THE UNIVERSITY OF
EMPLOYER-ASSISTED HOUSING PROGRAM
The University of Scranton has established a multi-faceted
program to aid Hill Section revitalization efforts by encouraging current and
new members of the University faculty, staff and administration to live in a
targeted area of the Hill Section.
For purposes of the program, the eligible area of
the Hill Section is bounded on the east and west by Ash Street and Ridge Row
and on the north and south by Jefferson Avenue and Nay Aug Park.
Homesteading Rental Property
The University owns several rental properties
located in the Hill Section that are specifically designated for renting to
current and new, full-time members of the faculty or staff who are not
already living in the targeted area of the Hill Section. The University
retains ownership of these properties and serves as the landlord. Properties
are available on a first-come, first-served basis and are managed through the
University's Administrative Services Division.
The University of Scranton has partnered with
Fannie Mae and Neighborhood Housing of Scranton to make free information and
workshops about purchasing a home available to employees. Information addresses
common questions and concerns about purchasing a home and securing a mortgage.
It is open to all employees not only those interested in purchasing a home in
the eligible area of the Hill Section.
Forgivable Home Purchase Loan Program
Description: Beginning in the 2002-2003
academic year, the University embarked on a three-year program to offer
employees a Forgivable Home Purchase Loan. The total annual funding
available for all forgivable loans within the program is $25,000 each year for
a three-year total project amount of up to $75,000. Loans are offered to
employees on a first-come, first-served basis.
Eligibility: All current and new full-time
employees of the University who are not already living in the eligible area.
Forgivable Loan Amount: Eligible employees can
receive a forgivable loan of up to $5,000 that can be used to defray
down payment, closing costs (home inspections, appraisals, etc.) or points on
the purchase of a home in the eligible area of the Hill Section as defined
above. The entire loan is provided to the employee at the time of purchase.
Loan Forgiveness/Tax Consequences: The
University will forgive one-third of the loan each year over a three-year
period. Employees who leave University service prior to the conclusion of the
three-year period are responsible for reimbursing the University for any
remaining loan funds (prorated for partial years of service). NOTE: The
employee is responsible for all tax consequences of the forgivable loan.
For example, assume that the employee closes on the
purchase of a home in the eligible area on 1 June 2003 and that he/she chooses
the full loan amount of $5,000. This date (1 June) will be considered the
anniversary date of the forgivable loan. On 1 June 2004, the University will
forgive $1,667 (one-third) of the loan assuming that the employee fulfills all
the conditions of the program. That $1,667 will appear as income to the
employee on the W-2 he/she receives from the University for 2004. It is subject
to FICA and all other withholding taxes. The University will forgive $1,667 on
1 June 2005 and the remaining $1,666 on 1 June 2006. These would appear on the
employee's W-2 form for 2005 and 2006, respectively.
Application Procedures: Forgivable Home
Purchase Loan Applications are available through the Associate Vice President
for Administrative Services, 202 Claver Hall, 570-941-7451. A completed
application also requires that you attach a copy of a fully executed Property
Purchase Contract and completed Mortgage Lender Application.
Conditional Reservation: Employees who are just
starting to look for a home in the eligible area can request a Conditional
Reservation for one of the five Forgivable Home Purchase Loans that are
available each year. If approved, employees can use a Conditional Reservation
with lenders to certify that down payment support is available through a
Forgivable Home Purchase Loan. Conditional Reservations expire 90 days after
the initial approval. Employees must still complete and submit a Forgivable
Home Purchase Loan Application with all necessary attachments. Conditional
Reservation Forms are available through the Associate Vice President for
Administrative Services, 202 Claver Hall, 570-941-7451.
Favorable Loans and Fees
The University will collaborate with lenders
in an effort to ensure that employees receive favorable rates. The University
will also consult with realtors or other vendors in an effort to secure
discounts on costs related to home purchases (e.g. appraisals, credit reporting
or home inspection).
Other Assistance Available
Neighborhood Housing of Scranton can provide
information about the variety of programs available to assist homebuyers of low
or moderate incomes. You can find out more about these programs and their
eligibility requirements by calling 570-558-2490.
For more information about the Employer-Assisted Housing
Program, contact Martin Langan, Associate Vice President for Administrative