A home of their own

By Liz Benston

Monday, Feb. 19, 2007 | 7:27 a.m.

Before housing prices began to skyrocket in 2003, Las Vegas was a dream come true for blue-collar workers - a valley of plentiful jobs and homes that hourly casino employees could afford.

But with only 14 percent of Clark County residents today able to afford an average-priced home, based on homebuilders' estimates, the path to home ownership has never been rockier. Even with home prices falling in recent months, the continuing struggle of workers unable to purchase their first home has reached the ears of union officials, casino bosses and politicians, with "affordable housing" the day's mantra.

Push aside the political grandstanding and you will find people like Norma and Virgil Robles, a young couple from Southern California who were among the first to complete a first-time homebuyer program sponsored by their employer, Station Casinos.

The Robleses had spent their entire adult lives moving from apartment to apartment, their children having little room - inside or outside - to play.

Then they read an employee mailer promoting government financial help for first-time homebuyers .

"We went to the (orientation) meeting - we were there before anyone else, even the people giving the class," said Norma, 27.

Seven months later - after negotiating with credit companies to lower her husband's $12,000 debt, sticking to a monthly budget, obtaining a new credit card and paying bills to improve the couple's credit history - the Robles family moved into a three-bedroom, 950-square-foot home for $255,000 in a newer Henderson suburb. Without the $38,000 in government grant money for a down payment, the couple would have been relegated to apartment living for several more years.

The Robles family paid about $1,000 of their own money to help close the deal. They are now socking away money every month - even the kids have their own savings accounts - and focusing on bigger career goals.

"I have butterflies in my tummy just thinking about it," Norma said. "I can't believe I have a car and a house. (Station) made our dream come true."

While analysts debate the merits of more affordable housing, Station and MGM Mirage - the biggest casino companies off and on the Strip, respectively - have taken steps to alleviate the problem.

This month MGM Mirage announced a program with two real estate developers to build more affordably priced housing for casino workers as part of a master-planned commercial and retail development in Jean.

Alan Schlottmann, a UNLV economics professor and executive director of the Theodore Roosevelt Institute, a national think tank that studies public policy issues, said companies that help their workers on such a primary level can better fend off pressure to increase salaries from unions while building loyalty among workers struggling with a higher cost of living.

"Home ownership is the primary way most Americans accumulate wealth in this country," said Schlottmann, who has conducted research on affordable housing for the Department of Housing and Urban Development.

Partnerships with programs that help with down payments and financial planning are an unusual but important way that corporations can help solve a growing problem, he said.

"Affording the down payment is one of the biggest barriers to first-time home ownership," he said. "There are people who've been living paycheck to paycheck but have a steady job and have never thought about financial planning."

Las Vegas has more recently lost companies relocating from California to other Southwestern cities with more affordable homes, economic consultant John Restrepo said.

"People will say, 'As long as we're cheaper than California everything's fine,' " Restrepo said. "But that's not the point. We're not cheaper than Denver, Salt Lake and Phoenix and other places where we compete for jobs. Having affordable housing is a key measure of economic health and how well a community can diversify its economy."

For the gaming industry, which will be hiring tens of thousands of workers over the next few years, rising home prices affect recruiting efforts with employers competing for housekeepers and their bosses in a low-unemployment market.

Executives at Station and MGM Mirage say they don't have a sure-fire solution but are attempting to inspire a bigger action plan.

"As the city grows, we're going to need more workers," said Valerie Murzl, vice president of human resources for Station Casinos. "Over the next five or so years, where are people going to live? How are we going to attract people to Las Vegas, and once they get here, how do you sustain that growth if you can't attract professionals like nurses and teachers?"

Taking another approach, MGM Mirage expects to build cost-effective housing in Jean, 25 miles from the Strip.

The company is studying new forms of high-density housing that could significantly reduce home prices, while using low-cost financing to help developers make a profit, MGM Mirage President and Chief Financial Officer Jim Murren said.

"People we care about want a sense of ownership," Murren said. "We don't have all the answers, but we hope this is something others will emulate."

Some real estate experts say developers may explore an emerging design known as a "platform" home, with separate families living on each of three or four floors.

Before Station Casinos launched its program, it surveyed workers about their needs outside of work and spent two years interviewing companies before selecting Housing for Nevada, a nonprofit organization that has worked in Arizona and Nevada since 1988. Its track record helping hundreds of families buy homes impressed Station officials, who also liked the fact that the it had to give away its grant money each year to qualify for more assistance.

Six couples and individuals have completed the process since the program's inception two years ago, buying homes with nearly $230,000 in government assistance. Another 200 or so are enrolled in the program - which includes attending classes and ongoing, one-on-one counseling with a financial planner - with about half ready to buy homes in the next few weeks.

The indirect benefits of such programs are tangible, Murzl said.

Employee turnover averaged about 45 percent annually when she joined Station a decade ago, typical in the casino business. Turnover is now about 22 percent, a figure bosses want to reduce further.

Even as her eyes well up talking about the Station program, Norma, a cafe hostess at Green Valley Ranch who sings and plays mariachi music on the violin in her spare time, won't be sticking around forever. Her experience in the home buyer program has sparked an interest in becoming a real estate agent. She's also considering a career in interior design.

"I have big plans," she said. "I've always told my kids, if you set your mind to something you can accomplish it. I was focused on being a housewife and a good mom. But now that my kids are older I want to move on and move up."