Good Neighbor Next Door Sales Program
Program Objective
The purpose of the Good Neighbor Next Door Sales Program is to improve the quality of life in distressed urban communities. This is to be accomplished by encouraging law enforcement officers, K-12 teachers, firefighters, and emergency medical technicians,
to purchase and live in homes that are located in the same communities where they perform their daily responsibilities and duties.
Eligibility
Eligible Applicants
- Homeowner
Law enforcement officer,Teacher (pre-K through 12th grade)
Firefighter and Emergency medical technician (EMT). Eligible buyers must live and work in the community that serves the GNND property.
How to Apply
Award Procedure
A winning offer is selected randomly by lottery each week in the event several bids are received on a single property. The selected offeror bids the full list price but is offered the property at a 50 percent discount off the list price, subject to the purchaser fully complying with the 36-month occupancy requirement and other program rules. The selected offeror is provided with a document package. The offeror accepts by signing and returning the sales documents. The selected offeror receives title to the home at a sales closing. The selected offeror arranges for financing of the purchase price.
Decision Timeline
- Approval: From 1 to 15 days
Program details & compliance
Description
The program enables law enforcement officers, K-12 teachers, firefighters, and emergency medical technicians, the ability to purchase HUD Real Estate Owned homes in designated Revitalization Areas at a 50% discount. The eligible buyers must live and work in the community that the property is located.
Mission Categories
Primary: Homebuying, Homeownership
Use of Funds
Allowed Uses
Participants must be employed full-time as a law enforcement officer, pre-K through grade 12 teacher, firefighter or emergency medical technician and agree to live in the property purchased for 36 months from the date of occupancy following purchase of the home. Violation of the occupancy rule is under penalty of repayment of a prorata share of the discount of 50 percent of the list price. Properties offered through the program are single unit residences located in HUD-designated revitalization areas. The availability of properties is limited. Purchasers must provide financing for the purchases by their own means and are responsible for their portion of closing costs and broker fees. Eligible purchasers must live and work in the community.
HUD Handbook 4000.1 clarifies the relevant regulations, policies, and procedures for implementation of the Good Neighbor Next Door Program. That Handbook can be found at: https://www.hud.gov/program_offices/housing/sfh/handbook_4000-1
Restrictions
Use Restrictions Required – Good Neighbor Next Door (GNND)
Assistance under the Good Neighbor Next Door (GNND) program is subject to the following use restrictions:
The property must be used as the purchaser’s sole, primary residence.
The purchaser must occupy the property for a minimum of 36 months following closing.
The 50 percent discount is secured by a silent second mortgage in favor of HUD, which is forgiven only upon full compliance with the occupancy requirement.
Early sale, rental, or failure to maintain owner-occupancy triggers repayment of all or a prorated portion of the discount to HUD.
Properties may not be used for investment, rental, or commercial purposes during the occupancy period.
Required Documentation
Sales contract (HUD 9548); employer certification; second mortgage and note.
Reporting & Compliance
Formula
Title I, Section 204(g) of the National Housing Act
(12 U.S.C. § 1710(g))
This law authorizes HUD to:
Acquire single‑family properties after FHA foreclosure
Manage and dispose of those properties
Offer special sales programs to support community revitalization