Employees of Saint Louis University now have the opportunity to receive financial assistance when looking to purchase a new home in the Midtown area, thanks to a new program announced yesterday by University President Lawrence Biondi, S.J.

Biondi addressed both community and business leaders, media and members of the University at a news conference held at the Covenant Place display homes at Cook and Vandeventer Avenues.

The community-based initiative, called Hometown SLU … Building Community through Home Ownership, is designed to encourage development in the Midtown area of St. Louis. Hometown SLU is supported by Fannie Mae, Cendant Mortgage, U.S. Bank, Commerce Bank and the City of St. Louis.

Through the program, full-time, eligible employees can receive forgivable loans of up to $5,000 if purchasing a home in the designated area. The loans are forgivable over a five-year period as long as the person is still employed by SLU and the home is the main place of residence.

“For years faculty and staff have told me they have found a home working at Saint Louis University,” said Vice President of Human Resources Kathy Hagedorn. “That is because we are a close-knit family, committed to a common mission and inspired by the Jesuit values. Now, with Hometown SLU, we can literally ‘help people find a home at SLU.'”

The initiative also provides preferred mortgage rates, reduced closing costs, home ownership education and other support services, no matter where the employee chooses to purchase a home. In addition, an online mortgage resource is provided by Fannie May that offers tools and information on mortgage financing.

Mayor Francis Slay, a 1980 graduate of SLU, said the initiative would not only stabilize the neighborhoods, but also increase property values.

“Saint Louis University has been a wonderful anchor to the City of St. Louis,” Slay said. “The city is here to help in any way we can to see this project succeed.”

Hagedorn was vital in the creation of the program. While she originally considered the idea eight years ago, it did not take off until two years ago.

For Julius Hunter, vice president of community relations, the conference was what he called a “homecoming,” since he grew up in the neighborhood.

“I see a lot of old memories, but I also see the promise of what it could be,” Hunter said.

Of the 3,800 full-time faculty and staff of SLU, approximately 25 percent, or 950 employees live in the city of St. Louis.

Participants in the program can choose to live in one of two areas surrounding SLU. The first is bordered by Vandeventer 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.

The loans are valued at 5 percent of the purchase price or $5,000, whichever is less.

Biondi described the community surrounding SLU as vital to the University’s mission.

“We use the city as a ‘classroom without walls,'” Biondi said. “It is not only the morally right thing to do, it is the smart thing to do.”

The University has budgeted a certain number of home purchases in the program, five to six per year, based on a similar program developed by Washington University.

So far two employees who were already close to buying a home have inquired about the program, while three others have come forward with interest.

Dan Shown, administrative secretary in the philosophy department, is one of the two considering taking advantage of the program’s incentives. He and his wife are looking to start a family and were originally searching for homes in south St. Louis. Now he is thinking about the areas included in the program, though the final decision will ultimately be based on cost.

Youvette Bland, a social worker in the department of internal medicine, is also pursuing a purchase. She said the program is an incentive for sticking to her commitment to the University as an employee.

“I thought it was a real exciting opportunity,” Bland said. “I would like to see this program blossom.”