OFFICE OF HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.

AUTHORIZATION:

HUD Field Notice 99-30, dated November 17, 1999; Interim rule published in the Federal Register, July 2, 1999. Pilot program with authorization through November 2000.

OBJECTIVES:

To strengthen America's communities by providing home ownership opportunities for teachers in HUD-designated revitalization areas, and to improve the quality of life in these neighborhoods by their presence.

TYPES OF ASSISTANCE:

Sale, Exchange, or Donation of Property and Goods.

USES AND USE RESTRICTIONS:

Teachers must agree to occupy homes as their sole residence for a period of three years following closing. The teacher must also agree to execute a second mortgage and note in the name of the Department for an amount equal to the 50% discount. This zero interest note will "grade down" over the three year mandatory residence period until it reaches zero. Should the teacher leave the home before the 1st anniversary of closing, 90% of the discounted amount will be due to HUD. Departure before the 2nd anniversary of closing will require a 60% repayment, and departure before the 3rd anniversary will require a 30% repayment of the discounted amount. Teachers must certify initially, and once annually, for each year of the occupancy term, that he/she continues to own and live in the home as a sole residence, and that no other residential real estate is owned.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   To be eligible for the TND program, participants must be employed full-time by a public school, private school, or federal, State, county, or municipal educational agency as a state-certified classroom teacher or administrator in grades K-12. In addition, eligibility requires participants to certify that they are employed by an educational agency that serves the school district/jurisdiction in which the home they are purchasing is located.

Beneficiary Eligibility:   Teachers and residents of HUD-designated revitalization areas.

Credentials/Documentation:   HUD Form 9548-A, Law Enforcement Officer/Teacher Certification.

APPLICATION AND AWARD PROCESS:

Preapplication Coordination:   None. This program is excluded from coverage under E.O. 12372.

Application Procedure:   All sales of Teacher Next Door homes are handled by HUD management and marketing contractors. These contractors list all available homes for sale on the internet. The consolidated listings, by State, can be accessed at: http://www.hud.gov/tnd/tnd.html. Interest in a particular property can be indicated "online" and an electronic lottery is conducted to determine which individual will be given first chance to submit an acceptable sales contract when more than one teacher indicates an interest in a property.

Award Procedure:   An electronic lottery is conducted to determine which individual will be given first chance to submit an acceptable sales contract when more than one teacher indicates an interest in a property.

Deadlines:   None.

Range of Approval/Disapproval Time:   Varies.

Appeals:   None.

Renewals:   None.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   None.

Length and Time Phasing of Assistance:   None.

POST ASSISTANCE REQUIREMENTS:

Reports:   None.

Audits:   Initial and self-certification by purchaser.

Records:   None.

FINANCIAL INFORMATION:

Account Identification:   86-4070-0-1-371.

Obligations:   (Sales) FY 99 $0; FY 00 est $50,000,000; and FY 01 est $50,000,000.

Range and Average of Financial Assistance:   50% discount off the list price of the home.

PROGAM ACCOMPLISHMENTS:

None to date; this is a pilot program. First sales to close February, 2000. Estimates for sales to reach approximately 1,000 units.

REGULATIONS, GUIDELINES, AND LITERATURE:

Program brochure/website information.

INFORMATION CONTACTS:

Regional or Local Office:   800-217-6970, Toll-free Information Line.

Headquarters Office:   States of: ME, NH, VT, RI, CT, MA, PA, NJ, DE, MD, VA, W.VA, NY, MI, OH Dennis A. White, Officer/Teacher Next Door Specialist, HQ, HUD. Phone: (202) 708-0614, extension 2306. States of: GA, FL, AL, NC, SC, MS, LA, TN, KY, IL, IN, IA, ND, SD, NE, MN, MO, UT, MT, CO, NM, TX, WY, AR, WI Norman S. Jezzeny, Officer/Teacher Next Door Specialist, HQ, HUD. Phone: (202) 708-0614, extension 5545. States of: WA, OR, ID, CA, NV, AZ Eugene C. "Chris" Jones, Officer/Teacher Next Door Specialist, HQ, HUD. Phone: (202) 708-0614, extension 2303.

Web Site Address:   http://www.hud.gov/progdesc/snglindx.html.