HUD announced on August 1st, 2001 that it resumes the Officer and Teacher Next Door Programs.
HUD is resuming its Officer Next Door and Teacher Next Door home sales programs after taking a number of corrective measures to prevent homebuyer fraud. To be eligible, 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 must work in the areas in which the homes are located.

• Direct Sales Internet Lottery Process Guidelines
• Revitalization Areas
• HUD's OND Page
• HUD's TND Page

In an effort to ensure that homeownership opportunities are made available to law enforcement officers who are charged with the responsibility of ensuring the safety and well-being of residents in the communities they serve and to help promote safe neighborhoods by furthering the community law enforcement efforts being made by numerous cities, properties are being made available at a larger discount for sale to law enforcement officers who occupy them as a primary residence for at least three years.

This program has now been expanded to include teachers who live in the school district in which they serve.

A Law Enforcement Officer is defined as an individual who is:

• employed full time by a Federal, State, County or municipal government;
• sworn to uphold, and make arrests for violations of, Federal, State, county, or municipal law; and
• in good standing with the department.

A Teacher is defined as an individual who is:

• employed full time by a a public school, private school, or Federal, State, county or municipal educational agency;
• in good standing;
• and holds a current State-level certification, as a classroom teacher or administrator in grades K through 12. 

OND/TND 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 OND/TND HUD-homes, click on the appropriate State button below:

Under the Direct Sale Program, qualified Officers and Teachers may purchase properties located in revitalization areas at a 50% discount. If any closing costs are requested to be paid by HUD and/or if a real estate agent is engaged to handle the sale of the property, then any closing cost shown on line 5 and any commissions shown on line 6a of the offer will reduce the discount at closing.

Only single-family homes, condos and townhouses are eligible for OND/TND purchasers.  Multifamily units are not eligible.

Governmental entities and private non-profit organizations, acting as a conduit for Officers and Teachers, are eligible to purchase homes through the OND/TND program.  Government entities, school districts for teachers, and non-profits organizations pre-approved to participate in HUD's direct sales program, must either assign the sales contract to an eligible law enforcement officer or teacher at, or prior to closing, or participate in a three-party closing with the buyer.  However, they may not resell the property for more than 110 percent of the development cost.

When an Officer/Teacher has identified a property to purchase, he or she must submit their electronic intent to purchase as instructed on the Direct Sales Internet Lottery Process web page.

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.

Officers and Teachers may also bid competitively on the public list after the notification period and still receive the 50% discount at closing if:

-       the property is located in a HUD-designated revitalization area

-      no other acceptable offers have been received

-       the bid submitted is for 100% of the listing price

The 50 percent discount will be applied at closing.
Governmental agencies, School Districts, and Non-Profit Organizations acting as a conduit for Officers and Teachers under the OND/TND program are restricted to the initial non-competitive offering period.

Any closing cost shown on line 5 and any commissions shown on lines 6a and 6b of the sales contract will reduce the discount at closing.

SALES CONTRACT and REQUIRED ADDENDA:

- Fillable Sales Contract Form 9548

- check the following Addenda:

• Inspection Addendum

• Owner Occupant Certification Form

• Radon Gas and Mold Notice and Release Agreement

• OND/TND Certification Form 9548-A

• OND/TND Land Use Restriction Addendum

• 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.

To obtain an original NEW HUD Sales Contract Form 9548 Revision (1/99):

- Order the forms by calling (800) 434-9644 or fax your request on company letterhead to (404) 559-6394

• TND program participants must certify that they are "employed by an educational agency that serves the school district/jurisdiction in which the home they are purchasing is located."
• All OND/TND program participants are required to own and use their property as their SOLE residence for at least three (3) years.
• All OND/TND program participants are required to execute a second mortgage and note for the amount of the discount which HUD can call at a later date if the buyer fails to re-certify.
• After three (3) years from the date of closing, the second mortgage lien will automatically be satisfied.
• All OND/TND program participants can not currently own any residential real estate.