SUMMARY OF THE PROGRAM AND ITS REQUIREMENTS
A Home You Can Afford...
A goal of the Montgomery County Housing Policy states that affordable housing should be available to people of all incomes. To help achieve this goal, the County Council passed the Moderately Priced Housing (MPH) Law in 1974. A provision of the MPH Law requires that between 12.5% and 15% of the houses in new subdivisions of 20 or more units be moderately priced dwelling units (MPDUs). The MPH Law requires that 40% of the MPDUs be offered to the Housing Opportunities Commission (HOC) and other non-profit housing agencies for use by low and moderate income families.
Included in the MPDU program are detached and semi-detached homes (duplexes), townhouses, garden condominiums and high-rise condominiums and apartments. Under the present sales price limits, a three bedroom townhouse has a sales price of approximately $165,000. Sales prices and rental limits are reviewed annually and are revised to reflect changes in construction costs.
Click here for more information about the MPDU Rental Program.
Click here for more information about the MPDU Purchase Program.
Financing and Rental Assistance
DHCA does not provide financing to purchase an MPDU, or rental assistance to help you pay the rent in an MPDU. Participants must be able to qualify for financing and to pay down payment, settlement and other costs that are necessary to purchase a home. To obtain financing, participants need to have a good credit rating, a steady income, and the MPDU property must be affordable for the family's income.
The price of homes built under the MPDU Program, and MPDU rents, are set by Executive Regulation. All purchase and lease agreements are negotiated between participants and the private seller or lessor.
Below market rate mortgage financing and down payment assistance may be available through the Mortgage Purchase and Closing Cost Assistance Program (240-773-9200) offered through the Montgomery County Housing Opportunities Commission (HOC). HOC also has some rental assistance available on a limited basis. Finally, the state of Maryland Department of Housing and Community Development (DHCD) also has below market rate mortgage financing and down payment and closing cost assistance available through the More House 4 Less Program.