Faculty Housing Assistance Programs

The UC Office of Loan Programs in the Office of the President manages the Mortgage Origination Program. MOP provides first deed of trust loans with a one-year adjustable rate based upon an internal University index. 

The Mortgage Origination Program is a pre-approval program and candidates must have a pre-approval certificate before placing offers if they would like to utilize University financing.

Overview of Campus MOP Criteria 

This section provides some highlights of the MOP program. Full details will be provided during the application process. 

• Nomination to participate in MOP is stated in your final and approved appointment letter at the time of recruitment.
• Meeting MOP and UC San Diego program criteria and a loan pre-approval application are required to participate in MOP.
• General Campus faculty who are nominated to use MOP must hold a 100% Academic Senate Ladder-Rank Professor or Teaching Professor appointment.
• A Loan Pre-Approval Application is required to obtain pre-approval status and this is required before entering into a contract. The pre-approval process takes 5-7 business days.
• MOP is available One Time, per household, for the purchase of your First Home in San Diego County.
• The MOP property must be the principal place of residence for the term of the loan.
• All borrowers must have a valid U.S. Social Security Number (SSN) or Individual Taxpayer Identification Number.
• All borrowers must meet UC Home Loan Program U.S. Residency Requirements.
  • Visa Holders
    • Eligibility to participate in MOP on certain visa statuses may be delayed. 
    • Please consult with the campus Home Loan Coordinator for further information.
• How to receive a MOP UC Home Loan

Academic Affairs and General Campus Academic Senate Faculty - please contact Carlos Hernandez.

Health Sciences Academic Senate Faculty - please contact Jackie Corbeil.

How to Get Started  

• MEET with the campus MOP Home Loan Coordinator (by telephone or in-person) to learn about MOP Requirements.
  • Email Carlos Hernandez or call 858-822-1161 to make an appointment.
  • Discuss the MOP Criteria for UC San Diego and UC MOP Program Criteria and Lending Terms.
  • Discuss MOP Interest Rates and Tools to Monitor Rates.
  • Discuss the MOP Calculator to determine minimum requirements for a loan scenario.
  • The campus Home Loan Coordinator will transmit eligibility to the UC Office of Loan Programs.
• A LOAN PRE-APPROVAL application is required to use MOP. It takes approximately 5-7 Business Days after a complete loan application is submitted to the UC Home Loan Office to obtain an official loan pre-approval. Loan pre-approval is required before entering into a contract.

UC and UC San Diego MOP Criteria will be provided by the Home Loan Coordinator

• Email Carlos Hernandez or call 858-822-1161 to make an appointment.

UC Mortgage Origination Program (MOP) Overview, Brochures, Resources and Weblinks    

• Mortgage Origination Program (MOP) overview          
• MOP Program Brochure
• MOP Historical Interest Rate and STIP Quarterly Rate of Return for MOP Rate 
• MOP 5/1 Mortgage Origination Program (5/1 MOP) overview
• MOP 5/1 Historical Interest Rate and Indexing
• Office of Loan Programs Home Page
• Resources for Potential Borrowers
  • MOP loan calculator
  • FAQs about new UC home loans
  • FAQs about existing UC home loans
  • Overview of the Loan Process 
  • Consumer Information Topics

The MOP Program is dependent upon the availability of funds and that borrowers meet all program criteria. Program and eligibility requirements are subject to change without notice at the University's sole discretion. 

 Program Information 

• General Campus Faculty who are eligible to participate in the Faculty Recruitment Allowance Program will be notified in their resource letter at the time of recruitment.
• General Campus faculty who are nominated must hold a 100% Academic Senate Ladder-Rank Professor or Teaching Professor appointment.
• The primary purpose of the Faculty Recruitment Allowance is to provide support for housing costs, but the individual may also use the allowance to support childcare expenses, education or tuition assistance.
• Eligibility period:
  • According to the governing policy, faculty recruitment allowances are to be disbursed within the first two (2) years of the appointment start date
  • An initial disbursement made after the initial eligibility period requires the approval of the Executive Vice Chancellor Academic Affairs
• Time Extensions:
  • Faculty may request an FRA extension by emailing their Chair and MSO.  Departments can review and email a request to the EVC  Academic Affairs via their Dean’s Office. The Dean's Office can endorse and forward FRA requests via email to Carlos Hernandez.
• Payment:
  • Faculty recruitment allowances may be disbursed in one single payment or multiple payments.  Multiple payments must be agreed upon with Deans Offices and must not exceed a period of ten years. 
• The program is governed by campus policies and Academic Personnel Manual (APM) Policy 190.

Withholding and Tax Implications

Faculty recruitment allowances are considered taxable income. Payments made via payroll will be taxed at the applicable rates indicated by the appointee's W-4 form and may be impacted by retirement withholdings if you participate in those programs. 

FRA Payment Procedures

• Please provide advance notice to the business office in your home department before requesting your FRA.
• Faculty recruitment allowances can be issued to faculty members that state they will be using the funds for housing costs, childcare or education/tuition expenses.
• Home departments will contact Deans Offices to request authorization for payment.
• Home departments will provide a repayment agreement if one is required.  
• The FRA payments are processed through UCSD’s payroll system.  FRA payments cannot be made prior to hire date in UC Path.  The FRA payment usually takes a few days to process.
• Health Sciences Faculty - please contact Jackie Corbeil for payment requests and questions.

Faculty recruitment allowances are not considered covered compensation for purposes of the University's retirement or employee benefit plans.

Faculty are encouraged to contact the business office in their home department with policy and payment questions and to contact UCPath Center for questions on withholdings and taxes https://ucpath.ucsd.edu/self-service/index.html.  In the UCPath Center portal, questions can be submitted by clicking on the "ASK UCPath Center" button in the top right hand corner.

Please contact Carlos Hernandez or call 858-822-1161 in regards to FRA questions and exception requests.

UNIVERSITY OF CALIFORNIA HOME LOAN PROGRAM CORPORATION 

ZERO INTEREST PROGRAM LOAN (ZIP LOAN) 

Summary 

Through the University of California Housing Assistance Program Corporation (Corporation), the University of California Housing Assistance Program (Program) provides mortgage loans to Faculty and Senior Managers under the Mortgage Origination Program and the Supplemental Home Loan Program. The Office of Loan Programs (OLP) is introducing a new zero interest Supplemental Home Loan Product (SHLP) as an additional resource for down payment assistance. The new loan option provides secured subordinate financing with no monthly payments and zero percent interest with a forgivable feature. At the end of the loan term, the outstanding principal balance (original principal balance, less any forgiven amounts) would be fully due and payable. Similar to the current SHLP loans, the zero interest product could be combined with a primary mortgage from the Program, allowing Program participants to finance up to 95 percent of a home purchase. 

Product Overview 

The ZIP Loan would provide a deed of trust secured loan with the following parameters:  

• Interest Rate: Zero percent interest 
• Payment: No monthly payment  
• Loan Term: The loan term will be approximately 11 years depending on the funding date. 
• Max Loan Amount: Up to $150,000 
• Minimum Loan Amount: $10,000 
• Lien Position: 2nd or 3rd position 
  • Can be subordinate to an outside loan, subject to the Program and primary lender’s guidelines. 
  • If the campus is offering a combination of 3 Program loans, ZIP should be in third position. 
• Transaction Type: Purchase 

 Forgivable Feature 

• Ten percent (10%) of the original principal of the ZIP loan may be forgiven each year with the annual written endorsement of the Department Chair or equivalent designee, provided that the participant:  
  1. continues to be employed by the nominating University campus as an eligible participant, as defined in the Program guidelines;  
  2. is in good standing; and 
  3. is not in default on any term or condition of a Program loan.  
• Any loan forgiveness will be reported as taxable income in the year forgiven on a W-2 form and is subject to standard withholding requirements.
• Since the annual forgiveness process begins in July, loans that fund from July to December will be reviewed for forgiveness during the forgiveness processing period the year after funding. As such, loan terms will vary approximately between 10-11 years depending on the funding date. For example, the first forgiveness review period for a loan that funded in July 2022 would begin in July 2023.   

Repayment 

The loan will be due at the end of the loan term, the “Due Date”.   

Upon the Due Date, the outstanding principal balance (original principal balance, less any forgiven amounts) is absolutely due and payable and payment is not contingent upon the sale price or fair market value of the house or any other factor.  This is considered a ‘balloon payment’. 

Loan Acceleration:  All Program loans are condition of employment loans. The Loan can be declared due and payable before the Due Date for a number of reasons, including, for example, if the designated ZIP Loan Participant (the "Primary Borrower") is no longer employed by the University or becomes ineligible under the Program guidelines or if the Property securing the Loan is sold or transferred. 

Default 

If the outstanding principal balance is not received by the University by the ninetieth (90th) day after the Due Date, or within a certain period following the Acceleration Date, as applicable, interest will be charged on the unpaid principal balance at the annual rate of the current Standard MOP Rate or the maximum rate then permitted by law, whichever is less, commencing on the Due Date or the Acceleration Date, as applicable, and continuing until the full amount of principal has been paid. The University may pursue all remedies available to it to collect the balance due. 

Eligibility  

The Program loan participant must meet the eligibility criteria defined by the Program.  In addition to being eligible, the Participant must be nominated by the location (campus) to participate in the Program loan as well as meet the underwriting guidelines for the requested mortgage product. Nomination to participate in a Program loan is generally stated in the final and approved appointment letter at the time of recruitment.  

ZIP Loan Participant: Only one ZIP loan and one ZIP participant is allowed per purchase transaction. The campus will specify the one ZIP Participant in the ZIP Loan Authorization Form. The ZIP Participant will be designated as the Primary Borrower for the Program loan(s). The Primary Borrower will assume all tax reporting and forgiveness parameters tied to the Program loan(s).   

Funding Source 

The ZIP loan will be funded using available campus funds, which may include discretionary funds, as well as unrestricted and appropriate restricted gift funds. State 19900 funds cannot be used to fund Program loans. 

Campus Reporting Requirements 

The Office of Loan Programs will send an annual report and ZIP eligibility certification forms for active ZIP loans to each campus by July 15, with all forms due back by August 25. The campus will coordinate with Academic Personnel (or other designated campus office) and the department to have the forms completed.  

A program participant's departmental chair or equivalent shall annually determine whether the participant is in Good Standing, as defined below for this program. The participant's campus will provide the chair or equivalent relevant information to assist them in this annual determination. 

A faculty member is normally to be considered in Good Standing if 

• they are carrying out their faculty duties as commonly understood; 
• there has been no substantiated finding of misconduct as defined by Section 015 of the Academic Personnel Manual (APM 015) in the period since they were last reviewed to see if they were in good standing; 
• they are not currently under a severe disciplinary sanction imposed by a formal disciplinary process or an informal agreement with the University in lieu of formal disciplinary action; 
• they are up to date on their mandatory trainings; and 
• they are in compliance with all University policies.  

If the department chair or equivalent deems a participant is not in Good Standing, they should consult with the Dean and provide a written statement to the participant in a timely manner explaining why. The participant will have 30 calendar days to respond in writing, either accepting or challenging the Chair’s assessment. If no response is received in this time period, that will be the same as the participant accepting the chair or equivalent’s conclusion. 

Considerations   

The ZIP Loan's balloon repayment feature makes it a non-Qualified Mortgage.   

A Qualified Mortgage (QM loan), as defined by the CFPB, is a loan having certain features that are thought to make it more likely for a borrower to be able to repay it. Loans with nonstandard features such as balloon payments and loan terms greater than 30 years do not qualify as QM loans.  

The Chancellor or other designated official will be required to acknowledge and accept any risk of litigation associated with making non-Qualified Mortgages. A similar process is currently in place for campuses that offer loans with terms greater than 30 years.  

The ZIP loan is considered to be a below market-rate loan. A below market-rate loan is subject to imputed interest, which will be reported as taxable income each year on a W-2 form, and is subject to standard withholding requirements.  

Any loan forgiveness will be reported as taxable income in the year forgiven on a W-2 form and is subject to standard withholding requirements.  

Participants should consult with their tax advisor if they have any questions concerning their particular tax situation.   

Flow of ZIP Funds  

• Campus provides the funding source account information to OLP in the ZIP Loan Accounting Form. 
• Once the loan is ready to fund, the campus funding source account is debited by OLP to fund the ZIP Loan. 
• ZIP loan funds are wired to escrow for the home purchase transaction.  
• The participant would owe the ZIP principal balance to the Corporation as the lender.  
• If 1/10th of the loan is forgiven at the end of any year during the term, the principal balance would go down by that amount during the year of forgiveness. 
• Any remaining principal balance on the Due Date or the Acceleration Date, as applicable, would be fully due and payable to the Corporation, which would then remit any such payment to the campus. 

 Forms 

The following are required to be included in the Program eligibility packet sent to OLP: 

• ZIP Advisory Notice (ZIP-04): Upfront disclosure providing an overview of the ZIP Loan and detailing important considerations. The campus should go over the form with the applicant(s) and obtain acknowledgement and signature upfront.  
• ZIP Loan Authorization Form (ZIP-06): Campus authorization for the ZIP Loan and non-QM loan liability acknowledgment form signed by the Chancellor (or designee). 
• ZIP Loan Accounting Form (ZIP-05z): Provides the campus GL account to be debited to fund the ZIP Loan. 
• ZIP Annual Eligibility Certification: Form certifying ZIP Loan and forgiveness eligibility. (Document pending from UCOP) 

One housing option for new incoming General Campus Senate Faculty (in Academic Affairs departments) is to rent at the UC San Diego La Jolla Del Sol Apartments through the Faculty Housing Priority Program.

Faculty Housing Priority Program Requirements

• Faculty priority wait list status for La Jolla Del Sol Apartments is available to newly recruited General Campus Senate Faculty (in Academic Affairs departments) and will be stated in your offer letter.
• Eligible faculty must formally accept their official offer of employment from UC San Diego.
• Eligible faculty must apply online within thirty (30) days of accepting their offer at UC San Diego.

Program Features

• Convenient UC San Diego owned rental housing close to campus.
• Faculty are placed on a separate faculty priority wait list and can usually be accommodated within sixty (60) days.
• 1 and 2 bedroom apartments available with competitive rental rates and amenities.
• Apply online, the UC San Diego Associated Residential Community Housing Office staff will process your application and can answer any questions you may have about the application process.

La Jolla Del Sol Web Links

• Faculty Housing Priority Program
• Online Application
• Property Information
• Property Map

Contact for Application Questions

Contact for General Campus Senate Faculty with Program Requirement Questions