Montgomery County, Maryland

MODERATELY PRICED
DWELLING UNIT (MPDU) PROGRAM
APPLICATION
www.montgomerycountymd.gov/mpdu

Please Read All of These Important Instructions Carefully

Applications for certificates to purchase are only accepted in January and July of each year. Applications for
certificates to rent may be submitted at any time during the year.

Application Processing Time: From the date that all required documents are received:

Approximately 12 WEEKS for Certificates to Purchase

Approximately 5 WEEKS for Certificates to Rent

Please wait the appropriate amount of time before calling to inquire about the status of your application. Also,
processing times may be longer due to the volume of applications received.

Special Notes on Eligibility for the MPDU Program:

You are not eligible to participate in the purchase program if you currently own a house or have owned a house
in the past five years.

Please be aware that you are unlikely to qualify to purchase a unit through the program if your income is under
$20,000, and you might not qualify to rent if your total household income is under $20,000 unless you have a
Housing Choice Voucher from the Housing Opportunities Commission (HOC: 301-929-2365), or are in the
Rental Assistance Program (RAP) from the Department of Health and Human Services (DHHS: 240-777-4400).

Required Documentation: You must submit an original signed application and photocopies of all of the required
documents. Applications without the required documentation will be returned.

Tax Information: Your two most recent years’ Federal income tax returns, with all schedules and W-2 forms,
must be included with the application. (Electronic summary, e-File, or TeleTax are not acceptable.)

Pay stubs: The two most recent pay stubs for all wage earners which indicate gross income

Credit Report: If you are applying to purchase an MPDU, credit reports for all wage earners in the household
must be provided; the credit reports must not be more than 30 days old.

Special Note for Renewal Applications: Please indicate if this is a renewal application by checking the
appropriate space on the application and send in your most recent IRS tax form as well as the other information
listed on the application (your two most recent pay stubs, W-2 forms, a new credit report, etc.). Notices are not
sent, to you when it is time to renew. You must renew during the month your certificate expires. The
expiration date is listed at the bottom right of your certificate.

Pre-Qualification Letter: Application processing time may be reduced by providing a pre-qualification letter
from a mortgage lender. However, such a letter is not required in order to apply. Such a letter must
be from a local, well-known lending institution, must be the original, and must be on letterhead, signed and
dated by an authorized representative.
 Special Conditions Regarding Documentation:

If you are divorced or separated, you must provide legal documentation stating this.

If you are married and filed separate returns, you must provide both years for you and your spouse. If you are
divorced or separated, you must provide both years of returns.

If you did not file in either tax year, you must include a letter from the IRS certifying that they have no record of
you filing a tax return. You may contact the IRS at 1-800-829-1040.

If you did not file because you were a full-time student, provide a copy of your school transcript or a class
schedule showing that you were a full time student during the applicable tax year.

If you are newly arrived in the United States and did not file taxes during the previous two years, you must:

o include a letter from the IRS certifying that they have no record of you filing a tax return (you may
contact the IRS at 1-800-829-1040);
o verify your entry date (a copy of the first page of your passport and a copy of the page with the date
of entry stamp).

If you have a newborn child who was not listed on your Federal income tax return, you must provide a copy of
the child’s birth certificate.

If a dependent is 18 or older, you must verify whether they are a student or working. If they are working, you
must provide copies of their two most recent pay stubs from their employer.

If you are a student, or if your dependent is over 18 and is a student, you must provide a current school
transcript or a class schedule. Student identification will not be accepted.

If you are self-employed, you must provide a notarized year-to-date summary statement of income and
expenses.

If you are a single parent and do not receive child support or alimony, check the appropriate box and mark “0”
in the space indicated on the application. If you receive either of the above, put the amount received in the
space indicated. If you do not provide this information, processing will be delayed until the information is
supplied.

Point System: A point system is used in the MPDU program to determine priority to purchase an MPDU. The
maximum number of points an applicant may be awarded is five (5), and they are awarded as follows:

One (1) point if you live in Montgomery County at the time you apply;
One (1) point if you work in Montgomery County at the time you apply;
(The above points may be taken away if you do not live or work in the county at the time of the lottery
drawing);
One (1) point upon your first sales application being approved by DHCA, with an additional one (1) point
awarded for each year (12-month period) you have continuously participated in the sales program (up to a
maximum of three (3) points). If you fail to renew your application annually, these points are taken away.

Page ii of iv

MODERATELY PRICED
DWELLING UNIT (MPDU) PROGRAM
DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
100 Maryland Avenue, 4th Floor ● Rockville, Maryland 20850 ● 240-777-3600
TTY: 240-777-3679 ● Website: www.montgomerycountymd.gov/mpdu
A Home You Can
Afford
Montgomery County’s Housing
Policy states that affordable
housing should be available to
people of all incomes. To
achieve this goal, the County
Council passed the Moderately
Priced Housing (MPH) Law in
1974. This law requires that a
certain percentage of houses or
apartments in new projects with
20 or more units be moderately
priced dwelling units (MPDUs).
The County makes these homes
available to eligible households
through its MPDU program,
which is administered by the
Department of Housing and
Community Affairs (DHCA).
Application
In order for DHCA to determine
if you are eligible to participate
in the MPDU Program, you must
complete an application and
provide information about your
household and your income.
Applicants may apply for a
rental certificate, a certificate to
purchase, or both, but they must
meet the appropriate income and
credit history guidelines in order
to receive a certificate.
Montgomery County, Maryland
Eligibility
First-Time Homebuyers Only:
Persons who currently own or
who have owned residential
property in the previous 5 years
are not eligible to participate in
the program.
Income Limits: Your total
household income must not
exceed the current maximum
income limits shown below:
Maximum Permitted
Household Income*
Size (Effective 6/15/06)
Purchase Rental
1 $44,000 $41,000
2 $50,500 $47,000
3 $57,000 $53,000
4 $63,000 $58,500
5+ $68,500 $63,500
* Gross annual income from all current
sources for all wage earners in the
household.
DHCA has established a
minimum income of $20,000 to
be eligible to rent or purchase
because rental rates and sales
prices normally require at least
that amount of income. This
minimum income may be
waived if you receive rental
assistance or a have a housing
choice voucher, or if you have
sufficient assets to qualify for a
mortgage. If either of these is the
case, you must explain this in a
letter attached to the application.
Page iii of iv
If you are found to be eligible,
DHCA will send you a
Certificate of Eligibility.
Selection Process
As MPDUs are made available,
DHCA will notify certificate
holders of MPDUs offered
through the program.
Homes for Purchase: All of the
MPDUs offered for sale are sold
through a lottery selection
process. Priority in the lottery is
given to persons who live or
work in Montgomery County,
and to those who have been in
the program the longest length
of time. This priority is enforced
through a point system
Apartments: Rental MPDUs are
leased on a first-come, first-
served basis after notification of
unit availability from DHCA.
Financing
DHCA does not provide any
form of financing. You must be
able to qualify for a mortgage,
make a down payment, and pay
settlement and other closing
costs that are necessary to
purchase the house.
To obtain mortgage financing,
you need to have good credit, a
steady income, and the house
must be affordable for your
family’s income. The sales prices
and rental rates of MPDUs are
set by Executive Regulation.
Below market rate mortgage
financing and/or closing cost
assistance may be may be
available through the Housing
Opportunities Commission’s
Mortgage Purchase Program
(call 301-929-2365 for more
information).
Those interested in purchasing
an MPDU must provide a copy
of a recent credit report. Your
application, supporting
documentation, and credit
history will be reviewed by a
committee to determine if you
would likely be able to obtain
mortgage financing.
DHCA is not involved in the
contracting or leasing process for
MPDUs. All purchase and lease
agreements are negotiated
between you and the private
seller or lessor.
Types of Homes
The MPDU Program includes
detached and semi-detached
houses, townhouses, garden
condominiums and apartments,
and hi-rise apartments.
Occupancy and Resale
Restrictions
To ensure that MPDUs serve
eligible households and are
affordable to future owners,
restrictions are placed on the
MPDUs. You must agree to
these restrictions in order to
participate in the program.
Occupancy: The MPDU must be
owner occupied. You must
occupy the MPDU as your
primary residence.
Control of Resale: The resale
price of the MPDU is controlled
for a 30 year period. You may
sell your MPDU during the
control period; however, you
have to sell it at a price
determined by DHCA. The sales
price is limited to the sum of the
original price plus the increase in
inflation from the date of the
original purchase to the date of
resale plus the fair-market value
of capital improvements made to
the unit.
Share of Excess Profit: To
provide funds for producing
affordable housing in the future,
the County established the
Housing Initiative Fund (HIF).
When an MPDU is sold the first
time after the control period
expires, the seller must pay one-
half of the excess profit to the
HIF. DHCA must adjust the
amount paid into the HIF to
ensure that the seller retains at
least $10,000 of the excess profit.
Money contributed to the HIF is
used to finance construction or
rehabilitation of other affordable
housing in Montgomery County.
Page iv of iv
Homebuyer Seminars
Persons interested in purchasing
an MPDU are required to attend
a home buying class prior to
entering any lotteries and
signing a sales contract to
purchase a house. Information
on these classes will be included
with your eligibility certificate.
___________________________________________
Fair Housing:
It’s the Law
Office of Human Rights
240-777-8450
TTY: 240-777-8480
Igualdad de
Oportunidad de
Vivienda es la ley
Oficina de los Derechos
Humanos
240-777-8450
TTY: 240-777-8480
Para información en español,
llame a la Comunidad Hispana
de Maryland al
301-587-7217/7218
Montgomery County
Department of Housing and
Community Affairs
100 Maryland Avenue, 4th Floor
Rockville, Maryland 20850
240-777-3600 TTY: 240-777-3679
 Montgomery County, Maryland
MODERATELY PRICED
DWELLING UNIT (MPDU) PROGRAM
DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
100 Maryland Avenue, 4th Floor ● Rockville, Maryland 20850 ● 240-777-3600
TTY: 240-777-3679 ● Website: www.montgomerycountymd.gov/mpdu

Renewal application? Type of Housing Preferred?

Yes No APPLICATION FORM Sales Rental Both

Please read the instructions. Complete ALL applicable blanks. This information will be used to determine your
eligibility for the program; it will not be used to qualify you for mortgage financing. All information will be kept
confidential.

THIS APPLICATION MUST HAVE PHOTOCOPIES OF THE FOLLOWING ITEMS ATTACHED (please
check off each attachment – incomplete applications will returned):
Recent credit report (not more than 30 days old) for all adults (not required for rental MPDU applications).
Credit reports can be obtained from one of the following:
●EQUIFAX 1-800-685-1111 ●EXPERIAN 1-888-397-3742 ●TRANS UNION CORP 1-800-916-8800
Copies of 2005 and 2004 Federal Income Tax Returns with all the schedules filed (Form 1040 along with
corresponding W-2 forms and schedules. If this is a renewal, only the 2005 tax form and W-2 are required.
(Electronic Summary, e-File, or TeleFax are not acceptable)
Copies of the two most recent pay stubs showing GROSS income for every wage earner in the household.

APPLICANT Social Security Number: --- ---

Name:
Current Address:

Home Phone: Work Phone:

Employer:
City/State: Employer Phone:
Current Base Salary: $ Overtime: $ Bonuses: $
Other Income: (explain and verify):
Alimony/Child Support Received?: ___ Yes ___ No $
Email address:
CO-APPLICANT * Social Security Number: --- ---
Name:
Current Address:

Home Phone: Work Phone:

Employer:
City/State: Employer Phone:
Current Base Salary: $ Overtime: $ Bonuses: $
Other Income: (explain and verify):
Alimony/Child Support Received?: ___ Yes ___ No $
Email address:
* - spouses must be included on the application
Page 1 of 2
FAMILY INFORMATION: Provide the requested information for each household member who will be living with
you. Include yourself and co-applicant in this section.
Name Relationship Gender Date of Birth
Head of Household Male Female
Male Female
Male Female
Male Female
Male Female
Male Female
Male Female
(Any dependent listed above who is 18 years of age or older must document if he/she is employed or a student)

Please complete the following to assist in the analysis of the affirmative marketing of units under this program.
Race Category: Asian Black Hispanic White Other:___________________________
At least one household member has a mobility or visual impairment (additional information maybe requested)

CERTIFICATIONS (required):
By signing below:
If I/We are applying for a Certificate to Purchase, I/We certify that no one on this application currently owns, or has
owned residential property within the last five (5) years.
If I/We are applying for a Certificate to Purchase, I/We agree to allow the County and/or a non-profit housing
advocacy group to review my application and supporting documents (including the credit histories f the applicant
and co-applicant) to determine my/our present and continuing eligibility.
I/We certify that the information provided on this application is true and complete to the best of my/our knowledge.
I/we are aware that any misrepresentation will result in the forfeiture of my right to be eligible for the Moderately
Priced Dwelling Unit (MPDU) Program, and that inquiries may be made to verify this information, and that the
County may take legal action against persons who benefit from the MPDU program under false pretenses.
I/we certify that I/we have read, understand, and will comply with the MPDU program rules.
I/We understand it is my /our responsibility to renew my/our certificate when it expires and that no
renewal notice will be sent by the MPDU office.

Signature of Head of Household Date Signature of Co-Applicant Date

PLEASE SUBMIT COMPLETED APPLICATION AND SUPPORTING DOCUMENTATION TO:

MPDU PROGRAM
100 MARYLAND AVENUE, 4TH FLOOR
ROCKVILLE, MARYLAND 20850

FAXED APPLICATIONS WILL NOT BE ACCEPTED

OFFICE USE ONLY – DO NOT WRITE BELOW THIS LINE

TOTAL ANNUAL
NEW INCOMPLETE (Date: ______________)
INCOME: $____________________
REVIEWED BY NON-PROFIT ELIGIBLE FOR:
REVISED (Date:________________)

READY TO PURCHASE PURCHASE # BR _______

DELETE FROM DATABASE

REFERRED TO CREDIT RENTAL # BR _______

___________________________________
(Prepared By) COUNSELING
BOTH # BR _______
___________________________________ APPROVED BY LENDER
(Date) INELIGIBLE:
NEEDS CREDIT REVIEW Reason: