**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 of 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]{.underline}

1.  24 CFR 291.210 (a) permits direct sales at deep discounts off the
    list price of properties sold [without mortgage
    insurance]{.underline} to governmental entities and private
    nonprofit organizations for use in HUD and local housing or homeless
    programs.

> A waiver of the requirements of 24 CFR 291.210 (a) is needed in order
> to provide authority for governmental entities, school districts and
> private nonprofit organizations to purchase properties offered [with
> mortgage insurance]{.underline} on a direct sales basis and to provide
> discounts of 50 percent for use in the Teacher Next Door Initiative.

2.  Based on HUD's experience with REO sales, it would not be
    detrimental to the insurance fund to permit governmental entities,
    school districts, and private nonprofit organizations to purchase
    properties offered with mortgage insurance on a direct sales basis
    or to provide discounts of 50 percent on properties sold for use in
    the Teacher Next Door Initiative.

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3.  24 CFR 291.210 (c) permits HUD to dispose of HUD-owned single family
    properties through direct sales to other individuals or entities
    that do not meet any of the categories specified in this section, if
    a finding is made by the Assistant Secretary for Housing- Federal
    Housing Commissioner, or his or her designee, in writing, that such
    sales would further the goals of the National Housing Act (12 U.S.C.
    1701 et seq.) and would be in the best interest of the Secretary.
    These sales will be upon such terms and conditions as the Secretary
    may prescribe. This finding applies to the direct sale of HUD-owned
    properties to teachers in designated revitalization areas.

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4.  The Teacher Next Door Initiative gives teachers the opportunity to
    live and work in communities where they are most needed. The
    integration of teachers, who are role models and mentors, into a
    community enhances the community's quality of life.

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4.  To date, the program has enabled the Department to dispose of 3700
    properties from its inventory, while providing homeownership to an
    equivalent number of qualified buyers

and supporting residency of employed, professional teachers in
revitalization areas.

> 2

[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 291.210 (a).

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

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3.  Title 24 of the Code of Federal Regulations, Section 291.210 (a)
    therefore should be, and hereby is, waived where a sales contract is
    accepted under the Teacher Next Door Initiative on or before
    September 30, 2005. Accordingly, Homeownership Centers are
    authorized to permit the offering of properties with mortgage
    insurance on a direct sales basis to governmental entities, school
    districts, and pre-approved nonprofit organizations for resale to
    teachers who shall be required to occupy the properties for at least
    three years as their sole residence. Homeownership Centers are also
    authorized to permit discounts of 50 percent on direct sales to
    governmental entities and pre-approved nonprofit organizations for
    use in the Teacher Next Door Initiative.

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4.  The direct sale of HUD-owned properties to teachers will further the
    goals of the National Housing Act (12 U.S.C. 1701 et seq.) and will
    be in the best interest of the Secretary by increasing homeownership
    opportunities as well as strengthening neighborhoods and
    communities. Therefore, Homeownership Centers are authorized to
    place teachers on equal footing with law enforcement officers
    eligible under HUD's Officer Next Door Program, governmental
    entities, school districts, and pre-approved nonprofit organizations
    by permitting the offering of insurable and uninsurable properties
    in designated revitalization areas to teachers on a direct sales
    basis. In addition, Homeownership Centers are authorized to permit
    discounts of 50 percent on such sales. Teachers shall be required to
    occupy the properties as their sole residence for at least three
    years.

ISSUED \_\_\_[September 29,]{.underline} 2004, Washington, D.C.

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

John C. Weicher, Assistant Secretary for Housing-

Federal Housing Commissioner