• Release ID: 08-123
• Release Date: 8/4/2008
• Contact: Carmen Berrios 240-777-7947
• From: Office of Mike Knapp

Council President Knapp Urges Action to Implement ‘House Keys for Employees’

Funds That Would Provide Housing Assistance for County Employees
to Purchase First Homes Remain Unspent

ROCKVILLE, Md., August 4, 2008—Montgomery County Council President Michael Knapp today called on County Executive Isiah Leggett to tap into funding approved by the County Council more than a year ago that would provide for Montgomery County’s participation in the “Maryland House Keys for Employees” program—a move that would effectively remove the single largest barrier to home ownership for County employees.

“In May 2007, at my request, the County Council took a critical step toward addressing our housing needs by allocating $500,000 to assist County employees in purchasing their first home,” Councilmember Knapp said. “Yet, more than a year later, even as our employees’ needs for assistance have increased in this sluggish economy, the County Executive has not spent a nickel of the funds we have provided to help them.”

The funding provided by the Council in the Fiscal Year 2008 budget would allow for the County’s participation in the state’s House Keys for Employees program. The program enables eligible employees to receive down payment and/or closing cost assistance through a matching program. The program matches contributions dollar-for-dollar, up to $5,000, toward down payment and closing costs from participating employers.

The Housing Opportunities Commission (HOC) of Montgomery County has expressed interest in managing the program, which can assist employees in receiving $10,000 or more toward their first home purchase.

“I have continually urged the County Executive and his staff to take advantage of this funding, and this program, and begin addressing our housing needs,” said Councilmember Knapp.

The County Executive has announced his intent to prepare legislation for introduction at the state level that would reduce the amount of transfer and recordation taxes for County employees who are first-time home buyers. He also has stated that he is continuing to look at the County’s Affordable Housing Task Force’s recently released housing report, which contains a number of recommendations for increasing affordable housing throughout the County. Recently, the County Executive expressed reservations about the County’s ability to offer such a program to its employees because it might be seen as a “bargainable item” with unions that represent County employees.

“It’s time to stop looking at the issue, and to start doing something about it,” said Councilmember Knapp. “If this is indeed a ‘bargainable item,’ as the County Executive insists, then we need to reach out to the unions to determine what needs to be done. But there is absolutely no reason why our employees should be paying the price for the Executive’s inability to move forward with this program.”

Participation in the state program—which is already in place in jurisdictions such as Calvert, Charles, Frederick and St. Mary’s counties and the City of Gaithersburg—will assist County employees by helping them purchase a home in the jurisdiction in which they work. Additionally, the funds boost the local housing market. The program is open to any public or private employer in the state.

Councilmember Knapp said Montgomery County should be in a position to show other County employers how to utilize the program for the benefit of employees.

“The House Keys program works, it’s available to us and it has been funded by the Council,” said Knapp. “No more delays. I strongly suggest the County Executive use the resources we have appropriated—and to do it now.”

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