Teacher Next Door Act

Summary: Teacher Next Door Act - Amends the National Housing Act to authorize the Secretary of Housing and Urban Development to sell Department of Housing and Urban Development-owned single family properties at a discount to eligible elementary and secondary school teachers for use as their residences.  Provides for: (1) mortgage downpayment assistance; (2) direct and indirect sales; and (3) an information outreach program.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Teacher Next Door Act''.

SEC. 2. CONGRESSIONAL FINDINGS.

    The Congress finds that--
            (1) urban and inner city school districts have greater 
        difficulty attracting and retaining qualified teachers than 
        their suburban counterparts; and
            (2) the cost of property is higher in urban areas and inner 
        cities that in suburban areas.

SEC. 3. TEACHER NEXT DOOR PROGRAM.

    Section 204 of the National Housing Act (12 U.S.C. 1710) is amended 
by inserting after subsection (j) the following new subsection:
    ``(k) Disposition of Assets Under Teacher Next Door Program.--
            ``(1) In general.--The Secretary may sell eligible 
        properties (as such term is defined in paragraph (9)) at a 
        discount to teachers, as provided under this subsection. In the 
        case of eligible properties under paragraph (9)(B)(i), the 
        provisions of subsection (h) shall apply to such properties, 
        except to the extent specifically provided otherwise in this 
        subsection.
            ``(2) Primary residence.--An eligible property may be sold 
        pursuant to a discount under paragraph (3) only if the property 
        is used, for not less than the 3-year period beginning upon 
        such sale, as the primary residence of a teacher. The Secretary 
        shall ensure compliance with this paragraph through inclusion 
        of appropriate deed restrictions.
            ``(3) Discount.--If an eligible property is sold to a 
        teacher for use in accordance with paragraph (2), the sale 
        price shall be equal to 50 percent of the appraised value of 
        the eligible property (as determined in accordance with the 
        procedure under subsection (h)(6)(B)). In the case of an 
        eligible property under paragraph (9)(B)(i) that is eligible 
        for both a discount under this paragraph and a discount under 
        subsection (h)(6), the discount under subsection (h)(6) shall 
        not apply.
            ``(4) Sale methods.--The Secretary may sell an eligible 
        property pursuant to a discount under this subsection--
                    ``(A) to a unit of general local government or 
                nonprofit organization, for resale or transfer to a 
                teacher; or
                    ``(B) directly (or through a real estate broker) to 
                a purchaser who is a teacher.
            ``(5) Resale.--In the case of any purchase by a unit of 
        general local government or nonprofit organization of an 
        eligible property sold at a discounted price under this 
        subsection, the sale agreement shall--
                    ``(A) require the purchasing unit of general local 
                government or nonprofit organization to provide the 
                full benefit of the discount to the teacher obtaining 
                the property; and
                    ``(B) in the case of a purchase involving multiple 
                properties, any of which is such an eligible property, 
                designate the specific eligible property or properties 
                to be subject to the requirements of paragraph (2).
            ``(6) Mortgage downpayment assistance.--If a teacher 
        purchases an eligible property pursuant to a discounted sale 
        price under this paragraph and finances such purchase through a 
        mortgage insured under this title, notwithstanding any 
        provision of section 203 the downpayment on such mortgage shall 
        be $100.
            ``(7) Prevention of undue profit.--The Secretary shall 
        issue regulations to prevent undue profit from the resale of 
        eligible properties in violation of the requirement under 
        paragraph (2).
            ``(8) Awareness program.--The Secretary shall provide for 
        field offices of the Department to take appropriate actions 
        necessary to inform elementary schools and secondary schools 
        within the jurisdiction of the field office and the public of 
        the program under this subsection and of the properties located 
        within the jurisdiction of the field office that are available 
        for purchase by teachers under this subsection.
            ``(9) Definitions.--For the purposes of this paragraph, the 
        following definitions shall apply:
                    ``(A) The terms `elementary school' and `secondary 
                school' have the meaning given such terms in section 
                14101 of the Elementary and Secondary Education Act of 
                1965 (20 U.S.C. 8801).
                    ``(B) The term `eligible property' means--
                            ``(i) an eligible asset described in 
                        subsection (h)(2)(A); or
                            ``(ii) a property that is--
                                    ``(I) designed as a dwelling for 
                                occupancy for 1 to 4 families;
                                    ``(II) was previously subject to a 
                                mortgage insured under the provisions 
                                of this Act;
                                    ``(III) is owned by the Secretary 
                                pursuant to the payment of insurance 
                                benefits under this Act; and
                                    ``(IV) is located in an area that 
                                is not a revitalization area designated 
                                under subsection (h)(3), but is an area 
                                that the Secretary determines is 
                                appropriate for participation in the 
                                program under this subsection because 
                                of a need for economic development, the 
                                incidence in transactions involving 
                                properties in such area of seller 
                                concessions (such as take-back 
                                financing), a high rate of property 
                                ownership by investor-owners, or such 
                                other factors as the Secretary 
                                considers appropriate.
                    ``(C) The term `teacher' means an individual who is 
                employed on a full-time basis as a teacher in an 
                elementary or secondary school.
            ``(10) Effective date.--This subsection shall apply 
        beginning on January 1, 2001.''.

SEC. 4. REGULATIONS.

    Not later than 90 days after the date of the enactment of this Act, 
the Secretary shall issue regulations to implement section 204(k) of 
the National Housing Act (12 U.S.C. 1710(k)), as added by the amendment 
made by section 3 of this Act.