Human Resources Policies

POLICY: DRAGON HOME PURCHASE PROGRAM
POLICY NUMBER: HR-23
Effective Date: October 2006
Revisions: -
Responsible Officer: Senior Vice President of Human Resources

PURPOSE:

This policy was established to offer eligible University employees financial assistance toward the purchase of homes in Philadelphia 's Powelton Village , a neighboring community of Drexel University.

I. POLICY:

Drexel University shall provide a $3,000 grant to an eligible employee toward the purchase of a home with the following parameters:

•  The property must be for a one or two family dwelling only, which shall include condominiums.

•  The property must be located within the geographical boundaries outlined on the map.

•  The property must be owner occupied and remain the employee's principal residence for at least 3 years. Should the property at any time during the 3-year period cease to be owner occupied and the employee's principal residence, the employee agrees to pay the full $3,000 back to the University, unless the property is sold to another Drexel University employee or Drexel University, in accordance with the Pre-Purchase and Post-Purchase certifications I will be required to sign as a condition of being eligible for the grant .

•  The grant must be used for closing costs, down payment assistance, closing “points” or mortgage insurance premiums associated with the purchase.

•  Employees may obtain mortgages at a lender of their choice unless they choose to participate in Philadelphia Home Buy Now Program described in Section IV below.

•  Grants are limited to an eligible employee receiving one grant per property during any three-year period.

•  Nothing in this policy changes the at will relationship between the parties.

II. ELIGIBILITY:

In order to be eligible under this policy, one must:

•  Be a full time active employee of Drexel University on the date of the closing for the sale of the property.

•  Employees on leave, regardless of the reason for the leave, are not eligible until they return to full time active employment.

III. PROCEDURES:

In order to qualify for a $3,000 grant, an employee must:

•  Meet with Human Resources to set up an appointment to confirm eligibility.

•  Submit to Human Resources the following documents prior to settlement:

•  Completed application; and

•  Mortgage approval; and

•  Signed purchase agreement; and

•  Mortgage commitment letter; and

•  Confirmation of closing date.

•  Provide a “Pre-Purchase Certification”: Certify, prior to settlement that the employee who receives the $3,000 grant will own and occupy the property for at least three (3) years after the date of purchase.

•  Provide four (4)“Post-Purchase Certifications”: Certify, after settlement, on December 31 st of the purchase year and on December 31 st of each succeeding year for the next three years, that the employee who received the $3,000 grant continues to own and occupy the property from the date of purchase through the date of each Post-Purchase Certification or through the third anniversary of the date of purchase.

•  Grants will be payable to the title company and be available on the day of the closing, provided the employee is a full time active employee on such date.

IV. OPTIONAL ADDITIONAL BENEFITS:
The Philadelphia Home Buy Now Program

•  The University is a participating employer in the Philadelphia Home Buy Now Program which offers eligible employees a dollar for dollar matching grant provided by the City of Philadelphia .

•  The Philadelphia Home Buy Now Program is a pre-packaged mortgage program that has been assembled by the City of Philadelphia working through the Greater Philadelphia Urban Affairs Coalition and participating lenders.

•  Employees wishing to participate in the Philadelphia Home Buy Now Program must use a Philadelphia Home Buy Now participating mortgage lender. The list of lenders is contained in the Employee Participation Kit which is available in the Drexel University Human Resources office.

•  The Greater Philadelphia Urban Affairs Coalition, as the administrator on behalf of the City of Philadelphia will receive and accept all required paperwork as described in the Employee Participation Kit. Additional information regarding this program can be obtained at www.gpuac.org .

V. TAX LIABILITY:

All grants are subject to Philadelphia wage taxes and state and federal income taxes.

Additional information: Inquiries regarding this policy can be directed to the Human Resources Department .