The Mississippi Employer-Assisted Housing Teacher Program is
a special home loan program available to licensed teachers who render services
in geographical areas of the state that are designated by the State Board of
Education as having a critical shortage of teachers. The program is authorized
by Miss. Code Ann.
37-159-11 and will be administered
by the Department of Education. The Department of Education will advertise for
the purpose of contracting with one or more public or private entities to
assist with the implementation and administration of the program.
Eligible teachers shall include any state required licensed
teacher of a local school district who serves in the role of teacher providing
direct instruction to students, the equivalent of a minimum of three (3) normal
periods per school day. The program is available to eligible teachers of any
income level.
A maximum loan amount of $6,000.00 will be available to
eligible teachers to assist in paying closing costs associated with the
purchase of a house located in the county in which the school district, or any
portion of the school district, is located. The loan is not limited to
first-time home buyers.
6. After closing, the lender shall send the
program administrator the signed promissory note.
MISSISSIPPI EMPLOYER-ASSISTED HOUSING TEACHER PROGRAM LOAN
AGREEMENT
Date of Agreement:__________________
Teacher:__________________________
School District:_____________________
Loan Amount upto $6,000.00:__________
Beginning School Year:_______________
This Agreement is made and entered into upon the above stated
date by and between named Teacher ("Teacher") and the Mississippi State
Department of Education ("Department"),
For purposes of this agreement "School District" or
"District" shall mean any school district that has been designated by the State
Board of Education as a geographical area where there exists a critical
shortage of teachers.
WITNESSETH:
a.
Purpose. Teacher has applied to the
Department for a loan for the purpose of purchasing a residence pursuant to the
Mississippi Employer-Assisted Housing Teacher Program (Program).
SeeMiss. Code Ann. §
37-159-11. The Department agrees
to lend to Teacher the above stated Loan Amount pursuant to the terms of the
Program, of which the Teacher is aware, and upon the terms and conditions
herein stated.
b.
Use of Loan Amount. Teacher shall only
use the Loan Amount for the purposes of acquiring a residence within the County
in which the District or any part of the District is located.
c.
Term of
Agreement. The term of this Agreement shall commence upon
the Beginning School Year or the date of this Agreement above stated, whichever
is later.
d.
Grant for Service. Commencing with the
Beginning School Year above stated, Teacher shall receive a grant for each year
of service rendered as a teacher in the District of one-third (1/3) of the
total Loan Amount with no interest accrued upon such grant.
e.
Service of
Teacher. Teacher agrees to render service as a teacher in
the District for three (3) consecutive years commencing with the Beginning
School Year and that the school year in which the Agreement is executed will be
considered the Beginning School Year provided the Agreement is executed by
December 1 of the school year, otherwise, the Beginning School Year will be the
next school year. Teacher may choose to accept employment in another district
that is located in whole or in part within the county in which the residence is
located so long as that school district has been designated by the State Board
of Education as a geographical area where a critical shortage of teachers
exist. In the event of this occurrence Teacher shall still be considered
compliant with this agreement and the years of service in each of the school
districts served shall be added together in determining that three consecutive
years have been served.
f.
Residence of Teacher. Teacher agrees to
reside and occupy the residence acquired with the use of the Loan Amount during
the term of this Agreement. Teacher may not lease or rent to any person the
said residence or any part thereof during the term of this Agreement.
g.
Tax Liability.
Teacher acknowledges that the grant or forgiveness for
rendering service as a teacher to the District may result in taxable income to
Teacher for federal and/or state income tax purposes, and further acknowledges
that liability for any and all taxes due upon such taxable income will be the
sole responsibility and liability of Teacher, that the Department will withhold
no sums from the amounts forgiven and will pay no withholdings thereon to the
appropriate taxing authority. Teacher further acknowledges that the Department
may furnish to the Internal Revenue Service and/or to the Mississippi State Tax
Commission, such information and upon such forms as are required to give notice
to the said Internal Revenue Service and/or to the Mississippi State Tax
Commission of the grant or forgiveness to Teacher.
h.
Events of
Default. Default shall consist of the occurrence of any one
or more of the following events: (1.) failure of Teacher to render service to
the District for three consecutive school years commencing with the Beginning
School Year above stated; (2.) failure of Teacher to continuously reside in the
residence acquired with the use of the Loan Amount for three consecutive school
years commencing with the Beginning School Year above stated; (3.) any breach
of any condition of this Agreement by Teacher; or (4.) breach of any condition
under the Program by the Teacher.
i.
Interest upon
Default. Upon the occurrence of any event specified in
Section (h) of this Agreement, interest shall accrue upon the unforgiven and
unpaid portion of the Loan Amount as of the date of this Agreement and
continuing until paid in full. The interest rate shall be the Stafford Loan
rate in effect upon the occurrence of an Event of Default, as said rate is from
time to time determined by the United States Department of Education.
j.
Actions upon
Default. Upon the occurrence of any event specified in
Section (h) of the Agreement, the unforgiven and unpaid portion of the Loan
Amount together, with all interest accrued from the date of the Agreement,
shall be due. The Department shall give written notice to Teacher of the sums
due as of the date of default and the interest amount thereafter. Such notice
shall be sent via certified mail, return receipt request to Teacher at the
address of Teacher upon the records of the Department. Teacher shall have 30
days from the time he or she received written notice to pay the sums due the
Department. The Department may consider a repayment plan with the
Teacher.
k.
Collection Costs. If Teacher fails to
pay the sum due the Department by the deadline or in accordance with the
repayment plan, if applicable, the Department may employ an attorney(s) for the
collection of sums due, and shall be liable for an additional amount equal to
reasonable attorneys' fees and court costs.
l.
Duties of the
District. By its execution hereof, the District agrees that
this Agreement has been fully approved by order duly entered upon the minutes
of its local school board, and that its President/Chair has been duly
authorized to execute same. District further agrees to notify Department in
writing within three business days of the occurrence of any of the following:
(1.) Teacher ceases to render service to the District as a teacher at any time
during the term hereof; (2.) Teacher ceases to reside in and occupy the actual
residence purchased with the use of the Loan Amount.
m.
Acts of
God. Teacher's performance of any duty herein required to
be performed shall not be excused by the occurrence of war, tornado, fire,
earthquake, flood, or death or disability of Teacher, regardless of cause, or
any other act of God, or by Teacher's termination by the District.
n.
Administration. Department may contract
with one or more public or private entities that it is permitted to contract
with under the Program, to perform all or some of its duties under the
Program.
o.
Applicable Laws and Rules and
Regulations. This Agreement is subject to and shall be
governed by and construed in accordance with the laws of the State of
Mississippi in such cases made and provided and by the rules and regulations
adopted by the State Board of Education pursuant to the Program. In the event
of a conflict between the terms of this Agreement and the laws of the State of
Mississippi, the laws shall control; in the event of a conflict between the
terms of this Agreement and the rules and regulations adopted by the State
Board of Education pursuant to the Program, the rules and regulations shall
control.
p.
Advancement of Loan Amount. It is agreed
that the Loan Amount shall not be advanced until the closing of the purchase of
a residence aforesaid by Teacher. It is further agreed that the above stated
Loan Amount may be decreased due to lesser cash requirements at closing, and
that if the Loan Amount is so decreased, this Agreement shall be deemed amended
to reflect the amount actually advanced, and in all other respects shall remain
in full force and effect. It is further agreed that the Loan Amount shall not
be increased after execution hereof unless this Agreement is amended in writing
and executed, by all parties hereto.
WITNESS the signatures of Teacher, of the duly authorized
officer of the Department and of the President of the Board of Trustees of
District as of the date first above mentioned.
TEACHER
___________________________Teacher
Date:___________________________
SWORN TO AND SUBSCRIBED before me, this the____ day of____,
20 _____.
_____________________________NOTARY PUBLIC
My Commission Expires:_____________________________
DISTRICT
______________________________________
School District
By:___________________________
Title:____________________________
Date:____________________________
SWORN TO AND SUBSCRIBED before me, this the_____ day of
______, 20 _____.
______________________ NOTARY PUBLIC
My Commission Expires:_________________________
DEPARTMENT
Mississippi Department of Education
By:_____________________
Title:______________________
Date:_______________________
SWORN TO AND SUBSCRIBED before me, this the ________ day of
______________, 20 _________.
_________________________________ NOTARY PUBLIC
My Commission
Expires:______________________________
