I
106TH CONGRESS
1ST SESSION
H. R. 2657
To amend section 204 of the National Housing Act to make HUD-owned
single family properties available at a discount to individuals who teach
in inner city schools.
IN THE HOUSE OF REPRESENTATIVES
JULY 30, 1999
Mr. CROWLEY (for himself, Mr. FROST, Mr. TOWNS, Mr. MEEKS of New
York, Mr. HILLIARD, Ms. LEE, and Mr. ACKERMAN) introduced the fol-
lowing bill; which was referred to the Committee on Banking and Finan-
cial Services
A BILL
To amend section 204 of the National Housing Act to make
HUD-owned single family properties available at a dis-
count to individuals who teach in inner city schools.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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 fol-
lowing new subsection:
‘‘(k) DISPOSITION
OF ASSETS UNDER TEACHER
NEXT DOOR PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary may sell eli-
gible properties (as such term is defined in para-
graph (9)) at a discount to teachers, as provided
under this subsection. In the case of eligible prop-
erties 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 prop-
erty may be sold pursuant to a discount under para-
graph (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 deter-
mined in accordance with the procedure under sub-
section (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 orga-
nization 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 eli-
gible property, designate the specific eligible
property or properties to be subject to the re-
quirements 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 viola-
tion 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 elemen-
tary schools and secondary schools within the juris-
diction of the field office and the public of the pro-
gram under this subsection and of the properties lo-
cated 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 sub-
section (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 be-
cause of a need for economic develop-
ment, the incidence in transactions in-
volving properties in such area of sell-
er concessions (such as take-back fi-
nancing), a high rate of property own-
ership by investor-owners, or such
other factors as the Secretary con-
siders appropriate.
‘‘(C) The term ‘teacher’ means an indi-
vidual 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 enact-
ment 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.
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