To make single family properties owned by the Department of Housing and Urban Development available at a discount to elementary and secondary school teachers and public safety officers, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Home Ownership Must Expand for 
Teachers and Public Safety Officers Act''.

SEC. 2. DISCOUNT AND DOWNPAYMENT ASSISTANCE FOR PURCHASE OF HOMES IN 
              REVITALIZATION AREAS BY TEACHERS AND PUBLIC SAFETY 
              OFFICERS.

    (a) In General.--Section 204(h) of the National Housing Act (12 
U.S.C. 1710(h)) is amended--
            (1) by redesignating paragraphs (7) through (10) as 
        paragraphs (8) through (11), respectively; and
            (2) by inserting after paragraph (6) the following new 
        paragraph:
            ``(7) 50 percent discount for teachers and public safety 
        officers purchasing properties that are eligible assets.--
                    ``(A) Discount.--A property that is an eligible 
                asset, is sold during fiscal years 2001 through 2005 
                for use in accordance with subparagraph (B), and is 
                sold to a teacher or public safety officer who complies 
                with the requirement under subparagraph (C), shall be 
                sold at a price that is equal to 50 percent of the 
                appraised value of the eligible property (as determined 
                in accordance with paragraph (6)(B)). In the case of a 
                property eligible for both a discount under this 
                paragraph and a discount under paragraph (6), the 
                discount under paragraph (6) shall not apply.
                    ``(B) Sole residence.--An eligible property sold 
                pursuant to a discount under this paragraph shall be 
                used, for not less than the 3-year period beginning 
                upon such sale, as the sole residence of the purchasing 
                teacher or public safety officer.
                    ``(C) Requirement regarding employment at time of 
                purchase.--A teacher or public safety officer complies 
                with the requirement under this subparagraph if, at the 
                time of the purchase of an eligible property under this 
                paragraph--
                            ``(i) in the case of property sold to a 
                        teacher, the teacher is employed (I) in a 
                        school of a local educational agency whose 
                        jurisdiction includes the property, or (II) in 
                        a private school located within the 
                        jurisdiction of a local educational agency 
                        whose jurisdiction includes the property; or
                            ``(ii) in the case of a public safety 
                        officer, the officer is employed by a public 
                        agency whose jurisdiction includes the 
                        property.
                    ``(D) Sale methods.--The Secretary may sell an 
                eligible property pursuant to a discount under this 
                paragraph--
                            ``(i) to a unit of general local government 
                        or a nonprofit organization (pursuant to 
                        paragraph (4) or otherwise), for resale or 
                        transfer to a teacher or public safety officer; 
                        or
                            ``(ii) directly to a purchaser who is a 
                        teacher or public safety officer.
                    ``(E) 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 paragraph, the sale 
                agreement under paragraph (8) shall--
                            ``(i) require the purchasing unit of 
                        general local government or nonprofit 
                        organization to provide the full benefit of the 
                        discount to the teacher or public safety 
                        officer obtaining the property; and
                            ``(ii) in the case of a purchase involving 
                        multiple eligible assets, any of which is such 
                        an eligible property, designate the specific 
                        eligible property or properties that meet the 
                        requirements of subparagraph (C) and that are 
to be subject to the requirements of subparagraphs (B).
                    ``(F) Mortgage downpayment assistance.--If a 
                teacher or public safety officer 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.
                    ``(G) Monitoring and prevention of undue profit.--
                The Secretary shall issue regulations to prevent undue 
                profit from the resale of properties in violation of 
                the requirement under subparagraph (B) and to provide 
                for coordination with local educational agencies, and 
                with States and units of general local government (and 
                public agencies thereof), to monitor compliance with 
                the requirement under subparagraph (B) and ensure 
                compliance with the requirement under subparagraph (C).
                    ``(H) Awareness program.--From funds made available 
                for salaries and expenses for the Office of Policy 
                Support of the Department of Housing and Urban 
                Development, each field office of the Department shall 
                make available to elementary schools and secondary 
                schools within the jurisdiction of the field office, to 
                State and local agencies within the jurisdiction of the 
                field office that employ public safety officers, and to 
                the public--
                            ``(i) a list of properties located within 
                        the jurisdiction of the field office that are 
                        available for purchase at a discount under this 
                        paragraph and under subsection (k); and
                            ``(ii) other information designed to make 
                        teachers, public safety officers, and the 
                        public aware of the discount and downpayment 
                        assistance available under this paragraph and 
                        subsection (k).
                    ``(I) Definitions.--For the purposes of this 
                paragraph, the following definitions shall apply:
                            ``(i) The terms `elementary school' and 
                        `secondary school' have the meanings given such 
                        terms in section 14101 of the Elementary and 
                        Secondary Education Act of 1965 (20 U.S.C. 
                        8801), except that, for purposes of this 
                        paragraph, elementary education (as used in 
                        such section) shall include pre-kindergarten 
                        education.
                            ``(ii) The term `eligible property' means 
                        an eligible asset described in paragraph (2)(A) 
                        of this subsection.
                            ``(iii) The term `local educational agency' 
                        has the meaning given such term in section 
                        14101 of the Elementary and Secondary Education 
                        Act of 1965 (20 U.S.C. 8801).
                            ``(iv) The term `public safety officer' has 
                        the meaning given such term in section 1204 of 
                        the Omnibus Crime Control and Safe Streets Act 
                        of 1968 (42 U.S.C. 3796b), except that such 
                        term shall not include any officer serving a 
                        public agency of the Federal Government.
                            ``(v) The term `teacher' means an 
                        individual who is employed on a full-time 
                        basis, in an elementary or secondary school, as 
                        a State-certified or State-licensed classroom 
                        teacher or as an administrator.''.
    (b) Conforming Amendments.--Section 204(h) of the National Housing 
Act (12 U.S.C. 1710(h)) is amended--
            (1) in paragraph (4)(B)(ii), by striking ``paragraph (7)'' 
        and inserting ``paragraph (8)'';
            (2) in paragraph (5)(B)(i), by striking ``paragraph (7)'' 
        and inserting ``paragraph (8)''; and
            (3) in paragraph (6)(A), by striking ``paragraph (8)'' and 
        inserting ``paragraph (9)''.

SEC. 3. AVAILABILITY OF HOMES IN OTHER AREAS FOR PURCHASE AT DISCOUNT 
              BY TEACHERS AND PUBLIC SAFETY OFFICERS.

    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 Single Family Homes to Teachers and Public 
Safety Officers.--
            ``(1) In general.--Notwithstanding the authority under the 
        last sentence of subsection (g), the Secretary shall dispose of 
        covered HUD-owned single family properties pursuant to the 
        requirements of this subsection.
            ``(2) Designation of properties.--The Secretary shall 
        designate covered HUD-owned single family properties as 
        available for disposition under this subsection. The Secretary 
        shall make such designations such that--
                    ``(A) among properties so designated, there is a 
                widespread and reasonable geographic distribution on a 
                nationwide basis;
                    ``(B) at all times, not less than 25 percent of the 
                covered single family properties that are, at the time, 
                HUD-owned are so designated; and
                    ``(C) priority is given to designating covered HUD-
                owned single family properties that are located in 
                distressed areas, as determined by the Secretary, that 
                are adjacent to or near areas designated as 
                revitalization areas for purposes of subsection (h).
            ``(3) Discount.--A covered HUD-owned single family property 
        that is designated under paragraph (2) for disposition under 
        this subsection and is sold, during fiscal years 2001 through 
        2005, to a teacher or public safety officer who agrees to 
        comply with the requirements under paragraphs (4) and (5), 
        shall be sold at a price that is equal to 50 percent of the 
        appraised value of the eligible property (as determined in an 
        appraisal conducted in the manner required for appraisals of 
        eligible assets under subsection (h)(6)(B)).
            ``(4) Sole residence requirement.--A covered HUD-owned 
        single family property sold pursuant to a discount under this 
        subsection shall be used, for not less than the 3-year period 
        beginning upon such sale, as the sole residence of the 
        purchasing teacher or public safety officer.
            ``(5) 3-year employment requirement.--A teacher or public 
        safety officer complies with the requirement under this 
        paragraph if, during the 3-year period referred to in paragraph 
        (4)--
                    ``(A) in the case of property sold to a teacher, 
                the teacher is employed--
                            ``(i) in a school of a local educational 
                        agency whose jurisdiction includes the 
                        property; or
                            ``(ii) in a private school located within 
                        the jurisdiction of a local educational agency 
                        whose jurisdiction includes the property; or
                    ``(B) in the case of a public safety officer, the 
                officer is employed by a public agency whose 
                jurisdiction includes the property.
        This paragraph may not be construed to require any teacher or 
        public safety officer to comply with the requirements of this 
        paragraph, to maintain for such 3-year period the same 
        employment position or status, or the same employer that the 
        teacher or officer had at the time of the purchase of the 
        property pursuant to a discount under this subsection.
            ``(6) Mortgage downpayment assistance.--If a teacher 
        purchases a property pursuant to a discounted sale price under 
        this subsection 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) Monitoring and prevention of undue profit.--The 
        Secretary shall issue regulations to prevent undue profit from 
        the resale of properties in violation of the requirements under 
        paragraphs (4) and (5) and to provide for coordination with 
        local educational agencies, and with States and units of 
        general local government (and public agencies thereof), to 
        monitor compliance with the requirements under such paragraphs.
            ``(8) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(A) Covered.--The term `covered' means, with 
                respect to a property, that the property is not located 
                in an area designated as a revitalization area for 
                purposes of subsection (h).
                    ``(B) HUD-owned.--The term `HUD-owned' means, with 
                respect to a property, that the property--
                            ``(i) was previously subject to a mortgage 
                        insured under the provisions of this Act; and
                            ``(ii) is owned by the Secretary pursuant 
                        to the payment of insurance benefits under this 
                        Act.
                    ``(C) Public safety officer.--The term `public 
                safety officer' has the meaning given such term in 
                section (h)(7)(I).
                    ``(D) Single family property.--The term `single 
                family property' means a property that is designed as a 
                dwelling for occupancy by 1 to 4 families.
                    ``(E) Teacher.--The term `teacher' has the meaning 
                given such term in subsection (h)(7)(I).''.

SEC. 4. FUNDING FOR STAFF.

    There are authorized to be appropriated such sums as may be 
necessary for any increased expenses of the Department of Housing and 
Urban Development, including any additional salaries and other 
administrative and nonadministrative expenses, resulting from 
implementation of the programs under subsection 204(k) of the National 
Housing Act, as added by section 3 of this Act.

SEC. 5. TERMINATION OF EXISTING HUD PROGRAMS.

    This Act and the amendments made by this Act are enacted to replace 
the programs of the Department of Housing and Urban Development known 
as the Teacher Next Door Initiative and Officer Next Door Initiative, 
carried out pursuant to Notice H 99-30 (November 17, 1999) of the 
Department and the notices and interim rules incorporated in such 
notice. Upon the enactment of this Act, the Secretary shall cease 
carrying out such programs or shall make such changes in such programs 
as may be necessary so that this Act and the amendments made by this 
Act are carried out through such programs.

SEC. 6. REGULATIONS.

    Not later than 90 days after the date of the enactment of this Act, 
the Secretary of Housing and Urban Development shall issue regulations 
to implement the amendments made by this Act.

Summary: Home Ownership Must Expand for Teachers and Public Safety Officers Act - Amends the National Housing Act to provide purchase discount and downpayment assistance for qualifying elementary and secondary school teachers and public safety officers to buy Department of Housing and Urban Development (HUD)-owned single family homes. Directs HUD field offices to conduct program awareness activities. Directs the Secretary, upon enactment of this Act, to replace the Teacher Next Door and the Officer Next Door Initiatives with the provisions of this Act.