Bozzuto Employee Home Purchase Program

Eligibility

All employees of Bozzuto & Associates, Inc., or its corporate affiliates (the "Company"), who have been continuously employed for at least one (1) year and remain employed through settlement are eligible to participate in the Bozzuto Employee Home Purchase Program.

Discounts

An employee who chooses to purchase a condominium, town-home or single family home from the Company shall be entitled to the following discounts:

A discount credit of three hundred fifty dollars ($350) for each month of employment with the Company, up to a maximum of 4% of the total purchase price of the home including pre-selected options. In no case can the discount exceed $30,000.The number of months of employment used to calculate the credit shall begin with the date of hire and end at the date of settlement

All discounts under the program shall be in addition to any incentive offered to the general public at the time the employee contracts to buy the home. All discounts under the program will be credited at closing.

Deposits

The employee shall be required to post a similar deposit to that required of the general public.  Deposit requirements may be waived for “inventory” homes. 

Resale Conditions

The Program is intended to provide a discount on the purchase of a new home for either personal use or long-term investment. The Program may not be used as a vehicle for market speculation. Accordingly, each home sold under the Program shall be subject to a two-year agreement whereby the employee shall be required to share a portion of the resale profits with the Company as proscribed below.

If the home is sold within one year after the date of settlement, the employee shall retain 30% of the net profit, and the Company shall retain 70% of the profit.

If the home is sold within two years after the date of settlement, the employee shall retain 60% of the net profit and the Company shall retain 40% of the profit.

If the home is sold anytime after two years from the date of settlement, the employee shall retain the entire profit.

An agreement reflecting this restriction shall be signed at closing.

Moving Day

An employee who chooses to purchase a condominium, town-home or single family home from the Company will receive a day off with pay to handle move in and other needs associated with moving into his/her new home.  This day off will not be charged as vacation or personal time.

Additional Conditions

The Program may not be available in all Bozzuto communities. The Company shall determine inclusion status for each community.

All employee purchase agreements must be reviewed and approved by the Company's Investment Committee.

Employees are generally not permitted to participate in the program if the home is in the community in which the employee is employed unless approved by the Company's Investment Committee. To avoid a conflict of interest, such an employee may be required to execute a formal declaration stating that he or she has acted pursuant to the Company's regulations for pricing, development, sales, and other related concerns

The employee may use each three hundred fifty dollar ($350) monthly discount credit only one (1) time toward the purchase of a home. Each three hundred fifty dollar ($350) monthly discount credit shall expire as soon as it is applied to the purchase of a home.

Employees may not purchase more than one (1) unit per year and may not have more than one (1) unit under contract at any time.

 An employee may not combine his or her discount with that of another Bozzuto employee, unless purchasing as Tenants by the Entirety (married) or as Joint Tenants With Rights of Survivorship (a couple living together).  If purchasing as Tenants by the Entirety or as Joint Tenants with Rights of Survivorship, the length of service of the two (2) employees will be combined, but in no case will the discount credit exceed the lesser of (i) 4% of the total purchase price, or (ii) $30,000.

No broker or realtor, except the on-site agent, may be involved in the employee's purchase of a home.

An employee may purchase units through the program as a representative for a corporation or partnership provided that the employee owns at least a 50% share of that corporation or partnership.  If any such entity is employed to make this purchase, all documents concerning the formation and operations of the entity are to be provided to the Company's Investment Committee.  Also, any amendments of such documents are to be provided to the Company's Investment Committee.

All other aspects of the purchase, excluding those mentioned specifically in this agreement, shall be treated in a similar manner as a sale to the general public.

The discount associated with this Program is considered taxable income. The employee’s W-2 will reflect the amount of the gross discount. Any and all tax liability is the responsibility of the employee. 

Coordination with SmartRent Program

A Bozzuto employee who is participating in Bozzuto’s SmartRent program may combine the benefits of the Employee Home Purchase Program and the SmartRent program. However, in no case shall the combined benefits exceed the lesser of (i) 5% of the purchase price, or (ii)  $30,000.

 Family Member Purchase

The immediate family members of an employee, limited to parents, children and siblings (the "Family Member") shall be entitled to the following discount program.

A discount credit of 1.5% of the total purchase price of the home. In no case can the discount exceed $10,000.

A discount of 10% on all options and upgrades selected by the Family Member.

Only one Family Member may purchase a home in each community.

No broker or realtor may be involved in the purchase, except the on-site agent

All of the conditions and requirements that apply to the employee and that do not conflict with any rule or requirement of the Family Member Purchase provisions apply to the Family Member, with the exception that "Resale Conditions" does not apply to Family Members.

Amendments and Termination

The Company may terminate or modify the program at any time at its own discretion.