I
107TH CONGRESS
1ST SESSION
H. R. 421
To make single family properties owned by the Department of Housing
and Urban Development available at a discount to elementary and sec-
ondary school teachers and public safety officers, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 6, 2001
Mr. BECERRA introduced the following bill; which was referred to the
Committee on Financial Services
A BILL
To make single family properties owned by the Department
of Housing and Urban Development available at a dis-
count to elementary and secondary school teachers and
public safety officers, and for other purposes.
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 ‘‘Home Ownership Must
Expand for Teachers and Public Safety Officers Act’’.
SEC. 2. DISCOUNT AND DOWNPAYMENT ASSISTANCE FOR
PURCHASE OF HOMES IN REVITALIZATION
AREAS BY TEACHERS AND PUBLIC SAFETY
OFFICERS.
(a) IN GENERAL.—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, is sold during fiscal years 2001
through 2005 for use in accordance with sub-
paragraph (B), and is sold to a teacher or pub-
lic safety officer who complies with the require-
ment under subparagraph (C), shall be sold at
a price that is equal to 50 percent of the ap-
praised value of the eligible property (as deter-
mined in accordance with paragraph (6)(B)). In
the case of a property eligible for both a dis-
count under this paragraph and a discount
under paragraph (6), the discount under para-
graph (6) shall not apply.
‘‘(B) SOLE RESIDENCE.—An eligible prop-
erty 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
sole residence of the purchasing teacher or pub-
lic safety officer.
‘‘(C) REQUIREMENT REGARDING EMPLOY-
MENT AT TIME OF PURCHASE.—A teacher or
public safety officer complies with the require-
ment under this subparagraph if, at the time of
the purchase of an eligible property under this
paragraph—
‘‘(i) in the case of property sold to a
teacher, the teacher is employed (I) in a
school of a local educational agency whose
jurisdiction includes the property, or (II)
in a private school located within the juris-
diction of a local educational agency whose
jurisdiction includes the property; or
‘‘(ii) in the case of a public safety offi-
cer, the officer is employed by a public
agency whose jurisdiction includes the
property.
‘‘(D) 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 a 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.
‘‘(E) 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 that
meet the requirements of subparagraph
(C) and that are to be subject to the re-
quirements of subparagraphs (B).
‘‘(F) 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.
‘‘(G) MONITORING
AND
PREVENTION
OF
UNDUE PROFIT.—The Secretary shall issue reg-
ulations to prevent undue profit from the resale
of properties in violation of the requirement
under subparagraph (B) and to provide for co-
ordination with local educational agencies, and
with States and units of general local govern-
ment (and public agencies thereof), to monitor
compliance with the requirement under sub-
paragraph (B) and ensure compliance with the
requirement under subparagraph (C).
‘‘(H) AWARENESS PROGRAM.—From funds
made available for salaries and expenses for the
Office of Policy Support of the Department of
Housing and Urban Development, each field of-
fice of the Department shall make available to
elementary schools and secondary schools with-
in the jurisdiction of the field office, to State
and local agencies within the jurisdiction of the
field office that employ public safety officers,
and to the public—
‘‘(i) a list of properties located within
the jurisdiction of the field office that are
available for purchase at a discount under
this paragraph and under subsection (k);
and
‘‘(ii) other information designed to
make teachers, public safety officers, and
the public aware of the discount and down-
payment assistance available under this
paragraph and subsection (k).
‘‘(I) 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 ‘local educational
agency’ has the meaning given such term
in section 14101 of the Elementary and
Secondary Education Act of 1965 (20
U.S.C. 8801).
‘‘(iv) 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), except that such term shall not in-
clude any officer serving a public agency of
the Federal Government.
‘‘(v) 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.’’.
(b) 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)’’.
SEC. 3. AVAILABILITY OF HOMES IN OTHER AREAS FOR
PURCHASE AT DISCOUNT BY TEACHERS AND
PUBLIC SAFETY OFFICERS.
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 SINGLE FAMILY HOMES TO
TEACHERS AND PUBLIC SAFETY OFFICERS.—
‘‘(1) IN
GENERAL.—Notwithstanding the au-
thority under the last sentence of subsection (g), the
Secretary shall dispose of covered HUD-owned sin-
gle family properties pursuant to the requirements
of this subsection.
‘‘(2) DESIGNATION OF PROPERTIES.—The Sec-
retary shall designate covered HUD-owned single
family properties as available for disposition under
this subsection. The Secretary shall make such des-
ignations such that—
‘‘(A) among properties so designated, there
is a widespread and reasonable geographic dis-
tribution on a nationwide basis;
‘‘(B) at all times, not less than 25 percent
of the covered single family properties that are,
at the time, HUD-owned are so designated; and
‘‘(C) priority is given to designating cov-
ered HUD-owned single family properties that
are located in distressed areas, as determined
by the Secretary, that are adjacent to or near
areas designated as revitalization areas for pur-
poses of subsection (h).
‘‘(3) DISCOUNT.—A covered HUD-owned single
family property that is designated under paragraph
(2) for disposition under this subsection and is sold,
during fiscal years 2001 through 2005, to a teacher
or public safety officer who agrees to comply with
the requirements under paragraphs (4) and (5),
shall be sold at a price that is equal to 50 percent
of the appraised value of the eligible property (as de-
termined in an appraisal conducted in the manner
required for appraisals of eligible assets under sub-
section (h)(6)(B)).
‘‘(4) SOLE RESIDENCE REQUIREMENT.—A cov-
ered HUD-owned single family property sold pursu-
ant to a discount under this subsection shall be
used, for not less than the 3-year period beginning
upon such sale, as the sole residence of the pur-
chasing teacher or public safety officer.
‘‘(5) 3-YEAR EMPLOYMENT REQUIREMENT.—A
teacher or public safety officer complies with the re-
quirement under this paragraph if, during the 3-year
period referred to in paragraph (4)—
‘‘(A) in the case of property sold to a
teacher, the teacher is employed—
‘‘(i) in a school of a local educational
agency whose jurisdiction includes the
property; or
‘‘(ii) in a private school located within
the jurisdiction of a local educational agen-
cy whose jurisdiction includes the property;
or
‘‘(B) in the case of a public safety officer,
the officer is employed by a public agency
whose jurisdiction includes the property.
This paragraph may not be construed to require any
teacher or public safety officer to comply with the
requirements of this paragraph, to maintain for such
3-year period the same employment position or sta-
tus, or the same employer that the teacher or officer
had at the time of the purchase of the property pur-
suant to a discount under this subsection.
‘‘(6) MORTGAGE DOWNPAYMENT ASSISTANCE.—
If a teacher purchases a property pursuant to a dis-
counted sale price under this subsection and fi-
nances such purchase through a mortgage insured
under this title, notwithstanding any provision of
section 203 the downpayment on such mortgage
shall be $100.
‘‘(7) MONITORING AND PREVENTION OF UNDUE
PROFIT.—The Secretary shall issue regulations to
prevent undue profit from the resale of properties in
violation of the requirements under paragraphs (4)
and (5) and to provide for coordination with local
educational agencies, and with States and units of
general local government (and public agencies there-
of), to monitor compliance with the requirements
under such paragraphs.
‘‘(8) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply:
‘‘(A) 
COVERED.—The 
term 
‘covered’
means, with respect to a property, that the
property is not located in an area designated as
any additional salaries and other administrative and non-
administrative expenses, resulting from implementation of
the programs under subsection 204(k) of the National
Housing Act, as added by section 3 of this Act.
SEC. 5. TERMINATION OF EXISTING HUD PROGRAMS.
This Act and the amendments made by this Act are
enacted to replace the programs of the Department of
Housing and Urban Development known as the Teacher
Next Door Initiative and Officer Next Door Initiative, car-
ried out pursuant to Notice H 99–30 (November 17,
1999) of the Department and the notices and interim rules
incorporated in such notice. Upon the enactment of this
Act, the Secretary shall cease carrying out such programs
or shall make such changes in such programs as may be
necessary so that this Act and the amendments made by
this Act are carried out through such programs.
SEC. 6. REGULATIONS.
Not later than 90 days after the date of the enact-
ment of this Act, the Secretary of Housing and Urban
Development shall issue regulations to implement the
amendments made by this Act.
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