Montgomery County, MD - Departments and Agencies

Portal Navigation Links (Level 1):
Residents | Government | Business | Culture

MPDU Purchase Program

Description
Prohibited Practices
Benefits of MPDU Home Ownership
Eligibility
How to Apply

NOTE: Please do not call or visit the MPDU office with questions about the new application procedures. Your questions will be answered when you attend the MPDU Orientation Seminar (which is why the seminar is being offered).

DESCRIPTION

Montgomery County's Moderately Priced Dwelling Unit (MPDU) Program offers affordably priced townhomes and condominiums – both new and resale – to first-time homebuyers who have a moderate household income (see list of minimum and maximum income levels below).

DHCA conducts a Random Selection Drawing to determine who is eligible to purchase MPDU homes. This drawing is NOT a "lottery". Participants do not win a home; rather, they get selected to purchase a home based on a number of factors.

Montgomery County does NOT provide any financing or assistance to help a household purchase an MPDU; a household must be able to qualify for a mortgage; pay a down payment; pay settlement fees including advance taxes and advance insurance; and pay a monthly mortgage payment, utilities, and other costs.

In addition, MPDU owners are responsible for all home maintenance, home improvements, condo fees (if applicable), and compliance with homeowner or condominium rules and regulations. For new homes, the builder is responsible for all warranty items.

PROHIBITED PRACTICES

Homes that are purchased through the MPDU Program, whether new or re-sale, have controls on them. New and some resales homes have 30 year controls; other resale homes have 10 or 15 year controls. These controls are in the form of restrictive covenants that state:

During the control period, the owner must occupy the home. The unit may not be rented out.
During the control period, the owner must not refinance the property for more than the controlled resale price established by the MPDU office (owners are prohibited from refinancing the property based on the market value of the property).
During the control period, the owner can only sell the home at the MPDU established controlled resale price through the MPDU Program to an approved MPDU purchase program participant.
When the property is sold after the control period, the owner must pay 50% of the profit to Montgomery County.
After the control period expires, owners are strongly encouraged to contact the MPDU office prior to refinancing their MPDU. Refinancing does not relieve the owner from making a shared profit payment to the County upon sale; therefore, it is important not to refinance for the full market value.

BENEFITS OF MPDU HOME OWNERSHIP

By purchasing an MPDU home with a standard 30-year fixed rate mortgage, your monthly mortgage payment will not increase each year, unlike rent which landlords typically increase annually.
When you sell your MPDU home during the control period at the MPDU controlled resale price, you will get back what you originally paid for the MPDU, plus inflation and the cost of eligible improvements.
When you sell your MPDU home after the control period at a market resale price, you will keep half of the profit.
Living in Montgomery County provides access to high quality services and schools.

ELIGIBILITY

You are NOT eligible to participate in the MPDU purchase program if you currently own a house or have owned a house in the past five (5) years
INCOME Minimums and Maximums
- minimum annual household income: $35,000
- maximum annual household income (effective March 19, 2009):
  
  Household Size
  Maximum Income
  
  1
  $50,500
  
  2
  $57,500
  
  3
  $64,500
  
  4
  $72,000
  
  5
  $77,500
Participants in the MPDU purchase program MUST be able to:
- pay a down payment, settlement fees and other closing costs, and
- afford the monthly mortgage and other payments for the property
FINANCING

Applicants for the MPDU purchase program must provide a mortgage pre-qualification letter from an HOC participating Mortgage Lender in an amount of $120,000 or more.

HOW TO APPLY - Easy as 1...2...3!

Step 1. Attend First-Time Homebuyer's Class

Step 2: Attend MPDU Orientation Seminar

Step 3: Attend MPDU Application Session

DHCA no longer mails applications for the MPDU purchase program. New, first-time participants in the MPDU program must attend the first two required training sessions (Stpes 1 and 2) in order to receive an application to participate in the MPDU program. They must then attend Step 3 to turn in their application.

These classes are designed to answer all your questions about the MPDU program, provide information about the home purchase application and selection process, and provide information about home ownership responsibilities.

Current participants in the MPDU Program who have already taken the first two classes and who already have received a Certificate of Eligibility do not need to take the first two classes again - however, they must still attend an application session (Step 3) to turn in their renewal application.

Step 1

Attend a First-Time Homebuyer’s Class conducted by Housing and Community Initiatives (HCI). These homebuyer’s classes are held in the Council Office Building (COB) an average of four times per month.

Click here to sign up for a Homebuyer's Class.

After completing this class, you will receive a Homebuyer’s Class Certificate of Completion. You may then proceed to Step 2.

Step 2

Attend an MPDU Orientation Seminar where you will learn about the program benefits, application and selection processes, and restrictions. These MPDU Orientation Seminars are held at least once per month in the Council Office Building (COB).

Click here to sign up for an MPDU Orientation Seminar.

Note: It is important to arrive on time for these sessions. If you arrive late, you will not be able to attend the session and you will have to reschedule.

After completing this seminar, you will receive the Application folder for the MPDU purchase program.

Step 3

The final step in the application process is to attend an MPDU Application Session. At the Application Session, your application and supporting documents will be reviewed and processed. These MPDU Application Sessions are held several times every month in the Council Office Building (COB).

Click here to sign up for an MPDU Application Session.

At the MPDU Application Session, you must provide ALL of the following documentation (applications with incomplete documentation will not be accepted and you will have to reschedule the Application Session):

The completed MPDU application form
(which is given to you upon completion of the MPDU Orientation Seminar)
The First-Time Homebuyer's Class Certificate of Completion form
(which is given to you upon completion of the First-Time Homebuyer's Class
A mortgage Pre-Qualification Letter
(from an HOC participating Mortgage Lender)
A copy of your most recent tax return along with W-2 forms
If your taxes do not show your current address and you are seeking a priority point for living in Montgomery County, proof of residency (lease, utility bill, etc.)
Copies of the two most recent pay stubs for each household wage earner
Any other documents required for your application, as indicated in your application folder.

Department of Housing and Community Affairs
Welcome \| Housing \| MPDU \| Workforce \| Code Enforcement \| Landlord & Tenant \| Community Programs Reports \| Resource Center \| Complaints \| Licensing \| Committees, Commissions and Boards \| Espanõl \| Contact Us