Faculty Housing Assistance Programs - Academic Affairs

Document Sample
Faculty Housing Assistance Programs - Academic Affairs Powered By Docstoc
					  Faculty Housing
Assistance Programs
Agenda
 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
Types of Programs
 Mortgage Origination Program (MOP)
 Supplemental Home Loan Program (SHLP)
 Faculty Recruitment Allowance Program (FRAP)
 La Jolla Del Sol Faculty Housing Priority Program
  (FHPP)
Mortgage Origination Program
 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
MOP Administration – Academic Affairs
 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
Supplemental Home Loan Program
 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
Faculty Recruitment Allowance
Program
 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 = $60,900
 Higher amounts, by exception
La Jolla Del Sol FHPP
 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
Loan Processing Changes (since July 2010)
 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
Loan Processing Changes (since July 2010)
 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
Common issues that may slow down
the loan application process
 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
Faculty Recruitment Allowance
 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
Faculty Recruitment Allowance
 Amount exception
   Chancellor can approve exceptions for amounts greater
    than $60,900 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
Loan amount
 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
 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
Unique loan scenarios
 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
Questions

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:0
posted:12/11/2013
language:Unknown
pages:17
yaofenjin yaofenjin http://
About