City's loan-assistance program targets teachers

She may be able to soon – with some help from her employer.

On March 1, Urban Neighborhoods Alliance launched its Teacher on the Block program, in conjunction with the Springfield R-XII School District. Teachers in Title 1 and center city schools are eligible for up to $3,000 in forgivable loans for down payment and closing cost assistance.

The program sounded like a good fit to Schwartz, who rents a home in the Reed Middle School neighborhood.

“It makes me think I could actually afford it,” she said, adding that she’s not positive she’ll apply for the program, though she is interested.

How the program works

The eligibility zone encompasses 17 elementary schools and four middle schools. To qualify for the program, teachers must work full time and buy homes in the middle-school attendance zone in which they teach.

Each year for three years, $1,000 of the loan would be forgiven if a teacher stays at a school in the program’s targeted area. If a teacher voluntarily transfers to another school outside the program area, or is fired, the teacher will be required to repay the prorated remainder of the loan.

Teachers who are transferred at the district’s request would not be required to repay the loan, according to Associate Superintendent Peggy Riggs.

Already, there’s a lot of buzz surrounding the program, Riggs said.

“I believe a lot (of teachers) will be applying,” she said. “They’re so excited about the potential of this program. They feel like this is such a vote of confidence in teachers.”

To apply, teachers will work with their school’s human resources department and then meet individually with UNA to learn about the home-buying process. Next, they’ll meet with Consumer Credit Counseling Services to determine how prepared they are to buy a home and possibly attend free home-buyer education classes.

Great Southern Bank and Empire Bank are the program’s lending partners. Loans through Teacher on the Block can be combined with UNA’s Below Market Home Improvement Loan program or with any other down-payment assistance programs offered at the partnering banks.

School-home relationships

Riggs says the program isn’t just about helping teachers buy homes – it’s also about installing positive adult role models in neighborhoods where kids might be in need of them outside of school.

“One of the most positive things is, students are seeing teachers living side-by-side and really being part of a community,” she said.

UNA Executive Director Bob Horton agrees, adding that the benefits extend to the school district, as well.

“It’s been proven that teachers are more productive if they live closer to where they work,” he said, and “they’re less likely to be absent from their job.”

Horton also expects the school district to see its recruitment and retention rates go up.

Increasing homeownership in center city also will help strengthen the city’s urban neighborhoods, Horton said.

City similarities

The city of Springfield also is encouraging its employees to live near their offices through its Employer Assisted Homeownership Program, started in August 2003. About 1,500 of the city’s full-time employees, and part-time employees with one year of continuous service, are eligible for forgivable down payment/closing-cost loans up to $5,000 and low-interest housing rehabilitation loans up to $7,500.

Five city employees have taken advantage of the down payment/closing-cost loan, and another three have been approved for the rehabilitation loan.

“The people that we’ve had take advantage of this have just been extremely happy living in this part of the city and enjoy their homes,” said Peggy Thompson, human resources specialist with the city.

The city promotes the program periodically throughout the year, Thompson said.

“As the city has been supportive of development in center city, we’re supportive of not only retail but private homeownership as well,” she said.

The city’s program applies to homes purchased in UNA’s target area, bounded by Kearney Street to the north, Grand Street to the south, National Avenue to the east and Kansas Expressway to the west.

UNA’s Horton said the city’s loan program began as an initiative with UNA. He hinted that, in addition to the program with Springfield schools, similar initiatives are in the works with other local employers, though he would not disclose names.

“We are all the time trying to encourage employers to do some type of program like this,” he said. “This won’t be the last one that we do.”

Title I and Center City Schools

Bissett Elementary School

Bowerman Elementary School

Boyd Elementary School

Campbell Elementary School

Cowden Elementary School

Fremont Elementary School

Holland Elementary School

McGregor Elementary School

Pittman Elementary School

Portland Elementary School

Robberson Elementary School

Watkins Elementary School

Weaver Elementary School

Weller Elementary School

Westport Elementary School

Williams Elementary School

York Elementary School

Jarrett Middle School

Pipkin Middle School

Reed Middle School

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