Group Title: Affordable housing issues
Title: Affordable housing issues ; vol. 11 no. 5
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 Material Information
Title: Affordable housing issues ; vol. 11 no. 5
Series Title: Affordable housing issues
Physical Description: Serial
Language: English
Creator: Shimberg Center for Affordable Housing
Publisher: Shimberg Center for Affordable Housing
Place of Publication: Gainesville, Fla.
Publication Date: August 2000
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Bibliographic ID: UF00087009
Volume ID: VID00010
Source Institution: University of Florida
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AF F O RD A B L E


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Rinker School of Building Construction College of Design, Construction & Planning PO Box 115703, University of Florida,
Gainesville, FL 32611-5703 TEL: (352) 392-7697 SUNCOM: 622-7697 FAX: (352) 392-4364 e-mail: AFFHSNG@NERVM.NERDC.UFL.EDU


Volume XI, Number 5


August 2000


The Officer Next Door and the Teacher Next Door programs are two exciting new HUD initia-
tives that will offer thousands of police offices and teachers highly discounted homeownership
opportunities while strengthening the communities where they work. The Dollar Homes pro-
gram will help local governments acquire thousands of HUD-owned homes for $1 each to create
housing for families in need and to revitalize neighborhoods.
Additional information and contact information for the Department of Housing & Urban Development
may be found at www.hud.gov.


Office Next Door -
Program
The U.S. Housing & Urban
Development launched the Of-
ficer Next Door initiative three
years ago to increase
homeownership opportunities
for police officers and to create safer neighbor-
hoods nationwide. As of July 2000 over 3900
homes have been sold to police officers at 50 per-
cent off price across the country. Last year, Prince
William County, Virginia, became the first county
to purchase a home at half price thru HUD's Of-
ficer Next Door initiative, and they have already
reaped the benefits of having officers living in
the neighborhood. Prince William County pur-
chased the Officer Next Door home to be used


as a residential police substation, where two po-
lice officers now both live and work and provide
the neighborhood with an increased sense of se-
curity and full time police presence.
HUD's Officer Next Door program is a key el-
ement of the Department's commitment to
strengthen America's communities. The pro-
gram offers HUD-owned, single family homes
to law enforcement officers at 50 percent dis-
count. The program helps to prevent crime and
promotes neighborhood safety and security by
encouraging law enforcement officers to become
homeowners and residents in economically dis-
tressed communities.
Under the program, HUD offers homes are lo-
cated in designated revitalization areas*. Revital-
ization areas are typically in low- and moderate-


I


HO USING








income neighborhoods, have many vacant prop-
erties and often have high crime rates, but are con-
sidered good candidates for economic develop-
ment and improvement. Homes offered for sale
in the program were previously insured through
the Federal Housing Administration (FHA) and
then foreclosed. HUD also reduces the down pay-
ment requirement to just $100 if the home is pur-
chased with an FHA insured mortgage.

Officers must live in the property as their sole
residence for at least three years after purchase.
A law enforcement officer who is employed full-
time by a federal, state, county or municipal gov-
ernment and is sworn to uphold, and make ar-
rests for violations of federal, state, county or
municipal laws is eligible to participate in this
program. The Mortgage Bankers Association of
America has urged its nearly 3,000 member lend-
ers to provide officers moving into eligible neigh-
borhoods with a choice of mortgage discounts:
either a one-half point reduction in closing costs
(an immediate $500 savings on a typical $100,000
mortgage), or a one-eighth point reduction on
interest rates over the life of the mortgage (a
$3,000 savings over 30 years on a $100,000 mort-
gage). Officers may buy a home directly from
HUD or may use a real estate broker to arrange
the sale. If a broker is used, the officer's discount
will be reduced by any broker/agent commis-
sions. For a listing of properties visit HUD's Web
site at www.hud.gov/officer.


Teacher Next
Door Program


The Teacher Next Door
program is also a key ele-
ment of HUD's commit-
ment to strengthen America's
communities. The program offers
HUD-owned, single family homes to
public and private school teachers at 50


percent discount. The Teacher Next Door program
recognizes teachers for the value they bring to
community and family life, and provides them
with increased opportunities to serve our most
needy communities outside the classroom.

Any teacher who is employed full-time by a
public school, private school, or federal, state,
county or municipal educational agency and is a
state-certified classroom teacher or administrator
in grades K-12 is eligible to apply for HUD's
Teacher Next Door (TND) initiative. Teachers can
purchase HUD homes at 50 percent off of the list
price in HUD-designated revitalization areas*.
These are neighborhoods receiving targeted pub-
lic and private sector assistance that offer signifi-
cant opportunities for local economic growth. To
make properties even more affordable, HUD will
reduce the down payment to just $100 if a teacher
purchases a new home with an FHA-insured
mortgage.

Homes must be located in the school district in
which the teacher is employed. Homes offered
for sale were previously insured through HUD's
Federal Housing Administration (FHA) and then
foreclosed on.

Teachers must live in their new home as their sole
residence for at least three years after its purchase.
Teachers may purchase their home directly from
HUD or use a real estate broker to arrange the sale.
If a broker is used, the teacher's discount will be
reduced by any broker or agent commission.


B








*Revitalization Areas

Revitalization areas are HUD-designated
neighborhoods in need of economic and commu-
nity development and where there is already a
strong commitment by the local governments.
There are over 750 revitalization areas across the
country and HUD is always working with locali-
ties to designate new areas. The current list of
Revitalization Areas in Florida is:


City


ZIP Code


A popka ....................... .... .................. 32703
Fort Lauderdale................................... 33311
H ialeah .................................. ......... 33015
M iam i ............................... ............... 33142
M iam i ............................... ............... 33147
M iam i ............................... ............... 33150
M iam i ............................... ............... 33168
Opa Locka ...................... ...................... 33054
Opa Locka ...................... ...................... 33055
O rlando ...................... .... ................. 32805
O rlando ...................... .... ................. 32819
Saint Petersburg ....................................... 33701
Saint Petersburg ....................................... 33705
Saint Petersburg ....................................... 33712
Sanford ....................... .... .................. 32771
West Palm Beach ........................................ 33404
W est Palm Beach ........................................ 33407


For more information on Revitalization Areas,
e-mail a Teacher Next Door Specialist at
teacher_next_door@hud.gov or call us at
1.800.217.6970.

NOTE: When you buy a home under HUD's
Officer or Teacher Next Door initiatives, you re-
ceive a 50% discount off the list price of the home.
At closing, you will be required to sign a second
mortgage and note for the amount of the dis-
count. For example, if you bought a home for
$100,000, you would receive a $50,000 (50%) dis-
count. A second mortgage for this $50,000 dis-
counted amount would remain in effect for a pe-


riod of three years from the date of your closing.
If you leave the home prior to completing your
three-year mandatory occupancy period, you
will be required to re-pay HUD a portion of the
discount you received as follows:
* Prior to 1st Anniversary of Closing 'i, ($45,000 in
the above example)
* Prior to 2nd Anniversary of Closing ,i, ($30,000 in
the above example)
* Prior to 3rd Anniversary of Closing ., ($15,000 in
the above example)
This second mortgage is called a "silent sec-
ond" because no interest accrues on it, and no
payments are required. When you complete your
mandatory three-year occupancy period, HUD
will automatically cancel this instrument and you
will only have your first mortgage in place from
that time forward. Copies of the second mort-
gage and note can be found in HUD Housing
Notice 99-30, which can be downloaded at
www.hudclips.org. The Notice can be found
under 1999 Housing Notices. (Hint: After print-
ing the letter which is in the beginning of the
Notice, click on the word "attachment" to the left
of the signature block. This will load the policy
and procedure manual in which the documents
are located)


Dollar
Homes
Program


T:ilE rI T
* T K ij


Beginning in May
2000 HUD launched
its new "Dollar Homes" initiative to sell local
governments thousands of HUD-owned homes
for $1 each to create housing for families in need
and to revitalize neighborhoods. Under the pro-
gram, single-family homes that are acquired in
foreclosure actions by the Federal Housing Ad-
ministration will be eligible for sale to local gov-
ernments around the nation for $1 each when the
homes have been listed for sale for at least six


a








months and remain unsold. Over 1,000 homes
were initially eligible for sale to local govern-
ments under the initiative, with additional homes
available for sale each week.

By selling vacant homes for $1 after six months
on the market, HUD will make it possible for
communities to fix up the homes and put them
to good use at a considerable savings. The newly
occupied homes can then act as catalysts for
neighborhood revitalization, attracting new resi-
dents and businesses to an area.

Local governments can partner with local non-
profit homeownership organizations or tap into
existing local programs to resell the homes to low-


and moderate-income residents of the commu-
nity. The local governments will be required to
purchase the properties and convey them to the
nonprofit organizations for rehabilitation and
resale to first-time homebuyers.

To find out if properties are available for sale
in your community, visit www.hud.gov, go to
"HUD Homes for Sale", and click on Florida to
find out where homes are located.


Affordable Housing ISSUES is prepared bi-monthly by the Shimberg Center for Affordable Housing for the purpose of
discussing contemporary issues facing affordable housing providers. Reproduction of this newsletter is both permitted and
encouraged. Comments or questions regarding the content are welcome and should be addressed to Robert C. Stroh, Director.


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