(1) teachers, law enforcement officers, fire 
fighters, and rescue personnel help form the back-
bones of communities and are integral components 
in the social capital of neighborhoods in the United 
States; and 
(2) providing a discounted purchase price on 
HUD-owned properties for teachers, law enforce-
ment officers, fire fighters, and rescue personnel rec-
ognizes the intrinsic value of the services provided by 
such employees to their communities and to family 
life and encourages and rewards those who are dedi-
cated to providing public service in our most needy 
communities. 
(b) DISCOUNT AND DOWNPAYMENT ASSISTANCE FOR 
TEACHERS.—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 fol-
lowing new paragraph: 
‘‘(7) 50 PERCENT
DISCOUNT
FOR
TEACHERS 
AND PUBLIC SAFETY OFFICERS PURCHASING PROP-
ERTIES THAT ARE ELIGIBLE ASSETS.— 
VerDate Mar 15 2010 
20:11 Sep 23, 2011
Jkt 099200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2986.IH
H2986
emcdonald on DSK5VPTVN1PROD with BILLS
‘‘(A) DISCOUNT.—A property that is an el-
igible asset and is sold, during fiscal years 2012 
through 2022, to a teacher or public safety offi-
cer for use in accordance with subparagraph 
(B) 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 el-
igible for both a discount under this paragraph 
and a discount under paragraph (6), the dis-
count under paragraph (6) shall not apply. 
‘‘(B) PRIMARY
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 
primary residence of a teacher or public safety 
officer. 
‘‘(C) SALE METHODS.—The Secretary may 
sell an eligible property pursuant to a discount 
under this paragraph— 
‘‘(i) to a unit of general local govern-
ment or nonprofit organization (pursuant 
to paragraph (4) or otherwise), for resale 
or transfer to a teacher or public safety of-
ficer; or 
VerDate Mar 15 2010 
20:11 Sep 23, 2011
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2986.IH
H2986
emcdonald on DSK5VPTVN1PROD with BILLS
‘‘(ii) directly to a purchaser who is a 
teacher or public safety officer. 
‘‘(D) RESALE.—In the case of any pur-
chase 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 or-
ganization to provide the full benefit of the 
discount to the teacher or public safety of-
ficer obtaining the property; and 
‘‘(ii) in the case of a purchase involv-
ing multiple eligible assets, any of which is 
such an eligible property, designate the 
specific eligible property or properties to be 
subject to the requirements of subpara-
graph (B). 
‘‘(E) MORTGAGE
DOWNPAYMENT
ASSIST-
ANCE.—If a teacher or public safety officer pur-
chases an eligible property pursuant to a dis-
counted sale price under this paragraph and fi-
nances such purchase through a mortgage in-
sured under this title, notwithstanding any pro-
VerDate Mar 15 2010 
20:11 Sep 23, 2011
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2986.IH
H2986
emcdonald on DSK5VPTVN1PROD with BILLS
vision of section 203 the downpayment on such 
mortgage shall be $100. 
‘‘(F) PREVENTION OF UNDUE PROFIT.— 
The Secretary shall issue regulations to prevent 
undue profit from the resale of eligible prop-
erties in violation of the requirement under sub-
paragraph (B). 
‘‘(G) 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 para-
graph (2)(A) of this subsection. 
‘‘(iii) The term ‘public safety officer’ 
means an individual who is employed on a 
full-time basis as a public safety officer, as 
such term is defined in section 1204 of the 
VerDate Mar 15 2010 
20:11 Sep 23, 2011
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2986.IH
H2986
emcdonald on DSK5VPTVN1PROD with BILLS
Omnibus Crime Control and Safe Streets 
Act of 1968 (42 U.S.C. 3796b). 
‘‘(iv) The term ‘teacher’ means an in-
dividual who is employed on a full-time 
basis, in an elementary or secondary 
school, as a State-certified or State-li-
censed classroom teacher or as an adminis-
trator.’’. 
(c) CONFORMING AMENDMENTS.—Section 204(h) of 
the National Housing Act (12 U.S.C. 1710(h)) is amend-
ed— 
(1) in paragraph (4)(B)(ii), by striking ‘‘para-
graph (7)’’ and inserting ‘‘paragraph (8)’’; 
(2) in paragraph (5)(B)(i), by striking ‘‘para-
graph (7)’’ and inserting ‘‘paragraph (8)’’; and 
(3) in paragraph (6)(A), by striking ‘‘paragraph 
(8)’’ and inserting ‘‘paragraph (9)’’. 
(d) REGULATIONS.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary shall issue 
regulations to implement the amendments made by this 
section. 
(e) SENSE OF CONGRESS REGARDING INCLUSION OF 
OTHER FEDERAL PROPERTIES IN COMMUNITY PARTNERS 
NEXT DOOR PROGRAM.—It is the sense of the Congress 
that the Secretary of Housing and Urban Development 
VerDate Mar 15 2010 
20:11 Sep 23, 2011
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2986.IH
H2986
emcdonald on DSK5VPTVN1PROD with BILLS
should consult with the heads of other agencies of the Fed-
eral Government that own or hold properties appropriate 
for use as housing to determine the possibility and effec-
tiveness of including such properties in the program pur-
suant to section 204(h)(7) of the National Housing Act, 
and other programs that make housing available for law 
enforcement officers, teachers, or fire fighters. 
SEC. 3. ELIGIBILITY OF COMMUNITY PARTNERS FOR PUR-
CHASE OF HUD-ACQUIRED PROPERTY. 
Notwithstanding any other provision of law, a public 
safety officer or teacher (as such terms are defined in sec-
tion 204(h)(7)(G) of the National Housing Act (as amend-
ed by section 2 of this Act)) shall be eligible to purchase 
of any property owned or held by the Secretary of Housing 
and Urban Development pursuant to foreclosure of any 
mortgage insured by the Secretary or pursuant to assign-
ment of the mortgage, deed in lieu of foreclosure, convey-
ance of title, or any other acquisition of the property or 
mortgage in connection with the payment of insurance 
benefits by the Secretary. 
SEC. 4. RELEASE OF SECOND MORTGAGE FOR LAID-OFF 
COMMUNITY 
PARTNERS 
UNDER 
GOOD 
NEIGHBOR NEXT DOOR INITIATIVE. 
The Secretary of Housing and Urban Development 
shall revise the Good Neighbor Next Door Initiative of the 
VerDate Mar 15 2010 
20:11 Sep 23, 2011
Jkt 099200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2986.IH
H2986
emcdonald on DSK5VPTVN1PROD with BILLS
Secretary to provide that the subordinate mortgage on the 
property of a mortgagor who purchased a property under 
such initiative shall be released in any case in which the 
mortgagor loses his or her employment position as a law 
enforcement officer, teacher, firefighter, or emergency 
medical technician as a result of any reductions in force 
or other reason other than dismissal for cause. 
SEC. 5. PREFERENCE UNDER HUD REO PROGRAM FOR 
COMMUNITY PARTNERS. 
The Secretary of Housing and Urban Development, 
in making any real estate owned of the Department of 
Housing and Urban Development available for purchase, 
shall provide a preference for purchase by public safety 
officers and teachers (as such terms are defined in section 
204(h)(7)(G) of the National Housing Act (as amended 
by section 2 of this Act)). 
Æ 
VerDate Mar 15 2010 
20:11 Sep 23, 2011
Jkt 099200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6301
E:\BILLS\H2986.IH
H2986
emcdonald on DSK5VPTVN1PROD with BILLS