Maryland

A program adopted by the state of Maryland as part of a Smart Growth initiative to encourage workers to move closer to their workplaces.

In 1997, lawmakers in Maryland passed smart growth legislation in cities to combat the problem of sprawling development in Maryland’s cities.  Workers who live in suburbs but still work in urban centers often spend over an hour commuting daily. Those residing and working in cities spend comparatively little time on the highway. Thus, sprawl feeds rush hour congestion and compounds commuter headaches. To combat these problems simultaneously, lawmakers established the Live Near Your Work Program (LNYW). The goal of LNYW is to move workers closer to their workplaces, reducing travel time, revitalizing cities’ residential communities, and encouraging home ownership.

Nuts and Bolts:

• The program was developed in 1998 by a coalition of state policy makers and housing finance specialists. They determined that a successful program must offer workers enough of an incentive so that they consider living in a neighborhood in which they ordinarily would not.
• Under the program, residents may receive $3,000 towards the purchase, down-payment or closing costs on a new home that is located within five miles of the resident’s workplace and within one of Maryland’s targeted residential development zones.
• Zones are located in many of Maryland’s cities, including Baltimore, Silver Spring, College Park, and Hagerstown.
• The program is not available to all state residents. To qualify, the potential homebuyer’s employer must also participate in the program.
• Federal employees became eligible for LNYW in 2001, vastly expanding the program’s reach. The employer pays $1,000 of the $3,000 grant, as does the local city government. The State of Maryland pays the supplemental $1,000 using funds from an annual appropriations bill through the State Housing Finance Agency.

Successes:

• Employees living nearer to their work are less frequently late and they change jobs less often.
• In the four years since the program’s inception, employer participation has risen from just over forty employers participating to eighty businesses, non-profits and municipal agencies.
• Each year since the beginning, a greater number of LNYW Grants have been awarded than in the previous year. Improved marketing and greater employer involvement made 2001 the programs biggest year to date with 150 people receiving grants.
• Growth in targeted development zones shows signs that the program is working to revitalize troubled neighborhoods. Survey results from 427 participants in the program show a change in commuting habits.
• Participants spend less time traveling to and from work now than before they moved. Sixty-four of the homebuyers have switched their mode of work transportation from driving to walking. While 135 participants had a commuting time of thirty minutes or greater before their move, less than 40 participants experience a similar length commute after moving into these zones. Exit survey results show that the program promotes home ownership. Roughly 75% of those participating in the program are purchasing their first home. One third of those participating would not have been able to make the down payment if not for the grant. A majority of the participants noted that the program was easy to maneuver and they would recommend it to others.

For more information on this program: Maryland Department of Housing and Community Development, Live Near Your Work Program