The Yale Homebuyer Program, a key component of Yale’s partnership with its hometown of New Haven, marked its 20th anniversary in 2014. The university’s trustees renewed the program, which was first launched in April 1994, for another two-year cycle, through Dec. 31, 2017. The program has developed into one of the strongest and most long lasting examples of Yale’s commitment to its home city of New Haven.The total number of Homebuyer participants through Fall 2015 is 1,134 new homeowners. Read related YaleNews story.
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 Yale 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 the benefit-eligible employee classifications that are required for participation under the program guidelines above.
The benefit consists of 10 annual payments. The first payment is $7,500, which is made up of an initial bonus of $5,000 and the first annual payment of $2,500. The remaining nine 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, 2017. For information on this special incentive, contact the Employee Service Center 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 upfront $5,000 bonus and $5,000 special incentive payments will be made available to participants. Benefit payments and taxes withheld will be included in 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 initial payment will be released to the employee just prior to the confirmed closing date. 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).
The option to apply for the Homebuyer Program began with home purchases on or after January 1, 2016, and ends with home purchases on December 31, 2017. 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. The benefit ends if the participant ends occupancy.