Prince William officials are making lemonade from housing industry lemons, using the current foreclosure crisis to bring affordable housing to county employees. On Tuesday, Finance Director Chris Martino detailed plans to bring low-interest loans to employees who want to buy a home in the county.

The proposal won't cost the county any money and it will help in some small way to fill the now-vacant houses that are further depressing the county's market.

"We're not kidding ourselves that this will fix the problem overnight," Martino said, but added that at the moment, 40 percent of county police officers and 60 percent of firefighters live outside the county. Anything the government can do to move them, and other employees, closer to home will be a step in the right direction.

The plan is relatively simple. The county will invest up to $20 million in 10-year CDs from a bank. The bank will pay the county a set interest rate – somewhere around 4 percent. The bank will then use the money to give home loans to county employees at a slightly higher rate – about 5 percent. That's still lower than the market rate of 6 percent so the county earns interest, the bank turns a profit and the employee gets a better deal than the going rate.

Martino assured supervisors that there is no risk to taxpayers because it is the bank, not the county, that is signing loan agreements.

"The employee does still need to qualify for this loan," he said. "We're not going to subsidize it and we're not going to guarantee it."

As long as the loan recipient remains a county employee and keeps the house, the interest rate will remain at the fixed county employee rate. If the employee quits or sells the house, the interest rate will revert to the higher market rate at the time the house was purchased. After 10 years, the interest rate will revert anyway.

That's because the deal is intended to help out entry-level employees in the lower salary brackets. After 10 years of county employment with regular raises and promotions, the employee will not need an extra leg up.

And while the deal is being marketed toward public safety workers and teachers, any county employee will be eligible to apply. Officials said they will also build in safeguards to keep real estate speculators from taking advantage of the deal.

The details are still being worked out but the Prince William Board of County Supervisors gave the idea a big thumbs up on Tuesday.

"I think this is a great idea," said Dumfries Supervisor Maureen Caddigan. "It's an opportunity for our workforce."