official program rules

A. Program Purpose:
Washington University, in order to permanently stabilize the DeBaliviere Place, Forest Park Southeast, Northeast University City, Skinker-DeBaliviere, West End, Parkview Gardens, and a portion of the Central West End neighborhoods, is offering forgivable loans to qualified Washington University employees. Qualified employees who purchase a home as a primary residence in the neighborhoods described below will receive the lesser of five percent (5%) of the home’s purchase price or eight thousand five hundred dollars ($8,500), to be used to pay either part of the down payment or closing cost on a home purchase. BJC employees are only eligible for the Forest Park Southeast neighborhood. The maximum loan amount available to BJC employees is $4,000 or 5% of the purchase price, whichever is less. Purchase rehab loans will be five percent (5%) of the combined purchase price and rehab cost, or $8,500, whichever is less.

B. Eligible Properties:

Properties eligible for this program must meet all three of the following conditions:

  1. They must be 1-4 family buildings. Condominiums are eligible.
  2. They must be used a primary residence by the purchasing employee.
  3. The home must be located in one of the program approved areas – which are:
    •  DeBaliviere Place
    •  Forest Park Southeast
    •  Skinker DeBaliviere
    •  West End
    •  University City Northeast
    •  Parkview Gardens
    •  (Portion of the) Central West End

C. Eligible Employees:
Eligible employees must meet all of the following criteria:

  1. Full-time employees or part-time employees working 20 or more hours per week of Washington University in good standing.
  2. Purchasing an eligible property as described.
  3. 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 participating approved Fannie Mae lender (see Approved Lenders List).
  5. Must not be a disqualified person. A disqualified person is defined as following: 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 who is or was at any time during the previous five (5) years in a position to exercise substantial influence over the affairs of Washington University and any of his or her family members. Without limiting the foregoing, “disqualified persons” shall include the trustees and officers of Washington University who participate in the administration of the Employer Assisted Housing Program and his or her family members.

D. Forgiveness of Loan:
The Employer Assisted Housing Program (EAHP) loans will be forgivable over a period of five (5) years of home ownership. Twenty percent (20%) of the face amount of the loan will be forgivable the end of each full year. Certain situations include on the following:

  1. Death of the employee
  2. Retirement of the employee
  3. Permanent disability of the employee
  4. Termination of the employee due to reduction in staff

E. Required Legal Documents:
Each EAHP participant and any co-buyer of the property must sign the following legal documents prior to closing.

  1. Truth in Lending Statement
  2. Privacy Notice for Borrowers
  3. Promissory Note
  4. Tax Disclosure Statement
  5. Subordinate Deed of Trust

If you would like to preview the documents prior to the pre-closing meeting, please contact the program administrator.

F. Pre-closing Documents:
The employee and any co-buyer and the EAHP administrator will submit for review requested pre-closing documents within five (5) business days of the closing of the property. The employee and any co-buyer must furnish all required documentation to the EAHP administrator and the employee and any co-buyer must sign the required legal documents. Once these items have been accomplished, the EAHP administrator will be responsible for having the check and copies of the executed agreements delivered to the appropriate title company. If closing does not occur, the loan will not be funded and the signed legal documents will be destroyed or returned to the employee.

G. Closing:
Once all required documents are received the Washington University Medical Center Redevelopment Corporation wil wire the funds to your
closer. The legal documents will be kept on file at the Washington University Medical Center Redevelopment Corporation, Campus Box 8206, 660 South Euclid Avenue, St. Louis, MO 63110.

H. Periodic Reviews/Reporting Requirements:
The EAHP administrator will initiate a quarterly review of all EAHP participants by furnishing Human Resources with name and addresses of all EAHP participants and a request that Human Resources verify that the employee is still employed at Washington University and that the address is still the current address for the employee. After Human Resources verifies the information and notifies the EAHP administrator of any exceptions, the EAHP administrator will attempt contact with the employee to resolve discrepancies. The EAHP administrator will seek assistance from Treasury Services and/or the General Counsel’s office to determine if loan terms have been violated and what action needs to be taken.

I. Subsequent Sale or Transfer of Property:
The EAHP administrator will get involved as necessary when issues of sale or transfer of property is involved. The EAHP administrator will notify Treasury Service and/or the General Counsel’s office to determine if loan terms have been violated and what action needs to be taken

J. Other:
If an EAHP participant notifies the EAHP administrator of other changes in the participant’s employment or ownership of the property or a desire to prepay the loan, the EAHP administrator will notify/seek assistance from Treasury Services and/or the General Counsel’s office.The following table lists other loan modification events and the effect on the loan.

Loan Modification Events

Event Effect
Employee is terminated for any reason other than those listed in item D. Balance of the loan becomes due and payable.
Award of home in litigation. Balance of the loan becomes due and payable.
Home is sold or transferred. Balance of the loan becomes due and payable.
Home is no longer the primary residence of the EAHP participant or primary residence is leased for a period of over three years. Balance of the loan becomes due and payable.
Employees sells home and purchases another one in the eligible neighborhoods prior to the end of the five-year loan period. Balance of the loan becomes due and payable.
Employee defaults on first mortgage. Balance of the loan becomes due and payable.

K. Tax Liability: The Employer Assisted Housing Program loan you are applying for has certain tax consequences. The amount of the loan that is forgiven will appear on your W-2 statements as “Other Income.” You will be required to count this as part of your taxable income.