SB 0772 Creates a grant program for employees who purchase homes in areas of economic decline near where they work
LR Number:2860S.01I Fiscal Note:2860-01
Committee:Insurance and Housing
Last Action:01/29/02 - Hearing Conducted S Insurance & Housing Committee Journal page:
Effective Date:August 28, 2002
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Current Bill Summary

SB 772 - This act establishes the "Live Near Your Work" (LNYW) program which is designed to encourage people to relocate their residence to areas of relative decline, so as to reverse poor economic trends in those areas. The program attempts to achieve this goal by providing economic assistance to people who purchase and reside in property located in economically declining areas which are close in proximity to their employment. The employer, the state, and the local government provide equal financial contributions to each participating employee.

A local government, such as a city or county, must initiate the program in their geographic area. The local government identifies neighborhoods or other areas of pervasive economic decline and recruits a local employer or employers to participate in the program.

Any eligible employee of a participating employer may apply for a grant pursuant to the LNYW program provisions. Eligible employees must purchase and reside in a property within the designated area in order to receive the program grant. Other conditions may also apply to grant recipients, including maintaining residence in the property for at least one year. In the event applicable requirements are not met by the grant recipient, the grant moneys may have to be returned.

Each program grant awarded is in the total amount of $3,000 which consists of $1,000 each from the Department of Economic Development (DED), the local governmental unit operating the LNYW program, and the recipient's participating employer. The grant money is paid at the time the employee/home buyer closes on the purchase and the funds are directed specifically to defray closing and down payment costs of the home purchase. As the DED does not provide direct oversight over local LNYW programs, the State Auditor may audit any such program which receives a grant contribution from the DED.