UpDate - Vol. 15, No. 20, Page 1
February 15, 1996
Neighborhood mortgage assistance for employees

     Full-time employees who want to live near the Newark campus can
now get assistance from the University to help finance their homes,
thanks to the University's experimental Neighborhood Mortgage
Assistance Program.
     Under the program, the University will make a $5,000 cash loan at
settlement, to be forgiven at the rate of $1,000 for each year an
employee maintains the house as a primary residence. The $1,000 per
year would be considered taxable income.
     Designed to help maintain the family residential nature of
selected neighborhoods in the city, the program grew out of
suggestions from the Town & Gown Committee, which is composed of city
and University representatives.
     Properties included in the program are:
        * IN THE EAST PARK PLACE AREA-East Park Place, Courtney
          Street, Ashley Road, Kells Avenue, Wollaston Avenue,
          Waterworks Lane, Manuel Street and Academy Street;
        * ON THE FOLLOWING STREETS (BOUNDED BY THE EAST SIDE OF HAINES
          STREET TO THE WEST SIDE OF SOUTH CHAPEL STREET, BORDERED ON
          THE NORTH BY EAST CLEVELAND AVENUE AND ON THE SOUTH BY
          CHAMBERS STREET)-Haines Street, Chambers Street, Benny
          Street, Lovett Avenue, Continental Avenue, East Delaware
          Avenue, Chapel Street, Choate Street, Linden Street, Center
          Street, New Street and East Cleveland Avenue; and
        * IN THE CLEVELAND AVENUE AREA-East Cleveland Avenue from
          North College to Chapel Street, Prospect Avenue and Wilbur
          Street.

     Under the program:
        * Mortgages must be granted by a banking institution or other
          firm regularly in the business of lending for home purchases
          and performing credit reviews.
        * The borrower must remain an employee of the University for
          two years from the date of settlement or repay any remaining
          unforgiven loan balance even if continuing to reside in the
          house. However, in the event of retirement, total disability
          or involuntary separation from employment for other than
          just cause, the loan may continue until forgiven if the
          property continues to be the primary residence of the former
          employee.
        * In the event of legal separation, divorce or the death of an
          eligible employee holding a University loan, if his or her
          spouse and/or minor children continue to occupy the
          mortgaged property as their primary residence, the
          University loan may continue until forgiven.
        * During a sabbatical leave, the home may be rented for up to
          one year to a single occupant or family.
        * No more than $5,000 shall be made available per home,
          regardless of the number of eligible employees planning to
          reside there.
        * An employee may participate in the program only once.
        * The program participant agrees to grant the University the
          right of first refusal to purchase the property in the
          future.
        * The University may alter the terms of the program and target
          neighborhoods as deemed appropriate and may terminate the
          program at any time.

     The University is not offering mortgages, nor is it maintaining a
list of properties for sale in the areas included in the program.
Employees should consult banking and real estate professionals for
this information.
     The complete details of the program will be available on U-
Discover! under the employee information section. The heading is
Neighborhood Mortgage Assistance Program.
     For additional information, contact Vi Manogue in the treasurer's
office, telephone 831-2130.