Buying a home is the most significant investment most people make, but the housing market’s escalating costs can leave first-time homebuyers navigating a complex and expensive process.
In response, an increasing number of colleges and universities have implemented innovative first-time homebuyer programs aimed at helping their employees and those in surrounding communities achieve their dream. These initiatives are not only crucial in supporting the financial stability of faculty and staff but also play a significant role in addressing broader housing affordability issues.
The University of Rochester (UR) has recently taken significant steps to expand its University Home Ownership Incentive Program, initially launched in 2017. Originally, the program provided $9,000 in grants to help employees purchase their first home, but only within specific neighborhoods near the university. Since its inception, more than 560 employees have benefited from this initiative.
Recognizing the need for greater flexibility and increased support, UR increased the grant limit to $20,000 in early August and widened the eligible geographic range to anywhere in the city of Rochester.
“The [program] has been a success story in stabilizing and revitalizing some of the city’s most historic neighborhoods, while also helping our employees more easily realize the dream of home ownership,” UR President Sarah Mangelsdorf, said when announcing the new parameters.
Focused on aiding those who might struggle to secure homeownership, the program also extends eligibility to fulltime and part-time employees whose total household income falls below $135,000. By providing $10,000 from the university, $5,000 from the City of Rochester, and an additional $5,000 from participating financial institutions, UR aims to ease employee’s financial burden. The only other requirement is that they must maintain the home as their primary residence for at least five years or face repayment of the grants.
Similarly, Bowdoin College in Maine has introduced a new program designed to help faculty and staff navigate the region’s challenging housing market. The college offers a forgivable loan of up to 10% of the purchase price of a home, capped at $50,000, for those located within 40 miles of campus. This initiative is seen as a crucial step in both attracting and retaining talent, particularly given that many of Bowdoin’s new faculty members are from outside the region. The loan forgiveness takes place over a 10-year period, provided the employee remains employed at Bowdoin.
This program is particularly significant given the higher-than-average median home price — of nearly $550,000 — in Cumberland County, where the school is located.
A similar effort is the College Park Community Preservation Trust in Maryland. Led by the University of Maryland (UMD) and the City of College Park through a collaboration known as the College Park CityUniversity Partnership, the program offers another innovative approach to affordable homeownership that extends beyond its own employees.
This initiative is unique in that it was established to increase housing opportunities for middle- and low-income residents in the city surrounding UMD. The trust purchases homes at market value and retains ownership of the land under a 99- year land trust agreement. The house is then sold to eligible buyers at a reduced price, making homeownership more accessible to those who might otherwise be priced out of the market.
“By facilitating homeownership opportunities here, we’re really supporting the economic mobility of families to be able to move forward financially, not just now, but even intergenerationally, passing that on to their children or the assets they’re able to save over time through homeownership,” Susan Hartmann, executive director the College Park City-University Partnership, said at an event celebrating the first purchase of a house through the trust.
By separating the cost of the land from the house, the trust helps reduce the financial burden on buyers. This model allows them to build equity while keeping housing prices affordable for future buyers. The initiative is particularly aimed at households earning up to 140% of the regional median family income, ensuring that those who are often excluded from homeownership can participate in the housing market.
As more institutions adopt or expand these programs, the strategies collectively represent a critical response to the ongoing housing affordability crisis, offering a tangible impact on the financial well-being of employees and the greater community.
HUD Grants Support Homeownership for Underserved Communities
In addition to increased efforts by colleges and universities to address housing affordability, the U.S. Department of Housing and Urban Development (HUD) has announced the allocation of $10 million in grant funding through its Homeownership Initiative, aimed at closing the homeownership gap among historically underserved communities. The grants, awarded to 23 HUD-approved housing counseling agencies, will fund pre- and post-purchase housing counseling that is both culturally sensitive and linguistically appropriate. These services are designed to equip first-time homebuyers with the knowledge and tools necessary to navigate the process, ultimately helping more Americans secure affordable housing.
HUD’s initiative aligns with the Biden administration’s commitment to addressing barriers to homeownership that disproportionately affect marginalized communities, such as racial wealth disparities and limited access to affordable housing. By supporting housing counseling agencies across the country, HUD aims to increase homeownership rates among those who have traditionally faced obstacles in achieving this goal.
This effort is a critical step toward fostering economic advancement, enabling families to build and transfer wealth across generations, and contributing to longterm financial stability for those who need it most.
