How the Program Works
Eligibility
The program is available to any Yale University employee who is either:
- a faculty member with an appointment of at least one year at 50% or more of full-time;
- or a permanent staff employee of the University scheduled to work 20 hours or more hours per week.
Note: If there is more than one employee in the household only one benefit will be awarded. Hospital Residents, other Residents, Postdoctoral Fellows, other Fellows, Yale Associates, Yale Students and Casual employees are not benefit eligible employee classifications required for participation under the program guidelines above.
Description
The benefit consists of ten annual payments. The first payment is $7,500,
which consists of a first payment of $2,500, and the additional $5,000
bonus. The remaining 9 annual payments are $2,500 each for a total of $30,000. Benefit eligible
employees may also receive a $5,000 special incentive payment (increases
the total benefit to $35,000 over 10 years) by electing to purchase in
a designated area of the Dixwell/Winfield neighborhood prior to December 31, 2013.
For information on this special incentive, contact the Homebuyer Program at
203-432-5552.
Note: Benefit payments are classified by IRS regulations as ordinary income for income tax purposes. Yale is required to withhold all taxes (federal, state, and social security taxes) from the lump-sum benefit payments. Approximately $1,200 of each annual payment and $3,100 of the up front $5,000 Bonus and $5,000 Special Incentive payments will be made available to participants. Benefit payments and taxes withheld will be included the participant's annual Form W-2. Federal income tax withheld by Yale is normally off set when the participant takes a tax deduction for the mortgage interest on his or her annual federal income tax return.
In order to receive the benefit, the participant must be an eligible Yale employee (see
"Eligibility" above) and must purchase and occupy a single, two or three family
home or condominium within the designated area. The $5,000 "bonus" portion of
the first payment will be provided to the participant and closing attorney at the time of
closing if it is needed for the closing. The remainder of the first payment will be made
upon verification that the participant has acquired and moved into the home.
If program
funds are not needed for the closing, the entire first payment will be made when the
participant has moved into the house. The remaining annual payments shall be made on the
anniversary date of the first payment, subject to verification that the participant:
- remains an eligible employee
- continues to own and occupy the home
- remains in good standing with the first mortgage holder (if applicable).
Election Period Phase X
The option to apply for the Homebuyer Program began with home purchases on or after January 1, 2012, and ends with home purchases on December 31, 2013. Participants must commit to own and reside within the home for at least two years from the date of closing to qualify for the benefit. Benefit ceases if the participant ends occupancy.
