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.

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. Place Cursor Here for Definition

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

Pre-application 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:   All sales of Officer Next Door homes are handled by the HUD marketing and management contractors. These contractors list all available homes for sale on the internet. The consolidated listings, by State, can be accessed through HUD's website at http://www.hud.gov. 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 officer 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 officer indicates an interest in a property. HUD Form 9548-A, Law Enforcement Officer/Teacher Certification is required. Purchaser must contact a lender to arrange financing. At closing, purchaser must execute a second mortgage and note requiring repayment of the discount if the purchaser fails to meet the 3-year mandatory residence requirement.

Deadlines:   None.

Range of Approval/Disapproval Time:   Varies.

Appeals:   None.

Renewals:   Not applicable.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   Not applicable.

Length and Time Phasing of Assistance:   Not applicable.

POST ASSISTANCE REQUIREMENTS:

Reports:   Annual self-certification by purchaser during mandatory 3-year residency period.

Audits:   None.

Records:   Not applicable.

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:  
No Data Available.

As of February 2002, approximately 6,000 officers have purchased homes under the OND program in 39 States, Puerto Rico, and the District of Columbia. Sales in fiscal year 2002 are estimated to be approximately 1,500.

REGULATIONS, GUIDELINES, AND LITERATURE:

HUD Regulations at 24 CFR Part 291. Program information is available on HUD's website at www.hud.gov.

INFORMATION CONTACTS:

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

Web Site Address:  
https://portal.hud.gov/hudportal/HUD

EXAMPLES OF FUNDED PROJECTS:

Not applicable.

CRITERIA FOR SELECTING PROPOSALS:

Not applicable.