Program gives teachers mortgage relief

The program sounds like a win-win situation: Struggling teachers get big breaks on mortgages, and struggling neighborhoods get valuable residents under a government program officially launched Monday.

Through the "Teacher Next Door" initiative, the U.S. Department of Housing and Urban Development is offering teachers the chance to buy HUD-owned homes at 50 percent of market value for down payments as low as $100, with buyers chosen by lottery.

But for the thousands of public- and private-school teachers in the Dallas area, the odds of winning that lottery are daunting: As of Monday, only one house was available in all of Texas under the program.

The three-bedroom Fort Worth home, built in 1951, is being offered to teachers for approximately $10,500, compared with the list price of $21,000. It needs significant repairs, including foundation work, according to HUD.

No other Texas homes were earmarked for sale to teachers on HUD's Web site, www.hud.gov/teacher.

"That is hardly worth the sweat," said Harley Hiscox, president of the Alliance of Dallas Educators, noting that the Dallas school district alone has about 9,000 teachers. "It is hardly worth the trouble of even thinking about."

Still, Mr. Hiscox said, he welcomes any program that would help combat an ever-increasing shortage of teachers.

"Anything that you can do to enhance the life of a good teacher and keep a good teacher teaching is commendable," he said.

HUD spokesman Lemar Wooley said more homes will probably be offered in North Texas as foreclosures occur. Despite the scarcity of homes offered, he defended the program.

"You have to look at the whole country," he said.

To those teachers wishing to participate, Mr. Wooley said: "You have to keep your eyes open" and watch for new properties, which are listed each Wednesday.

"There will be ebb and flow, just like any real-estate market," he said.

Officials said HUD expects to offer as many as 10,000 homes under the program, in 671 HUD-designated revitalization areas located in 33 states and the District of Columbia.

In Texas, revitalization areas have been designated in Dallas, Fort Worth, Houston, Orange and San Antonio.

The program actually began operating in November, but HUD Secretary Andrew Cuomo formally kicked it off Monday in an appearance at a Washington, D.C., elementary school.

"By making it more attractive for teachers to live and work in school districts where they're needed most, we can build better futures for children and neighborhoods in need," he said in a prepared statement.

"A good teacher can make a great neighbor - as a mentor, an inspiring role model and as a living link between the classroom and the community," Mr. Cuomo said.

Buyers are chosen by a lottery among all those seeking to buy the homes. Nonprofit organizations and police officers are also eligible to bid.

Nationwide, 92 contracts have been accepted for HUD homes under the program, and nine have been sold - but none in Texas, HUD officials said.

The program is offered to state-certified teachers of kindergarten through 12th grade, in public and private schools. Educational administrators can also qualify if they hold teaching certificates.

The home must be in the district that employs the teacher. The buyer must live in the home for at least three years after purchase.

Anne Bryant, executive director of the National School Boards Association, said she welcomed the HUD initiative.

"It rewards teachers for their invaluable work to help public school students achieve and provides a wonderful opportunity for educators to stay close to the communities they serve," she said.