How much is the benefit that Temple University will provide?
Temple University will provide up to $5,000 through a forgivable loan to any eligible full-time employee for the purchase of a home in the designated zip code areas.
This benefit a forgivable loan -- what does that mean?
Temple University will forgive up to $83.33 per month ($1,000 per year) until the entire loan is forgiven, providing that no disqualifying event occurs. Your pay stub will reflect the amount forgiven by Temple University each pay period and your W-2 will reflect the amount forgiven year-to-date in accordance with applicable federal, state and local tax law.
What are my tax obligations for the “forgivable” loan?
The Internal Revenue Service Code treats most forgiveness of debt as taxable income. Therefore, the portion of the loan that is forgiven by Temple University each month is considered “taxable” income to you. Temple University is obligated to withhold federal income tax, social security, Medicare, state and local taxes on the amount forgiven as though you had received it in your gross wages. Your pay stub will list the amount forgiven as “Home Loan” income. Temple University will identify the yearly amount forgiven on your annual W-2 Form as “Other Income” in Box 14.
How do I receive the loan proceeds?
Once you are approved for the loan, Human Resources will provide you with the paperwork necessary for Temple University to wire transfer the proceeds of your loan to the mortgage lender or the settlement agency that will be conducting your closing. It is your responsibility to complete these forms accurately and return them to Human Resources at least ten days prior to your scheduled closing date.
Can the benefit be used for a security deposit for rental housing?
No. The benefit must be applied towards the purchase of a home in the targeted North Philadelphia zip code areas.
I already own a home, so I’m not a first-time home buyer. Can I still participate in Temple University’s Employee Home Ownership Program?
Yes. The program is for all full-time employees purchasing a home in the targeted North Philadelphia zip code areas. It is not restricted to first-time buyers; however, you must move to the new home and reside in the home as your primary residence.
I am purchasing a home that will become my principal residence, but I want to lease it to another party for the first six months after closing. Is this permissible under the Temple University Employee Home Ownership Program?
No. The home must be used as the primary residence for the entire time period in order for Temple University to provide the loan.
I just bought a house. Is the Temple University Employee Home Ownership Program retroactive?
No. The “forgivable” loans will only be provided for homes purchased in the designated zip code areas with settlement occurring after October 1, 2007.
Can I use the Temple University forgivable loan for a second or vacation home?
No. The loan must be used for the purchase of a primary residence.
Can I use the Temple University Employee Home Ownership Program loan in the refinancing of my current home?
No. The “forgivable” loan must be used for a purchase of a home with settlement occurring after October 1, 2007.
Can I use the Temple University Employee Home Ownership Program to expand or remodel my current home?
No. The “forgivable” loan must be used toward the purchase of a single-family dwelling, including a condominium, which will be used as your primary residence.
How often can I participate in the Temple University Employee Home Ownership Program?
You will be eligible to participate in the program once in any five-year period.
What happens if I sell the house I purchased with the proceeds from the “forgivable” loan and/or the matching grant from the City?
Selling your house that was purchased with the “forgivable” loan is a disqualifying event if any portion of the loan is still outstanding. In that case, the remaining balance of Temple’s “forgivable” loan will become due in 90 days. If the loan has been totally “forgiven”, there is no obligation to return the money. At present, there are no such restrictions with the City’s grant and therefore you would not be required to reimburse the City regardless of when you sell.
What happens if my employment at Temple University ends during the 5-year loan term?
The remaining balance of the loan will become due in 90 days. If your employment ends because of death or permanent disability for which you are collecting periodic income benefits from Temple University’s long term disability plan, Temple University will forgive the balance of your loan.
What happens if I go on paid or unpaid leave?
If you are on an approved paid leave - the loan will continue to be forgiven. However, if you are on unpaid leave, forgiveness of the loan is “suspended” during your leave period. In other words, the loan will not be reduced or “forgiven” over the time period of the unpaid leave. If you do not return to work within one year, the remaining balance of the loan will become due within 90 days. If you return, the forgiveness of the loan begins again in the month following your active return to work. Any time that you were out on unpaid leave will be added to the end of the original loan period.
For example, an employee who receives a $5,000 loan on July 1, 2008 will have the loan principal forgiven at a rate of $83.33 per month for 60 months. If the employee does not take an unpaid leave and remains an active employee of Temple University the loan is fully forgiven as of June 30, 2013. If the employee took an approved unpaid leave from January 1, 2009 through June 30, 2009, the loan forgiveness would be “suspended” during this time. Upon the employee’s return to work on July 1, 2009, the loan forgiveness would continue. The six month period the employee was on unpaid leave is added to the original loan period so that the loan forgiveness would continue through December 31, 2013.
What if I am disabled?
If you are approved for long-term disability benefits under a Temple University long-term disability plan, Temple University will continue to forgive your loan during the period you are receiving periodic disability payments.
Does my beneficiary or estate have to pay back the loan if I die?
No. Temple University forgives the outstanding balance upon the death of the employee.
Are temporary and part-time employees eligible?
No. Only full-time active employees are eligible.
I am a new-hire with the University. Am I eligible?
All full-time non-probationary employees are eligible.
My spouse/domestic partner and I both work for Temple University. Do we get twice the normal benefit?No. Temple will only provide one “forgivable” loan per new home purchase. If the home is purchased jointly by two Temple University employees, both employees must sign the application and other required documentation. Temple University will continue to forgive up to $1,000 of the loan per year ($83.33 per month) so long as one of the employees remains a full-time active Temple University employee.