Can Workforce Housing save an employer money?

It can, when recruitment and retention savings are factored in. An employer's contribution can also be used to leverage additional funds and may be eligible for state and federal tax deductions.

A typical employer investment of $25,000 ($5,000 for 5 employee purchase transactions) provides a program valued at $580,000, even though the net cost to the employer is $25,000.

For example:

$500,000		Mortgage funding anticipated for WHEDA® Home Loans
$ 50,000		Funding in WHEDA Home Plus loans for down payment
$ 30,000		Other potential matching down payment funds (varies per region)
$580,000		Total leveraged funds for employer investment of $25,000

In addition, an employer investment may be eligible for state and federal business expense deductions.

For example:

Employer investment in down payments for 5 employees		$25,000
Less Federal Tax Deduction (based on the 25% tax bracket)		$ 6,250
Less State Tax Deduction (based on WI state tax deduction 7% level)		$ 1,750
Net cost of program		$17,000

The net cost and the value of the leveraged funds are in addition to the savings to an employer in recruitment costs due to greater employee loyalty as a result of the ownership investment by employer.