I 

112TH CONGRESS 

1ST SESSION H. R. 2986 

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 

SEPTEMBER 21, 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 2012 

3 through 2022, to a teacher or public safety offi4 cer for use in accordance with subparagraph 

5 (B) shall be sold at a price that is equal to 50 

6 percent of the appraised value of the eligible 

7 property (as determined in accordance with 

8 paragraph (6)(B)). In the case of a property el9 igible for both a discount under this paragraph 

10 and a discount under paragraph (6), the dis11 count under paragraph (6) shall not apply. 

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

13 property sold pursuant to a discount under this 

14 paragraph shall be used, for not less than the 

15 3-year period beginning upon such sale, as the 

16 primary residence of a teacher or public safety 

17 officer. 

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

19 sell an eligible property pursuant to a discount 

20 under this paragraph— 

21 ‘‘(i) to a unit of general local govern22 ment or nonprofit organization (pursuant 

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

24 or transfer to a teacher or public safety of25 ficer; or 


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

2 teacher or public safety officer. 

3 ‘‘(D) RESALE.—In the case of any pur4 chase by a unit of general local government or 

5 nonprofit organization of an eligible property 

6 sold at a discounted price under this paragraph, 

7 the sale agreement under paragraph (8) shall— 

8 ‘‘(i) require the purchasing unit of 

9 general local government or nonprofit or10 ganization to provide the full benefit of the 

11 discount to the teacher or public safety of12 ficer obtaining the property; and 

13 ‘‘(ii) in the case of a purchase involv14 ing multiple eligible assets, any of which is 

15 such an eligible property, designate the 

16 specific eligible property or properties to be 

17 subject to the requirements of subpara18 graph (B). 

19 ‘‘(E) MORTGAGE DOWNPAYMENT ASSIST20 ANCE.—If a teacher or public safety officer pur21 chases an eligible property pursuant to a dis22 counted sale price under this paragraph and fi23 nances such purchase through a mortgage in24 sured under this title, notwithstanding any proVerDate Mar 15 2010 20:11 Sep 23, 2011 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2986.IH H2986

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1 vision of section 203 the downpayment on such 

2 mortgage shall be $100. 

3 ‘‘(F) PREVENTION OF UNDUE PROFIT.— 

4 The Secretary shall issue regulations to prevent 

5 undue profit from the resale of eligible prop6 erties in violation of the requirement under sub7 paragraph (B). 

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

9 this paragraph, the following definitions shall 

10 apply: 

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

12 and ‘secondary school’ have the meanings 

13 given such terms in section 14101 of the 

14 Elementary and Secondary Education Act 

15 of 1965 (20 U.S.C. 8801), except that, for 

16 purposes of this paragraph, elementary 

17 education (as used in such section) shall 

18 include pre-Kindergarten education. 

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

20 means an eligible asset described in para21 graph (2)(A) of this subsection. 

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

23 means an individual who is employed on a 

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

25 such term is defined in section 1204 of the 


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1 Omnibus Crime Control and Safe Streets 

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

3 ‘‘(iv) The term ‘teacher’ means an in4 dividual who is employed on a full-time 

5 basis, in an elementary or secondary 

6 school, as a State-certified or State-li7 censed classroom teacher or as an adminis8 trator.’’. 

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

10 the National Housing Act (12 U.S.C. 1710(h)) is amend11 ed— 

12 (1) in paragraph (4)(B)(ii), by striking ‘‘para13 graph (7)’’ and inserting ‘‘paragraph (8)’’; 

14 (2) in paragraph (5)(B)(i), by striking ‘‘para15 graph (7)’’ and inserting ‘‘paragraph (8)’’; and 

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

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

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

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

20 regulations to implement the amendments made by this 

21 section. 

22 (e) SENSE OF CONGRESS REGARDING INCLUSION OF

23 OTHER FEDERAL PROPERTIES IN COMMUNITY PARTNERS

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

25 that the Secretary of Housing and Urban Development 


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1 should consult with the heads of other agencies of the Fed2 eral Government that own or hold properties appropriate 

3 for use as housing to determine the possibility and effec4 tiveness of including such properties in the program pur5 suant to section 204(h)(7) of the National Housing Act, 

6 and other programs that make housing available for law 

7 enforcement officers, teachers, or fire fighters. 

8 SEC. 3. ELIGIBILITY OF COMMUNITY PARTNERS FOR PUR9 CHASE OF HUD-ACQUIRED PROPERTY. 

10 Notwithstanding any other provision of law, a public 

11 safety officer or teacher (as such terms are defined in sec12 tion 204(h)(7)(G) of the National Housing Act (as amend13 ed by section 2 of this Act)) shall be eligible to purchase 

14 of any property owned or held by the Secretary of Housing 

15 and Urban Development pursuant to foreclosure of any 

16 mortgage insured by the Secretary or pursuant to assign17 ment of the mortgage, deed in lieu of foreclosure, convey18 ance of title, or any other acquisition of the property or 

19 mortgage in connection with the payment of insurance 

20 benefits by the Secretary. 

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

22 COMMUNITY PARTNERS UNDER GOOD 

23 NEIGHBOR NEXT DOOR INITIATIVE. 

24 The Secretary of Housing and Urban Development 

25 shall revise the Good Neighbor Next Door Initiative of the 


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1 Secretary to provide that the subordinate mortgage on the 

2 property of a mortgagor who purchased a property under 

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

4 mortgagor loses his or her employment position as a law 

5 enforcement officer, teacher, firefighter, or emergency 

6 medical technician as a result of any reductions in force 

7 or other reason other than dismissal for cause. 

8 SEC. 5. PREFERENCE UNDER HUD REO PROGRAM FOR 

9 COMMUNITY PARTNERS. 

10 The Secretary of Housing and Urban Development, 

11 in making any real estate owned of the Department of 

12 Housing and Urban Development available for purchase, 

13 shall provide a preference for purchase by public safety 

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

15 204(h)(7)(G) of the National Housing Act (as amended 

16 by section 2 of this Act)). 

Æ 


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