Friday, June 18, 2004 | 10:53 a.m.
Station Casinos Inc., in a joint effort with housing finance giant Fannie Mae, is rolling out a program to help its workers buy homes in an effort by Station to attract and retain employees.
The announcement came at the same time Fannie Mae, the nation's largest source of financing for home mortgages, and the Henderson Chamber of Commerce announced a partnership to get Henderson-based businesses involved in employer- assisted housing programs.
The joint announcements come at a time when Las Vegas-area housing prices continue to break records.
Today, local research firm Home Builders Research Inc. reported that the median price of a recorded (closed escrow) local resale home, attached and detached, increased $10,000 from April to May to $230,000. That's an increase of $66,500, or almost 41 percent, from the previous year, the firm reported.
New home prices saw similar increases. In May, the valley's median recorded new home, attached and detached, price was $239,145, a month-over-month increase of $15,785. May's median new home price was a year-to-year increase of $38,485, or 19 percent, Home Builders Research reported.
Valerie Murzl, Station Casinos vice president of human resources, said the company estimates that up to 35 percent of employees do not own homes. The company, which has 10 casinos across the valley, employs about 10,000 people, she said.
Murzl said Station Casinos has been contemplating assisting employees on the path to homeownership for about a year. She said it takes more effort to keep and attract good employees, especially in a market where new and possibly more appealing properties open up on a regular basis.
"In recruitment, there has to be hooks beyond traditional benefits," she said. "Why pick Station over Wynn Resorts? There has to be something to differentiate ourselves."
Murzl said Station Casinos will hold numerous meetings for employees to let them know about homebuyer programs in the community and put them in contact with lenders. At those meetings Station Casinos executives will survey how many people want to take part in the program.
The company is still evaluating how much money, if any, will be offered to employees who want to buy homes. Murzl said employees would be able to buy homes anywhere in the Las Vegas Valley.
"First we want to get a handle on how many people want to do this," she said.
The Henderson Chamber of Commerce and Fannie Mae announced Thursday they are offering assistance to help employers set up employer-assisted housing programs, similar to the one Station Casinos announced, as a way to recruit and retain employees.
"Even though companies are putting their money into it, they are reducing their turnover costs," said Corie Craig, senior deputy director of Fannie Mae, Nevada Partnership office. "Once somebody gets into a home, they will think twice before changing jobs."
The chamber has resources including a list of lenders that local businesses can tap if interested in the program.
"We helped the chamber set up the umbrella program, this way they have all the documents prepared and they can make decisions, rather than having to start from scratch," Craig said.
The program is not a group, or pooled program; businesses will have to decide how to implement the program, what type of assistance they want to give, whether it's help in access to lenders or financial counselors, forgivable grants or a gift of money.
Employer assisted programs are not a new concept to the Las Vegas Valley.
Companies with similar programs are Nevada State Bank, Opportunity Village and St. Rose Dominican Hospitals, said Gayle Rogers, executive assistant for the Henderson Chamber of Commerce.
"About 85 percent of our members are small businesses, and we didn't think they'd be able to do it on their own," Rogers said. "So we've done the preliminary work, a template, and they can start up right away."
St. Rose Dominican Hospitals launched its employer assisted housing program last year in an effort to recruit and keep nurses. So far the program, which provides three-year forgivable loans up to $2,500 for down payment/closing cost assistance, has helped 40 people, and at least another three are working through the process, said Shauna Walch, director of communications for the hospital system.
Of those 40 people, 27 have used the money to refinance and another 13 have used the money to make home purchases. A side benefit to creating worker loyalty and having a benefit that allows the hospital to stand out from its competition is that some of those people helped might not otherwise have bought homes, Walch said.
"Some people have said it's that bit of difference that helped," she said.
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