(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.—
‘‘(A) DISCOUNT.—A property that is an el-
igible asset and is sold, during fiscal years 2003
through 2007, 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
‘‘(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-
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
Omnibus Crime Control and Safe Streets
Act of 1968 (42 U.S.C. 3796b).
‘‘(iv) The term ‘teacher’ means an in-
dividual who—
‘‘(I) is employed on a full-time
basis, in an elementary or secondary
school, as a classroom teacher (includ-
ing as a substitute teacher) or as an
administrator; or
‘‘(II) is a State-certified or State-
licensed classroom teacher (including
a substitute teacher) employed on a
full- or part-time basis.’’.
(c) CONFORMING AMENDMENTS.—Section 204(h) of
the National Housing Act (12 U.S.C. 1710(h)) is
amended—
(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.
SEC. 3. SENSE OF CONGRESS REGARDING INCLUSION OF
OTHER FEDERAL PROPERTIES IN COMMU-
NITY PARTNERS NEXT DOOR PROGRAM.
It is the sense of the Congress that the Secretary of
Housing and Urban Development should consult with the
heads of other agencies of the Federal Government that
own or hold properties appropriate for use as housing to
determine the possibility and effectiveness of including
such properties in the program pursuant to section
204(h)(7) of the National Housing Act, and other pro-
grams that make housing available for law enforcement
officers, teachers, or fire fighters.
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