|Home > Residents > MPDU > Moderately Priced Dwelling Units Information|
*** Available MPDUs ***
Contact apartment complexes directly for availability.
Last Updated: December 10, 2012
Getting Started in the MPDU Process
Where can I get an application for the MPDU program?
What are the current maximum income limits?
The applicant must include a copy of the most recent two years of federal income tax returns, a recent copy of a pay stub for every wage earner in the family, and verification of child support/alimony, if applicable. In addition, a recent copy of a credit report must be included.
If an applicant is self-employed, they must submit a year-to-date income and expense statement prepared by either the applicant or a financial professional. If a person cannot find copies of past income tax information, they need to contact the IRS at 1-800-829-1040 and request a summary for the items that are missing. If a person did not file a tax return because they were a student, a copy of a school transcript should be provided to show that the individual was a full-time student during the applicable tax year. If an applicant submits a pre-qualification letter from a mortgage lender, it is not necessary to provide a credit report.
Does someone have to be a U.S. citizen to apply to the program?
After a person submits an application for a Certificate of Eligibility, about how long does it take to receive the certificate?
How long is a Certificate valid? When a Certificate expires, can it be renewed?
If a person or family has an MPDU Certificate from Montgomery County, will the Rockville MPDU program recognize that certificate?
What types of units are available through the MPDU program?
Rentals are generally one or two bedroom apartment units, and may be identical to the market rate units in the apartment complex. There are also a few studio or efficiency apartments in the program inventory.
Who is considered part of my household? In addition to my spouse and children, can I include my parents, siblings, or cousins?
Does a person renting an MPDU have to review his/her certificate each year?
Purchasing an MPDU
Is there a minimum income required to purchase an MPDU?
What other financial means does an applicant need to purchase an MPDU?
Once a Certificate of Eligibility to purchase is issued, then what happens?
What if I don’t want to buy the unit that is offered to me by a builder?
Does the type of MPDU available for purchase depend on family size?
What options can be added to the allowable sales price of a unit and included in a mortgage?
Any other items not included on this list must be pre-approved by the City.
In order to buy a house under the program, it states that someone must be a “first time homebuyer.” What does this mean?
Since it is the MPDU applicant who must be the first time homebuyer, in the event that your parents are your dependents and they previously owned a home, you could be eligible for the program. However, your parents must be claimed as your dependents on your past year taxes in order to claim them as your dependents for the MPDU program.
What if a Certificate holder gets a pay raise between the time a certificate is issued and he/she purchases a unit?
Can a buyer have a cosigner for a mortgage loan?
If I buy an MPDU and have to move suddenly, can I rent out my unit?
Renting an MPDU
What are the MPDU rents?
These rents apply to units for which rental contracts are written after the June 1, 2012 effective date.
How does a person apply for a rental unit?
How are rent increases calculated?
Is there a special provision for senior citizens to get priority to rent MPDUs?
Can Housing Choice Vouchers be used towards rental payments in MPDUs?
Housing Choice Vouchers, designated for home purchase, may be available through local housing authorities. These vouchers may be used by a homeowner purchasing a unit from an MPDU developer.
The City's Role in the MPDU Program
The MPDU law and regulations were modified by the Mayor and Council effective March 1, 2001. Under the modifications, the control period for both rental and for sale units was extended to 30 years. For rental units, this means that the builder/developer must maintain the units as rentals at MPDU program established rates for a period of 30 years. Prior to March 1, 2001, some units were sold that are subject to a 10-year control period.
Units offered for sale may be resold during the 30-year control period. However, the resale price is controlled through the MPDU program. When an owner desires to sell a unit, they request a resale price determination from the program. This generally includes the cost of any capital improvements made to the unit and an allowance for the increase in value of the unit during the period between the date of original settlement and the date of resale. The increase in value is based on the Department of Labor’s Consumer Price Index (CPI). For the first sale after the 30-year control period ends, the seller must pay a fee to the City’s Moderately Priced Housing Fund, as calculated according to a formula in the Moderately Priced Housing law. A minimum of $10,000 is guaranteed to the seller after the control period, assuming that the price of the unit has increased since it was first sold.
Does the City get involved in lease agreements or mortgage financing?
No. All purchase and lease agreements are negotiated between the MPDU applicant and the private seller. To obtain financing, an individual works directly with a mortgage company. Purchasers should have a good credit rating, a steady income and the house must be affordable for their family's income.
How are the prices of the units determined?
The price of homes built under the MPDU Program is determined by provisions in the MPDU regulations. Generally the prices range from about $85,000 for a condominium to about $120,000 for a single family home.
What closing costs are to be paid by the seller of an MPDU?
Sources: Chapter 13.5 of the Rockville City Code, Moderately Priced Housing, Regulations
MPDU Rents & Income Limits
The minimum income for qualifying for the City of Rockville MPDU Program is $22,000.
What are the MPDU rents?
Note: Rents may not be increased until existing lease terms expire. Rockville Landlord-tenant law requires that tenants, including tenants holding over be provided with a ninety-day written notice of a rent increase.