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 Moderate-Income Limits
|
Household Size (# of People)
|
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
| $100,050 |
$114,300 |
$128,600 |
$142,900 |
$154,350 |
$165,750 |
$177,200 |
$188,650 |
Current Low-Income Limits
|
Household Size (# of People)
|
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
| $75,900 |
$86,750 |
$97,600 |
$108,400 |
$117,100 |
$125,750 |
$134,450 |
$143,100 |
Apply for a Home
University Gables is subject to buyer income limits imposed by the City of Buena Park Redevelopment Agency in exchange for granting the site and entitlements for the project. All buyers must, at the time of purchase, earn no more than 120% of Orange County median income, adjusted for household size ("Moderate Income"). The purchasers of the townhouses must earn no more than 80% of Orange County median income ("Low Income"). The so-called "Low Income" and "Moderate Income" limits are higher than might be expected, because of the relatively high median income in Orange County. All purchasers must use their University Gables home as their principal place of residence and maintain employment to remain eligible.
University Gables applicants are selected according to the CSU Fullerton Auxiliary Services Corporation priority schedule. There is currently a wait list, and applicants will be selected according to the level of interest at the time, and an applicants placement on the priority schedule.
Application Process
To see where you currently qualify, the priority schedule can be found in the FAQ section, question 14 and the maximum income limits to qualify for a lower income home can be found in the Affordability section.
To qualify for a lower income home, the applicants household income can not exceed 80% of the Orange County median Income.
- Download the application by following the link below.
- Complete the application, sign and FAX to 657.278.1499.
- A confirmation of receipt will be emailed to the applicant.
- Alternatively, the application may be mailed to the CSUF Auxiliary Services Corporation.
Download the Application
Mailing Address:
CSUF Auxiliary Services
1121 N State College Blvd
Fullerton, CA 92831
