Portage approves employer-assisted down-payment program with KNHS to help city employees buy locally

Portage City Council voted Sept. 23 to approve participation in an employer-assisted housing program run with Kalamazoo Neighborhood Housing Services (KNHS). The city allocated $50,000, to be matched by $50,000 from Kalamazoo County, creating a $100,000 pool to provide down-payment assistance to city employees who meet program criteria.

City staff and council described the program’s goals as encouraging city employees to live in Portage and improving retention for public safety, public works and other departments. The city manager said the city has set aside $50,000 and the county match would make the pool $100,000; Pete Dame said KNHS will administer eligibility determinations and tailor award amounts to individual need. "If they need more down payment assistance, they would get more," Dame said. Officials noted staff will adopt internal policies that can include first-time-homebuyer preference, asset tests, length-of-service requirements or other retention tools.

Councilmember Burns moved to approve the agreement with KNHS and authorized the city manager to execute documents; the motion passed by roll call. Staff said the program’s local policy will seek to prioritize moving employees to Portage if they do not already live in the city and that loan forgiveness terms will depend on the amount awarded and the length of the forgivable period.