HUD Reopens Programs for Cops, Teachers

After taking steps to prevent fraud and abuse, the Department of Housing and Urban Development has reopened two programs that encourage policemen and teachers to purchase foreclosed homes in distressed neighborhoods. "While most of the officers and teachers who purchase houses through these programs play by the rules, there is no doubt we needed to implement more aggressive monitoring and tighten controls in the program," HUD Secretary Mel Martinez said. The Officer Next Door and Teacher Next Door programs are designed to assist with neighborhood revitalization by selling single-family homes foreclosed on by the Federal Housing Administration to policemen and teachers at 50% discounts. But Secretary Martinez shut the programs down in April when investigations by the HUD inspector general found that some policemen were renting the homes. Buyers are required to live in the homes for at least three years.