Dear Colleagues,
Since the Zero Interest Supplemental Home Loan (ZIP loan) program was first offered in Fall 2022, my office has reviewed the program and has determined to continue the program for the immediate future.
The Zero Interest Supplemental Home Loan (ZIP loan) program provides faculty with down payment assistance to purchase a home, outside of University Hills within four years of starting employment. Effective July 1, 2024, the standard ZIP loan offer is $86,100 (to align with the current Faculty Recruitment Allowance maximum). Deans may request larger loans up to $150,000; approval will require consultation with the Vice Provost of Academic Personnel. Please note that other systemwide forms of assistance, notably the Mortgage Origination Program, remain available and can help with recruitment.
Below are additional ZIP loan guidelines and reminders:
- Eligible program participants must be a full-time University appointee (Academic Senate or Senior Management Group) who is designated by the hiring dean and approved by the Provost.
- The offer to utilize a ZIP loan is only valid to use within 4 years from appointment date.
- ZIP loans may not be used toward the purchase of a home in University Hills.
- The Provost’s contribution to ZIP loans applies only to faculty in the Professor or Professor of Teaching title series.
- Other eligible senate faculty may also be offered the ZIP loan, but the entire funding amount must come from the unit, school and/or department.
- If Provost approved funding applies, the current maximum standard ZIP loan amount for offer letters in recruit year 2024-25 is $86,100 (2022-23 was $78,900, 2023-24 was $82,600).
- The amount covered by the Provost is tied to the amount associated with year the offer letter was written. The maximum ZIP loan amount can change each year and is currently determined by the Faculty Recruitment Allowance rate. Please refer to the academic salary scale to determine the current rate.
- Any additional funding for ZIP loans must be funded by the unit, department, and/or school, separate from committed set-up funds.
- The maximum ZIP loan is $150K.
- The maximum funding contribution provided by the Provost toward one purchase transaction is $78,900 (22-23), $82,600 (23-24), or $86,100 (24-25), even if two eligible participants who are purchasing a home together are offered a ZIP loan allocation. The unit(s) will need to provide any amount greater than $78,900, $82,600 or $86,100 up to the $150K maximum. Additional funding must be separate from committed set-up funds.
Please include the following statement in all offer letters written in recruit year 2024-25.
You are approved for a forgivable Zero Interest Supplemental Home Loan (ZIP loan) up to a maximum of $86,100 if it is used for the purchase of a home outside of University Hills within four years of starting your employment. Please note that loan forgiveness, if any, will be reported as taxable income in the year forgiven on a W-2 form and is subject to standard withholding requirements.
Please contact the Office of Academic Personnel with any questions regarding implementation or unique situations. For details on ZIP loans, please see section L (Zero Interest Supplemental Home Loan Program Parameters) of the University of California’s Employee Housing Assistance Program Requirements.
Thank you for your partnership.
Sincerely,
Diane O’Dowd
HHMI Professor, Developmental and Cell Biology
Vice Provost for Academic Personnel