Regents Policy 5309: Policy on the University of California Employee Housing Assistance Program

Approved March 15, 2018
Amended January 20, 2022, April 6, 2023

POLICY SUMMARY/BACKGROUND

This policy is intended to work in conjunction with Bylaw 22.2 (c) of the Regents of the University of California (Regents), which provides the Regents with the approval authority for the University of California Employee Housing Assistance Program (Program) policies. The Program is administered by the University of California Home Loan Program Corporation (Corporation).

POLICY TEXT

Program loans provide financing using deeds of trust secured on real property to assist faculty and other eligible employees with the purchase of a primary residence, other than as specified in Section C(3)(a). Program loans are available for eligible employees at the University of California (University) campuses, Lawrence Berkeley National Laboratory, UC Hastings College of the Law (UC Hastings) and the University’s Office of the President and Division of Agriculture and Natural Resources.

B. Eligibility
The eligible population for Program participation consists of full-time University appointees with positions in the following categories:

1. Academic Senate members.
2. Academic titles equivalent to titles held by Academic Senate members as defined in University policy.
3. Acting Assistant Professors.
4. Senior Management Group employees.
5. UC Hastings faculty members.
6. University or UC Hastings employees who will be appointed to any of these eligible categories effective no more than 180 days after loan closing.
7. Other appointees who have received required additional approvals to be eligible for participation.

1. Properties financed using a Program loan must be used primarily for residential, non-income producing purposes.
2. Eligible properties are limited to Single Family Residences, Condominiums and properties located in a Planned Unit Development.
3. The subject property must be the principal place of residence for the participant throughout the term of the loan, other than during absences for sabbatical leave or other approved leaves of absence.
   1. Chancellors who are residing in University-provided housing as their primary residence per Regents Policy 7708 may use the Program to purchase a secondary residence in conjunction with the University-provided housing.

1. The sum of monthly mortgage payments (principal and interest) of the Program loan and all other loans secured by the subject property may not exceed 40% of the participant's household income. 
2. Program loan payments shall be made by payroll deduction while a participant is on salary status, unless it is not administratively feasible.
3. Program loans are not assumable.
4. Program loans carry no prepayment penalty.
5. Program loans carry no balloon payments, with the exception of the Zero Interest Supplemental Home Loan Program (ZIP-SHLP).
6. Program loans are condition of employment loans.
7. Program participation may continue during the term of the participant's employment, as long as the subject property continues to meet the requirements for an eligible property. If the subject property no longer meets these specifications, the Program loan shall be reviewed for appropriate disposition.

1. The University of California Employee Housing Assistance Program is comprised of the following loan options:
   1. Mortgage Origination Program (MOP)
   2. Graduated Payment Mortgage Origination Program (GP-MOP)
   3. 5/1 Mortgage Origination Program (5/1-MOP)
   4. Supplemental Home Loan Program (SHLP)
   5. Centrally-Funded Supplemental Home Loan Program (CF-SHLP)
   6. Interest-Only Supplemental Home Loan Program (IO-SHLP)
   7. Zero Interest Supplemental Home Loan Program (ZIP-SHLP)
2. Detailed descriptions of the available loan options are included in the Program Implementation Guidelines that are incorporated into Presidential guidance.

COMPLIANCE/DELEGATION

1. All housing loans issued by the University are governed by Program policies. The President is authorized to take all appropriate actions associated with the administration of the Program that are in conformance with standard mortgage industry procedures for the origination and servicing of mortgage loans. Specific procedures for administering the Program are included in the Program Implementation Guidelines that are incorporated into Presidential guidance. The President is also authorized to administer the periodic sale of selected Program loan pools.
2. Implementation and compliance with this policy shall be administered by the Office of the Executive Vice President - Chief Financial Officer (or any successor position based on a change of title). The Office of the Executive Vice President - Chief Financial Officer is authorized to represent the University in administrative transactions with financial institutions, lenders, and governmental and other agencies in matters related to the day-to-day operation of the Program.
3. The President is required to report to the Regents annually on the status of the Program.

NO RIGHT OF ACTION

This policy is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the University of California or its Board of Regents, individual Regents, officers, employees, or agents.

PROCEDURES AND RELATED DOCUMENTS

1. University of California Housing Assistance Program - Implementation Guidelines.
2. University of California Home Loan Program Corporation Master Note Agreement.
3. University of California Home Loan Program Corporation Services Agreement.

Changes to procedures and related documents do not require Regents approval, and inclusion or amendment of references to these documents can be implemented administratively by the Office of the Secretary and Chief of Staff upon request by the unit responsible for the linked documents.