Program Descriptions
Program Number
14.198
Title
Good Neighbor Next Door Sales Program
Federal Agency
OFFICE OF HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Authorization
24 CFR 291.500-565, final rule published in Federal Register, October 31, 2006, effective December 1, 2006, following publication in the Federal Register of a proposed rule on September 8, 2005.
Status
Active
Objectives
The purpose of the Good Neighbor Next Door Sales Program is to improve the quality of life in distressed urban communities. This is to be accomplished by encouraging law enforcement officers, teachers, and firefighters/emergency medical technicians, and pre-Kindergarten Teachers whose daily responsibilities and duties represent a nexus to the needsof the community, to purchase and live in homes in these communities.
Types of Assistance
Sale, Exchange, or Donation of Property and Goods.
Uses and Use Restrictions
Participants must be employed full-time as a law enforcement officer, pre-K through grade 12 teacher, firefighter or emergency medical technician and agree to live in the property purchased for thirty six months from the date of occupancy following purchase of the home. Violation of the occupancy rule is under penalty of repayment of a prorata share of the discount of fifty percent of the list price. Properties offered through the program are single unit residences located in HUD-designated revitalization areas. The availability of properties is limited. Purchasers must provide financing for the purchases by their own means and are responsible for their portion of closing costs and broker fees. Teachers and Firefighters/EMTs are restricted to purchase homes located in an area served by their employer.
Eligibility Requirements
Applicant Eligibility
Eligible law enforcement officer must be (a) Employed full-time by a law enforcement agency of the federal government, a state, a unit of general local government, or an Indian tribal government ; and (b) In carrying out such fulltime employment, you are sworn to uphold, and make arrests for violations of, Federal, state, county, or municipal law. A firefighter/EMT must be full-time as a firefighter or emergency medical technician by a fire department or emergency medical services responder unit of the federal government, a state, unit of general local government, or an Indian tribal government serving the area where the home is located. A teacher for the purposes of the GNND Sales Program if the person is: (a) Employed as a full-time teacher by a state-accredited public school or private school that provides direct services to students in grades prekindergarten through 12; and (b) The public or private school where the person is employed as a teacher serves students from the area where the home is located in the normal course of business.
Beneficiary Eligibility
Law enforcement officers, firefighters, and EMTs purchasing a HUD-owned home in a designated revitalization area for use as their sole residence.
Credentials/Documentation
Sales contract (HUD 9548); employer certification; second mortgage and note.
Application and Award Process
Preapplication Coordination
None. This program is excluded from coverage under E.O. 12372, Intergovernmental Review of Federal Programs (or consultation with State and local governments regarding program design).
Application Procedure
Interested persons apply by submitting an offer to purchase a property listed through HUD's property disposition program. Properties for sale are listed on the Internet at sites accessible to the general public. Offers are submitted electronically. The offer amount submitted must be the list price.
Award Procedure
A winning offer is selected randomly each week. The selected offeror is offered the property at a 50 percent discount off the list price, subject to the purchaser fully complying with the 36 month occupancy requirement and other program rules. The selected offeror is provided with a document package. The offeror accepts by signing and returning the sales documents. The selected offeror receives title to the home at a sales closing. The selected offeror arranges for financing of the purchase price.
Deadlines
Properties eligible for this program are offered exclusively to law enforcement officer, firefighters, pre-K through 12 teachers and emergency medical technicians for five days beginning with the first listing of the property.
Range of Approval/Disapproval Time
Varies.
Appeals
None.
Renewals
Assistance Considerations
Formula and Matching Requirements
The assistance is in the form of a 50 percent reduction in the list price of the home selected for purchase. The discount is provided in the form of a selfamortizing note/mortgage reducted each month of occupancy over 36 months.
Length and Time Phasing of Assistance
The assistance is provided in exchange for the buyer's commitment to occupy the homes as a personal residence for thirty six months. Each month of occupancy results in the forgiveness of one thirty sixth of the discount value. Early vacation of the premises requires repayment of a pro rata amount of the discount.
Post Assistance Requirements
Reports
The officer, pre-K through 12 teacher, firefighter or EMT purchasing the home must submit an annual certification for each of 12-month period that he or she resides in the home.
Audits
None.
Records
Not applicable.
Financial Information
Account Identification
86-4587-0-3-371; 86-4070-0-3-371; 86-4077-0-3-371; 86-4072-0-3-371; 86- 4242-0-3-371; 86-4105-0-3-371.
Obligations
(Sales) Reported under program 14.311.
Range and Average of Financial Assistance
Fifty percent discount off list price of home. List prices vary widely.
Program Accomplishments
Over 13,000 properties have been sold through the life of the program as of the end of FY 2006.
Regulations, Guidelines and Literature
HUD Regulations at 24 CFR Part 291. Fed. Register, October 31, 2006, Volume, Number, Page. Program information is available on HUD's website at http://www.hud.gov/offices/hsg/sfh/reo/goodn/gnndabot.cfm
Information Contacts
Regional or Local Office
Contact HUD's Homeownership Center (HOC)serving your state. Each Homeownership Center has Good Neighbor Next Door Coordinators. HOCs and their service areas may be found on the web at http://www.hud.gov/offices/hsg/sfh/hoc/hsghocs.cfm Management and Marketing (M&M) contractors provide listings of properties available for purchase through the Good Neighbor Next Door program on the web and are a source of information. Go to http://www.hud.gov/homes/index.cfm and click on the state of your choice.
Headquarters Office
For policy questions not covered on the website, contact the Asset Management and Disposition Division by mail to 451 7th Street SW, Washington, DC 20410; or by phone to (202) 708-1672 (this is not a toll free number).
Web Site Address
http://www.hud.gov/offices/hsg/sfh/reo/goodn/gnndabot.cfm
Related Programs
None.
Examples of Funded Projects
Not applicable.
Criteria for Selecting Proposals
Not applicable.
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