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Faculty Housing Assistance Programs - Academic Affairs

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  • pg 1
									   Debbie McGraw
     Bobb Barile
Linda Thai Schlossman
 Types of Faculty Housing Assistance Programs
 Standard eligibility and applications
 Changes in policy since July 2010
 Common issues/exceptional requests brought up by
  departments and divisional offices
 Unique home loan scenarios
 Q&A
 Mortgage Origination Program (MOP)
 Supplemental Home Loan Program (SHLP)
 Faculty Recruitment Allowance Program (FRAP)
 La Jolla Del Sol Faculty Housing Priority Program
 (FHPP)
 Standard
   Loan term – up to 40 years
   Interest rate – variable, based on 4 qtr STIP
   Current rate = 3%
 Variation – Interest-Only (IO-MOP)
 Variation – Graduated Payment (GP MOP)
   Allows for a reduced interest rate for a period not to
    exceed 12 years
   Department pays the difference between the regular rate
    and reduced rate
   Gap between regular and reduced rate is reduced by the
    same percentage each year
 Eligible Titles                    Eligibility Period
   Ladder rank faculty                Asst Prof – 4 yrs with
   Senior Mgmt Group                   additional year upon
   LPSOE/LSOE                          tenure
      Normally don’t offer            Assoc and Full Prof – 2
       unless it is a recruitment       yrs
       issue                           LPSOE/LSOE – 2yrs
      Cannot already be living
       in San Diego
                                     Amount
                                       $700K standard offer in
                                        recruitment letters
                                       Consider higher
                                        amounts, if asked
 Campus can use its own funding to make loans that
 may be more flexible than the MOP loans
   Fixed or variable interest rate
   Flexible terms, e.g. balloon payments
   Predominantly used to assist with down payments
 AA offers short-term (5 yr), need-based SHLP to assist
 with down payments
 FRAP Policy (APM 190)
 Cash payment to assist new faculty with housing and
  relocation needs
 AA further restricts to pay only when faculty are in
  escrow (historical practice)
 Policy maximum = $59,700
 Higher amounts, by exception
 Priority consideration for campus-owned and operated
  housing for new faculty
 Historically, faculty are offered appointments by their
  desired move-in date
 Waiting list for LJDS is much shorter due to fewer
  academic recruitments, discontinued eligibility for
  graduate students, other housing options available for
  graduate students
 Floor interest rate is 3.00% for loans final approved
  after August 2010
 51% minimum owner-occupancy rate, which must be
  confirmed by the HOA Management Company
 OLP will not consider 2nd appraisals if the borrower is
  unhappy with the appraised value
 Income verification – Summer Salary
   Summer salary can be used as verified income only if the
    department verifies that it will continue for the next two
    years
   The cutoff date to include summer salary received in the
    current year as part of the income calculation is
    September 1st
   This will primarily affect borrowers who only receive 2
    years of summer salary, including the current year
      Example, for preapproval certificates issued 9/1/11,
       verification of summer salary for 2012 and 2013 is required
 Confirmation by the department of summer salary and
  faculty recruitment allowance
 Exceptional requests
   Faculty Recruitment Allowance amount
   Faculty Recruitment Allowance timeframe
   Loan amount > standard maximum
   Eligibility period
 Timeframe exception
   Pay after initial 2 yrs of appointment
 How to make a request
   Email from Divisional Dean addressed to EVC, routed
    through Home Loan Program Coordinator
   Must indicate the desired extension period, source of
    funding, and justification for the request
      Example: Professor X is actively looking to purchase a home. Our
       department would like exceptional approval for a 1-year extension to
       allow him/her to use the FRA of $Amount to help with the down
       payment. This FRA will be paid from start-up account funds.
 Review
   EVC is the final review authority
 Amount exception
   Chancellor can approve exceptions for amounts greater
    than $59,700 and up to $100K
   OP approves exceptions > $100K
 How to make a request
   Email from Divisional Dean addressed to EVC, routed
    through Home Loan Program Coordinator
   Must indicate FRA amount, who is funding the FRA, and
    justification for the request
   Justification should be compelling and unique to the
    faculty member’s circumstances
 Review
   EVC submits to Chancellor for final review
 Amount exception
   Loan amount greater than standard maximum amount,
    but less than $1.33M
 How to make a request
   Email from Divisional Dean addressed to EVC, routed
    through Home Loan Program Coordinator
   Must indicate requested loan amount and justification
    for the request
   Justification should be compelling and unique to the
    faculty member’s circumstances
 Review
   EVC is the final review authority
 Eligibility period extension
   Eligibility period that is longer than the standard for
     Associate and full Professors (i.e. 2 years) and for Assistant
     Professors (i.e. 4 years)
 How to make a request
   Email from Divisional Dean addressed to Acting EVC, routed
    through Home Loan Program Coordinator
   Must indicate the desired extension period and justification
    for the request
   Justification should be compelling and unique to the faculty
    member’s circumstances
 Review
   EVC is the final review authority
 Combining loans for couples
   Couples may combine their individual loan allocations
    for a total loan not to exceed $1M
   Primary borrower vs. secondary borrower
 Refinance an existing loan
   An exceptional request requiring review by EVC
 Recruited from another UC and already has MOP loan
   Cannot have two MOP loans at the same time
 Going on leave in the middle of eligibility period
   Modification of loan eligibility period requires review by
    EVC

								
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