The Good Neighbor Next Door Program (GNND) is designed to attract public servants to designated communities where they can purchase homes in neighborhoods in which they serve. This program makes homeownership more available and affordable to these particular individuals. Public servants under this program serve as resident role models and ensure the safety and well-being of residents in those communities where help is needed to promote safe neighborhoods and stronger educational opportunities.

Participants are offered up to a 50% discount on HUD-owned, single-family homes under the Direct Sale Program in designated revitalization areas. It is necessary for the participants of this program to utilize the assistance of a real estate professional. HUD requires these buyers to take advantage of the knowledge and expertise that an experienced real estate agent has to offer.

Applicants interested in the program are allowed to submit an “intent to purchase” during a restricted offer period, which is five days before the property is listed to the general public to receive the appropriate discount. Participants are required to own and use this property as their sole primary place of residence for at least 36 months.

Law Enforcement Officer
Eligible participants under the Law Enforcement Officer program are employed full time by a law enforcement agency of the federal government, a state, unit of general local government, or and Indian tribal government. In carrying out such full-time employment, the person is sworn to uphold and make arrests for violations of the federal, state, tribal, county, township or municipal laws.

Teacher
Eligible participants under the Teacher program are employed full-time by a state accredited public or private school that provides direct services to students in grades pre-kindergarten through 12. The public or private school where the person is employed as a teacher serves students from the area where the home is located in the normal course of business.

Firefighter and Emergency Medical Technician
Eligible participants under the Firefighter and Emergency Medical Technician program are employed full-time by a fire department or emergency medical responder unit of the federal government, a state, a unit of general local government or and Indian tribal government serving the area in which the home is located.

Other qualifying criteria include:

• All participants’ employers must certify that the applicant meets HUD’s eligibility definition for participation and is an employee in good standing.
• Married couples are eligible for both programs, but can purchase only one home under either program.
• Single-family homes are the only properties available for sale in the program.
• Earnest money deposit is required of 1% of the list price, but no less than $500.00 and no more than $2,000.00.

For more terms and conditions regarding the Good Neighbor Next Door program, please refer to the HUD website:

http://www.hud.gov/offices/hsg/sfh/reo/goodn/main.cfm

Non-Profit Organizations

Non-profit agencies across the country have the opportunity to partner with HUD to rebuild their communities by utilizing the Single Family Property Disposition Discount Sales Program. Click here for more information. The Direct Sales Program allows for uninsured single family properties in a non-profit’s geographical area, that do not meet FHA insured financing requirements, to be purchased for a discount by that non-profit agency. With discounts of up to 30%, non-profits can purchase, rehabilitate, and resell these HUD properties to low to moderate-income families and first-time homebuyers. Non-Profits that are qualified by HUD, may only bid on and purchase properties in their designated geographical approved zip code area (Areas of Interest) during the Lottery Period under the Direct Sales program. These organizations may also participate in the bidding process when the property is being offered to the general public as well.

The following discounts are available at closing:

• For Uninsured properties located in revitalization areas in their geographical area, a 30% discount
• For Uninsured properties not located in revitalization areas, a 10% discount, or a 15% discount if five or more properties are purchased and closed simultaneously

Good Neighbor Program $1 Home Sales for Local Governments

HUD’s $1 Home Sales for Local Government Program provides an opportunity for governmental jurisdictions to purchase HUD foreclosed property for one dollar and use the proceeds from sale of the property for community housing needs. These single-family properties are made available whenever homes are not sold within a time period of six months. The local government may then sell these properties to non-profit agencies and other organizations to renovate and sell, thus encouraging and creating neighborhood revitalization and spurring further housing and economic development in these communities.

For local governments to become eligible in the program they must:

• Identify the intended disposition strategy and clear public purpose goals and objectives it will pursue with properties purchased through this program
• Affirm that all profits/proceeds of sales of HUD homes will go to support local housing/community development initiatives
• Identify what specific programs or uses these profits/proceeds will support
• Agree to provide HUD’s Homeownership Center (HOC) Program Support Staff Director with an annual report on all properties purchased under this program. The report must include information on the ultimate property purchaser, the amount of profit realized on the final sale and where the profit was put back into local housing/community development

Non-profit organization and entities such as housing authorities are not permitted to directly purchase properties under this sales program. They are encouraged to partner with local governments in reaching the disposition goals and strategies for these homes.

If your local government is interested in the Good Neighbor Program, more information on how your municipality can qualify can be found on HUD’s website at http://www.hud.gov/offices/hsg/sfh/reo/goodn/dhmabout.cfm