University Gables is a residential community located in Buena Park, California. Although you own the home you purchase in University Gables, all the land on which University Gables is located is owned by CSU Fullerton Auxiliary Services Corporation.
As the homeowner, you will acquire a long-term leasehold interest in the land underlying your home, which will be subject to renewal upon certain stated conditions. As with any lease, you will be required to make ground rent payments pursuant to the terms of your Ground Lease. A prepayment will be required, coupled with an agreement on your part to pay CSU Fullerton ASC stated future rent adjustments (subject to a cap).
To assure homes in University Gables remain available to and affordable by members of the University community, the Ground Lease includes certain restrictions. These restrictions limit the amount of the resale price you may receive, address continuing ownership eligibility and may lengthen the time required for selling a home in University Gables. Homes in University Gables must be owner occupied. You should carefully review the Ground Lease documents and these restrictions before buying a home in University Gables.
Some of the provisions of the ground lease include:
- Length of Lease: The ground lease is for 99 years.
- Ground Rent: Homebuyers will pay rent for the use of the land. Part of this ground rent will be paid up front. (The prices specified above include the upfront ground rent, which can typically be borrowed as part of the home mortgage. The upfront ground rent would be refundable pro rata if the buyer sells the home before the end of the covered term.)
- Future Availability: Should you elect to sell the home at some future date, it will first have to be offered to University employees and/or the CSU Fullerton ASC for a specified period. In addition, there may be other provisions to keep the housing available for campus employees. For example, the CSUFASC has an option to repurchase the home if the owner no longer maintains the home as his/her principal residence, or severs his/her employment relationship with the University.
- Future Affordability: To keep the homes affordable to future eligible employees, the annual appreciation of the home will be tied to an inflation index (e.g., Orange County median income, for consistency with the City's purchaser income restrictions). Credit will be allowed for the value of improvements made by the homeowner.
You should carefully review the Ground Lease documents before buying a home in University Gables. For those persons whose principal objective in purchasing real estate is capital gain, it is strongly recommended they consider acquiring a home in the unrestricted general marketplace rather than in University Gables.
"HELPING TITANS REACH HIGHER"
The CSU Fullerton Auxiliary Services Corporation (ASC) is a non-profit public corporation that was incorporated in 1959 for the purpose of promoting and assisting the educational mission of Cal State Fullerton.