Affordable For-Sale Housing
Current Affordable Homeowners:
If you're a current homeowner in the MPDU program looking to refinance or sell your home, you must complete a resale or refinance form and email it to email@example.com.
Rockville, MD 20850
In addition to the basic eligibility criteria of the 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 home buyer.
- 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 or condo while occupying the MPDU home.
- The buyer must have good credit and qualify for bank financing.
- The buyer must be able to pay all down payment, settlement and closing costs.
- 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 city's guidelines for re-selling an MPDU.
Apply for Certificate of EligibilityThe application must be renewed every two years. You must download the form and fill out the application completely.
New Application Renewal Application
If you have a Certificate of Eligibility issued by Montgomery County, you will need to complete the certificate holder request form.
Proof of IncomeObtain copies of the following proof of income documents and submit with your application:
- Most recent two years of federal income tax returns. Students who didn't file a tax return may submit a school transcript.
- Most recent two years W-2s
- Most recent two paycheck stubs from all household earners.
- Documentation of other sources of income (e.g. child support, alimony).
- If self-employed, a year-to-date income and expense statement prepared by the applicant or a financial professional.
First-Time Home Buyers Class and Mortgage Pre-Approval LetterOnce you are income-qualified to purchase an MPDU home, with an MPDU certificate, two additional steps are required before you are able to join the waiting list of qualified buyers.
- Attend a first-time home buyer class or information session and provide a copy of the completion certificate to the city. Certificate holders can attend Montgomery County's 3 hour First-Time Homebuyer Class conducted by Housing and Community Initiatives or attend a class through any HUD-approved counseling agency.
- Provide a mortgage pre-approval letter from your bank lender to the city.
MPDU Eligibility Waiting List
After completing the application process, you must notify city staff that you would like to be placed on a waiting list in order to purchase an MPDU. The waiting list is given to builders who are selling newly constructed homes and to current owners who are selling their homes. Home builders and sellers are instructed to contact people in the order in which they appear on the list and offer them an opportunity to buy an MPDU.
Declining an Offer to Purchase an MPDU
If a certificate holder on the waiting list is not interested in the unit available from the builder or seller who contacted them, they can decline to purchase the unit. Their name remains on the list of certificate holders, which is given to future builders or sellers of for-sale MPDUs. If a certificate holder chooses not to purchase a unit, when offered, there is no guarantee that another unit will become available. A name is only removed from the list when a certificate holder purchases a unit or requests that his or her name be removed.
Changes in Income while on the Waiting List
The household income of the certificate holder must be within the MPDU income limits at the time a sales agreement contract is signed for the purchase of an MPDU unit. The period of time between the signing of the sales agreement contract and the date of settlement on the home can last several months. Therefore, MPDU certificate holders may accept pay raises that may result in their income exceeding the eligibility limits. Since a contract for the purchase of a home has been entered into, it is not the intent of the MPDU Program that these situations result in breech of contract or denial of a pay increase. However, in such a situation the certificate holder is not permitted to select a different MPDU and may only complete the transaction that has commenced; in other words, they may complete purchase on the unit for which the sales agreement contract has been signed and cannot break that contract in order to purchase a larger MPDU that they may now be able to afford, in the event another MPDU is available.
Selling an MPDU Home
An owner of an MPDU home must notify the Housing Programs Division in writing of their intent to sell and request a resale price determination by completing the Current Resale Value form. The owner must provide CPDS with an itemized list of all capital improvements for which credit is requested as part of the resale price. All improvements must be documented with receipts. The owner must permit the CPDS to inspect the MPDU as part of the resale price determination process.
Once a resale price is determined, the owner is notified and the MPDU 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. If RHE does not wish to purchase the unit, it will be offered to certificate holders on the MPDU Eligibility waiting list for 60 days. A resale request grants permission for the city's Housing Division to inform certificate holders on the MPDU Eligibility waiting list of the availability to purchase the MPDU.
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.