Officer Next Door Sales Program (14.198)
Program
14.198 Officer Next Door Sales Program
Federal Agency
OFFICE OF HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Authorization
24 CFR 291.500-590, final rule published in Federal Register, October 10, 2000, adopting interim rule published July 2, 1999, with change to 291.530.
Program Number
14.198
Last Known Status
Active
Objectives
To strengthen America's communities by providing homeownership opportunities to law enforcement officers 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
Law enforcement officers may purchase HUD-owned single unit properties located in designated revitalization areas at a 50 percent discount off list price. Officers must agree to occupy homes as their sole residence for a period of 3 years. The officer must also agree to execute a second mortgage and note in the name of the Department for an amount equal to the 50 percent discount. This zero interest note will gradually decrease over the 3-year mandatory residence period until it reaches zero. Should the officer leave the home before the 1st anniversary of occupancy, 90 percent of the discounted amount will be due to HUD. Departure before the 2nd anniversary of occupancy will require a 60 percent repayment, and departure before the 3rd anniversary of occupancy will require a 30 percent repayment of the discounted amount. Officers 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
The Officer Next Door program is limited to a specialized group. To be eligible for this program, participants must be law enforcement officers. A law enforcement officer is defined as an individual who is employed full-time by a Federal, State, county, or municipal government or a college or university, and is sworn to uphold, and make arrests for, violations of Federal, State, county, or municipal law. The authority to make arrests must be general arrest power - not simply arrest authority which is confined to a specific building, facility, or group of persons.
Beneficiary Eligibility
Law enforcement officers purchasing a HUD-owned home in a designated revitalization area for use as their residence.
Credentials/Documentation
Sales contract; addendum to sales contract HUD Form 9548-A; 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 law enforcement officers apply by submitting a bid for a property listed through HUD's sale disposition program. Properties for sale are listed on the internet at sites accessible to the general public. Bids are submitted electronically. The bid amount submitted must be displayed list price.
Award Procedure
A winning bid is selected randomly each week. The winning bidder is offered the property at a 50 percent discount off the list price. A document package is mailed to the selected bidder. The bidder accepts by signing and returning the sales documents. The selected bidder receives title to the home at a sales closing. The selected bidder arranges for financing of the purchase price.
Deadlines
Properties eligible for the Officer Next Door program are offered exclusively to officers for bidding for five days beginning with the first listing of the property. Unsold homes continue to be available for purchase through the program under modified rules related to the length of time the property is unsold.
Range of Approval/Disapproval Time
Appeals
None.
Renewals
Not applicable.
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.
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 three years. Each year of occupancy results in the forgiveness of one third 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 purchasing the home must submit an annual certification for each of three years that he or she resides in the home and does not own any other residential real property.
Audits
None.
Records
Not applicable.
Program Accomplishments
As of April 1, 2003, approximately 7,352 officers have purchases homes under the OND program in the United States and the District of Columbia, with an estimated value of $367,600,000. Sales in fiscal year 2003 are estimated to be approximately 1,500. Projections for fiscal year 2004 are about the same.
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.
Regulations, Guidelines and Literature
HUD Regulations at 24 CFR Part 291. Program information is available on HUD's website at www.hud.gov.
Related Programs
14.310, Teacher Next Door Initiative; 14.311, Single Family Property Disposition.
Information Contacts
Regional or Local Office
Contact HUD's Homeownership Center (HOC) serving your state. Each Homeownership has Offaicer 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 Officer 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 in Washington, DC: by e-mail to officer_next_door@hud.gov; 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/reo_home.cfm
Examples of Funded Projects
Not applicable.
Criteria for Selecting Proposals
Not applicable.
