Ground Lease
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 Provisions of the Ground Lease
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Length of Lease: The ground lease is for 99 years.
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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.)
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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.
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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.
Affordability
University Gables has proven to be a significant advancement in California State University, Fullerton's landmark program to provide affordably priced housing for its faculty and staff. University Gables is a neighborhood that shows how powerful a public/private partnership can be, as it was created through a partnership formed between the CSU Fullerton Housing Authority, the City of Buena Park, County of Orange/Orange County Flood Control District and community developer Valeo Companies.
University Gables home prices are far less than surrounding communities because the land was donated by the County of Orange and the City of Buena Park, both of which have progressive programs to create affordable housing opportunities for county residents. These cost reductions are being passed on to buyers to make the homes more affordable for entry-level faculty and staff. Home prices range from the low $200,000s for the attached homes and from the high $200,000s for the detached homes.
Income Restrictions
As a condition of receiving the land from the City of Buena Park, this project has purchaser income restrictions. These restrictions require purchasers to be households with moderate income at the time of purchase. Moderate income is defined as earning up to 120% of the Orange County median income, with the dollar limit based on household size.
Current Low-Income Limits
|
Household Size (# of People)
|
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
| $94,750 |
$108,300 |
$121,850 |
$135,350 |
$146,200 |
$157,050 |
$167,850 |
$178,700 |
Current Moderate-Income Limits
|
Household Size (# of People)
|
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
| $114,750 |
$131,100 |
$147,500 |
$163,900 |
$177,000 |
$190,100 |
$203,250 |
$216,350 |
