Can time served on active military duty count toward occupancy for the GNND Program?

Good Neighbor Next Door (GNND) program participants who are called to active military duty at posts outside the commuting area of the home purchased under the GNND Program may be unable to satisfy the three year occupancy requirement. For these individuals, HUD will credit all time served on active military duty against the three-year occupancy requirement.

Properties sold under the GNND Program are located in revitalization areas of metropolitan cities. To lessen the impact of vacant properties on these neighborhoods, HUD will allow GNND participants called to active military duty to rent their homes during their absence. The term of the rental should not exceed the estimated period of active duty. GNND Program participants will be expected to resume residence in the property once they are released from a remote duty assignment.

GNND participants may request this special accommodation by sending a written request, along with a copy of:
(1) Active Duty Orders, (2) Power of Attorney, and (3) Rental Agreement (if applicable) to:

Novad Management Consulting
Shepherd’s Mall
2401 NW 23rd Street, Suite 1A1
Oklahoma City, OK 73107

Toll-Free Telephone Number: (877) 622-8525

Fax Number: (800) 489-1733

Borrower inquiries: customerservice@novadconsulting.com

This policy is in the waiver “Section 204 Of The National Housing Act Waiver Of Requirements Under 24 CFR 291.210 (a)" for active duty military participating in the GNND Program at:
https://www.hud.gov/program_offices/administration/hudclips/waivers/

For more information you can also go to HUD's websites at:

https://www.hud.gov/program_offices/housing/sfh/nsc/gnndserv

and

https://www.hud.gov/sites/documents/DOC_14630.PDF

HQ Policy Determination


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-03537