source:
  type: regulation
  id: hud-4000-1-programs-and-products-good-neighbor-next-door
  authority: HUD Handbook 4000.1 — Programs and Products - Good Neighbor Next Door (03/31/2022)
  description: "HUD Handbook 4000.1 section \"Programs and Products - Good Neighbor Next Door\". Gap-fill\
    \ (verbatim, title-diff). \n"
obligations:
- id: hud-4000-1-programs-and-products-good-neighbor-next-door-full
  canonical_id: hud-4000-1-programs-and-products-good-neighbor-next-door-full
  section: HUD Handbook 4000.1
  description: "Programs and Products - Good Neighbor Next Door: f. Good Neighbor Next Door (03/31/2022)\
    \ \ni. Owner-Occupancy Term \nThe Good Neighbor Next Door (GNND) participant must live in the Property\
    \ as their \nsole residence for an owner-occupancy term of 36 months, beginning on one of the \nfollowing\
    \ dates: \n• 30 Days after closing if the home requires no mor…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - hud
  - 4000-1
  - curated
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 — Programs and Products - Good Neighbor Next Door (03/31/2022)
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: "f. Good Neighbor Next Door (03/31/2022) \ni. Owner-Occupancy Term \nThe Good Neighbor\
      \ Next Door (GNND) participant must live in the Property as their \nsole residence for an owner-occupancy\
      \ term of 36 months, beginning on one of the \nfollowing dates: \n• 30 Days after closing if the\
      \ home requires no more than $10,000 in repairs before \noccupancy; \n• 90 Days after closing if\
      \ the home requires more than $10,000, but not more than \n$20,000 in repairs; or \n• 180 Days after\
      \ closing if the home requires more than $20,000 in repairs prior to \noccupancy. \n(A) Annual Certification\
      \ \nGNND participants must certify on form HUD-9549-D, Good Neighbor Next \nDoor: Sales Program,\
      \ every year of the owner-occupancy term that they are \nliving in the Property. \nHUD’s Loan Servicing\
      \ Contractor will mail form HUD-9549-D to the GNND \nparticipant. The GNND must sign, date, and\
      \ return the form according to the \ninstructions in the letter. \n(2) Failure to Return Certification\
      \ \nIf the GNND participant fails to complete and return the annual certification, \nHUD will take\
      \ action to determine whether the GNND participant still meets \nprogram requirements. These actions\
      \ include, but are not limited to: \n• referral to an investigator, who may perform an on-site visit\
      \ to verify the \noccupancy of the Property; and \n• referral to HUD’s Office of Inspector General\
      \ (OIG) for further \ninvestigation and possible prosecution. \n(B) Term Interruption Requests \n\
      When the GNND participant requires an interruption to the owner-occupancy term, \nthe Borrower may\
      \ request approval for a term interruption from HUD. \nThe GNND participant must submit a written\
      \ and signed request at least 30 Days \nbefore the anticipated interruption to HUD’s Servicing Contractor.\
      \ The request must \ninclude the following information: \n• the reason(s) why the interruption is\
      \ necessary; \n• the dates of the intended interruption; and \n• a certification that: \n\n \no\
      \ the GNND participant is not abandoning the home as their permanent \nresidence; and \no the GNND\
      \ participant will resume occupancy of the home upon the \nconclusion of the interruption and complete\
      \ the remainder of the 36-month \nowner-occupancy term. \n(C) Active Duty Military Service \nEligible\
      \ GNND program participants who are also military service members \nprotected by the SCRA are not\
      \ required to submit their written request to HUD 30 \nDays in advance of an anticipated interruption,\
      \ but must submit their written request \nas soon as practicable upon learning of a potential interruption.\
      \ \nHUD may grant exceptions to the occupancy requirement for participants who are \ncalled to Active\
      \ Duty service. These participants must notify HUD when Active Duty \nmilitary service would require\
      \ temporary relocation outside of the commuting area of \nthe Property purchased under the GNND\
      \ program. \n(D) Failure to Complete Owner-Occupancy Term \nIf the GNND participant sells their\
      \ home or stops living in the home as their sole \nresidence prior to the expiration of the owner-occupancy\
      \ term, they will owe HUD \nthe amount due on the second Mortgage as of the date the Property is\
      \ either sold or \nvacated. \nii. Second Mortgage and Note Servicing \nHUD’s Servicing Contractor\
      \ is responsible for the servicing of GNND second \nGNND Participants must submit requests for subordinations,\
      \ payoff amounts, mortgage \nreleases, or other servicing information to HUD’s Servicing Contractor.\
      \ \n(A) Subordinations \nTo request subordination of a GNND Mortgage, the GNND participant, or the\
      \ \nClosing Agent responsible for closing the new Mortgage must: \n• contact HUD’s Loan Servicing\
      \ Contractor to receive a Subordination \nInformation Sheet; and \n• submit the required documentation,\
      \ as listed in the Subordination Information \nSheet, to HUD’s Loan Servicing Contractor. \n(B)\
      \ Payoffs \nTo pay off a GNND Mortgage before the expiration of the owner-occupancy term, the \n\
      GNND participant must submit to HUD’s Loan Servicing Contractor a request for a \nPayoff, including\
      \ the following information: \n\n \n• GNND participant’s name; \n• full property address; \n• estimated\
      \ date of Payoff; \n• name, address, telephone number, and return fax number of the entity \nrequesting\
      \ the Payoff; and \n• signed permission of the GNND participant to collect this information. \n\
      (C) Releases \nAt the end of the required owner-occupancy term, HUD will release the GNND \nsecond\
      \ Mortgage as long as all of the following conditions are met: \n• The GNND participant has completed\
      \ and returned the required annual \ncertifications. \n• The GNND participant is not currently under\
      \ investigation by OIG. \n• The GNND participant is in compliance with all GNND regulations. \n\
      HUD’s Loan Servicing Contractor will prepare this release and file the mortgage \nsatisfaction with\
      \ the GNND participant’s local county recorder’s office."
    drafter_attestation: Verbatim section from snapshot 8c03836f77f317e1; boundary human-curated + substring-verified
      (2026-07-23).
  judgment: false
