official program guidelines

A. Program Purpose:

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, Visitation Park, Academy, Fountain Park, Lewis Place and Vadeventer, is offering forgivable loans to eligible Washington University and BJC HeathCare employees.

 

B. Maximum Loan Amounts:

Eligible employees who purchase a home as a primary residence in the neighborhoods described below may be able to receive a forgivable loan in the maximum amount of eight thousand five hundred dollars ($8,500). For homes purchased in Forest Park Southeast on or before 12/31/19 (the date by which a purchase agreement must be signed), the maximum loan amount is twelve thousand five hundred dollars ($12,500). These funds are to be used to pay either part of the down payment or closing costs on a home purchase. With the approval of the program administrator in his or her discretion, a portion of the loan proceeds may also be used to pay rehabilitation costs.

 

C. 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
    • Visitation Park
    • Academy
    • Fountain Park
    • Lewis Place
    • Vandeventer

The precise boundaries of the approved areas are described elsewhere on the Live Near Your Work Website.

 

D. Eligible Employees:

Washington University 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. Graduate students and fellows are not eligible.
  2. Purchasing an eligible property as described herein.
  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 lender (see Approved Lenders List).
  5. First time home buyers must participate in a first time home buying counseling program selected by the program administrator.
  6. Must not be a “disqualified person” of Washington University within the meaning of Section 4958 of the Internal Revenue Code, as determined by the Controller of the University in his or her discretion. In general, a “disqualified person” includes a trustee, officer, or any other 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 as well as his or her family members.

BJC HeathCare eligbile employees must meet all the following criteria:

  1. Benefits eligible employee, whose primary job is on the Washington University Medical Campus:
  2. Full-time employees or part-time employees working 24 or more hours per week .
  3. Purchasing an eligible property as described herein.
  4. Employee can use this benefit only once. The benefit cannot be combined with another employee’s benefit on a single home purchase.
  5. Eligible employees must qualify for a mortgage through a participating approved lender (see Approved Lenders List).
  6. First time home buyers must participate in a first time home buying counseling program selected by the program administrator.
  7. Must not be a “disqualified person” of BJC HealthCare. In general, a“disqualified person” includes a trustee, officer, or any other employee, or family member of such employee, who is or was any time during the previous five years in a position to exercise substantial influence of the affairs of BJC HealthCare.
  8. Must not be contingent workers, secondary positions, PRN or persons of interest.

E. Forgiveness of Loan:
Live Near Your Work program loans will be forgivable over a period of five (5) continuous years of home ownership. Twenty percent (20%) of the face amount of the loan will be forgiven at the end of each full year. The loan will be forgiven in its entirety upon the occurrence of any of 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

 

F. Funding limits:

The maximum amount of new forgivable loans to be issued during any fiscal year, on a first-come, first-served basis, is $200,000, beginning with the fiscal year ending 6/30/18, with the following adjustments:

  1. Loans for homes purchased in any neighborhood, including Forest Park Southeast, count toward the limit.
  2. Once the limit has been reached, loans may not continue to be made for homes purchased in neighborhoods other than Forest Park Southeast.
  3. Once the limit has been reached, loans may nonetheless continue to be made for homes purchased in Forest Park Southeast.

 

 

G. Required Legal Documents:
Each Live Near Your Work program 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

Loans are not secured by a mortgage or deed of trust on the house.  If you would like to preview the documents prior to the pre-closing meeting, please contact the program administrator.

 

H. Pre-closing Documents:
The employee and any co-buyer and the Live Near Your Work program 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 Live Near Your Work program administrator and the employee and any co-buyer must sign the required legal documents. Once these items have been accomplished, the Live Near Your Work program 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.

 

I. Closing:
Once all required documents are received [the Washington University Medical Center Redevelopment Corporation] [Washington University] will wire the funds to your closer. The legal documents will be kept on file at the Washington University Medical Center Redevelopment Corporation, Campus Box 8004, and 4400 Chouteau Avenue, St. Louis, MO 63110.

 

J. Periodic Reviews/Reporting Requirements:
The Live Near Your Work program administrator will initiate a quarterly review of all Live Near Your Work program participants by furnishing Human Resources with name and addresses of all Live Near Your Work program participants and a request that Human Resources verify that the employee is still employed by Washington University and that the address is still the current address for the employee. After Human Resources verifies the information and notifies the Live Near Your Work program administrator of any exceptions, the Live Near Your Work program administrator will contact the employee to resolve discrepancies.

 

K. Subsequent Sale or Transfer of Property:
The Live Near Your Work program administrator will get involved as necessary when a sale or transfer of property is involved. The program administrator will consult appropriate officials of Washington University to determine if loan terms have been violated and what action needs to be taken.

 

L. Other:
If a Live Near Your Work program participant notifies the Live Near Your Work program administrator of other changes in the participant’s employment or ownership of the property or a desire to prepay the loan, the Live Near Your Work program administrator will notify/seek assistance from appropriate officials of Washington University. 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 E. 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 LNYW 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.

 

M. Tax Liability: The Live Near Your Work 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.

 

N. Modification / Termination. For any or no reason Washington University reserves the right to modify or terminate the Live Near Your Work program at any time, provided that no such modification or termination shall apply to any loan previously made pursuant to the program.