Live Near Your Work Program

ISSUE AREA: JOBS

City: Chicago, IL
Land Use - Public/Private Partnership - Housing

Contact:
Division of Neighborhood Revitalization, Maryland
Department of Housing and Community Development
100 Community Place
Crownsville, MD 21032
(410) 209-5807

Date Published: October 2006

In 1997, lawmakers in the State of Maryland passed smart growth legislation in the cities in part to combat the problem of sprawling development in Maryland’s cities. Residential neighborhoods faced sprawl-related decline as homeowners relocated into the suburbs, although those moving to the suburbs often continued to work in the cities’ commercial centers. These people, driving long distances from the suburbs to the city each morning and from the city back to the suburbs at night, often spend over an hour commuting daily. Those residing and working in cities spend comparatively little time on the highway. Thus, sprawl feeds rush hour congestion, and compounds commuter headaches. To combat these problems simultaneously, State of Maryland Lawmakers adopted the Live Near Your Work Program (LNYW) as part of the Smart Growth Initiative.

The goal of LNYW is to move workers closer to their workplaces, reducing travel time, revitalizing cities’ residential communities, and encouraging home ownership. Under the program, residents may receive $3,000 towards the purchase, down-payment or closing costs on a new home provided that the home is located within five miles of the resident’s workplace and within one of Maryland’s targeted residential development zones. Zones are located in many of Maryland’s cities, including Baltimore, Silver Spring, College Park, and Hagerstown. The program was developed in 1998 by a coalition of state policy makers and housing finance specialists. They determined that a successful program must offer workers enough of an incentive so that they consider living in a neighborhood in which they ordinarily would not.

The program is not available to all state residents. To qualify, the potential homebuyer’s employer must participate in the program. Employers notice implicit benefits from LNYW. Employees living nearer to their work are less frequently late and they change jobs less often. In the four years since the program’s inception, employer participation has risen from just over forty employers participating to eighty businesses, non-profits and municipal agencies. Federal employees became eligible for LNYW in 2001, vastly expanding the program’s reach. The employer pays $1,000 of the $3,000 grant, as does the local city government. The State of Maryland pays the supplemental $1,000 using funds from an annual appropriations bill through the State Housing Finance Agency.

Displeased with the level of participation by Maryland’s workers after the first two years, Maryland’s Department of Housing and Community Development (DHCD) began to promote the program. It encouraged participating employers to advertise LNYW on pay-stubs. DHCD forged a partnership with the Live Baltimore Marketing Center, a non-profit organization that promotes city living. In part thanks to this partnership, employers in the Baltimore Area employ 86% of those participating in the program.

The original legislation included income restrictions requiring that 51% of the grants go to low-income families. However, this restriction led at one point to a waiting list for families above the income line. It caused marketing difficulties since the program could not be marketed to everyone. Survey data showed that, while 51% of applicants did not fall below the income line, only 6% of those receiving grants have an annual household income above $100,000. The income restriction was removed, except for in the case of state employees.

Maryland uses a variety of measures to determine the success of LNYW. The first sign of success is increased program popularity. Each year since the beginning, a greater number of LNYW Grants have been awarded than in the previous year. Improved marketing and greater employer involvement made 2001 the programs biggest year to date with 150 people receiving grants. Growth in targeted development zones shows signs that the program is working to revitalize troubled neighborhoods. Survey results from 427 participants in the program show a change in commuting habits. Participants spend less time traveling to and from work now than before they moved. Sixty-four of the homebuyers have switched their mode of work transportation from driving to walking. While 135 participants had a commuting time of thirty minutes or greater before their move, less than 40 participants experience a similar length commute after moving into these zones. Exit survey results show that the program promotes home ownership. Roughly 75% of those participating in the program are purchasing their first home. One third of those participating would not have been able to make the down payment if not for the grant. A majority of the participants noted that the program was easy to maneuver and they would recommend it to others.

The practice of moving people to cities where they work is essential to building community. People who live and work in the city take a stake in that city’s health and development. The reduction in commuter traffic makes the city more accessible to drivers and livable to residents.

Resources:

www.dhcd.state.md.us/Website/home/index.aspx
www.dnr.state.md.us/education/growfromhere/lesson15/MDP/LNYW.htm