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
Office of Housing-Federal Housing Commissioner, Department of Housing and Urban Development
Type(s) of Assistance Offered
H - Sale, Exchange, or Donation of Property and Goods
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?
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.
Law enforcement officers, firefighters, teachers, and EMTs purchasing a HUD-owned home in a designated revitalization area for use as their sole residence.
Sales contract (HUD 9548); employer certification; second mortgage and note.
What is the process for applying and being award this assistance?
Preapplication coordination is not applicable.
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. 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.
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.
Approval/Disapproval Decision Time
How are proposals selected?
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.
HUD Handbook 4000.1 clarifies the relevant regulations, policies, and procedures for implementation of the Good Neighbor Next Door Program. That Handbook can be found at: https://www.hud.gov/program_offices/housing/sfh/handbook_4000-1
What are the requirements after being awarded this opportunity?
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.
Matching requirements are not applicable to this assistance listing.
MOE requirements are not applicable to this assistance listing.
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
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 https://www.hud.gov/program_offices/housing/sfh/sfhhocs. 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 https://www.hudhomestore.com/Home/Index.aspx and click on the state of your choice.
451 7th Street, SW
Washington, DC 20410 US
(Sale, Exchange, or Donation of Property and Goods) FY 18 FY 19 FY 20 FY 16 FY 15 FY 17 - All fiscal year reporting is captured under 14.311.
Range and Average of Financial Assistance
Regulations, Guidelines and Literature
HUD Regulations at 24 CFR Part 291. Program information is available on HUD's website at https://www.hud.gov/program_offices/housing/sfh/reo/goodn/gnndabot
Examples of Funded Projects