed of trust must be held under the same title as the property.
The spouse's name will appear on documents.
The County of Hawaii loan must retain second position as it relates to the
Second Deed of Trust, thus the program is called "Silent Second."
Gomm. blo,
Ref. To, Fn~e*
Ref, Dote JAN 23
The program would be limited to a certain amount of loans at any given
time... It would be up to the Finance Department to determine how many
loans will be out at a given time... When the program limit is reached,
public employees will be placed on a first-come, first-serve waiting list and
will be notified when a loan is available.
The maximum loan amount may not exceed, say, $20,000. The interest rate
for this loan would be about 5 percent.
The property must be owner occupied.
The loan is only available to first-time Big Island homeowners.
It would be up to the administration to draft the program documents,
determine funding sources, and work out other details for how to
successfully implement the program.
Mortgage Assistance Programs are being implemented across the country for
both recruitment and retention.
I've modeled my proposed "Silent Second" Residential Assistance Program
after one that has been successfully implemented in Brentwood, CA to
address a police shortage there.
:,A
--..o_o_.. . Page I of 2
Mortgage Assistance for Public
Em to ees
There is a shortage of highly-qualified teachers, firefighters and police officers in many low-
income areas.
By any measure, schools in high-poverty areas have fewer well-qualified teachers than schools in more
affluent areas.' For example, only 19 percent of National Board Certified Teachers (NBC1) are at schools
in the bottom third of performance for their state and only 12 percent of NBCTs are in schools that
provide more than 75 percent of students with free or reduced-price lunch.2 At least two-thirds of the
nation's fire departments are understaffed, and the Bush Administration is phasing out the Clinton-era
CAPS community policing program-even though many cities that are likely to be targeted by terrorists
have steadily shrinking police forces a
Because of the unique challenges of these communities, the best professionals are needed
there.
Low-income areas have a greater need for government services. Children in higb-risk schools need more
special education staff and school social workers. In low-income neighborhoods, there are more police
emergency calls and a greater need for community policing. There are more-and more serious-fires in
the same neighborhoods. Despite their pressing need for high-quality government services, they are also
the toughest areas to staff
Housing assistance would be a strong recruiting incentive because Americans who earn
moderate incomes are being priced out of the housing market.
Median home prices across America increased by 5o percent from 2000 to 2005.4 In many areas of the
country, the American Dream of becoming a home-owner is simply out of reach. One effective way to
recruit the most experienced and effective teachers, police officers, and firefighters to low-income areas
is to offer them mortgage assistance.
Attracting moderate income earners to areas of concentrated poverty can help to stabilize those
areas and promote economic growth.
Sociologists have found that bringing middle-income homeowners into low-income neighborhoods has a
number of advantages. It tends to reduce crime and other anti-social conduct, whether or not there is
social interaction between middle- and low-income families.s Middle-income neighbors act as role
models for children and give job-hunting adults access to informal networks for finding employment.
And middle-income residents greatly improve a community's quality of life when they use the political
process to demand improved municipal services.s This stabilizing effect is even more profound when
middle-income residents also work in the community. It means they have a strong investment-both
financial and social-in remaking the neighborhood into a safe, healthy and vibrant community for the
longterm.
A federal program encourages teachers to live in low-income areas, but it is very limited.
The federal Department of Housing and Urban Development (HUD) recognizes the importance of
attracting professionals to areas targeted for revitalization. HUD has a program called "Teacher Next
Door" that allows full-time certified schoolteachers to buy single-family homes at a 5o percent discount
Unfortunately, the program is limited to homes with foreclosed HUD mortgages that are being sold over
the Internet Only about 4,000 teachers have taken advantage of the Teacher Next Door program since
1999.1 To make a significant difference, public employees need more housing choices.
S~mm80g g syma
o am m5. mm 77oomo 'p
S = c mm m o m'Q°Q o a R O O.<
=0=. °3 m m= wCj
m z w
m 2
ac ome=gzao
9
a n<_ o° N° p m y
p mmm3 X30 oC~
.5 m om m a '.I m O
8 o-mJ'~mow ¢ O
~zn3 m'c ~"~o
a m e<~° m< 2
m-3mmmSamu
m m m
m m
rn
~
m T
c =m30 F00 .m'a m amic
m m < n <
g~mmmm m'cm m Dr O
g Hm m 3 0 'em C oS L m< m w m
p a:0 ~`+mm~m9o~o~mcZ~ co =80 a~m
0
30~~0 ~amim3m m'o= H m
N m °m' m n
m
p a m pQ m o a C O.f m or a y 5' 3 a f/ N
m==9 6m m'VC m nor 4~)O'm m z N
prmvmo_, °aTO°=m cn a.3c z
.imm~n-m nv a~m~~m3nM O
2 g a £o m o c _5 ° m a Q m 3 4n4 c 3 p v o
m~ ~o c v~ m n a 3 m m m ='m N K
nn
m'mv °'~m~°<9 c o m 3 m m ~
aom'=m mmm„mom
w m m o m m m$ a o m y o m O
Z mT= mom-- m
k Q 60 o
?c t
n ~
a n
f m
~a
m
N
m
0
7
n
Z D
T O
m ~
m N
m D
13
3 m
m
C
p c a
m
~ F ~ o E a"
O y m C m
C2 O p.~
d ~ C y y
C m m c
¢ Y d m
a U L r L a r
a a t: 9 m O F U y 7] C t N m
N .m...,d 0;0, m me=pO e. wEm=c`o E
w a w 3«° « E a o m$ E E m m mo m m? m
c nom~O` Otem-5 ma€ a m~9 o~°ocE'wam'm
a-Zm =c ° °og ~tTS~
U Z o:m m m m ~jr m E: T g E c^ 3 W
60°S" m m OdL... O Z` O~ Ohm N m`m~t7 J~
CL Em m,E am~mA m.`o
m=m Ed-'awa9a EmmEa Emm`a
~m6=C9 a9 m20 35 mm rUV mczimm~mo3
w 2 m y=m9 a or E,. a o -d
s. Lo.m°m ~+mm cLm.E`oa`mE ~c~V m m~ o~
O -o o w m m E a 'm E .-a 3 E o > L >E. c -p .0E
Z cN~m~Z`mLmca9m ?5 m ae~ima-°o.~°om-
w of°~~i`rympOCSMo.00 o.m`-~' °°cmLmEq~2.-Ea
g gN cma~.m=9~maE aco$~.4 mrcEm16 mE~M-VCm$m
a W e~° p C m L ` m ° 0 $ m m T 0m m- rl p 9 m a
K C ° c 0-Mu mm E L -:5 0 O1
10 c - c S,= as o F S m Q a E v
CL y moo Oosp'm cam m9 m'^d mc3,E'3amm =c='rmm L'F=
m'~€m3om'~ .aJ
V z ®ma~ns°EEosWe~~'.-_mam 94mso,m m g e a
y c = m c a mtO9 oc o. Fmm
~L ~ 0 0... = m =~`O
aam~cE
¢~a,m c~- oa3i°ac=9'~ cm`m ~S~aE~Xg
m Z 3~3_aM m-~3 ~2m€a~~ Tmb m=m$S~=memo U
N momf0 c°iOm me c«mcom$m.`mm cEm
O 2", m"0E0=
c7 Umnr'nm~M--1 cgmmo..4a0 Ummmado.ao?>.mE.- -V
U m m m _ m m
Z W C a0 W ve m m0, 0Cmgm M- SEME N ~ `LN dM M:E-z 0 m E 6= C
J~ Eomm~Q a4~=°c`o2mmmmE q,Ec~V=gym L
J C7; cTY,g3.-~2cm W EoaLEm~ Em Ummm~
O WO ~3mawonCm=m°0ZYo `oimam=Pad
CL U o` m 8a w v e m c a E o E 2 m m m V
,...3omop cmmo.~3 c.€m ,..,mLO
.-w3LN 3o n??mg om: E.~ .-n3L ago Ea
ti
~O E~ E 3
U. 0
LU xE m E
> z >
ma g~ g~
a
20
m _L'ymma -o m ._=2
m$ 3._ E o m > E E o m-
W mL W C_ O W CVow o~ cm
0
j o moms is mez 8.9 C an0AO.S.~«3 E°.`SmEmx4'I-2
O i~ o o m c a~ m E ° o m c.` 3
O Enmg.am~ccci0 oE'~~-jmE0.0
>,c3>.oymcv a~ 2~ne m n
v3UEo°@meE wEao`oEw°mo
on O.L~
G 3 10 o c ~L am
a
Z m nm _m v «E
Vp m~ Uqy, m
mo c-a.- ~a$ om EE o
C `r o r C7 a cocmU m ?cmg5 m0m E
C V O a m m p srm W a U Q el C E c m tmi Glm -
a''ohm N 0 >.E oc
G7 ° 9 U° O a m E Nn V= a q Q
¢4d d3 3¢OL0 co 3m:'G
V U V
~a€
~F C3r
a z m °°c E
Eta
aQ aW;
o~o
Ba,ca c ~ am as `c
W Uw~O° 3.2?Y~aG m ~TL
7 acL mm>m~a_r~-OC~•m
V °c E~OO e='a~i°~a~admcm~a
y mm=8ammc~~ ° ~am-
p
EmEWm a o° °v m m@Em
a imE~ $ E.~$$ o.c>a~~ o=E.mc
`aa"wva0wli, EM. a$~aEm•c
m
W N m cq~" m
Comm Wg m€
m ~ G r. 6~ 0 m~ CF m~ s
53 °L
W 0~p9cm~Jm~ o
m N
so Q~^oEmm T~R m m $E.~~o
arc mryyEO ~`mmn ~a'a3m
C' C~wE~m!~a~"'~'o ID~m
z O aQOQ`o~mmm-r~ggc
ea
y Z E£3P812!
O `
ca cm°~ voc m°'2°aEm6
ama
Q V £a2.a 0 IV.=
W
U _ m m
z m~ 'amm:s fP
> B-
y Zcmm3 mm m U
to btu $Ecb 0 ~4=3 ~0
E
v r2 0
, a@ ~ E m
J J m m m m N 9m L S ta m m
a°. WW ~m om SMZa
a m 0-
(L € a E @ m
rnmr°aaa~`o~UEm
W
ZZwp
W LU
ma~N
c~°~O mg
Emd"o=o 15,
7f m m m ~ m £
0+F=•' y'°C m o m
•jmo aEQ-
Q C Q m L j
p a~mOp mE
O 3 L° m'$ m
Um a$ m m
m C C V •O O q U
= m m C m m°
i- 0132.E $a3 -
o m a
m
z~ 2 E~d~ ~ .g
J~°yoms aaU m° 8
s
G.L) m£Ezcis
.0 m 32 -E
m AgF-2~+ ~=E o z
W30. 0U
U