Community-Based Effort Encourages SLU Employees to Invest in City

St. Louis Mayor Francis Slay discusses how Hometown SLU will help the city.

ST. LOUIS -- Saint Louis University President Lawrence Biondi, S.J, announces at 2 p.m., Wednesday, Feb. 5, a new initiative designed to spur development in Midtown St. Louis, while assisting SLU employees looking to purchase a home.

This newest community- based initiative, called Hometown SLU ... Building Community through Home Ownership, augments the University's $10 million community loan fund designed to spur development of Midtown businesses that was announced in November 2001.

Biondi will address a group of community and business leaders, university participants and media at an afternoon news conference in front of the Covenant Place display homes at Cook and Vandeventer. The development is located in one of the designated areas where full-time, eligible employees may receive forgivable loans of up to $5,000. The loan is forgiven after five years if the employee still works at SLU and the home remains the primary residence. The program, launched by the University, and supported by Fannie Mae, Cendant Mortgage, U.S. Bank, Commerce Bank and the City of St. Louis, will encourage faculty and staff to live in neighborhoods near the University and support redevelopment of these communities.

"Hometown SLU is another way Saint Louis University can help to improve our community and our city," said Biondi. "We want to do our part to help Midtown flourish as a true urban neighborhood. At the same time, this initiative will help many of our employees realize the dream of home ownership."

Hometown SLU also provides preferred mortgage rates, reduced closing costs, home ownership education and other support services - wherever an employee chooses to purchase a home. Only the forgivable loan aspect of the program is restricted for those purchasing homes in select neighborhoods.

The University will handle the forgivable loan portion of the program, while Cendant Mortgage, U.S. Bank and Commerce Bank will provide lower mortgage rates, closing costs and refinancing.

Fannie Mae provided SLU with free technical support for the design of the program through Fannie Mae's Employer Assisted Housing (EAH) Initiative, which has provided employers throughout the country with a tool to attract and retain employees. An additional part of the Hometown SLU initiative is an online mortgage resource, powered by Fannie Mae technology, that offers tools and information on mortgage financing as well as a streamlined mortgage financing process for employees.

SLU Vice President for Human Resources has worked for years to make Hometown SLU a reality.

The Hometown SLU program was developed for the University under the direction of SLU Vice President for Human Resources Kathy Hagedorn. She first considered the idea almost eight years ago and has worked diligently for two years to turn it into a reality.

"Having worked in the city for almost 22 years, I have a keen interest in its development," Hagedorn said. "This program will not only facilitate the revitalization of urban neighborhoods in the city, but also develop greater employee loyalty to the university and commitment to the city of St. Louis among faculty and staff. That's a win-win situation for everyone."

Currently, total full-time employment at the University is 3,800 faculty and staff. Overall, approximately 950 employees or 25 percent live in the city of St. Louis.

"Saint Louis University is demonstrating once again its strong commitment to the city of St. Louis," said Mayor Francis Slay. "Promoting home ownership in the city of St. Louis by its employees will benefit everyone. Responsible homeowners are fundamental to the revitalization of our city. I am confident that once exposed to city living, the new SLU homeowners will be pleased with all that the city has to offer."

The press conference to announce Hometown SLU was held at one of Pyramid Construction's display homes on Cook.

Loans will be made to qualifying employees to assist with down payments and closing costs in eligible neighborhoods. The loan will be forgiven over five years, with a phased forgiveness of 10 percent the first year and 30 percent the last year. They will be secured through a second mortgage lien on the residence purchased until all of the conditions of the second mortgage have been satisfied. The cost to prepare and record the mortgage will be paid by the employee at the time of the closing.

Forgivable loans are granted in two areas. The first is bordered primarily by Vandeventer Avenue to the west, Lindell Boulevard to the South, Jefferson Avenue to the east and Natural Bridge Drive to the north. The second area is bordered by Compton Avenue to the west, Lafayette Avenue to the south, California Avenue to the east and Chouteau Avenue to the north.

In order to qualify for this program, a SLU employee must purchase a one or two family home as a primary residence in one of the eligible areas; Five percent (5%) of the purchase price or $5,000, whichever is less, will be available for qualified employees in these areas. Download a map of the eligible areas here.

Besides Biondi and Slay, press conference participants included Hagedorn, SLU vice president for community relations Julius Hunter and St. Louis Alderman Michael McMillan.

"Once again, Saint Louis University is contributing to our city in a significant way," said McMillan. "With their community and business partners, SLU will help many of its employees realize the fundamental American dream of home ownership."

Other special guests included: Clifton Berry, director of the St. Louis Partnership Office of Fannie Mae; Sal Martinez, executive director of the Vashon/Jeff Vander Lou Initiative; John Steffen, president of Pyramid Construction; and Gina Ryan, SLACO.

For information on participation in the program contact SLU benefits specialist Krista Millay at 314-977-3927 or visit the Hometown SLU website

Saint Louis University is a Jesuit, Catholic university ranked among the top research institutions in the nation. The University fosters the intellectual and character development of 11,000 students on campuses in St. Louis and Madrid, Spain. Founded in 1818, it is the oldest university west of the Mississippi and the second oldest Jesuit university in the United States. Through teaching, research, health care and community service, Saint Louis University is the place where knowledge touches lives. Learn more about SLU at www.slu.edu.

University President Lawrence Biondi, S.J., is certain that Hometown SLU not only will help SLU employees but also the Midtown area.

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