**SECTION 204 OF THE NATIONAL HOUSING ACT**

**WAIVER OF REQUIREMENTS UNDER 24 CFR 291.210 (a)**

**AND FINDING UNDER 24 CFR 291.210 (c )**

Pursuant to the authority granted to the Secretary under Section 204 of
the National Housing Act, Section 7(q) of the Department of Housing and
Urban Development Act, and the waiver authority contained in 24 CFR §
5.110, I hereby make the following Findings and Determinations.

# FINDINGS

1.  The Department supports the Officer Next Door Sales Program (OND)
    and the Teacher Next Door Sales Program (TND) through the Office of
    Single Family Housing's Real Estate Owned Disposition Program.

2.  OND and TND (collectively OND/TND) offers single family homes
    located in Revitalization Areas for purchase by law enforcement
    officers and teachers. OND/TND participants must agree to occupy the
    home as their sole residence for a specified occupancy period.

3.  24 CFR Part 291, Subpart F, authorizes OND.

4.  24 CFR § 291.570 provides in part: "To remain a participant in the
    Officer Next Door Sales Program you must, for the entire duration of
    the owner-occupancy term: (a) Continue to own, and live in as your
    sole residence, the home you purchased through the Officer Next Door
    Sales Program."

5.  TND is authorized by Federal Register Notice. The Notice provides in
    part:

> "The teacher must agree to live in the home purchased through the TND
> Initiative as their sole residence for at least three years." See 64
> Fed. Reg. 68370 (7 December 1999).

6.  The Department recognizes the impossibility of performance of the
    occupancy requirement by OND/TND borrowers who are currently
    fulfilling the requirements of their occupancy period, and are
    called to active military duty at posts outside the commuting area
    of their hometowns.

7.  Permitting OND/TND borrowers to receive credit for time served on
    active military duty as a credit against the OND/TND program
    occupancy requirement will not be detrimental to the insurance fund.

8.  The waiver will provide a credit of time served while serving on
    active military duty against the balance of time remaining on the
    program participant's occupancy requirement.

[DETERMINATIONS]{.underline}

1.  Accordingly, pursuant to the authority contained in 24 CFR § 5.110,
    good cause has been shown that it is in the public interest and
    consistent with the Department's objectives to waive 24 CFR §
    291.570, to the extent of providing a credit of time served on
    active duty military service.

2.  A waiver of the OND requirement to occupy the home purchased for a
    specified occupancy period is granted in order to provide an
    accommodation to OND borrowers who are currently fulfilling the
    requirements of an occupancy period and are called to active
    military duty at posts outside the commuting area of their
    hometowns.

3.  Pursuant to the authority contained in 24 CFR § 5.110, good cause
    has been shown that it is in the public interest and consistent with
    the Department's objectives to waive the TND Notice occupancy
    requirement, to the extent of providing a credit of time served on
    active duty military service.

4.  A waiver of the TND requirement to occupy the home purchased for a
    specified occupancy period is granted in order to provide an
    accommodation to TND borrowers who are currently fulfilling the
    requirements of an occupancy period and are called to active
    military duty at posts outside the commuting area of their
    hometowns.

5.  There is no statutory authority that would preclude this waiver.

6.  Accordingly, National Servicing Center is authorized to provide an
    accommodation to OND/TND program participants who are called to
    active duty service while fulfilling their OND/TND program occupancy
    requirement period. The accommodation shall be a credit of all time
    served on active military duty against the balance of the OND/TND
    occupancy period remaining at the time of reassignment to an area
    outside the hometown commuting area of the program participant.

ISSUED\_\_\_\_\_\_[December 29,]{.underline} 2004

Washington, D.C.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

John C. Weicher, Assistant Secretary for Housing-

Federal Housing Commissioner