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Click here to read what the OSU Trustees have to say about the homeownership program. |
Click here for the most recent progress report on the homeownership program. |
- Purpose
In an effort to
increase the level of homeownership in the University District, The
- Geographic Locations
The Program is a $500,000 commitment by The Ohio State University targeted in the following incentive areas:
- Area A - A minimum of $325,000 of the $500,000 in Homeownership Incentive funds will be reserved for homes purchased in the area directly surrounding the OSU Columbus campus. (Area A is shaded in gray on the map below.) Please note that as of Nov. 2, 2001, applications for the homeownership incentive funds are being taken only for Area A.
- Area B – A maximum of $175,000 of the $500,000 in Homeownership Incentive funds will be available for homes purchased in the University District neighborhoods located within Area B. (Area B is the unshaded area on the map, below.) Please note that as of Nov. 2, 2001, the funds for Area B have been exhausted. No further applications are being taken for assistance in the purchase of homes in Area B.
- Eligible Property
"Owner Occupied" property which will serve as the recipient’s principal residence include:
- Single family
- 2 to 4 family
- Condominium
- New construction of the above
- Eligible Applicants
Who - All faculty and staff who are employees of OSU (must be on OSU payroll) with regular appointments of 50% FTE or greater.
Length of service - Upon employment including letter of offer of employment for appointment types as stated above.
Income restrictions upon application - None.
Individuals who are excluded – Examples - student employees, graduate associates, lecturers, post-doctoral staff, others on "term" or temporary appointments and persons not on OSU payroll.
One loan per household - Down payment assistance will be limited to one $3,000 loan per household. (For example, two or more faculty or staff members cannot purchase a single property together in order to double the down payment assistance). Additionally, individuals who qualify and receive assistance through other similar programs are not eligible for this program.
- Application Eligibility Order of Priority
All faculty and staff who meet the eligibility requirements listed above may apply for down-payment assistance.
Down-payment assistance will be reserved based upon order of receipt of a copy of the faculty or staff member’s accepted purchase contract on a home in the defined University District. Upon receipt of such contract, funds will be reserved in the individual’s name for a period of 90 days.
- Financing Guidelines
Down payment assistance will consist of a zero interest forgivable loan (second mortgage) in the amount of $3,000 to be applied towards the required down payment, closing costs and/or reduction in principal amount.
Recipients will be required to sign a loan agreement and second mortgage with the University that would require the recipient to occupy the housing unit for a period of not less five (5) years. The second mortgage will be forgiven at a rate of 20% per year with the entire second mortgage amount forgiven after year five (5) of occupancy. If a recipient moves, sells or no longer occupies the property, or is no longer an employee of the University within the five (5) year period, the remaining prorated balance of the second mortgage is immediately repayable to the University. Recipient will cooperate with the University, or its designee, in monitoring compliance with the loan agreement and second mortgage and will supply necessary documentation and information.
Faculty or staff who voluntarily terminate or who are terminated for cause within five years of receipt of the down payment assistance are responsible for repaying the University any remaining prorated balance of the second mortgage.
Faculty and staff are not required to repay the University for any remaining balance of the second mortgage as a result of the following:
o Individuals who are laid off because their positions are abolished
o Individuals who qualify for disability retirement under STRS or PERS
o Death of the faculty or staff member
This down payment assistance is considered income to the employee and therefore the recipient is responsible for any related income tax liability.
- Program Administration
All eligible
faculty and staff (as defined in the Eligible Applicants section) interested in
the Program are directed to contact Campus Partners at (614) 294-7300. The
- Assist homebuyers in basic understanding of mortgage transactions, purchase contracts and related forms.
- Provide homebuyers with financial management assistance about various lenders and mortgage programs (i.e. conventional, FHA, 203(k)).
- Direct those homebuyers interested in major property rehabilitation to appropriate resources and entities.
- Direct those homebuyers interested in purchasing 2-4 family "owner occupied" units (where the buyer would occupy one unit and rent the other unit (s)), to resources to prepare for property management.
- Provide homebuyers with information regarding available housing in the University District.
- Assist homebuyers with resolving credit problems that may prevent the homebuyer from purchasing the property.
(11-16-01)
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