Mississippi Administrative Code › Title 7 - Education K-12 › Part 3 - Board Policies › Chapter 76 - Teachers › Rule 7-3-76.4 - Housing

Current through June 25, 2024
The Mississippi Employer-Assisted Housing Teacher Program is
				  a special home loan program available to licensed teachers who render services
				  in geographical areas of the state that are designated by the State Board of
				  Education as having a critical shortage of teachers. The program is authorized
				  by Miss. Code Ann.
				  37-159-11 and will be administered
				  by the Department of Education. The Department of Education will advertise for
				  the purpose of contracting with one or more public or private entities to
				  assist with the implementation and administration of the program.
Eligible teachers shall include any state required licensed
				  teacher of a local school district who serves in the role of teacher providing
				  direct instruction to students, the equivalent of a minimum of three (3) normal
				  periods per school day. The program is available to eligible teachers of any
				  income level.
A maximum loan amount of $6,000.00 will be available to
				  eligible teachers to assist in paying closing costs associated with the
				  purchase of a house located in the county in which the school district, or any
				  portion of the school district, is located. The loan is not limited to
				  first-time home buyers.
Closing costs will include:
1. Down payment (limited to 2% of the sales
				price)
2. Lender Loan
				Origination
3. Teacher Grant
				Program Administrator
4.
				Attorney
5. Title
				Insurance
6. Appraisal
7. Credit Report
8. Pest Inspection
9. Survey
10. Recording Fees
11. Private Mortgage Insurance Premium
The amount loaned to any teacher will be converted to an
				  interest-free grant if the teacher completed three (3) years of employment in a
				  critical shortage area. Any teacher who fails to render three (3) years of
				  service in a geographical area of the state that is designated by the State
				  Board of Education as having a critical shortage of teachers will be liable to
				  the Department of Education for one-third (1/3) of the amount of the loan for
				  each year that the teacher fails to render such service, plus interest accruing
				  at the current Stafford Loan rate at the time the person discontinues service.
				  If a claim for repayment is placed in the hands of an attorney for collection,
				  the teacher will be liable for an additional amount equal to a reasonable
				  attorney's fee.
Overview of Loan Process
1. The teacher shall contact the program
				administrator to confirm whether they are eligible for the program.
2. The teacher shall execute a contract for
				the purchase of a house in the county in which the school district, or any
				portion of the school district, is located.
3. The teacher shall make a loan application
				with any participating lender.
4.
				The lender shall approve the loan and submit a copy of the loan approval to the
				program administrator with the anticipated closing date.
5. Closing attorney shall send the program
				administrator a copy of HUD-1 Form fortyeight (48) hours prior to closing. The
				program administrator shall wire the funds for the loan and mail a promissory
				note to be executed by the teacher at closing.
6. After closing, the lender shall send the
				program administrator the signed promissory note.
MISSISSIPPI EMPLOYER-ASSISTED HOUSING TEACHER PROGRAM LOAN
				  AGREEMENT
Date of Agreement:__________________
Teacher:__________________________
School District:_____________________
Loan Amount upto $6,000.00:__________
Beginning School Year:_______________
This Agreement is made and entered into upon the above stated
				  date by and between named Teacher ("Teacher") and the Mississippi State
				  Department of Education ("Department"),
For purposes of this agreement "School District" or
				  "District" shall mean any school district that has been designated by the State
				  Board of Education as a geographical area where there exists a critical
				  shortage of teachers.
WITNESSETH:
a.
Purpose.
Teacher has applied to the
				Department for a loan for the purpose of purchasing a residence pursuant to the
				Mississippi Employer-Assisted Housing Teacher Program (Program).
See
Miss. Code Ann. §
										37-159-11. The Department agrees
				to lend to Teacher the above stated Loan Amount pursuant to the terms of the
				Program, of which the Teacher is aware, and upon the terms and conditions
				herein stated.
b.
Use of Loan Amount.
Teacher shall only
				use the Loan Amount for the purposes of acquiring a residence within the County
				in which the District or any part of the District is located.
c.
Term of
				Agreement.
The term of this Agreement shall commence upon
				the Beginning School Year or the date of this Agreement above stated, whichever
				is later.
d.
Grant for Service.
Commencing with the
				Beginning School Year above stated, Teacher shall receive a grant for each year
				of service rendered as a teacher in the District of one-third (1/3) of the
				total Loan Amount with no interest accrued upon such grant.
e.
Service of
				Teacher.
Teacher agrees to render service as a teacher in
				the District for three (3) consecutive years commencing with the Beginning
				School Year and that the school year in which the Agreement is executed will be
				considered the Beginning School Year provided the Agreement is executed by
				December 1 of the school year, otherwise, the Beginning School Year will be the
				next school year. Teacher may choose to accept employment in another district
				that is located in whole or in part within the county in which the residence is
				located so long as that school district has been designated by the State Board
				of Education as a geographical area where a critical shortage of teachers
				exist. In the event of this occurrence Teacher shall still be considered
				compliant with this agreement and the years of service in each of the school
				districts served shall be added together in determining that three consecutive
				years have been served.
f.
Residence of Teacher.
Teacher agrees to
				reside and occupy the residence acquired with the use of the Loan Amount during
				the term of this Agreement. Teacher may not lease or rent to any person the
				said residence or any part thereof during the term of this Agreement.
g.
Tax Liability.
Teacher acknowledges that the grant or forgiveness for
				rendering service as a teacher to the District may result in taxable income to
				Teacher for federal and/or state income tax purposes, and further acknowledges
				that liability for any and all taxes due upon such taxable income will be the
				sole responsibility and liability of Teacher, that the Department will withhold
				no sums from the amounts forgiven and will pay no withholdings thereon to the
				appropriate taxing authority. Teacher further acknowledges that the Department
				may furnish to the Internal Revenue Service and/or to the Mississippi State Tax
				Commission, such information and upon such forms as are required to give notice
				to the said Internal Revenue Service and/or to the Mississippi State Tax
				Commission of the grant or forgiveness to Teacher.
h.
Events of
				Default
. Default shall consist of the occurrence of any one
				or more of the following events: (1.) failure of Teacher to render service to
				the District for three consecutive school years commencing with the Beginning
				School Year above stated; (2.) failure of Teacher to continuously reside in the
				residence acquired with the use of the Loan Amount for three consecutive school
				years commencing with the Beginning School Year above stated; (3.) any breach
				of any condition of this Agreement by Teacher; or (4.) breach of any condition
				under the Program by the Teacher.
i.
Interest upon
				Default.
Upon the occurrence of any event specified in
				Section (h) of this Agreement, interest shall accrue upon the unforgiven and
				unpaid portion of the Loan Amount as of the date of this Agreement and
				continuing until paid in full. The interest rate shall be the Stafford Loan
				rate in effect upon the occurrence of an Event of Default, as said rate is from
				time to time determined by the United States Department of Education.
j.
Actions upon
				Default.
Upon the occurrence of any event specified in
				Section (h) of the Agreement, the unforgiven and unpaid portion of the Loan
				Amount together, with all interest accrued from the date of the Agreement,
				shall be due. The Department shall give written notice to Teacher of the sums
				due as of the date of default and the interest amount thereafter. Such notice
				shall be sent via certified mail, return receipt request to Teacher at the
				address of Teacher upon the records of the Department. Teacher shall have 30
				days from the time he or she received written notice to pay the sums due the
				Department. The Department may consider a repayment plan with the
				Teacher.
k.
Collection Costs.
If Teacher fails to
				pay the sum due the Department by the deadline or in accordance with the
				repayment plan, if applicable, the Department may employ an attorney(s) for the
				collection of sums due, and shall be liable for an additional amount equal to
				reasonable attorneys' fees and court costs.
l.
Duties of the
				District.
By its execution hereof, the District agrees that
				this Agreement has been fully approved by order duly entered upon the minutes
				of its local school board, and that its President/Chair has been duly
				authorized to execute same. District further agrees to notify Department in
				writing within three business days of the occurrence of any of the following:
				(1.) Teacher ceases to render service to the District as a teacher at any time
				during the term hereof; (2.) Teacher ceases to reside in and occupy the actual
				residence purchased with the use of the Loan Amount.
m.
Acts of
				God.
Teacher's performance of any duty herein required to
				be performed shall not be excused by the occurrence of war, tornado, fire,
				earthquake, flood, or death or disability of Teacher, regardless of cause, or
				any other act of God, or by Teacher's termination by the District.
n.
Administration.
Department may contract
				with one or more public or private entities that it is permitted to contract
				with under the Program, to perform all or some of its duties under the
				Program.
o.
Applicable Laws and Rules and
				Regulations.
This Agreement is subject to and shall be
				governed by and construed in accordance with the laws of the State of
				Mississippi in such cases made and provided and by the rules and regulations
				adopted by the State Board of Education pursuant to the Program. In the event
				of a conflict between the terms of this Agreement and the laws of the State of
				Mississippi, the laws shall control; in the event of a conflict between the
				terms of this Agreement and the rules and regulations adopted by the State
				Board of Education pursuant to the Program, the rules and regulations shall
				control.
p.
Advancement of Loan Amount.
It is agreed
				that the Loan Amount shall not be advanced until the closing of the purchase of
				a residence aforesaid by Teacher. It is further agreed that the above stated
				Loan Amount may be decreased due to lesser cash requirements at closing, and
				that if the Loan Amount is so decreased, this Agreement shall be deemed amended
				to reflect the amount actually advanced, and in all other respects shall remain
				in full force and effect. It is further agreed that the Loan Amount shall not
				be increased after execution hereof unless this Agreement is amended in writing
				and executed, by all parties hereto.
WITNESS the signatures of Teacher, of the duly authorized
				  officer of the Department and of the President of the Board of Trustees of
				  District as of the date first above mentioned.
TEACHER
___________________________Teacher
Date:___________________________
SWORN TO AND SUBSCRIBED before me, this the____ day of____,
				  20 _____.
_____________________________NOTARY PUBLIC
My Commission Expires:_____________________________
DISTRICT
______________________________________
School District
By:___________________________
Title:____________________________
Date:____________________________
SWORN TO AND SUBSCRIBED before me, this the_____ day of
				  ______, 20 _____.
______________________ NOTARY PUBLIC
My Commission Expires:_________________________
DEPARTMENT
Mississippi Department of Education
By:_____________________
Title:______________________
Date:_______________________
SWORN TO AND SUBSCRIBED before me, this the ________ day of
				  ______________, 20 _________.
_________________________________ NOTARY PUBLIC
My Commission
				  Expires:______________________________