Buying a house just got easier
State program to help university employees in urban areas
Archived article from Jan 21, 2000
By Pam Orel
Full-time employees of Rutgers and eight other institutions of higher learning in New Jersey could get $10,000 toward the down payment on their homes if they opt to buy in targeted urban areas near the campuses where they work. The $2.5 million state initiative is the first state-sponsored program of its kind in the nation.
Called the College & University Homebuyers' Program, the new urban revitalization plan is open to full-time employees regardless of household income. Those who already own homes in the targeted areas could receive up to $5,000 in matching funds to make exterior improvements to their residences. The no-interest loan is forgiven at the rate of 20 percent per year over five years as long as the property remains the principal residence of the employee.
"This is an extremely positive initiative for New Jersey's colleges and universities that will foster closer ties between our institutions and their host communities," said President Francis L. Lawrence.
"I am delighted that the State of New Jersey will be helping our employees achieve the goal of owning their own homes or improving houses they may already own. This is an important program that will make a major difference for everyone taking part in it," Lawrence added.
The program was designed by the New Jersey Department of Community Affairs and the New Jersey Housing and Mortgage Finance Agency (HMFA). It is to be administered by HMFA and is modeled after a similar initiative created by the University of Pennsylvania to encourage the revitalization of the university's West Philadelphia neighborhood.
Targeted areas are located in Camden, Jersey City, New Brunswick, Newark, Trenton and Vineland. Other participating institutions of higher learning include the University of Medicine and Dentistry of New Jersey, New Jersey City University, New Jersey Institute of Technology and Thomas Edison State College. County colleges in Cumberland, Essex, Hudson, and Mercer counties are also included in the program.
"Our goal is to create vibrant, economically diverse neighborhoods around urban public colleges and universities in New Jersey by encouraging more faculty and staff to buy homes there," said Gov. Christine Todd Whitman in announcing the initiative earlier this month. "We want our cities to be great places to live as well as learn."
Whitman first announced her intent to create the housing incentive program in her budget address last January.
By allowing all full-time employees to participate regardless of income, the state hopes to encourage economic diversity in the target areas, according to New Jersey Department of Community Affairs Commissioner Jane M. Kenny.
"One of the greatest challenges facing cities is attracting and retaining middle-income households," Kenny said. "With this program, we've tried to make it easier for faculty and staff to consider city life and put down roots in the community."
The incentives are available to full-time employees of any public college, university or community college based in cities that participate in the Urban Coordinating Council, a state urban assistance program.
While no income restrictions apply for either the $10,000 down-payment incentive or the $5,000 home-improvement incentive, buyers who meet household-income and purchase-price restrictions set by the HMFA can apply for additional financial assistance. These additional incentives include a below-market mortgage rate, a reduced-rate mortgage with a built-in home improvement loan, and a no-money-down option.
"We believe housing is one of the most important components of transforming and anchoring community revitalization," said Deborah De Santis, HMFA executive director. "The College & University Homebuyers' Program will give hardworking families a stake in their communities and infuse our urban neighborhoods with new vitality."
For more information, contact the HMFA at 1-800-NJ-HOUSE. Rutgers employees may also contact Debra Norman, senior executive assistant, office of the associate vice president for administration and public safety, ext. 2-8404; Mark Rozewski, associate provost in Camden, ext. 6174; or Gene A. Vincenti, associate provost for budget and campus development in Newark, ext. 5541.
|
