I 
111TH CONGRESS 
1ST SESSION 
H. R. 583 
To assist teachers and public safety officers in obtaining affordable housing. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 15, 2009 
Ms. LEE of California introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To assist teachers and public safety officers in obtaining 
affordable housing. 
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 ‘‘Community Partners 
Next Door Act of 2009’’. 
SEC. 2. COMMUNITY PARTNERS NEXT DOOR PROGRAM. 
(a) DISCOUNT AND DOWNPAYMENT ASSISTANCE FOR 
TEACHERS
AND PUBLIC SAFETY OFFICERS.—Section 
204(h) of the National Housing Act (12 U.S.C. 1710(h)) 
is amended— 
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(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.— 
‘‘(A) DISCOUNT.—A property that is an el-
igible asset and is sold to a teacher or public 
safety officer for use in accordance with sub-
paragraph (B) shall be sold at a price that is 
equal to 50 percent of the appraised value of 
the eligible property (as determined in accord-
ance 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) 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. 
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‘‘(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 
‘‘(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 
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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-
vision of section 203 the downpayment on such 
mortgage shall be $100. 
‘‘(F) HIGHER FHA LOAN LIMIT FOR PUR-
CHASE OF ELIGIBLE PROPERTIES IN HIGH-COST 
AREAS.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
any other provision of this title relating to 
the maximum amount of the principal obli-
gation of a mortgage that may be insured 
under this title, in the case of an eligible 
property that is located in a high-cost area 
and is purchased pursuant to a discounted 
sale price under this paragraph, the Sec-
retary may insure a mortgage for the pur-
chase of such eligible property that in-
volves a principal obligation (including 
such initial service charges, appraisal, in-
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spection, and other fees as the Secretary 
shall approve) in an amount not exceeding 
150 percent of the limitation on such prin-
cipal obligation otherwise applicable under 
section 203(b)(2)(A). 
‘‘(ii) HIGH-COST AREA.—For purposes 
of this subparagraph, the term ‘high-cost 
area’ means any area for which the median 
1-family house price in the area exceeds 
the maximum amount limitation on the 
principal obligation of a mortgage deter-
mined 
at 
such 
time 
under 
section 
203(b)(2)(A)(ii). 
‘‘(G) 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). 
‘‘(H) DEFINITIONS.—For the purposes of 
this paragraph, the following definitions shall 
apply: 
‘‘(i) The term ‘eligible property’ 
means an eligible asset described in para-
graph (2)(A) of this subsection. 
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‘‘(ii) 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). 
‘‘(iii) The term ‘teacher’ means an in-
dividual who is employed on a part- or full- 
time basis as a teacher, teacher assistant, 
or administrator in a public or private 
school that provides elementary or sec-
ondary education, as determined under 
State law, except that elementary edu-
cation shall include pre-Kindergarten edu-
cation, and except that secondary edu-
cation shall not include any education be-
yond grade 12. 
‘‘(I) 
PROGRAM
INTEGRITY.—Notwith-
standing any other provision of this paragraph, 
the Secretary may suspend the applicability of 
this paragraph for such period as the Secretary 
considers appropriate if the Secretary deter-
mines such suspension is necessary because of 
fraud or other issues regarding program integ-
rity.’’. 
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(b) 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)’’. 
(c) REGULATIONS.—Not later than 60 days after the 
date of the enactment of this Act, the Secretary shall issue 
regulations to implement the amendments made by this 
section. 
SEC. 3. TEACHER AND PUBLIC SAFETY OFFICER AWARE-
NESS CAMPAIGN. 
(a) IN GENERAL.—The Secretary of Housing and 
Urban Development, in coordination with the Secretary of 
Education and the Attorney General, shall carry out a pro-
gram of activities to inform and educate teachers and pub-
lic safety officers of the availability and terms of the pro-
gram established by the amendments made by section 2. 
(b) ELIGIBLE ACTIVITIES.—Amounts made available 
for the program under this section may be used only for 
activities designed to accomplish the purpose specified in 
subsection (a), which may include public service announce-
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ments, bus tours, advertising in teacher or public safety 
officer journals, development of web sites, establishment 
of toll-free telephone numbers for providing information, 
and such other activities as the Secretary of Housing and 
Urban Development may consider appropriate. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of 
Housing and Urban Development for each of fiscal years 
2009 through 2016 such sums as may be necessary for 
carrying out the program under this section. 
Æ 
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