• Direct Sales Internet Lottery Process Guidelines
• Revitalization Areas
• HUD's OND Page
• HUD's TND Page

In an effort to ensure that homeownership opportunities are made available to law enforcement officers who are charged with the responsibility of ensuring the safety and well-being of residents in the communities they serve and to help promote safe neighborhoods by furthering the community law enforcement efforts being made by numerous cities, properties are being made available at a larger discount for sale to law enforcement officers who occupy them as a primary residence for at least three years.

This program has now been expanded to include teachers who live in the school district in which they serve.

A Law Enforcement Officer is defined as an individual who is:

• employed full time by a Federal, State, County or municipal government;
• sworn to uphold, and make arrests for violations of, Federal, State, county, or municipal law; and
• in good standing with the department.

• employed full time by a a public school, private school, or Federal, State, county or municipal educational agency;
• in good standing;
• and holds a current State-level certification, as a classroom teacher or administrator in grades K through 12. 

Under the Direct Sale Program, qualified Officers and Teachers may purchase properties located in revitalization areas at a 50% discount. If any closing costs are requested to be paid by HUD and/or if a real estate agent is engaged to handle the sale of the property, then any closing cost shown on line 5 and any commissions shown on line 6a of the offer will reduce the discount at closing.

Only single-family homes, condos and townhouses are eligible for OND/TND purchasers.  Multifamily units are not eligible.

Governmental entities and private non-profit organizations, acting as a conduit for Officers and Teachers, are eligible to purchase homes through the OND/TND program.  Government entities, school districts for teachers, and non-profits organizations pre-approved to participate in HUD‰s direct sales program, must either assign the sales contract to an eligible law enforcement officer or teacher at, or prior to closing, or participate in a three-party closing with the buyer.  However, they may not resell the property for more than110 percent of the development cost.

When an Officer/Teacher has identified a property to purchase, he or she must submit their electronic intent to purchase as instructed on the Direct Sales Internet Lottery Process web page.

If no Preliminary Interest is received during the notification period, the property will be made available for sale to the general public on a competitive bid basis.

Officers and Teachers may also bid competitively on the public list after the notification period and still receive the 50% discount at closing if:

• the property is located in a HUD-designated revitalization area;
• no other acceptable offers have been received;
• the bid submitted is for 100% of the listing price.

Any closing cost shown on line 5 and any commissions shown on lines 6a and 6b of the sales contract will reduce the discount at closing. When purchasing on the public list, you must insert the applicable broad listing broker fee on line 6b of the sales contract.

SALES CONTRACT and REQUIRED ADDENDA:

• Fillable Sales Contract Form 9548
• Attach the following Addenda:
  • Inspection Addendum
  • Owner Occupant Certification Form
  • Lead Base Paint Addendum
  • OND/TND Certification Form 9548-A
  • OND/TND Land Use Restriction Addendum
  • Radon Gas and Mold Notice and Release Agreement
  • Mortgage Pre-Qualification Letter from a lending institution, if the purchase is to be mortgaged, stating that an in-house credit check has been performed and the purchaser has been pre-qualified for a mortgage up to a specified mortgage amount.
  • Certification from a Financial Institution, if the purchase is cash, stating that funds are available on the day of closing.

• Order the forms by calling 800-767-7468 or Fax your request on company letterhead to 202-708-2313,
• Contact the Broad Listing Broker (BLB) in your area, or,
  For CT, MA, ME, NH, RI and VT, Contact CitiWest at 860-244-2783
  For AL, GA and MS, Contact BestAssets-CitiWest JV at 404-768-1400

• TND program participants must certify that they are "employed by an educational agency that serves the school district/jurisdiction in which the home they are purchasing is located."
• All OND/TND program participants are required to own and use their property as their SOLE residence for at least three (3) years.
• All OND/TND program participants are required to execute a second mortgage and note for the amount of the discount which HUD can call at a later date if the buyer fails to re-certify.
• After three (3) years from the date of closing, the second mortgage lien will automatically be satisfied.