I. Program Parameters

A. Program Purpose:

Saint Louis University, in order to develop the neighborhoods around campus, is offering forgivable loans to qualified Saint Louis University employees. Qualified employees who purchase a home as a primary residence in the neighborhoods described below will receive the lesser of five percent (5%) of the home's purchase price or five thousand dollars ($5,000), to be used to pay either part of the down-payment or approved closing costs on a home purchase.

B. Eligible Properties:

Property eligible for this program must meet all three of the following conditions:

1) It must be a one or two family building;

2) It must be used as a primary residence by the purchasing employee; and

3) The home must be located in one of the neighborhoods described as follows:

On the north end of the Saint Louis University campus:
West of Jefferson Avenue, south of Natural Bridge and east of Vandeventer to Delmar. South of Delmar, east of Pendleton, north of Olive, east of Boyle, north of Laclede, west of Sarah, north of Lindell, west of Compton. From Compton north of Dr. Martin Luther King Drive to Jefferson.

On the south end of the Saint Louis University campus:
South of Chouteau, east of Compton, north of Lafayette, and west of California.

See Map

C. Eligible Employees:

To be eligible, an employee must meet all of the following criteria.

1) A full-time employee in good standing at Saint Louis University;

2) Purchase an eligible property as described above; and

3) An employee can use this benefit only once. The benefit cannot be combined with another employee's benefit on a single home purchase.

4) Eligible employees must qualify for a mortgage through a participating approved lender.

5) Must not be a disqualified person. A disqualified person is defined as follows: An employee who is a "disqualified person" within the meaning of Section 4958 of the Internal Revenue Code shall not be eligible to participate in the program. A "disqualified person" includes any employee and any of his or her family members who is or was at any time during the previous five (5) years in a position to exercise substantial influence over the affairs of Saint Louis University. Without limiting the foregoing, "disqualified persons" shall include the trustees and officers of Saint Louis University who participate in the administration of the Employer Assisted Housing Program and his or her family members.

D. Forgiveness of Loan:

The Employer Assisted Housing Program (EAHP) loans will be forgivable over a period of five (5) years of home ownership. Ten percent (10%) of the face amount of the loan will be forgivable at the end of the first year; an additional fifteen percent (15%) after the second year; an additional twenty percent (20%) after the third year; an additional twenty-five percent (25%) after the fourth year; and the balance, or thirty percent (30%) after the fifth year. Certain situations will call for forgiveness prior to five years. These situations include the following:

1) Death of employee.
2) Permanent disability of the employee.
3) Termination of the employee due to reduction in staff.

E. Required Legal Documents:

Each EAHP participant and any co-buyer of the property must sign the following legal documents and any others reasonably required prior to closing.

1) Promissory Note
2) Subordinate Deed of Trust
3) Numerous disclosures

F. Pre-closing:

The employee and any co-buyer and the EAHP administrator will meet for a pre-closing meeting at least fourteen (14) days before the closing of the property. This meeting will have two purposes. The employee and any co-buyer must furnish all required documentation to the EAHP administrator and the employee and any co-buyer must sign the required legal documents. Once these items have been accomplished, the EAHP administrator will be responsible for having the check and copies of the executed agreements delivered to the appropriate title company. If closing does not occur, the loan will not be funded and the signed legal documents will be destroyed or returned to the employee.

G. Closing:

After closing, the title company will record our subordinate deed of trust. After recording, a copy will be sent to the EAHP administrator. The legal documents will be kept on file at: Saint Louis University, Treasurer's Office, 3545 Lafayette, St. Louis, Missouri, 63104.

II. Ongoing Program Monitoring:

A. Periodic Reviews/Reporting Requirements:

The Treasurer's Office will initiate an annual review of all EAHP Loan participants by notifying the EAHP Administrator on the anniversary of each participant. The EAHP Administrator will thereby furnish participant with an Annual Employee Certification form, which must be completed and signed by the employee. After the EAHP Administrator verifies the information submitted in the Annual Employee Certification form, and notifies the Treasurer's Office of the status of the participant. In the case of a discrepancy between the certification form and the HR system used by the administrator to verify the form, the EAHP administrator will attempt contact with the employee to resolve discrepancies. In the case that a policy rule or regulation appears to have been violated, the EAHP administrator will seek assistance from the Treasurer and/or the General Counsel's office to determine if loan or other programmatic terms or policies have been violated and what action needs to be taken.

B. Subsequent Sale or Transfer of Property:

The EAHP administrator will get involved as necessary when issues of sale or transfer of property is involved. The EAHP administrator will notify the Treasurer and/or the General Counsel's office that a sale or transfer is taking place.

C. Other

If an EAHP participant notifies the EAHP administrator of other changes in the participant's employment or ownership of the property or a desire to prepay the loan, the EAHP administrator will notify/seek assistance from the Treasurer and/or the General Counsel's office.

Without limitation, the following table lists other loan modification events and the effect on the loan.

Loan Modification Events

Event	Effect
Employee is terminated for any reason other than those listed in item E above.	Balance of the loan becomes immediately due and payable.
Award of home in litigation.	Balance of the loan becomes immediately due and payable.
Home is sold or transferred.	Balance of the loan becomes immediately due and payable.
Home is no longer the primary residence of the EAHP participant or primary residence is leased for a period of over three years.	Balance of the loan becomes immediately due and payable.
Employee sells home and purchases another one in the eligible neighborhoods prior to the end of the five year loan period.	Balance of the loan becomes immediately due and payable.
Employee defaults on other loan secured by the property.	Balance of the loan becomes immediately due and payable.

For further information about this program, please contact the EAHP administrator, Pam Guntli, at 977-3927.