HAMILTON COLLEGE
Procedures for Residential Property
Transactions Involving College-Controlled Land
I. Preamble:
In the early 1950’s, Hamilton College established a program to make it possible for
faculty and administrative staff to own homes on land controlled by the College surrounding the
campus. It also made provisions for providing mortgage financing of those homes. As a result of
changes which have taken place in residential property economics over the years, equity considerations
require that certain modifications be made to the existing procedures which govern residential property
transactions involving College-controlled land.
II. Definitions:
A. Eligible Purchaser – Any member of the Hamilton College faculty or staff who maintain a
regular, ongoing, benefit eligible position with the College.
B. Owner – An Eligible Purchaser who has acquired title to a home from the College or an
individual who has acquired title from a third party to a home on land controlled by the College.
C. Appraised Value of the Property – An opinion as to the fair market value of the subject land,
together with any structures and other improvements located on the property as determined by a
numerical average of three appraisals performed by New York State Certified Appraisers
utilizing the Uniform Residential Appraisal Report form. One appraiser is to be appointed and
paid by the Owner or Eligible Purchaser, one appointed and paid by the College, and a third
selected by the two appraisers with that cost divided between the two parties.
III. Purchases & Sales
A. Eligible Purchasers renting single family homes from the College will be given the option to
purchase the home in which they reside. The price of the land is to be $1.00 and the price of the
structures and other improvements is to be 90% of the Appraised Value of the Property.
B. Any unoccupied residence owned by the College may be sold by an auction process. The price
of the land is to be $1.00. The College will announce the price of the improvements and an
increment to be used in the auction process. Eligible Purchasers may submit written offers to
purchase the improvements at the announced price. If there is more than one offer, the price will
be increased by the announced increment and new offers sought. The process will be repeated
until there is only one offer.
C. Any agreement for the sale of properties in this program will reserve for the College the right to
repurchase the land and improvements under any one of the following circumstances:
1.
2.
3.
4.
upon the decision of the Owner to transfer ownership
upon termination of employment of the Owner by the College, other than by retirement
upon the later of the death of the Owner or the Owner’s spouse or spousal equivalent*
upon occupancy of the property other than as a residence of the Owner or the Owner’s
spouse or spousal equivalent*, but excepting occupancy by a person in tenancy during
the Owner’s leave of absence from the College.
*The College will recognize same or opposite sex domestic partners as spousal equivalents
for purposes of housing benefit administration, to the extent permitted by law. To qualify
for coverage, both members of the partnership must complete and sign an
Acknowledgement of Domestic Partnership form which sets forth the requirements of a
domestic partnership for this purpose.
The repurchase price of the land is to be $1.00, and the price of the improvements is to be:
As to any existing Owners as of January 1, 1996:
An agreed upon percentage of the Appraised Value of the Property (The College
and the existing Owner are to agree on an equitable percentage of the Appraised
Value of the Property based on a best estimate of the ration of the value of the
improvements to total property value that existed at the time the property was
acquired.)
As to any future Owners:
90% of the Appraised Value of the Property
Should the College elect not to exercise its right to repurchase the land and improvements, the
Owner of the property may sell the property to any third party. If that third party is an Eligible
Purchaser, the purchase will be subject to the right of the College to exercise its right to
repurchase the land and improvements upon any future sale of the property. If that third party is
not an Eligible Purchaser, the seller must pay to the College that percentage of the net sale
proceeds which represents the value of the land which was sold less $1.00. (The percentage will
either be the previously agreed upon land percentage as to existing Owners, or 10% as to any
future Owners.)
IV. Financing & Refinancing
A.
The College will make mortgage loans to Eligible Purchasers for up to 90% of the purchase
price. The loans will bear an interest rate which is up to one percent below the current average
rate for comparable loans in the surrounding area but no less than the applicable Federal interest
rate. Loans may not be financed to a rate below the applicable Federal interest rate. Mortgages
will not extend for more than 30 years. Loan payments will be arranged on a schedule of equal
monthly installments for the term of the loan covering both interest on, and complete
amortization of, the principal amount.
B.
At the borrower’s request, the College will adjust the interest rate on the unpaid balance of any
existing loan (to one percentage point below the then current rate for comparable loans in the
surrounding area) if, after such adjustment, the new rate is at least two percentage points lower
than the rate on the loan then in effect and is no less than the Federal interest rate. Loans may
not be refinanced to a rate below the applicable Federal interest rate. The term of the refinanced
loan will not be longer than the remaining term of the existing loan, and it may be shorter if the
borrower so desires. The College fee for refinancing a loan is $750. The borrower is also
responsible for all legal fees associated with the refinancing.
Revised February 2015