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					                              Saint Louis University
                              Hometown SLU
                Building Community Through Home Ownership
                      Employer Assisted Housing Program

                              Frequently Asked Questions

What is Hometown SLU?
Hometown SLU is the Employer Assisted Housing Program of Saint Louis University, an
exciting new benefit offered to full-time employees of the University. Hometown SLU
offers two different levels of benefit: homeownership and a forgivable loan program for
use with the purchase of a home in the designated neighborhoods surrounding campus.

What employees are eligible?
To be eligible, an employee must meet all of the following criteria.

               1) A full-time employee in good standing at Saint Louis University;

               2) Purchase an eligible property as described below; and

               3) An employee can use this benefit only once. The benefit cannot be
                  combined with another employee’s benefit on a single home purchase.

               4) Eligible employees must qualify for a mortgage through a lender.

               5) Must not be a disqualified person. A disqualified person is defined as
                  follows: An employee who is a “disqualified person” within the
                  meaning of Section 4958 of the Internal Revenue Code shall not be
                  eligible to participate in the program. A “disqualified person” includes
                  any employee and any of his or her family members who is or was at
                  any time during the previous five (5) years in a position to exercise
                  substantial influence over the affairs of Saint Louis University.
                  Without limiting the foregoing, “disqualified persons” shall include
                  the trustees and officers of Saint Louis University who participate in
                  the administration of the Employer Assisted Housing Program and his
                  or her family members.


What properties are eligible for use of the forgivable loan?
Property eligible for this program must meet all three of the following conditions:
               1) It must be a one or two family building;

               2) It must be used as a primary residence by the purchasing employee;

               3) The home must be located in one of the neighborhoods described
                   as follows:

                   On the north end of the Saint Louis University campus:
                      West of Jefferson Avenue, south of Natural Bridge and east of
                      Vandeventer to Delmar. South of Delmar, east of Pendleton, north
                      of Olive, east of Boyle, north of Laclede, west of Sarah, north of
                      Lindell, west of Compton. From Compton north of Dr. Martin
                      Luther King Drive to Jefferson.

                   On the south end of the Saint Louis University campus:
                      South of Chouteau, east of Compton, north of Lafayette, and west
                      of California.

What are the benefits being offered?
In addition to the education and information tools available through the Home Buyer’s
Assistance site, and the lower rates on mortgages and refinancing costs through our
partner lender institutions, qualified employees who purchase a home as a primary
residence in the neighborhoods described above will receive the lesser of five percent
(5%) of the home’s purchase price or five thousand dollars ($5,000), to be used to pay
either part of the down-payment or approved closing costs on a home purchase.

How must I use the forgivable loan money?
The forgivable loan must be used for a down payment or any of the customary closing
costs associated with the purchase of the home.

How does the forgiveness work exactly?
The Employer Assisted Housing Program (EAHP) loans will be forgivable over a period
of five (5) years of home ownership. Ten percent (10%) of the face amount of the loan
will be forgivable at the end of the first year; an additional fifteen percent (15%) after the
second year; an additional twenty percent (20%) after the third year; an additional
twenty-five percent (25%) after the fourth year; and the balance, or thirty percent (30%)
after the fifth year. Certain situations will call for forgiveness prior to five years. These
situations include the following:

                       1) Death of employee.

                       2) Permanent disability of the employee.

                       3) Termination of the employee due to reduction in staff.

What must I do to have the loan forgiven?
In order to have the loan completely forgiven, an employee must remain a full-time
employee of the University for the duration of the loan (5 years), and the designated
home must remain the primary residence of the employee for that entire period of time.
The balance of the loan becomes immediately due and payable in the event of the
following circumstances:
                                     Event
                     Employee is terminated for any reason
                     other than those listed above.
                     Award of home in litigation.

                     Home is sold or transferred.

                     Home is no longer the primary residence of the
                     EAHP participant or primary residence is leased
                     for a period of over three years.
                     Employee sells home and purchases another one
                     in the eligible neighborhoods prior to the end of
                     the five year loan period.
                     Employee defaults on other loan secured by the
                     property.


Do I have any other obligations?
Each EAHP participant and any co-buyer of the property must sign the following legal
documents and any others reasonably required prior to closing:

                      1) Promissory Note

                      2) Subordinate Deed of Trust

Additionally, the employee must provide the following signed items at the pre-closing
meeting with the EAHP administrator:

                      1) Forgivable Loan Application

                      2) Tax Disclosure Statement

                      3) Final Withholding Authorization

The employee must also provide the following items for documentation at the pre-closing
meeting:
                    1) Contract on eligible house

                      2) Proof of Insurance (Homeowners Insurance)

When do I receive the forgivable loan benefit?
The amount of benefit is wired to the title company on the closing date of the home, by
the Treasurer’s Department of the University.

What happens if I decide to sell the house within five years?
The balance of the forgivable loan becomes immediately due and payable when the home
is no longer the primary residence.

What happens if I no longer work for the college?
The balance of the forgivable loan becomes immediately due and payable should the
employee terminate his or her employment with the University, for any reason other than
listed above.

If I leave the college in the middle of the year, is loan forgiveness pro rated?
No. Loan forgiveness will occur only on the anniversary date of your loan and only if
you are still employed by the college. Loan forgiveness is not pro rated for partial years
worked.

I currently own a house within the eligible area but want to move to another house
within the eligible area. Do I qualify for the program?
Yes.

How many times may I receive the benefit of the forgivable loan?
The forgivable loan is available once to an employee during employment at Saint Louis
University. If the employee leaves the University and later returns to employment, the
benefit is still available only once to that employee.

How do I obtain the forgivable loan benefit?
The first step is to submit the Employee Eligibility Form to the Benefits Office. Upon
approval, you then need to secure a contract on a house in the eligible neighborhoods,
submit the Forgivable Loan Application, Tax Disclosure Statement, and Final
Withholding Authorization, along with copies of the contract on the eligible house and
insurance, to the Benefits Office fourteen (14) days prior to the closing on the house.

How do I apply?
Employee Eligibility Forms are available in the Benefits Office. If you have further
questions, please contact Sharhonda Beasley-Crosby at 314-977-3927.

Is the forgivable loan benefit taxable to me?
Yes, but not until the loan is actually forgiven. For example, if you received the
forgivable loan on June 1, 2003, then you would have your first forgiveness of the loan
on June 1, 2004. If $500 were forgiven from your loan on June 1, 2004, then that $500
will appear as income to you on the W-2 you receive from the University in 2004. It is
subject to FICA and all other withholding taxes.

Is there a limit to the number or amount of forgivable loans to be made by the
University?
Yes, but as this is a new program, we are still trying to ascertain interest and demand for
the benefit so that we can budget properly for the program. We will try and
accommodate all employees but it may be necessary to place a limit on the loans. If a
limit is established, we will let employees know. For the time being, the benefit is
available on a first come, first approved basis.



October 2011

				
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