Affordable For-Sale Housing
To provide access to affordable homes, the City of Rockville requires for-sale properties to be available to Rockville residents at more affordable prices than for-sale market-rate homes. Homebuilders are required to set aside a certain percentage of affordable for-sale homes and prospective homebuyers have specific requirements to meet in maintaining ownership and eligibility.
In addition to the basic eligibility criteria of the Moderately Priced Dwelling Unit (MPDU) program, the following must be satisfied to qualify for the purchase of a home through the MPDU program:
- You must be a first-time homebuyer.
- The home must be the owner’s primary residence for the full length of the 30-year MPDU period and may not be rented to others.
- The buyer cannot own another home while occupying the MPDU home.
- The buyer must qualify for bank financing.
- The buyer must commit to own the home for a period of 30 years. If the buyer decides to sell before that time, the sale must follow the city’s guidelines for re-selling an MPDU home.
- All household members over 18 years old must submit their proof of income.
Rockville MPDU Homeownership Income Limits
You must qualify for a minimum mortgage of $130,000.
Maximum Household Incomes*
50% of AMI
60% of AMI
|70% of AMI||80% of AMI|
|* Dependent on home pricing|
MPDU Homeownership Application Process
- Attend a first-time homebuyer class and obtain a copy of the completion certificate. You can attend Montgomery County's 6-hour First-Time Homebuyer Class conducted by the Housing Initiative Partnership or attend a class through any HUD-approved counseling agency.
- Obtain a mortgage pre-approval letter from your bank lender. Ask your lender to use this sample lender letter.
- Apply for a certificate of eligibility by completing the MPDU Homeownership Application. The application must be renewed every two years.
- Submit your MPDU Housing Program Application.
MPDU Eligibility Waiting List
After completing the application process, you will be placed on a waiting list in order to purchase an MPDU home. The waiting list is given to builders who are selling newly constructed homes and to current owners who are selling their MPDU homes. Sellers are instructed to contact people in the order in which they appear on the list based on household size. Larger households (household size of four or more) will be given first priority. If there are an insufficient number of households of eligible size, smaller households will be contacted until the MPDU homes are sold.
Declining an Offer to Purchase an MPDU Home
If a qualified person on the waiting list is not interested in the available home, they can decline to purchase the home. Their name remains on the list of eligible people, which is given to future builders or sellers of for-sale MPDU homes. If an eligible person chooses not to purchase a home when offered, there is no guarantee that another home will become available. A name is only removed from the list when the eligible person purchases a home or requests that his or her name be removed.
Changes in Income While on the Waiting List
The household income of an eligible person must be within the MPDU income limits at the time a sales agreement contract is signed for the purchase of an MPDU home.
Selling an MPDU Home
If you are a current homeowner in the MPDU program looking to refinance or sell your home, you must complete an MPDU Resale/Refinance Request Form.
The owner must provide the city with an itemized list of all improvements for which credit may be requested as part of the resale price. All improvements must be documented with receipts. The owner must permit the city to inspect the MPDU home as part of the resale price determination process.
Once a resale price is determined, the owner is notified and the MPDU home will then be offered exclusively to Rockville Housing Enterprises (RHE), which is the designated housing agency for the city's MPDU program. RHE has a 45-day period in which to decide whether or not they will purchase the MPDU home. If RHE does not wish to purchase the home, it will be offered to eligible people on the MPDU eligibility waiting list for 60 days. A resale request grants permission for the city to inform those on the waiting list of the availability to purchase the MPDU home.
If the owner does not agree with the resale price determination, they have 14 calendar days to request reconsideration. Any such request must cite the basis for the request and include supporting documentation.