An additional $1 million in funding from the post-retirement fund will go to the San Mateo County Community College District’s Employee Second Loan Program, the Board of Trustees decided Wednesday night.
The loan program is designed to help faculty and staff make down payments on homes and be able to afford to purchase homes in the Bay Area, Chancellor Ron Galatolo said. The increase in funding comes with a recent increase in the number of employees seeking to purchase a home.
The program offers a 10-year loan, with a maximum loan amount of $50,000, interest and payment are free for five years and beginning in the sixth year, interest is calculated at the district rate plus 2.5 percent for the term of the loan, paid monthly.
To date, the district has made 21 loans; nine of which have been paid back for a total return to the district of $95,798 which represents a 18.74 percent return on investment. The district’s portfolio of loans is currently valued at $775,577.
The district’s loan program has been in place for the last 12 years.