Question about definitions in HUD contract

[alyssumlover]

If one purchases a property through HUD's "Good Neighbor Next Door Program", they must, once a year, sign and return a small form affirming the following:

"I CERTIFY THAT I OWN, AND SINCE THE AGREED UPON OCCUPANCY START DATE, HAVE CONTINUOUSLY RESIDED IN THE ABOVE SUBJECT PROPERTY AS MY SOLE RESIDENCE AND THAT I DO NOT OWN ANY OTHER RESIDENTIAL REAL PROPERTY IN ACCORDANCE WITH THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT’S GOOD NEIGHBOR NEXT DOOR SALES PROGRAM."

My question is what does "Sole Residence" and "Continuously Resided" mean. Any help you can provide on this would be appreciated.

I have attempted to contact HUD, but have realized that they don't answer the phone or return voicemail.

In addition, if any of you are willing and able to tackle these following questions, that would be great:

Would it violate the terms to take family vacations?

Would it violate the terms to leave the property and live elsewhere in order to complete summer college classes for teachers? (but return again in the fall)

Would it violate the terms to take employment (& live) elsewhere for a portion of the year not to exceed six months, and then return?

Thanks!

 

[LdiJ]

In addition, if any of you are willing and able to tackle these following questions, that would be great:

Would it violate the terms to take family vacations?

No, family vacations would not violate the terms.

Would it violate the terms to leave the property and live elsewhere in order to complete summer college classes for teachers? (but return again in the fall)

No, if you are away from home attending college classes that still counts as residing in the home.

Would it violate the terms to take employment (& live) elsewhere for a portion of the year not to exceed six months, and then return?

Thanks!

That one would likely be a violation unless it was a FEMA relief assignment or something else similar to that.

 

[RRevak]

Call me cynical but this smells of "cheap rental property". OP why buy the property if you're going to live somewhere else? And just how long will these "family vacations" be (or will they just be "family vacations" on paper)? And seeing as one of the requirements of the program is that the property be your "sole residence for 36 months", i'm fairly certain (as LD put it) living elsewhere, even temporarily, will violate the terms of the program.

 

[LdiJ]

Call me cynical but this smells of "cheap rental property". OP why buy the property if you're going to live somewhere else? And just how long will these "family vacations" be (or will they just be "family vacations" on paper)? And seeing as one of the requirements of the program is that the property be your "sole residence for 36 months", i'm fairly certain (as LD put it) living elsewhere, even temporarily, will violate the terms of the program.

I do agree...but again, I need to reiterate that being away at school does not count as not "residing" in the home. Of course, if you collect rent from someone else, or if someone else pays the mortgage payments in lieu of rent, then again, that is a pretty clear cut indication of a violation. On the other hand, if your spouse and children are living in the home while you are away on a temporary job assignment (where your work is providing the housing) then that would likely be a different story.

 

[alyssumlover]

Thank you!

Thank you for your help on this. You are helping me make good decisions.

 

[HUD-1]

1. Family vacations are fine.

2. Taking a summer class in July and August and NOT renting out the GNND house,returning in Sept is most likely fine. You should follow 24 CFR 291.540 regarding interruptions in occupancy.

3. As a teacher, you have to buy in the area you are teaching. They want teachers and officers to move into these revotalization areas. Taking a job somewhere else and having another home somewhere else is a violation, unless there is a hardship, and it is approved by HUD under 24 CFR 291.540

You are getting a 50% reduction in the sales price. The cost to you is only that you live there for three years. Not a bad deal, if you stick to the agreement. I have seen enforcement actions by the IG on this program, so expect that someone will check up on this during the three years:

Question: What is the Occupancy Period?
You must live in the home as your sole residence for a full 36 months. The purpose of the program is to strengthen communities by encouraging employed, professional law enforcement officers, teachers and firefighters/emergency medical technicians to live in the community. You will have 30, 90 or 180 days to move into the home you purchase, depending on HUD's determination of the condition of the home and the level of repairs that may be required, if any. The 30th, 90th or 180th day is the start date for the occupancy period. Your are released from all obligations under this program at the end of the 36th month following the start date. HUD views the occupancy obligation seriously and vigorously pursues violators to the fullest extent of the law.

 

[justalayman]

LdiJ;3229570]I do agree...but again, I need to reiterate that being away at school does not count as not "residing" in the home.

I think they need to be cautious there. There are situations where their residence is considered to be that of the school. Depends on the facts of the individual situation.


.

On the other hand, if your spouse and children are living in the home while you are away on a temporary job assignment (where your work is providing the housing) then that would likely be a different story.

I suspect the contract includes a spouse somewhere in the picture to avoid this being a problem. In itself, the rule would preclude the borrower from doing exactly this if they were the only party considered.


Unless somebody reviews the actual contract, I doubt the OP will get a dependable answer simply due to the lack of supporting information.