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The University of California and UC San Diego offers the following housing programs to assist with the recruitment and retention of Academic Senate Faculty. Eligibility to participate in the following programs for General Campus Ladder Rank Senate Faculty will be stated in your offer letter at the time of recruitment.
Please contact the UC San Diego Home Loan Coordinator, Carlos Hernandez, for specific MOP and campus criteria (including the loan pre-approval application process, loan requirements and terms, and lending residency requirements for visa holders). Additional information for each program can be found below.
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.
This section provides some highlights of the MOP program. Full details will be provided during the application process.
Academic Affairs and General Campus Academic Senate Faculty - please contact Carlos Hernandez.
Health Sciences Academic Senate Faculty - please contact Jackie Corbeil.
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.
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.
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:
Forgivable Feature
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
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
Forms
The following are required to be included in the Program eligibility packet sent to OLP:
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.