I 112th CONGRESS 1st Session H. R. 2986 IN THE HOUSE OF REPRESENTATIVES September 21, 2011 Mr. Baca introduced the following bill; which was referred to the Committee on Financial Services A BILL To expand the Officer Next Door and Teacher Next Door initiatives of the Department of Housing and Urban Development to include fire fighters and rescue personnel, and for other purposes.

1.

Short title

This Act may be cited as the Community Partners Neighborhood Preservation Act of 2011.

2.

Community partners next door program

(a)

Congressional findings

The Congress finds that— (1)teachers, law enforcement officers, fire fighters, and rescue personnel help form the backbones 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 enforcement officers, fire fighters, and rescue personnel recognizes the intrinsic value of the services provided by such employees to their communities and to family life and encourages and rewards those who are dedicated 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 following new paragraph: (7)

50 percent discount for teachers and public safety officers purchasing properties that are eligible assets

(A)

Discount

A property that is an eligible asset and is sold, during fiscal years 2012 through 2022, to a teacher or public safety officer 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 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. (C)

Sale methods

The Secretary may sell an eligible property pursuant to a discount under this paragraph— (i)to a unit of general local government or nonprofit organization (pursuant to paragraph (4) or otherwise), for resale or transfer to a teacher or public safety officer; or (ii)directly to a purchaser who is a teacher or public safety officer. (D)

Resale

In the case of any purchase 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 organization to provide the full benefit of the discount to the teacher or public safety officer obtaining the property; and (ii)in the case of a purchase involving 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 subparagraph (B). (E)

Mortgage downpayment assistance

If a teacher or public safety officer purchases an eligible property pursuant to a discounted sale price under this paragraph and finances such purchase through a mortgage insured under this title, notwithstanding any provision 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 properties in violation of the requirement under subparagraph (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 paragraph (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 individual who is employed on a full-time basis, in an elementary or secondary school, as a State-certified or State-licensed classroom teacher or as an administrator. . (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 paragraph (7) and inserting paragraph (8); (2)in paragraph (5)(B)(i), by striking paragraph (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. (e)

Sense of congress regarding inclusion of other federal properties in community 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 programs that make housing available for law enforcement officers, teachers, or fire fighters.

3.

Eligibility of community partners for purchase of HUD-acquired property

Notwithstanding any other provision of law, a public safety officer or teacher (as such terms are defined in section 204(h)(7)(G) of the National Housing Act (as amended by section 2 of this Act)) shall be eligible to purchase of any property owned or held by the Secretary of Housing and Urban Development pursuant to foreclosure of any mortgage insured by the Secretary or pursuant to assignment of the mortgage, deed in lieu of foreclosure, conveyance of title, or any other acquisition of the property or mortgage in connection with the payment of insurance benefits by the Secretary.

4.

Release of second mortgage for laid-off community partners under Good Neighbor Next Door Initiative

The Secretary of Housing and Urban Development shall revise the Good Neighbor Next Door Initiative of the Secretary to provide that the subordinate mortgage on the property of a mortgagor who purchased a property under such initiative shall be released in any case in which the mortgagor loses his or her employment position as a law enforcement officer, teacher, firefighter, or emergency medical technician as a result of any reductions in force or other reason other than dismissal for cause.

5.

Preference under HUD REO program for community partners

The Secretary of Housing and Urban Development, in making any real estate owned of the Department of Housing and Urban Development available for purchase, shall provide a preference for purchase by public safety officers and teachers (as such terms are defined in section 204(h)(7)(G) of the National Housing Act (as amended by section 2 of this Act)).