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Around the Commonwealth: Local Unions and Housing Help

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by

Dick Hall-Sizemore
in ,

by Dick Hall-Sizemore

Some interesting recent actions by local governments:

Local employee unions–Many on this blog predicted that local government bodies, especially those in “progressive” urban areas would not be able to resist attempts by local employee unions to enter into collective bargaining. The City of Norfolk has demonstrated that it can and will resist. As reported by The Virginian Pilot, the Norfolk City Council this week voted 5-3 against a request by the Police Benevolent Association to enter into collective bargaining. The city council did create four “employee committees” that are to meet with the city manager. Input from those committees will be factored into council’s budget decisions.

Helping employees buy a house–Henrico County will pay up to $25,000 for a down payment on a house for qualified county or school employees. The county has designated $2 million for this initiative. Therefore, at least 80 employees will be able to benefit.

To benefit fully from this offer, the employee must work five years for the county. According to the county administrator, the county views this as a tool to retain employees.

As reported by the Henrico Citizen, the program is available to first-time home buyers who have worked for the county or school system for at least year on a full-time basis.  The home to be purchased must be located in Henrico County and cost no more than $425,ooo. Furthermore, eligibility for the program is limited to employees who live in a household with income not exceeding $98,400 for two or fewer persons or $114,900 for three or more persons. The down payment provided by the county will be treated as an “interest-free, forgivable loan, and 1/60th of the balance will be forgiven each month that the employee lives in the house and remains employed by Henrico. If the employee stops working for the county or sells the house before the five-year window has ended, he or she will be required to repay the remaining balance.”

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24 responses to “Around the Commonwealth: Local Unions and Housing Help”

  1. Nancy Naive Avatar
    Nancy Naive

    Nice benefit. Not dissimilar to education benefits at some companies.

    Ya know, this could be generalized to an employment benefit, a five-year forgivable interest free loan for general use.

    Great way to avoid wage increases.

  2. LarrytheG Avatar
    LarrytheG

    One of the benefits of employee unions and collective bargaining is consistency and fairness of employment policies for all employees that protect employees from abusive/bad managers. It gives the employees a path to report such behaviors besides risking going to HR. The union can seek input from other employees and corroborate the claims before going to HR.

    This is seen more obviously with police unions but it happens in other state and local agencies also, in schools, for instance where
    a principle really has enormous power over employees which can be not a good thing if they are poor managers or worse and show favoritism or target individuals with disparate treatment.

    On the loans – I would think they can be a significant benefit not only for homes but for student loans but both the school and the county will have to justify such funds to taxpayers as they word salary increases. Not that hard in a place like Spotsylvania where new employees receive training and then are incentivized to go north for better paying jobs. Loan incentives could be a way to keep some.

  3. Eric the half a troll Avatar
    Eric the half a troll

    “Many on this blog predicted that local government bodies, especially those in “progressive” urban areas would not be able to resist attempts by local employee unions to enter into collective bargaining. The city of Norfolk has demonstrated that it can and will resist.”

    Why would some on this blog applaud police not being able to negotiate collectively for higher salaries? It’s almost like they want to defund them or something…

    1. LarrytheG Avatar
      LarrytheG

      Police are “ok” because they clearly are not “leftists” like public school teachers are.

      It’s when “leftists” get unionized, we got real problems!

      😉

    2. James Wyatt Whitehead Avatar
      James Wyatt Whitehead

      Collective bargaining is pretty weak in Virginia. You still cannot strike. The governing body has discretion to adopt or reject the union’s demands. Union membership is still optional. The VEA branch in Prince William wants this:
      1. 17% increase in compensation
      2. Realignment of the pay scale with steps aligning with experience.
      3. Removal of flex days and annual school year instructional time is determined by minutes OR days no longer both.
      4. No more working for free with “other duties as assigned.”
      5. Increase in compensation with all stipends.

      Here is what they will get if they are lucky:
      3-5% pay bump.

      1. WayneS Avatar
        WayneS

        I’d be okay with a 10% bump if future raises were tied to performance instead of time in service.

  4. Eric the half a troll Avatar
    Eric the half a troll

    “Many on this blog predicted that local government bodies, especially those in “progressive” urban areas would not be able to resist attempts by local employee unions to enter into collective bargaining. The city of Norfolk has demonstrated that it can and will resist.”

    Why would some on this blog applaud police not being able to negotiate collectively for higher salaries? It’s almost like they want to defund them or something…

  5. Nancy Naive Avatar
    Nancy Naive

    Dick, you’ve calculated the maximum use of the benefit at 80 households, but I wonder what the actual number of eligible households is? Those are fairly restrictive conditions since it’s based on household income.

    A cursory look says single college new hires are a targeted cohort.

  6. James Wyatt Whitehead Avatar
    James Wyatt Whitehead

    Henrico should open this up to the many part time employees that make up a heavy portion of their labor force. Let’s not forget the bus drivers, cafe workers, teacher’s assistants, secretaries, building and grounds people. Must they always cobble together a living holding down multiple jobs and live check to check? The school teachers, cops, and bureaucrats all make enough to get a roof over their head. Let them have the crumbs that fall off the table for a change.

    1. LarrytheG Avatar
      LarrytheG

      We have a thing in Spotsylvania when a developer proposes apartments – it’s called “workforce housing” and it’s smiled upon
      if the developer “sets aside” some number
      of apartments that will NOT be “market priced”.

  7. Dick Hall-Sizemore Avatar
    Dick Hall-Sizemore

    Gee Whiz! So much carping about details! Henrico County did not have to do this at all.

    To address some of the complaints:

    Yes, the county has plenty of positions that pay less than $25 per hour, even with years of experience. Examples: public safety dispatcher, accountant I, heavy equipment mechanic, regular mechanic, GIS analyst I. For many of these, two people in the household could be working and still be below the maximum household income limit.

    Teachers get paid less than $98,000. Therefore, single or single-parent teachers would be eligible.

    In addition to teachers, many professional positions pay less than $98,000. Someone in one of these categories just starting out with the county with a year’s experience could qualify. For a couple, one of whom did not want to work but wanted to stay home to raise the children, this program would be a great benefit (benefit society at large, as well).

    As for the household income limits, there have to be limits somewhere.

    1. Nancy Naive Avatar
      Nancy Naive

      Whoa, whoa. Not your fault. You’re just the messenger.

      Like I said in my first post. Cool idea. Nice bennie, and it will bring more people to Henrico to take jobs and buy houses.

      Just hoping HR has given thought to friction.

  8. Nancy Naive Avatar
    Nancy Naive

    Dick, you’ve calculated the maximum use of the benefit at 80 households, but I wonder what the actual number of eligible households is? Those are fairly restrictive conditions since it’s based on household income.

    A cursory look says single college new hires are a targeted cohort.

    1. Eric the half a troll Avatar
      Eric the half a troll

      I know it is controversial but maybe they can use test score performance as way to target the benefit eligibility…. maybe just make it a bonus and be done with it.

      1. LarrytheG Avatar
        LarrytheG

        Well when there is a “benefit” that is not made available to all.. and no clear process for eligibility – it actually breeds
        discontent.

      2. Nancy Naive Avatar
        Nancy Naive

        It’s kind of a cool idea but I be curious how many current employees are in the set of eligible workers? Worse, how many are iced out by $1 too much income? Hate hard limits like those. They can create more disgruntled employees than they help.

        1. LarrytheG Avatar
          LarrytheG

          yes. it has to be something that everyone has a fair shot at or else it will be perceived as “goodies” for some people.

          1. Nancy Naive Avatar
            Nancy Naive

            Yeah. That’s the ticket. Sort of. It needs a phase out, not a hard line. It needs to be based on the employee’s wages, not household income.

      3. WayneS Avatar
        WayneS

        What kinds of tests do you have in mind?

        I’m imagining something like feats of strength around the Festivus Pole.

    2. Dick Hall-Sizemore Avatar
      Dick Hall-Sizemore

      It is really a minimum (80 X 25,000). County officials think some buyers will need less than a $25,000 down payment. If so, there would be enough for more than 80 beneficiaries.

      College new hires could certainly benefit. But also long-term, lower-paid employees such as garbage truck drivers, janitors, mechanics, etc. could benefit.

      A lot of folks who now rent and could afford a mortgage payment, but don’t have enough ready cash for a down payment would be prime candidates.

      1. Nancy Naive Avatar
        Nancy Naive

        The problem cutting the number is the $98K household income. Does the county pay anyone less than $25/hr? Two of those in the house and they’re over the income limit.

        Clearly, single persons are at an advantage.

        But this sort of thing can create more problems than solutions.

        How many employees, who could use the benefit, are iced out by a few dollars too much income? They ain’t gonna be happy.

        Imagine two guys hired on the same day for $50K/year. One guy’s wife earns $47K/year and the other guy’s wife earns $49K/year.

      2. Lefty665 Avatar
        Lefty665

        County officials think some buyers will need less than a $25,000 down payment.

        If I had the option of a $25k down payment subsidy that is exactly what I would put down. Each dollar of down payment reduces the monthly mortgage payment. Plus, a 20% down payment avoids the additional cost of mortgage insurance, and that’s going to be more than $25k.

        Seems likely just about 80 will be the actual number of beneficiaries.

  9. WayneS Avatar
    WayneS

    Many on this blog predicted that local government bodies, especially those in “progressive” urban areas would not be able to resist attempts by local employee unions to enter into collective bargaining. The City of Norfolk has demonstrated that it can and will resist.

    Good for Norfolk.

  10. WayneS Avatar
    WayneS

    Can someone who makes $98,000 per year afford a $425,000 house even with a $25,000 contribution from a third party? The monthly payment on a $400,000, 30-year fixed mortgage, at current rates (7.9%) is in the neighborhood of $2,900 just for P & I.

    That is a huge chunk of the take-home pay for someone making $98,000

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