Teacher Next Door Initiative


The program is designed to strengthen America's communities by encouraging public and private school teachers to live in low and moderate income neighborhoods.

General information about this opportunity
Last Known Status
Deleted 05/06/2008 (Program elements of 14.310 consolidated into 14.198)
Program Number
Federal Agency/Office
Type(s) of Assistance Offered
Sale, Exchange, or Donation of Property and Goods.
Program Accomplishments
As of April 1, 2003, approximately 2,744 teachers have purchased homes under the TND program nationwide, worth an estimated value of $137,200,000. Sales in fiscal year 2003 are estimated to be approximately 1,000. Projections for fiscal year 2004 are about the same.
Housing Notice 99-30, dated November 17, 1999 (and extension notices). Please note that the Housing notice has expired with respect to content related to the Officer Next Door Program. The Teacher Next Door Program is now operational through Regulatory extensions.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
The Teacher Next Door program is limited to a specialized group. To be eligible for this 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 purchasing a HUD-owned home in a designated revitalization area within their school district, for use as their residence.
Sales contract; addendum to sales contract HUD Form 9548-A; second mortgage and note.
What is the process for applying and being award this assistance?
Pre-Application Procedure
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 teachers apply by submitting a bid for a property listed through HUD's sales disposition program. Properties for sale are listed on the internet at site accessible to the general public. See http://www.hud.gov/homes/index.cfm.
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.
Properties eligible for the Teacher Next Door program are offered exclusively to teachers for bidding to teachers 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 sold.
Approval/Disapproval Decision Time
Not applicable.
How are proposals selected?
How may assistance be used?
Teachers (State-certified in grades Kindergarten through 12th grade) may purchase HUD-owned single unit properties located in designated revitalization areas at a 50 percent discount off list price. Teachers must agree to occupy homes as their sole residence for a period of 3 years. 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 percent discount. This zero interest note will gradually decrease over the 3-year mandatory residence period until it reaches zero. Should the teacher 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. 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.
What are the requirements after being awarded this opportunity?
The teacher 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.
Not applicable.
Other 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 forgiveness of one third of the discount value. Early vacation of the premises requires repayment of a pro rata amount of the discount.
Who do I contact about this opportunity?
Regional or Local Office
Contact HUD's Homeownership Center (HOC) serving your state. Each HOC has Teacher 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 Teacher 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 teacher_next_door@hud.gov, by mail to: 451 7th Street SW, Washington, DC 20410, or by telephone to (202) 708-1672 (this is not a toll free number).
Website Address
Financial Information
Account Identification
86-4587-0-3-371; 86-0470-0-3-371; 86-4077-0-3-371; 86-4072-0-3-371.
(Sales) Reported under program 14.311.
Range and Average of Financial Assistance
50 percent discount off the list price of the home.
Regulations, Guidelines and Literature
HUD Regulations will be in 24 CFR Part 291. Program information is available on HUD's website at www.hud.gov.
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