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Catalog of Federal Domestic Assistance

Program Descriptions

CATALOG OF FEDERAL DOMESTIC ASSISTANCE

14.310: Teacher Next Door Initiative

Objectives: To strengthen America's communities by providing home ownership opportunities for teachers in HUD-designated revitalization areas, and to improve the quality of life in these neighborhoods by their presence.

PROGRAM AND AWARD FINANCIAL AND INFORMATION CONTACTS

ELIGIBILITY REQUIREMENTS FINANCIAL AND ADMINISTRATIVE INFO.

APPLICATION AND AWARD PROCESS INFORMATION CONTACTS

RELATED PROGRAMS ASSISTANCE CONSIDERATIONS

PROGRAM ACCOMPLISHMENTS POST ASSISTANCE REQUIREMENTS

14.310 ELIGIBILITY REQUIREMENTS:

Applicant Eligibility: To be eligible for the TND 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 and residents of HUD-designated revitalization areas.

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

14.310 APPLICATION AND AWARD PROCESS:

Preapplication Coordination: None. This program is excluded from coverage under E.O. 12372.

Application Procedure: All sales of Teacher Next Door homes are handled by HUD management and marketing contractors. These contractors list all available homes for sale on the internet. The consolidated listings, by State, can be accessed at: www.hud.gov/tnd/tnd.html. 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 teacher 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 teacher indicates an interest in a property.

Deadlines: None.

Range of Approval/Disapproval Time: Varies.

Appeals: None.

Renewals: None.

Criteria for Selecting Proposals: None.

Examples of Funded Projects: None.

Range and Average of Financial Assistance: 50% discount off the list price of the home.

14.310 RELATED PROGRAMS:

14.198 Officer Next Door Sales Program;
14.311 Single Family Property Disposition.

14.310 PROGRAM ACCOMPLISHMENTS:

None to date; this is a pilot program. First sales to close February, 2000. Estimates for sales to reach about 1,000 units.

14.310 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency: OFFICE OF HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.

Type of Assistance: Sale, Exchange, or Donation of Property and Goods.

Obligations: (Sales) FY 99 $0; FY 00 est $50,000,000; and FY 01 est $50,000,000.

Budget Account Number: 86-4070-0-1-371.

Authorization: HUD Field Notice 99-30, dated November 17, 1999; Interim rule published in the Federal Register, July 2, 1999. Pilot program with authorization through November 2000.

Regulations, Guidelines, and Literature: Program brochure/website information.

14.310 INFO CONTACTS:

Regional or Local Office: 800-217-6970, Toll-free Information Line.

Headquarters Office: States of: ME, NH, VT, RI, CT, MA, PA, NJ, DE, MD, VA, W.VA, NY, MI, OH Dennis A. White, Officer/Teacher Next Door Specialist, HQ, HUD. Phone: (202) 708-0614, extension 2306. States of: GA, FL, AL, NC, SC, MS, LA, TN, KY, IL, IN, IA, ND, SD, NE, MN, MO, UT, MT, CO, NM, TX, WY, AR, WI Norman S. Jezzeny, Officer/Teacher Next Door Specialist, HQ, HUD. Phone: (202) 708-0614, extension 5545. States of: WA, OR, ID, CA, NV, AZ Eugene C. "Chris" Jones, Officer/Teacher Next Door Specialist, HQ, HUD. Phone: (202) 708-0614, extension 2303.

(See Appendix IV for more contact info.)

14.310 ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements: None.

Length and Time Phasing of Assistance: None.

Uses and Use Restrictions: Teachers must agree to occupy homes as their sole residence for a period of three years following closing. 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% discount. This zero interest note will "grade down" over the three year mandatory residence period until it reaches zero. Should the teacher leave the home before the 1st anniversary of closing, 90% of the discounted amount will be due to HUD. Departure before the 2nd anniversary of closing will require a 60% repayment, and departure before the 3rd anniversary will require a 30% 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.

14.310 POST ASSISTANCE REQUIREMENTS:

Reports: None.

Audits: Initial and self-certification by purchaser.

Records: None.