GOOD
NEIGHBOR NEXT DOOR PROGRAM (GNND)
HUD is introducing its Firefighter/Emergency Medical
Technician (EMT)/Officer/Teacher Next Door home sales
programs after taking a number of corrective measures to
prevent homebuyer fraud. To be eligible, firefighters, EMT,
law enforcement officers and teachers must be employed
full-time and agree to make the homes their sole residence
for three years following the purchase. In addition,
Teachers, Firefighters, and Medical Technicians must serve
the area where the home is located with exception to the
Officer.
Good
Neighbor Next Door Sales Program
|
OVERVIEW |
-
Enables a
full-time law enforcement officer, teacher,
or
firefighter/emergency medical technicians
to purchase a specifically designated
HUD-acquired home
·
At a 50 percent
discount from the list price;
·
Property must be
located in a revitalization area
·
Successful bidder
is selected by random lottery
·
Offers must be submitted through real estate
brokers |
|
PURCHASER QUALIFICATIONS |
·
Law enforcement
officer
·
Teacher
·
Firefighter/emergency medical technician
·
Good faith intent to remain in employment status
for one year
·
Earnest money
·
Fulfill owner
occupancy period
·
No residential real property ownership for 1
year preceding offer submission date by either
spouse
·
No prior participation in program by either
spouse.
·
Only one spouse
may purchase |
|
LAW ENFORCEMENT OFFICER |
·
Employed full-time
by a law enforcement agency of the federal
government, a state, unit of general local
government, or an Indian tribal government; and
·
In carrying out
such full-time employment, the person is sworn
to uphold, and make arrests for violations of,
federal, state, tribal, county, township, or
municipal laws. |
|
TEACHERS |
·
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
·
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. |
|
FIREFIGHTER/ EMERGENCY MEDICAL TECHNICIAN |
·
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 area where the home is located.
|
|
OWNER-OCCUPANCY TERM |
·
36 months
·
Starts on 30, 90
or 180 days from closing according to property
condition |
|
INTERRUPTION OF O-O PERIOD |
·
Permitted if the interruption is necessary to
prevent hardship as determined by HUD
·
Requires request in writing received 30 days or
more from desired vacation date
·
Agrees to resume occupancy |
|
SPECIAL FHA FINANCING INCENTIVES |
·
Finance all
reasonable and customary closing costs
·
Down payment of
$100 |
|
MULTI-UNIT PROPERTIES |
·
No |
|
POST-PURCHASE OBLIGATIONS |
·
Continue to own,
and live in as his/her sole residence, the home
purchased through the GNND Sales Program; and
·
Certify initially
and once annually thereafter during and at the
conclusion of the owner-occupancy term that s/he
was at all times fully in compliance with
paragraph (a) of this section. |
GNND offerings will be made available pursuant to HUD
program policies. Prior to the public listing, properties
in
revitalization areas
will be made available to qualified Officers and Teachers
under the Direct Sale Program. For a list of available
GNND HUD-homes, click on the appropriate State button below:
Under the Direct Sale Program, qualified Firefighters, EMT's,
Officers and Teachers may purchase properties located in
revitalization areas
at a 50% discount.
Please Note:
Per the DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, 24 CFR
Part 291,[Docket No. FR-4712-F-03], RIN 2502-AH72. Section
III # 5 states the following:
Clarification of the terms “closing costs,” “selling broker
commissions,” and “downpayment.” This final rule continues
to provide that HUD will not pay a buyer's closing costs on
the purchase of a property through the GNND Sales Program.
Further, HUD has revised the rule to specify that in no
event will HUD pay selling broker commissions. The addition
of this phrase clarifies that the purchaser is wholly
responsible for paying closing costs and selling broker
commissions in a transaction under this program. The closing
costs are expenses borne by the purchaser to complete the
sale. The selling broker's commission is one component of
the closing costs owed by the purchaser. The revision also
serves to clarify that closing costs and selling broker
commissions are not properly considered to be part of a
required down payment. The down payment is a financial
outlay made by the purchaser to acquire equity in the
property and does not include closing or other costs that do
not represent an investment in equity.
Only single-family homes, condos and townhouses are eligible
for GNND purchasers. Multifamily units are not eligible.
Buyer(s) must not have owned any residential real property
for 1 year prior to bidding on a property by either spouse.
If no Preliminary Interest is received during the
notification period, the property will be made available for
sale to the general public on a competitive bid basis.
SALES CONTRACT and REQUIRED ADDENDA:
-
Fillable Sales Contract Form 9548
- check the following Addenda:
o
Inspection Addendum
o
Owner Occupant Certification Form
o
Radon Gas and Mold Notice and Release Agreement
o
GNND Certification Form 9549-A (For
Officer only)
o
GNND
Certification Form 9549-B (For
Teacher only)
o
GNND
Certification Form 9549-C
(For
Fire Fighter/Emergency Responder only)
o
GNND Certification Form 9549
(Personal information questionnaire and must be completed by
all participants)
o
GNND Certification Form 9549–E
(Employer verification of participation employment. Must be
completed by all participants)
o
Land Use Restriction Addendum
-
Flood Zone Addendum
-
Methamphetamine Disclosure Form for seller
(Minnesota and South Dakota only) - Please refer to
your property on the
property listing or bid results
(if your bid has been awarded) for downloading.
-
Mortgage Pre-Qualification Letter from a lending
institution, if the purchase is to be mortgaged,
stating that an in-house credit check has been
performed and the purchaser has been pre-qualified
for a mortgage up to a specified mortgage amount.
-
Certification from a Financial Institution, if the
purchase is cash, stating that funds are available
on the day of closing.
Failure to comply with this (or any GNND) requirement may
result in the remaining balance of the Second Mortgage
becoming immediately due and payable.
