Rochester Regional Health (RRH) Employee Home …

1 Rochester Regional Health (RRH) Employee Home Ownership Program Guidelines ASSISTANCE a. RRH will provide up to $3,000 at closing to assist eligible employees to purchase and reside in eligible homes in the City of Rochester . b. Eligible closing expenses include down payment, taxes, bank fees, loan point , attorney fees, and homeowner s warranty. If closing costs are less than $3,000 the balance of the assistance may be used to reduce the mortgage principal. c. Funding is available depending on availability of funds from RRH Foundation. d. This is a one-time benefit for RRH employees. Employee ELIGIBILITY a. Participants must be employees of RRH for six months or more, and have satisfactory or better performance evaluation. b. Employees are eligible if working at least 20 hours per week. Per Diem employees are not eligible. c. The buyer does not need to be a first time homeowner. d. Assistance is available regardless of household income.

2 PROPERTY ELIGIBILITY a. Employee must purchase a home within the City of Rochester . b. Eligible properties include single or two-family homes that pass the lender s inspection. If a property is a two-family, a Certificate of Occupancy is required at closing. c. If the home needs to be rehabilitated by the buyer, the buyer must submit to City of Rochester Home Buyer Services a plan for doing so. The plan must include the extent of the work and the source of financing. APPLICATION APPROVAL a. Approval is secured through the City of Rochester Home Buyer Services. b. Prior to signing a purchase offer, the buyer must complete a City of Rochester Buyer Services application and interview, and be approved for the applicable Employer Assisted Housing Initiative Program Requirements. Approval is valid for 120 days. c. If a mortgage is needed to purchase the home, the mortgage should be obtained from Chase Bank, Summit Federal Credit Union, Advantage Federal Credit Union or M&T Bank.

3 Employee RESPONSIBILITIES a. The buyer must agree to occupy the home as a primary residence for at least 5 years. b. The eligible buyer is required to provide a minimum of $1,500 of their own funds for the purchase (the deposit must be $1,000 or more). c. Prior to purchasing the home, the buyer must attend a classroom-training program. d. The RRH assistance is provided in the form of a 5-year forgivable loan. One-fifth of the loan is forgiven on each of the first five anniversaries of the purchase. On the fifth anniversary the entire loan is forgiven. IRS requires that the amount forgiven each year appear as income on the Employee s W2 form, subject to FICA and withholding. e. In the unfortunate circumstance that the Employee ceases to work for RRH due to job elimination, the entire $3,000 loan will be forgiven. f. In the unfortunate circumstance that the Employee is terminated as a result of unsatisfactory performance or at the Employee s option, the remaining portion of the loan will be due and payable.

4 G. If the Employee chooses to move from or sell their home during the 5-year loan period, the remaining portion of the loan will be due and payable.