University Hills: Housing FAQ

Frequently Asked Questions About Buying, Selling, and Living in University Hills

November, 2000

This document has been provided by the University Hills Homeowners Representative Board (HRB) to help meet a demand among current and potential residents for a better understanding of how the intricacies of University Hills home ownership work.

While the HRB is independent of ICHA, and therefore can provide a somewhat different perspective than ICHA might on some of these issues, the information contained here has been reviewed by ICHA staff for accuracy.
Buying a Home in University Hills Selling a Home in University Hills
Living in University Hills

Buying a Home in University Hills

Who is eligible to buy in Uni Hills, and how does the priority system work? Can faculty/staff from other UC campuses live here?

Anybody affiliated with any campus of the University of California is eligible to buy a home in University Hills. And, though not common, we do have a handful of residents who have appointments at other UC campuses living in the neighborhood.

There is a priority system, however, which governs who may buy when. First priority goes to members of the academic senate, followed by academic staff (librarians, lecturers, medical residents, etc.), followed by salaried non-academic staff (administrative analysts, technicians, etc.). Moreover, within these categories, new recruits (that is, recent hires) receive top priority. New recruits retain their special status for their first year of employment, though in periods of low housing availability, this is sometimes extended to two years. The University (i.e. the Chancellor) can also direct ICHA to give special priority to certain individuals. Such special treatment typically occurs when the University is afraid it will lose a current or potential faculty member due to a housing situation. These exceptions occur on an ad hoc basis, and are referred to as "University-designees."

In addition, there are also specific time frames for offering homes to the above categories of would-be home buyers. The University has the right, or option, to purchase any home during the first 30 days it is on the market at its maximum resale price. Typically ICHA, acting for the University, will do this to save a home for new recruits or University-designees. If the University, through ICHA, declines to buy (the full 30 days need not have elapsed), the home is then offered according to the following schedule:

next 60 days: Academic Senate (with first priority to University-designees and new recruits)
next 60 days: Academic Senate, Academic Staff (again, with priority to new recruits)
next 60 days: Academic Senate, Academic Staff, Salaried Non-Academic Staff (with priority to those employed by the University for over ten years, among other conditions)
next 30 days: ICHA will purchase at the offering price, 90% of the maximum resale price, or the appraised price -- whichever is lowest (though it need not -- for more details see Numbers 7 and 8 below under "Selling a Home")

During each of these time periods, ICHA typically offers homes to potential buyers according to their place on the waiting list (for more details on how the waiting list works, see Number 5 below). Though it has yet to happen, if after going through all categories of University personnel (roughly 8 months on the market or more) neither ICHA nor any University affiliate is interested in buying a particular home, a home in University Hills could, in theory, be opened up to the general public. If this were ever to happen, priority would go to a would-be buyer with a degree from UCI.

April 2003 update/correction:

ICHA is now advising would-be move-up home buyers that people who do not currently own homes (i.e. renters) do in fact receive priority, within their eligibility category, over those who already own a home (either inside or outside of Uni Hills). ICHA staff maintains that this has always been their policy.

What are the pros and cons of buying a home in Uni Hills?

From a purely financial perspective, Uni Hills offers affordable housing to many UCI employees who otherwise would not be able to live so near to campus. Also, prices here are not subject to the sometimes drastic swings in the Orange County housing market. What this means is that Uni Hills residents do not benefit (in the form of large capital appreciations) when the local housing market is booming, but neither are we as likely to suffer when the market falls. People who place a high priority on the investment aspect of home ownership may not feel comfortable buying here. There are, of course, other advantages to living here which may outweigh such concerns -- for instance, being able to walk to work, being within 5 miles of the beach, and the unique character of the Uni Hills community.

How much below market are Uni Hills housing prices?

The answer depends, of course, on the exact point of comparison, and the current state of the local housing market (i.e. upswing or downswing). The neighborhoods closest to UCI both in Irvine (Turtle Rock) and Newport Beach (i.e. Bonita Canyon/Port neighborhoods, and Eastbluff) are some of the most expensive in Orange County. Homes in these neighborhoods may sell for more than twice the price of a comparable unit in Uni Hills. Moving further from campus and away from the coast results in a somewhat smaller price differential.

How long is the typical wait for a home in University Hills?

What percentage of new recruits who want to live in Uni Hills typically get a home within a year of arrival on campus?

How long do academic senate members who live outside, or rent in Las Lomas, typically have to wait?

Is the wait considerably longer for staff?

Current homeowners sometimes decide they need, or would like, a larger house. How long do they usually wait before a suitable "move-up" becomes available?

The answers to these questions depend on a number of factors, including the number of new faculty the University hires in a given year, whether or not ICHA has built any new homes recently, the state of the outside housing market, and how flexible would-be buyers are with regard to acceptable floor plans, not to mention how much they can afford. Having said this, the following figures provide some guidance:

Based on figures provided by ICHA staff, of the approximately 60 requests for homes by new recruits in the ’98-’99 academic year, roughly half bought a home in Uni Hills that year. The following year, when no newly-built homes were available, a somewhat lower percentage were able to buy, though it appears that a higher percentage will be able to buy during academic year ’00-’01 when a number newly-built homes are again available. (In fact, by the fall of 2000, every new recruit on the list had been offered a home, but a number were unable to purchase at the time.)

The wait for first homes (by eligible academic senate members and staff) and "move-ups" (by current residents) can range anywhere from a couple of months to years. Though we were unable to obtain figures on average waits by either home size or priority category from ICHA, it seems fair to say that the wait for a smaller town house or condo is often shorter than the wait for larger single-family detached homes. Moreover, as a result of their lower priority ranking, staff usually must wait considerably longer than members of the academic senate, and in fact, some may never have an opportunity to purchase a home that meets their needs. This differential is most notable for larger homes; the wait for smaller homes/condos does not appear to vary quite as much by priority category.

Note that after the initial period of eligibility as a "new recruit," all members of the academic senate, regardless of where they live (already in Uni Hills or elsewhere in Orange County), are treated the same, and likewise for staff. It just depends on who puts their name on the waiting list first, and what homes become available. The one exception to this rule would be if a current homeowner becomes a University-designee with regard to a move-up.

How, exactly, does the waiting list work?

Is it purely chronological, or does ICHA rank would-be buyers according to some measure of need?

What if I’m indifferent between several models -- do I have to choose just one?

Why/how do some people seem to jump the queue?

Is the waiting list publicly available?

ICHA maintains a waiting list of all would-be home buyers. There is a form in the housing office that everybody interested buying a home in Uni Hills must fill out. In the fall of 2000 there were nearly 250 names (academic senate and staff) on the list, waiting for the full range of housing options. Some on the list have been offered homes, but for a variety of reasons, declined to buy the home that was offered to them.

Though both potential buyers and sellers of homes might be interested in seeing it, ICHA does not make the waiting list publicly available, stating privacy issues as the reason. Sellers, if they ask, can find out from ICHA approximately how many people in the various priority groups have expressed an interest in their particular model. An alternative channel for obtaining at least some of this information is the Uni Hills web page (www.uhills.org), where individuals can list homes they would like to buy (or sell).

In terms of how it works, within a particular priority category (i.e. new recruits, academic senate, staff, etc. -- see Number 1 above) the waiting list is purely chronological. That is, when a particular home becomes available, categorically-eligible people who expressed interest in that model are contacted in the order they turned their applications in. ICHA does not attempt to determine, based for example on either family size or structure, or current housing situation, if one family is more deserving of a particular home than another. As a result, when a four bedroom home becomes available, a family of five currently living in a two bedroom unit does not enjoy any special treatment over a couple or individual who would simply like more room.

If a would-be buyer is indifferent between several models, he or she can, and should, state this on the housing form. The form has a line for first, second, and third choice models, but nothing is stopping you from putting more than one model on each line, or simply saying "any 3 bedroom unit is of interest" or "any home within this price range is of interest." Indeed, the more flexible a would-be buyer can be, the quicker a suitable home may become available.

At times, people do indeed seem to "jump the queue" -- in other words, somebody who put his or her name on the list after you, gets a home before you. There are a number of reasons why this may happen:

It can happen when the University intervenes and special privilege is granted (see Number 1 above).
It can happen if two current home-owners, one or both of whom may be relatively low on the waiting list, agree to swap homes.
It can also happen when it facilitates the sale of homes to, for example, higher priority new recruits. To illustrate, ICHA typically saves a number of homes for new recruits each year. Many new hires cannot afford, or do not yet need, a large home. If this is all ICHA has to offer them, a situation could arise whereby the new recruit might purchase the smaller home of somebody on the waiting list, and that family can then move up to the home ICHA was originally saving for new hires. In other words, if you are currently in a smaller home, waiting for a larger one, and a new recruit wants your house, you might be able to jump the queue so that yours can be made available to the new recruit.
Sometimes is just seems as if somebody has jumped the queue, when in fact they were just less choosy about the homes they would consider. If you only have one model on your list, you’ll have fewer options, and will probably wait longer, than somebody with six.
Finally, though it is the primary means by which ICHA matches would-be buyers and sellers, the waiting list is in fact not binding on the seller. A seller may sell to whomever she wants, regardless of where they are (or aren’t) on the list, provided they are in the correct priority category.

How can I find out what homes are currently for sale?

The way most people find out a home is for sale is that ICHA calls and offers it to them. More proactively, would-be buyers can ask to view the list of homes currently for sale at the ICHA office, and can check the University Hills web page and/or newsletter where sellers often advertise.

If I turn down a particular home ICHA offers me, do I lose my place on the waiting list?

No. There are a number of reasons a person on the waiting list may not want the first home ICHA offers her -- wrong timing (i.e. just before the tenure decision), too expensive, unsuitable floor plan (i.e. only upstairs bedrooms when a downstairs room is needed), deemed to be in need of too much work, etc. Turning down a particular home will not move you to the bottom of the list. You will just be passed over this time, retaining your spot as before.

How is the price of a home determined?

What is the "maximum resale price," and is it set in stone, or can I offer less?

How can I find out if others are interested in the same house?

What if a seller has made an "improvement" to a home that I feel detracts from it --must I still pay for it?

Unlike in the outside world, where home prices fluctuate based on market forces, home prices in University Hills are strictly regulated.

The initial price of a brand new home in University Hills is determined by the ICHA Board (see Number 1 under "Living in University Hills") using a formula that takes into consideration both construction costs (including plan and design as well as infrastructure) and lot location and size. For example, two identical models may have different initial prices if one has a view, and the other doesn’t. In addition, when the prices of new homes are set they also include some amount to go toward new common area development as well as contributing to community reserves.

A home’s subsequent "maximum resale price," or MRP, depends on three things:

the original price of the home;
the change (since the home was last purchased) in three indices: the CPI, the Marshall and Swift cost index (which tracks local replacement costs of buildings), and the faculty salary growth index; and
the improvements that have been made to the home since it was last purchased (for a discussion of what constitutes an "improvement" and how they are valued, see Number 2 under "Selling A Home").

To put it as simply as possible, the MRP for a particular home is determined by taking the base price (which is either the original price or the price at the last sale if it has been sold more than once) and increasing it by a factor based on the highest of the three indices listed above. To this, the depreciated value of any improvements that have been made to the home are added. For example, say a home was purchased for $225,000. Five years later, it is for sale again. Purely for the sake of example, say the faculty salary index had the largest increase, averaging 5% growth per year. The $225,000 price is therefore increased to $287,163 (or 5% a year for 5 years). Suppose the sellers also built in shelves and put in a wood floor, and the assessed value of these improvements was determined to be $2500. The MRP would thus be set at $289,663. Assuming the buyer pays this amount, this then becomes the base price for the new owners.

There is no guarantee that a seller will get the MRP, however, nor must a buyer pay it -- though in periods of high demand (and long waiting lists) this has been the norm. Would-be buyers are free to offer less than the MRP, and the seller is free to accept or turn down this offer. Similarly, if a would-be buyer does not value an improvement made by the current owner, or feels the home has not been well-maintained, he or she can try to negotiate a lower selling price. Adjustments in the other direction, however, are not possible. That is, you may not offer more than the MRP to ensure getting the house of your dreams.

A would-be buyer’s bidding strategy (as well as the seller’s response) clearly depends on whether or not there are others interested in the same home. ICHA, however, does not make this information available to buyers.

Are there advantages or disadvantages to buying a home from ICHA versus a current resident?

Would-be buyers often do not have the luxury of being able to choose between a large number of homes. In such cases, this question is moot. However, assuming a choice between buying from a current resident and ICHA, who sell newly constructed homes and also buy and sell existing homes under certain other conditions, there are a few differences. Homes offered for sale by ICHA are generally in good condition since they typically fix up anything that is in need of replacement or repair. The cost of doing so, as well as closing costs incurred by ICHA, are then capitalized into the new (selling) price of the home. As a result, there is little, if any, room for negotiation on the price. Buying the same home from a current resident could potentially be cheaper, particularly if the buyer were willing to take it in a less than perfect condition, or was able to bargain down the selling price.

Can I count on ICHA to point out any problems with a home I am considering buying?

Since for nearly all sales transactions in Uni Hills ICHA facilitates for both the buyer and the seller -- and may even be the buyer or seller--as a would-be buyer you do not have a realtor working exclusively for you. Moreover, both the would-be sellers and ICHA are interested in completing sales transactions as quickly as possible. In order to ensure that you are satisfied with the condition of the home you are buying, potential buyers should carefully read the official inspection report (required for all homes put up for sale) and make a thorough examination of the home before agreeing to buy. While most homes in Uni Hills are relatively well maintained, it is not impolite to look under sinks and behind closed doors, nor should you be afraid to ask to view the home without the current owners present!

What if a house I am considering buying has been poorly maintained and will require substantial expense before I can move in? Is there a way to either reduce the seller’s "maximum resale price" or increase my subsequent base price to cover the cost of painting, carpeting, repairing water damage, etc.?

As noted above in Number 4, a home’s condition may be one reason for a buyer to offer less than the MRP, though the seller is not obligated to accept a below-MRP offer. As in the outside market, when it is a "seller’s market," buyers may have no choice but to pay top dollar for a house that requires some fix-up expenses. As a general rule, these fix-up expenses are not capitalized into the subsequent base price of the home. As discussed below (see Number 3 under ‘Selling A Home’), however, certain fix-up expenses incurred by the seller just prior to putting the house on the market are capitalized. Therefore, it may be possible for a buyer to have the seller do some of the necessary maintenance prior to sale. This will increase the MRP for the seller, but also the buyer’s base price - something that could be mutually beneficial.

Are there certain model homes that have typically not received their "maximum resale price"?

Detached single-family homes in good condition typically receive their MRP, or at least historically they have. Certain condo and town home models (i.e. some of the so-called "empty-nesters") have often taken longer to sell than other models, but this has not always resulted in lower prices, as a rule. Particular homes that are deemed "over-improved" by most would-be buyers -- that is, ones that cost significantly more than like models due to fancy improvements -- are the most likely not to receive their MRP upon re-sale. In addition, people wanting to sell in a hurry have sometimes settled for less than the MRP rather than leave their homes on the market long enough to find a buyer willing to pay it.

I am not living in California --how can I choose and buy a home without even seeing it? Why must I make up my mind so quickly?

While somewhat frightening, especially for first-time home buyers, rest assured that a large portion of Uni Hills residents purchased their first homes here sight-unseen. The floor-plan book can give you a good idea about the different models, and truth be told, there is actually not that much difference between lot size, exterior appearance, etc. within University Hills. Moreover, as noted above, if you are buying directly from ICHA, it is unlikely that a home would not be in good (move-in) condition. If you are buying from a current resident, you will receive an official inspection report which should disclose any problems with the home. Review it carefully, and discuss any issues of concern with the owner and/or ICHA prior to signing any final purchase agreement.

ICHA requires a quick decision about a home because there are usually more new recruits than homes available each fall, not to mention long waiting lists of current employees seeking homes. In order to not bog the process down, ICHA generally requires that a potential buyer decide in principle about an offered home within a few days. Again, this can be frightening, but it is the norm here (and anywhere that the market is tight).

What is the typical price range for the various home models?

There is no set selling price for a given model. Recent sales, however, can provide a rough idea of what the various size homes go for, and ICHA can provide updated information to interested parties upon request. During the first half of 2000, for example, the average selling prices of the models sold were:

model	average price	model	average price

101	$217,268	501	$136,011
154	$299,902	502	$187,130
155	$445,000	503	$242,920
201	$141,500	601	$265,513
202	$156,298	703	$401,242
203	$161,627	custom	over $700,000
401	$103,000
402	$113,928
403	$110,000
404	$124,501

How does the ground lease work, and can I change my mind once I’ve chosen a particular option?

The ground lease is the main way in which the University keeps housing prices down in Uni Hills. In short, while we may own our home, we rent the land it sits on. Home buyers have three choices for how to pay this ground rent. Each option involves a monthly component paid on a regular basis, and a one-time payment (based on a share of the appreciation) when the home is sold.

Option 1: pay 4% of the fair-market value of the land (re-evaluated at 5 year intervals) each year (divided into 12 equal monthly payments), plus 10% of the total land appreciation upon sale;
Option 2: pay 2% of the fair-market value of the land for the first five years, then after five years an additional 4% of any incremental increase in the value of the land (subsequently re-evaluated at 5 year intervals) each year, plus 20% of the total land appreciation upon sale;
Option 3: pay nothing for the first five years, then pay 4% of the incremental increase in the fair-market value of the land (subsequently re-evaluated at 5 year intervals) each year, and 30% of the total land appreciation upon sale.

To illustrate, say that a home is purchased for $250,000, and sold 7 years later for $300,000. Initially the land was valued at $30,000 and was re-assessed as worth $35,000 5 years later. Under option 1, the owners pay $100 a month for the first five years (4% of $30,000, divided by 12), then $117 a month during the next two years (re-assessment adds 4% of the $5000 increase annually, divided by 12). When they sell, they also owe ICHA $5000 (10% of the $50,000 appreciation). Under option 2, they would have paid $50 a month for the first 5 years, $67 a month thereafter, and $10,000 upon final sale. Under option 3, they would have paid nothing for the first 5 years, just $17 a month thereafter, but $15,000 upon final sale. Note that land value is re-assessed based on the lesser of the three indices described above in Number 7, and is limited to no more than 10% per year or 50% every five years.

There is no general rule about which option is the "best" for buyers -- it ultimately depends on a number of factors. Different people have come to different decisions based on what they can afford now, how distasteful turning over a large portion of a capital gain is, how long they expect to live in their homes, and what they think the level of capital appreciation and interest rates will be during the period they expect to own their homes. One thing is for certain, however, and that is, ICHA will not let you change your mind about your choice. You must choose when you buy a home and stick with it until you sell. If you later buy another home you can, of course, choose differently the second time around.

Selling a Home in University Hills

How is the selling price of the home determined?

For a detailed description, see Number 7 above, under "Buying a Home," as well as Number 2 below. In short, once a would-be seller notifies the ICHA office in writing that she wants to sell and provides documentation of any capital improvements made to the home, the maximum resale price (MRP) is calculated by ICHA staff according to a specific formula that adjusts your purchase price upward by a factor based on the higher of one of three indices plus the assessed value of any improvements you made to the property.

Be aware, however, that while ICHA provides you with a maximum price figure, there is no guarantee that you will receive this price, though it has been the norm, especially in periods of high demand. It is worth noting that one factor that makes receiving the MRP more difficult for sellers is the issue of "deferred maintenance." That is, if you didn’t keep your home up, would-be buyers may be unwilling to pay top dollar for it. Likewise, if you made expensive and/or extensive improvements to your home, pricing it well above other same-model homes, you may have difficulty receiving your MRP.

How are home improvements valued when I go to sell my house? What if a potential buyer doesn’t want to pay for an improvement I made?

The assessed value of improvements you make to your home can be capitalized into the price of the home when you sell. Examples of things that fall under the category of "improvement" include: luxury upgrades (i.e. wood floors instead of standard carpet, or high-end kitchen appliances), air conditioning, landscaping, fencing the yard, physical additions to the home (everything from window treatments and screen doors to built in shelves and even additional rooms), etc. Things that fall under the category of routine maintenance (i.e. repainting or replacing worn carpeting or old appliances) do not generally count as "improvements," and hence cannot be added to the price of the home (for the one exception to this rule, see Number 3 below).

In order to receive "credit" for improvements, it is necessary to keep a list of all the improvements you’ve made to the home, as well as receipts for the actual cost of the improvements. At the time of sale, you will be asked to provide these receipts, and an appraiser will be sent to your home to make a judgment about their value.

In general, while ICHA refers to the valuation of improvements as the "appraised value," in reality, it is almost always a depreciated cost. The general rule of thumb seems to be that you will receive 50% of what you paid for a particular improvement when you go to sell. For example, if you paid $1100 to fence your yard, when you sell, you will probably get about $550 added to the MRP of your home. Even in cases involving things such as landscaping (in which mature trees and plants are seemingly worth more than young ones) sellers typically receive less than they paid -- in other words, obtaining an appreciated value is rare, if not unheard of. This doesn’t mean that if you want to make an improvement to your home you shouldn’t -- for while you may not be able to recapture the total cost of it, it may increase your enjoyment of your home.

If a potential buyer does not want to pay for an improvement you made, you and she are free to negotiate and come to a mutually agreeable solution. You have several options: you can try to convince the would-be buyer of the value of the improvement, you can take the improvement out, you can move on to another potential buyer who may be willing to pay the full MRP, or you can accept less than the MRP.

What is the policy regarding the incorporation of fix-up costs into the selling price of the house?

A seller is entitled to include the cost of any fix-up expenses he incurs in order to sell his home in the MRP. In order to count, these maintenance, or fix-up projects, are supposed be done no more than 90 days prior to putting the home on the market. Examples of things that can be capitalized into the MRP under this scenario include re-painting, replacing worn carpet, replacing or repairing broken appliances, etc.

In reality, most would-be sellers in Uni Hills do not know 90 days ahead that they will be putting their homes on the market. Typically people put their homes on the market only when a house they have been waiting to move up into becomes available, or when a job opportunity elsewhere develops. As a result, ICHA sometimes allows sellers to incorporate the fix-ups they do immediately after putting the home on the market, but prior to sale. This is something that needs to be discussed and specifically agreed to with ICHA prior to finalizing the MRP.

Since any such maintenance expenses a buyer incurs after purchasing a home are not automatically added to the base price of the house, it can be in the interest of the seller (and subsequently the buyer) to determine that such projects be done prior to sale. In such a case, the buyer is essentially paying for the fix-ups, but she gets this cost capitalized into her home’s base price. Note that it is not possible to ask the seller to undertake things that would be considered "luxury upgrades;" only routine maintenance is allowed. Again, all such agreements must be run through ICHA, since they are the ones who establish a home’s MRP.

Why won’t ICHA tell me all of the names on the waiting list for a home like mine?

All ICHA will tell you is the rough number of people having expressed interest in your model. The reason for this is basically that they want to avoid fighting over homes, and ensure that the waiting list is the primary means of offering homes to anxious would-be buyers since bidding up the sales price is not an option. While understandable from ICHA’s point of view, this is not the most convenient for would-be sellers. In the outside market, there are often several interested parties competing for the same home, and the owner is free to choose the best offer. Here, sellers do not necessarily know how many people are realistically interested in their homes, so do not know if they could get a better deal by waiting. (Of course, you cannot accept more than the MRP, but you may be able to receive it from some would-be buyers, but not others, or close more quickly with one than another). Moreover, since only one potential buyer is notified at a time by ICHA, only one is pursuing loan qualification. This can lead to a longer and sometimes more frustrating process if your first potential buyer does not qualify for his loan. Rather than have another party all ready to go, you will now need to wait until the next in line is contacted and begins the process of getting qualified. As noted in Number 5 below, however, you are free to advertise your home in order to find other interested parties on your own to help speed the process up.

Does ICHA publicize homes for sale, or do I need to?

Though you may want to, you do not need to advertise your home, since ICHA will handle this for you. As noted above, assuming ICHA does not want to buy it, they will notify people from the waiting list, one at a time, that your home is available. If no members of the academic senate are currently waiting for a home like yours, you may have to wait (as much as 2 months) until the home is opened up to the next category of buyer. You are free to try to speed up the process of finding a suitable buyer (i.e. a member of the academic senate who was not on ICHA’s waiting list, or was not listed as interested in your model) by advertising your home on the Uni Hills web site or any other means you choose -- including engaging a realtor for this purpose.

Must I sell to the person at the top of the waiting list, or who ICHA tells me to, or can I sell to the person I want to sell to?

The waiting list is simply the tool ICHA uses to prioritize sales efforts. It is not binding on the seller, and a seller is in fact free to sell his home to anybody he wants to, so long as that person is in the correct priority category (i.e. you cannot sell to staff during the first 60 - 90 days the home is on the market). Most people, however, seem to find it easiest to allow ICHA to make the arrangements.

Under what circumstances may, or will, ICHA buy my home?

There are two circumstances under which ICHA might buy a home from a resident. Initially, ICHA has the option of purchasing any home when it is placed on the market. That is, during the first 30 days after a resident notifies ICHA of her intent to sell, ICHA may purchase the home at its MRP. The seller must sell to ICHA, even if she might rather sell to somebody else. The reason ICHA does this is so that they will have homes available for new recruits and University-designees.

The other circumstance under which ICHA might purchase a home from a resident is if the would-be seller is having trouble selling his home, or needs to sell in a hurry. If ICHA agrees to buy the home based on the seller’s needs before going through all the eligible waiting periods, the price is negotiable. Alternatively, if the home has been on the market for a while, and still hasn’t sold after being open to all categories of University personnel (roughly 8 months), ICHA has the option of buying it from you for 90% MRP (or 90% of the home’s assessed value, whichever is less), prior to opening the home to the general public. As a seller, you may be able to negotiate with ICHA to leave the home on the market for a longer period of time in an attempt to sell it at MRP to a qualified University-affiliated buyer, though if you are no longer eligible to live in University Hills, ICHA doesn’t have to agree to this. Of course if you are still living in your home, and are entitled to do so by virtue of continued University affiliation, you do not have to sell to ICHA under these circumstances -- you may leave your home on the market indefinitely.

Is there a maximum amount of time I can, or must, keep my home on the market without any takers? Can I count on ICHA buying my home if nobody else is interested?

Due to the priority system regarding eligible categories of buyers, you may be obligated to keep your home on the market longer than you would like. This can happen if, for example, you are within the first 90 days of putting your home up for sale and though no member of the academic senate is interested, a member of the staff is. You cannot sell to that person until the waiting period for members of the academic senate has passed. The rationale is that even if there is nobody from the academic senate interested now, there may be before the end of the specified period.

At the other extreme, as just noted above in Number 8, if the house still hasn’t sold after being available to all categories of University personnel (a period of roughly 8 months), ICHA has the option of buying it from you for either 90% of the MRP or 90% of the assessed value of the home, whichever is less, thus ensuring you won’t be stuck with a home you no longer want.

Must I pay a fee to ICHA for sales assistance? What services do I receive in return for paying this fee? As real estate agent, on whose behalf does ICHA act -- mine or the buyer’s?

Typically, when you sell your Uni Hills home you will be charged a facilitator fee (ranging, in the fall of 2000, from $1800 to $5000 depending on the price of your home). For this fee you receive sales assistance including: showing the property, contract and other legal document preparation, handling escrow arrangements, ordering and coordinating necessary home inspections and appraisals (though the cost of such inspections is separate), etc.

If you are not moving into a different Uni Hills home in conjunction with this sale, you are not required to use ICHA as your sales facilitator, and can choose to handle the sale without this assistance (thereby saving yourself the facilitator fee). If you choose to do so, ICHA will still provide you with necessary information regarding the maximum resale price and the value of the leased land, copies of the documents they require, etc.; there is a $250 charge for these documents and services. If you hire somebody else to facilitate your sale, be advised that it could end up costing you more than ICHA would have charged.

If you are moving into another Uni Hills home, however, you do not have this option; you must use ICHA as the facilitator. The stated reason for this policy is to ensure that escrow on the various properties close simultaneously and thereby assure conformance with ground lease requirements.

As noted above in Number 10, under "Buying a Home," in the outside market, buyers and sellers typically have their own realtors, who act in their individual (i.e. separate) interests with regard to the sale/purchase of a particular home. In Uni Hills, ICHA acts as a facilitator, and is not an agent for either party. This can make some aspects of the sale move quickly and smoothly, but can also lead to a situation in which one or both sides feel they are not getting totally objective information. That is, since ICHA wants to match sellers and buyers and have the transaction proceed as quickly as possible, one or both parties may at times feel that nobody is really looking out for their interests and/or pointing out potential pitfalls with the proposed transaction.

What if I change my mind after putting my home on the market?

You can change your mind after putting your home on the market (i.e. after telling ICHA that you want to sell) and take it off again -- provided of course that you have not entered into a sales transaction. If you have entered into a sales transaction and then decide to back out, it may be considered a breach of contract, and you could be liable for damages to the prospective buyer. Note, however, that it is possible to put your home on the market conditional on finding a suitable new home. That is, you can tell ICHA you want to sell your home provided that another more suitable one is available for you to buy. Indeed, many people on the waiting list for "move-ups" do exactly this.

Under what, if any, circumstances am I required to sell my home?

The only time you are required to put your home on the market is if you have lost your eligibility to live in Uni Hills -- that is, you have left the employment of the University and/or have taken up primary residence elsewhere (for more details, see Number 8 below under "Living in Uni Hills").

Can I sell some of my personal effects along with my home?

Yes. This is strictly between you and the buyer, and will not affect the MRP of the home. The sale of personal property cannot be a condition in the sale of a home, however.

Living in University Hills

What, exactly, is ICHA, and what is the HRB? What are the Condo Boards? What kind of oversight exists with regard to these entities?

ICHA is the Irvine Campus Housing Authority. It is a non-profit organization created by the Regents of the University of California to oversee the development and management of University Hills. ICHA serves three main constituencies: the University, new hires, and current residents. ICHA staff are involved in new home and common area development, home sales, property management, apartment rentals, and community maintenance. For a more detailed discussion of the role of ICHA, please see the separate article located on the University Hills web page (www.uhills.org). ICHA is overseen by a Board of Directors, made up of 11 members, at least 8 of whom are full-time employees of UCI, 5 of whom are members of the academic senate, and at most 3 of whom are Uni Hills residents. Non-UCI affiliated Board members must be residents of Orange County. Members of the Board are appointed by the Chancellor, and serve 2 year terms. Only the president may be appointed for more than 3 additional terms. The Board’s primary function has historically been setting and approving ICHA policies and the annual budget. Most day to day matters are left for staff. The ICHA staff consists of the President, the Executive Vice President, as well as sales, rental, accounting, maintenance, community affairs, and administrative personnel.

The HRB, or Homeowners Representative Board, is an elected group of 6 volunteer Uni Hills residents who serve staggered 2 year terms. The HRB meets monthly, and meetings are open to all residents, provided they contact the chair in advance since space is limited. Minutes from the meetings are regularly reported in the Uni Hills newsletter. Originally a landscaping review board, the role of the HRB has evolved over time. Its main function now, aside from overseeing various community activities, is to provide input to ICHA from the prospective of Uni Hills residents. Unlike homeowners’ associations in many other communities, the HRB is not a quasi-political organization, and therefore does not have the authority to alter community codes and regulations and/or tax residents. While ICHA may defer to the HRB with regard to minor policies (such as dates for heating the pools), and seek the input of the HRB with regard to community improvements and settling various disputes, the HRB is ultimately advisory, and ICHA is not bound by the HRB’s opinions. For a more detailed discussion of the role of the HRB, please see the separate article on the University Hills web page.

Condo Boards exist for both Whitman Court (Condo Board II) and part of Schubert Court (Condo Board I). These Boards are also elected from among members of the respective condo associations (i.e. residents of the above streets). They meet quarterly, and serve primarily to review condo association finances.

By living here, are we members of a homeowners’ association, liable for a share of the expense of a costly disaster?

No. While residents of Whitman and Schubert Court condos are members of associations that could potentially be assessed a fee for a portion of a major repair to the condos, as residents of University Hills we are not members of a larger homeowners’ association. Therefore, we are not ultimately liable for a portion of a natural disaster or other major expense incurred by the neighborhood.

What do my monthly dues cover?

Why do some residents pay more than others?

How do our dues compare to dues in other Irvine neighborhoods?

How do our amenities compare?

Compared to homeowners’ dues in other Irvine neighborhoods, our dues ($34/month in 2000) are relatively low. In many nearby neighborhoods, association dues approach, or even exceed, $100/month. Our dues are used by ICHA to help cover the expenses associated with the daily operation, as well as the long-term maintenance, of the community. For example, dues go toward such things as common area maintenance, heating and cleaning the pools, street lighting, gardeners and common area irrigation, printing and mailing of the newsletter, etc. Dues also contribute to reserve funds for future street, and other major infrastructure, repairs.

All Uni Hills homeowners pay the same basic monthly dues. Residents of town homes and condos however, pay dues supplements toward reserves to cover unique expenses associated with exterior painting and repairing shared roofs, as well as shared landscaping. In addition, condo residents also pay condo dues which go primarily toward fire and earthquake insurance on the structure (not your own personal possessions), as well as exterior dry rot and pest control (i.e. ants in common areas, termites and rats within common structures), common area landscaping, and taxes. Note that somewhat counter-intuitively, windows are not considered part of the structure of the condos, and consequently, owners are responsible for replacing any damaged windows themselves.

Residents often wonder how the amenities we enjoy (playgrounds, tennis and basketball courts, pools, etc.) compare with those of other Irvine neighborhoods. Obtaining exact figures on this question has proven difficult, as they are not compiled by any one single entity. Since we do not have a public school or a city park within our boundaries, we do not have easy access to the large playing fields and court areas that such public amenities provide many other Irvine neighborhoods. And although we are within close proximity of the UCI campus, many of its sport and recreation facilities are not open to the general public (or even UCI affiliates without a fee). With regard to pools, while we currently do not meet the typical Irvine ratio of households per swimming pool, as more homes are added to the community ICHA has said that additional pools will be built. We also do not have a community center, a standard amenity in many Irvine neighborhoods. At the same time, many residents and visitors to Uni Hills comment on how attractive our landscaping and green-space/paseo system are compared to other area neighborhoods.

Why do we pay property tax on land that we do not own?

This is a question that many homeowners have asked, and it was the subject of a lawsuit some years ago. Basically, the ruling was that while the non-profit University of California (the landowner) is tax-exempt, since Uni Hills is not used for educational purposes, it is not. Somebody, therefore, has to pay the taxes, and guess what? Homeowners are thus responsible for property taxes on land that they lease. The county tax assessor determines the value upon which the tax is based.

While this may seem unfair, it is worth noting that we are also the only new housing in South Orange County that does not pay costly special tax assessments (i.e. Mello-Roos) for new schools and other infrastructure.

Can I reserve the common area facilities in Uni Hills for a private party/event?

For the most part, yes. The bar-be-cues and picnic areas near each pool, as well as at the playgrounds, can be reserved by residents, though there are some ground rules. In order to reserve the facilities, the party should be made up of at least 34% residents, and you cannot exclude other residents from using either the pool, the playground equipment, or the bar-be-cues and tables you are not using. To make a reservation, contact the ICHA office to obtain the necessary form to post at the site.

The playing field and one of the courts at Gabrielino Park may also be reserved. For one-time events you use the same forms mentioned above, though in this case you are entitled to limit access to the field/court to your party for the duration of your reservation. If you would like to make a standing reservation (say for an on-going team practice or pick-up game) that meets at the same time each week, this can also be arranged. It is handled by the University Hills Park Planning and Use Committee (a volunteer resident committee) who have established guidelines and a priority system for such reservations, and can be contacted via the ICHA office. With the exception of team practices, on-going pick-up games must be open. For more details on making a standing reservation at Gabrielino Park, consult either the newsletter or the bulletin board at the field.

The tennis courts may not be reserved; the rules for limiting playing time while others are waiting are posted at the courts.

What kind of community events are held in University Hills, and how can I become more involved in the community?

There are a number of ways to become more involved in the community:

run for HRB -- each fall elections are held; get a behind-the-scenes look at the way the community is run.
join a volunteer committee -- each June the Uni Hills Park Planning and Use Committee (which advises the HRB and ICHA on matters related to recreational facilities) seeks new members, and various other committees are convened by the HRB and/or ICHA to address specific issues as they arise.
help with the Newsletter -- this is a volunteer undertaking!
organize a party or event -- ICHA sets aside several thousand dollars in its annual budget to pay for community events; any resident may request funds to help cover costs.

In addition to parties and events organized by residents (summer concerts, various holiday events, and bounce-house parties for children have all been popular over the years), the HRB usually sponsors a town hall meeting with ICHA each fall.

Am I allowed to alter the structure of my home (for example, build an addition or put on a balcony)?

If you live in a condo, you cannot alter the structure of your home. If you live in a single-family home, you can, though all such additions/alterations are subject to the prior approval of ICHA. You should also be aware that in so doing, you may not fully recoup the cost of such alterations upon re-sale (see Number 2 above, under "Selling a Home").

Am I allowed to rent out my home?

What means does ICHA employ to ensure that homeowners are in fact using their homes as their primary residences and not as weekend or rental properties, and what would they do if they discovered such an infraction?

A requirement of homeownership in University Hills is that your home here be your "primary residence." That is, you cannot move away and keep it as a rental or vacation property. This does not mean that if you take a leave of absence from the University or go away temporarily on sabbatical or vacation you may not rent out your home. Indeed, most people do rent their homes when they are away on leave or sabbatical, and the University counts on homes being available here to help house its visitors. If you want to rent your home, you should contact the ICHA office, who can facilitate with such matters by passing on the names of visitors interested in local housing. While it is often convenient, you do not have to rent only to University affiliates, and you can advertise your home wherever you see fit.

Though they periodically verify the employment status and residency of homeowners, ICHA does not have a means to systematically determine whether homeowners are in fact playing by the rules. When it is brought to their attention that a property has been rented out for a long period of time (as occasionally has happened) ICHA will contact the homeowner asking for evidence to the contrary, remind him of the rule, and, if necessary, ultimately ask that the owner either resume residence (if still a University employee) or sell the property. Fortunately, this does not seem to be a major problem in the community.

If I terminate employment with the University, how long do I have before I am required to sell my home?

According to the rules of the ground lease (section 3.06), you may be required to sell your home within six to eight months of the time ICHA receives notice that you have left the employment of the University. According to ICHA staff, sometimes this period is extended by mutual agreement. To ensure that homes are not being retained after leaving the University, ICHA verifies employment status of homeowners with the University roughly once a year. Of course, if you retire from the University, you are entitled to continue living in Uni Hills for as long as you want.

Can homes in Uni Hills be inherited? What happens in the case of a divorce?

Since a requirement of residency in University Hills is University affiliation, only in the case of a surviving spouse may a non-University-affiliated person inherit an interest in a University Hills home and live in the home. That is, when a homeowner dies, his or her home can be inherited by heirs like any other property, but it must be sold. Likewise, when the owners of a home in Uni Hills divorce, the party that retains residence must be affiliated with the University.

How big will Uni Hills be at build-out?

The University’s long-range development plan (LRDP) currently calls for University Hills to reach a maximum capacity of roughly 1100 homes (plus a number of apartments) within the next decade or so. Additional units will be built on a regular basis until build-out is complete. Historically, with each additional phase of homes, additional community amenities have also been added.

What’s the deal with the "custom" homes?

Why are they here, and who lives in them?

Are they subject to the same rules with regard to buying/selling/ground lease, etc. as the rest of Uni Hills?

The custom homes (on Locke and "old" Harvey Courts) were part of the first phase of home development in Uni Hills. The story goes that as a yet-to-be-tested housing concept, the original designers of University Hills were unsure as to whether it would be desirable to University employees. Thus, they initially allowed people to design and build their own homes in addition to the more conventional -- and less expensive -- tract housing being offered.

University affiliates live in these homes, and they are governed by the same basic rules as the rest of Uni Hills, with one exception. The initial owners of these homes could choose whether or not to capitalize their ground leases, and about half did. In exchange for a one-time payment equal to the anticipated income stream from the original ground lease, these homes are no longer subject to Maximum Resale Price restrictions (that is, they sell at market rates). All of the custom homes are subject to the same priority selling schedule however, as the rest of University Hills.