Good Neighbor Next Door Sales Program

 

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, whose daily responsibilities and duties represent a nexus to the needs of the community, to purchase and live in homes in these communities.

General information about this opportunity
Last Known Status
Active
Program Number
14.198
Federal Agency/Office
Agency: Department of Housing and Urban Development
Office: Office of Housing-Federal Housing Commissioner
Type(s) of Assistance Offered
SALE, EXCHANGE, OR DONATION OF PROPERTY OR GOODS
Program Accomplishments
Not Applicable.
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.
Who is eligible to apply/benefit from this assistance?
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 full-time employment, the person is sworn to uphold, and make arrests for violations of, Federal, state, county, or municipal law in the jurisdiction where the property is located in. A firefighter/EMT must be employed 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 revitalization area where the home is located. A teacher qualifies 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 pre-kindergarten 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. The school is located in the same revitalization area as the property. Fifty percent or more of the students that attend the school live in the revitalization area.
Beneficiary Eligibility
Law enforcement officers, firefighters, teachers, 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. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
Application Procedure
This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 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 by lottery each week in the event several bids are received on a single property. The selected offeror bids the full list price but 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
Not Applicable.
Approval/Disapproval Decision Time
Varies.
Appeals
Not Applicable.
Renewals
Not Applicable.
How are proposals selected?
Not Applicable.
How may assistance be used?
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 36 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 50 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. Eligible purchasers must live and work in the community.

Mortgagee Letter 2013-20, dated June 12, 2013, clarified the relevant regulations, policies, and procedures for implementation of the Good Neighbor Next Door Program. That Mortgagee Letter can be found at: http://portal.hud.gov/hudportal/documents/huddoc?id=13-20ml.pdf.
What are the requirements after being awarded this opportunity?
Reporting
Not Applicable.
Auditing
Not Applicable.
Records
Not Applicable.
Other Assistance Considerations
Formula and Matching Requirements
This program has no statutory formula.
Matching requirements are not applicable to this program.
MOE requirements are not applicable to this program.
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 36 months. Each month of occupancy results in the forgiveness of one thirty sixth of the discount value. Vacating the premises prior to the expiration of the owner-occupancy term requires repayment of a pro rata amount of the discount. Method of awarding/releasing assistance: quarterly.
Who do I contact about this opportunity?
Regional or Local Office
See Regional Agency Offices. 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.hudhomestore.com/home/index.aspx and click on the state of your choice.
Headquarters Office
Wanda L. Sampedro, 451 7th Street, SW, Washington, District of Columbia 20410 Email: answers@hud.gov Phone: (800) 225-5342
Website Address
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/reo/goodn/gnndabot
Financial Information
Account Identification
86-4077-0-3-371; 86-4587-0-3-371.
Obligations
(Sale, Exchange, or Donation of Property and Goods) FY 14 Not Separately Identifiable(Exp: Reported under 14.311); FY 15 Not Separately Identifiable(Exp: Reported under 14.311); and FY 16 Not Separately Identifiable(Exp: Reported under 14.311) - All fiscal year reporting is captured under 14.311.
Range and Average of Financial Assistance
No Data Available.
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
Examples of Funded Projects
Not Applicable.

 



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