I 

112TH CONGRESS 

1ST SESSION H. R. 3649 

To expand the Officer Next Door and Teacher Next Door initiatives of 

the Department of Housing and Urban Development to include fire 

fighters and rescue personnel, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 13, 2011 

Mr. BACA introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL 

To expand the Officer Next Door and Teacher Next Door 

initiatives of the Department of Housing and Urban 

Development to include fire fighters and rescue personnel, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Community Partners 

5 Neighborhood Preservation Act of 2011’’. 

6 SEC. 2. COMMUNITY PARTNERS NEXT DOOR PROGRAM. 

7 (a) CONGRESSIONAL FINDINGS.—The Congress finds 

8 that— 


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1 (1) teachers, law enforcement officers, fire 

2 fighters, and rescue personnel help form the back3 bones of communities and are integral components 

4 in the social capital of neighborhoods in the United 

5 States; and 

6 (2) providing a discounted purchase price on 

7 HUD-owned properties for teachers, law enforce8 ment officers, fire fighters, and rescue personnel rec9 ognizes the intrinsic value of the services provided by 

10 such employees to their communities and to family 

11 life and encourages and rewards those who are dedi12 cated to providing public service in our most needy 

13 communities. 

14 (b) DISCOUNT AND DOWNPAYMENT ASSISTANCE FOR

15 TEACHERS.—Section 204(h) of the National Housing Act 

16 (12 U.S.C. 1710(h)) is amended— 

17 (1) by redesignating paragraphs (7) through 

18 (10) as paragraphs (8) through (11), respectively; 

19 and 

20 (2) by inserting after paragraph (6) the fol21 lowing new paragraph: 

22 ‘‘(7) 50 PERCENT DISCOUNT FOR TEACHERS

23 AND PUBLIC SAFETY OFFICERS PURCHASING PROP24 ERTIES THAT ARE ELIGIBLE ASSETS.— 


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1 ‘‘(A) DISCOUNT.—A property that is an el2 igible asset and is sold, during fiscal years 

3 20ll through 20ll, to a teacher or public 

4 safety officer for use in accordance with sub5 paragraph (B) shall be sold at a price that is 

6 equal to 50 percent of the appraised value of 

7 the eligible property (as determined in accord8 ance with paragraph (6)(B)). In the case of a 

9 property eligible for both a discount under this 

10 paragraph and a discount under paragraph (6), 

11 the discount under paragraph (6) shall not 

12 apply. 

13 ‘‘(B) PRIMARY RESIDENCE.—An eligible 

14 property sold pursuant to a discount under this 

15 paragraph shall be used, for not less than the 

16 3-year period beginning upon such sale, as the 

17 primary residence of a teacher or public safety 

18 officer. 

19 ‘‘(C) SALE METHODS.—The Secretary may 

20 sell an eligible property pursuant to a discount 

21 under this paragraph— 

22 ‘‘(i) to a unit of general local govern23 ment or nonprofit organization (pursuant 

24 to paragraph (4) or otherwise), for resale 


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1 or transfer to a teacher or public safety of2 ficer; or 

3 ‘‘(ii) directly to a purchaser who is a 

4 teacher or public safety officer. 

5 ‘‘(D) RESALE.—In the case of any pur6 chase by a unit of general local government or 

7 nonprofit organization of an eligible property 

8 sold at a discounted price under this paragraph, 

9 the sale agreement under paragraph (8) shall— 

10 ‘‘(i) require the purchasing unit of 

11 general local government or nonprofit or12 ganization to provide the full benefit of the 

13 discount to the teacher or public safety of14 ficer obtaining the property; and 

15 ‘‘(ii) in the case of a purchase involv16 ing multiple eligible assets, any of which is 

17 such an eligible property, designate the 

18 specific eligible property or properties to be 

19 subject to the requirements of subpara20 graph (B). 

21 ‘‘(E) MORTGAGE DOWNPAYMENT ASSIST22 ANCE.—If a teacher or public safety officer pur23 chases an eligible property pursuant to a dis24 counted sale price under this paragraph and fi25 nances such purchase through a mortgage inVerDate Mar 15 2010 20:33 Dec 21, 2011 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3649.IH H3649

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1 sured under this title, notwithstanding any pro2 vision of section 203 the downpayment on such 

3 mortgage shall be $100. 

4 ‘‘(F) PREVENTION OF UNDUE PROFIT.— 

5 The Secretary shall issue regulations to prevent 

6 undue profit from the resale of eligible prop7 erties in violation of the requirement under sub8 paragraph (B). 

9 ‘‘(G) DEFINITIONS.—For the purposes of 

10 this paragraph, the following definitions shall 

11 apply: 

12 ‘‘(i) The terms ‘elementary school’ 

13 and ‘secondary school’ have the meanings 

14 given such terms in section 9101 of the El15 ementary and Secondary Education Act of 

16 1965 (20 U.S.C. 7801), except that, for 

17 purposes of this paragraph, elementary 

18 education (as used in such section) shall 

19 include pre-Kindergarten education. 

20 ‘‘(ii) The term ‘eligible property’ 

21 means an eligible asset described in para22 graph (2)(A) of this subsection. 

23 ‘‘(iii) The term ‘public safety officer’ 

24 means an individual who is employed on a 

25 full-time basis as a public safety officer, as 


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1 such term is defined in section 1204 of the 

2 Omnibus Crime Control and Safe Streets 

3 Act of 1968 (42 U.S.C. 3796b). 

4 ‘‘(iv) The term ‘teacher’ means an in5 dividual who is employed on a full-time 

6 basis, in an elementary or secondary 

7 school, as— 

8 ‘‘(I) a State-certified or State-li9 censed classroom teacher; or 

10 ‘‘(II) an administrator. 

11 Such term does not include any adminis12 trator of, or any contractor for, a local 

13 educational agency whose place of employ14 ment is not a public elementary or sec15 ondary school.’’. 

16 (c) CONFORMING AMENDMENTS.—Section 204(h) of 

17 the National Housing Act (12 U.S.C. 1710(h)) is amend18 ed— 

19 (1) in paragraph (4)(B)(ii), by striking ‘‘para20 graph (7)’’ and inserting ‘‘paragraph (8)’’; 

21 (2) in paragraph (5)(B)(i), by striking ‘‘para22 graph (7)’’ and inserting ‘‘paragraph (8)’’; and 

23 (3) in paragraph (6)(A), by striking ‘‘paragraph 

24 (8)’’ and inserting ‘‘paragraph (9)’’. 


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1 (d) REGULATIONS.—Not later than 90 days after the 

2 date of the enactment of this Act, the Secretary shall issue 

3 regulations to implement the amendments made by this 

4 section. 

5 (e) SENSE OF CONGRESS REGARDING INCLUSION OF

6 OTHER FEDERAL PROPERTIES IN COMMUNITY PARTNERS

7 NEXT DOOR PROGRAM.—It is the sense of the Congress 

8 that the Secretary of Housing and Urban Development 

9 should consult with the heads of other agencies of the Fed10 eral Government that own or hold properties appropriate 

11 for use as housing to determine the possibility and effec12 tiveness of including such properties in the program pur13 suant to section 204(h)(7) of the National Housing Act, 

14 and other programs that make housing available for law 

15 enforcement officers, teachers, or fire fighters. 

16 SEC. 3. ELIGIBILITY OF COMMUNITY PARTNERS FOR PUR17 CHASE OF HUD-ACQUIRED PROPERTY. 

18 Notwithstanding any other provision of law, a public 

19 safety officer or teacher (as such terms are defined in sec20 tion 204(h)(7)(G) of the National Housing Act (as amend21 ed by section 2 of this Act)) shall be eligible to purchase 

22 any property owned or held by the Secretary of Housing 

23 and Urban Development pursuant to foreclosure of any 

24 mortgage insured by the Secretary or pursuant to assign25 ment of the mortgage, deed in lieu of foreclosure, conveyVerDate Mar 15 2010 20:33 Dec 21, 2011 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3649.IH H3649

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1 ance of title, or any other acquisition of the property or 

2 mortgage in connection with the payment of insurance 

3 benefits by the Secretary. 

4 SEC. 4. RELEASE OF SECOND MORTGAGE FOR LAID-OFF 

5 COMMUNITY PARTNERS UNDER GOOD 

6 NEIGHBOR NEXT DOOR INITIATIVE. 

7 The Secretary of Housing and Urban Development 

8 shall revise the Good Neighbor Next Door Initiative of the 

9 Secretary to provide that the subordinate mortgage on the 

10 property of a mortgagor who purchased a property under 

11 such initiative shall be released in any case in which the 

12 mortgagor loses his or her employment position as a law 

13 enforcement officer, teacher, firefighter, or emergency 

14 medical technician as a result of any reductions in force 

15 or other reason other than dismissal for cause. 

16 SEC. 5. PREFERENCE UNDER HUD REO PROGRAM FOR 

17 COMMUNITY PARTNERS. 

18 The Secretary of Housing and Urban Development, 

19 in making any real estate owned of the Department of 

20 Housing and Urban Development available for purchase, 

21 shall provide a preference for purchase by public safety 

22 officers and teachers (as such terms are defined in section 

23 204(h)(7)(G) of the National Housing Act (as amended 

24 by section 2 of this Act)). 

Æ 


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