WHY SHOULD I BUY AN MPDU? A HOME IN MONTGOMERY COUNTY WHICH YOU CAN AFFORD TAX DEDUCTION BENEFIT IMPROVE YOUR NEW HOME! NO LANDLORD NO WORRIES!

MODERATELY PRICED DWELLING UNIT (MPDU) PURCHASE PROGRAM

ORIENTATION SEMINAR – MPDU CLASS #2

Welcome

Please mute your microphone on Zoom.

Please put your questions in Chat.

Please stay until the end of the seminar to

obtain your code to get credit for the class.

WE WILL DISCUSS

What is the MPDU Program?

Selling or Refinancing Your MPDU

How to Apply to the MPDU Program

What to Do Next

MPDU Program Description

MPDU Program Eligibility

How to Buy an MPDU

WHAT IS AN MPDU?

A Moderately Priced Dwelling Unit is a home you can

buy at a lower price than a market priced home.

MPDU Program Description

• MPDUs have a lower sales price in order to provide

affordable housing in Montgomery County.

• For example, a property that would sell on the market at

$300,000 would typically sell at about $175,000 in the

MPDU program.

• Later, when you sell your MPDU, it will be at a lower

price as well to keep the home affordable for other first-

time homebuyers.

• The Montgomery County MPDU Program is run by the

Department of Housing and Community Affairs (DHCA).

WHAT DOES THE MPDU PROGRAM DO?

Educates

• Provides trainings

for applicants

• Approves eligible

participants

Creates

MPDUs

• Works with

builders who

construct MPDUs

• Matches builders

and buyers

Enforces

MPDU

Rules

• Sets MPDUs prices

• Enforces

covenants placed

on MPDU homes

MPDU

HOW ARE MPDUs CREATED?

The Moderately Priced Housing

law, called Chapter 25A, requires

all developers and builders to

provide MPDUs in every new

subdivision that has 20 or more

housing units.

At least 12.5% of the homes in

each subdivision must be MPDUs.

MPDU

TYPES OF MPDU DWELLINGS

Townhouses

Duplexes

TYPES OF MPDU DWELLINGS

Condominiums

High Rise

Garden

MPDU

BENEFITS OF BUYING AN MPDU

A home in

Montgomery County

that you can afford

You build equity

(EQUITY is money

that you receive

after you pay your

mortgage balance

at the sale of your

MPDU)

You can sell your

MPDU at any time

No landlord--no

unpredictable

rent increases

Living in

Montgomery

County provides

access to excellent

schools and

services

Tax benefits

Belonging to a

community

ARE THERE ANY RESTRICTIONS ON MPDUs?

Enforces

MPDU

rules

YES. The MPDU Program

enforces covenants placed on

the MPDUs.

What is a Covenant?

• A legal agreement or contract

between two parties to do or refrain

from doing something.

MPDUs have a 30-year “CONTROL

PERIOD.”

What is a Control Period?

• A time during which you need to

follow certain rules.

MPDU

Educates

Creates

MPDUs

RULES OF THE MPDU PROGRAM

MPDU

PRIMARY RESIDENCE

FULL-TIME OCCUPANCY

YOU CANNOT BUY A SECOND HOME

YOU MUST SHARE PROFIT WITH THE

COUNTY WHEN YOU SELL THE MPDU

AFTER THE CONTROL PERIOD

YOU CAN ONLY BUY AN MPDU

ONCE IN A LIFETIME

Enforces

MPDU

rules

RULES OF THE MPDU PROGRAM

MPDU

PRIMARY RESIDENCE

• You and all adults who signed the contract

must live in the MPDU as your primary

residence.

• If you need to move, you must sell your

MPDU.

• When you decide to sell your MPDU, you must

sell it through the MPDU program.

• You can only sell your MPDU at the MPDU

resale price, not the market price.

FULL-TIME OCCUPANCY

• Your MPDU cannot be rented, except in special

circumstances. Permission from the MPDU Office

is required.

• Your MPDU cannot be left vacant.

Enforces

MPDU

rules

RULES OF THE MPDU PROGRAM

MPDU

YOU CANNOT BUY A SECOND HOME

• If you must move, or if you wish to purchase

another home anywhere while your MPDU is still

within the 30-year control period, you must sell

your MPDU.

• If you inherit a second home, you must still

occupy your MPDU as your primary residence. If

you want to move to your inherited property, you

must sell your MPDU.

YOU MUST SHARE PROFIT WITH THE

COUNTY

• At the end of the 30-year control period, you

may sell your MPDU at market price. When you

sell, you must share the profit with the County.

Enforces

MPDU

rules

YOU CAN ONLY BUY AN MPDU ONCE

IN A LIFETIME

• After you sell your MPDU, you cannot buy

another MPDU.

All adults listed as applicants must

not have owned a home or been on

the title for a home anywhere in the

United States or outside the country

within the last 5 years.

First Time Homebuyer

Your household must be within the

program’s income limits. There are

minimum and maximum income

limits depending on household size.

Income Limits

You must qualify for a mortgage loan

amount of at least $150,000.

The loan prequalification must be

from an HOC approved lender.

Qualify for a Loan

You must be able to pay a down

payment, settlement fees and other

closing costs, and to afford the

monthly mortgage and other

expenses such as condo and

homeowners association (HOA) fees.

Pay Closing Costs and

Other Expenses

QUALIFING FOR THE MPDU PROGRAM

MPDU Program Eligibility

MINIMUM INCOME : $40,000*

*If you have less than $40,000 gross income, but you have

a lot of savings, you may be still able to qualify. The lender

will determine if you can get a loan of at least $150,000

with your income and savings.

HOUSEHOLD INCOME LIMITS

Income is defined as the gross income received annually from

all sources by all wage earners in a household.

• Wages and salary

• Child support

• Alimony

• Dividends from stocks and bonds

• Overtime pay

WHAT IS CONSIDERED INCOME?

• Social Security benefits

• Veterans Administration

benefits

• Pension and retirement

payments

• Other

Sources of Income include:

MAXIMUM TOTAL

HOUSEHOLD SIZE HOUSEHOLD INCOME

One (1) Person $63,000

Two (2) People $ 72,000

Three (3) People $81,500

Four (4) People $ 90,500

Five (5) People $ 97,500

Six (6) People $ 104,500

HOUSEHOLD INCOME LIMITS

Effective 4/14/2021. Income limits change annually,

usually in April. Please check the MPDU website for

updates.

Household Size Waiver

If a large MPDU (3 or 4 bedrooms) is not purchased by a household of 3 or more, the

MPDU Office may allow a smaller household to purchase the MPDU.

HOUSEHOLD SIZE NUMBER OF BEDROOMS

One (1) Person 1 or 2 Bedrooms

Two (2) People 1 or 2 Bedrooms

Three (3) People 2 or 3 Bedrooms

Four (4) People 2, 3 or 4 Bedrooms

Five (5) People

Six (6) People

3 or More Bedrooms

WHAT SIZE MPDU DO I QUALIFY FOR?

Any person who will live with you in

the MPDU

AND

• has their own income (which must

also be counted as part of the total

household income) such as a

spouse, fiancé, sister/brother, OR

• is claimed as a dependent on your

Federal tax return, such as your

children or elderly parents. (Older

children attending school full time

AND parents without income are

considered dependents).

WHO IS CONSIDERED PART OF MY HOUSEHOLD?

REQUIREMENTS FOR CERTIFICATE OF ELIGIBILITY

MUST COMPLETE ALL 3 REQUIRED TRAININGS

Attend a First

Time

Homebuyer

Class

Attend an

Orientation

Seminar

Attend an

Application

Tutorial

Certificate of Eligibility

If you are found eligible, you will be issued a

Your certificate is valid for one year. You must renew it within 60 days

of the expiration date.

Your name and

household members will be listed on certificate

This certificate is proof of your household’s eligibility to participate in

the MPDU Program. It will be mailed to your home. It may take up to 14

days.

After you receive your approval confirmation, you may enter the

Random Selection Drawings for MPDUs for sale

CERTIFICATE OF ELIGIBITY

WHAT HAPPENS AFTER I APPLY TO THE MPDU PROGRAM?

Montgomery County’s MPDU Program offers affordably priced

townhomes and condominiums - both new and resale - to

eligible and certified participants. Your MPDU Certificate of

Eligibility must be current.

Participants who want to buy an MPDU enter an online drawing

and are randomly selected and listed in the order of selection. This

is what is known as a Random Selection Drawing. The first

person on the list will be offered the MPDU first, and so on down

the list.

MPDUs FOR SALE

How to Buy an MPDU

MPDU

Current MPDU Certificate

• Your MPDU certificate is valid for one year. You must renew it

each year.

Lender Letter

• You must be pre-qualified for a mortgage loan for an amount

that is equal to or greater than the MPDU sales price.

Household size

• Your household size must be appropriate for the number

of bedrooms of the MPDU for sale.

Priority Points

• Households with the most priority points will be selected first.

MPDU

FACTORS CONSIDERED IN THE RANDOM SELECTION DRAWINGS

• One point for living in Montgomery County

• One point for working in Montgomery

County

• One point for each year that you are in the

MPDU program (up to three years).

Condition Year

One

Year

Two

Year Three

(maximum

is 5 points)

Year

Four

Living and Working in the County 3 4 5 5

Living or Working in the County 2 3 4 4

NOT Living or Working in the County 1 2 3 3

PRIORITY POINTS SYSTEM

Check the MPDU website regularly:

www.montgomerycountymd.gov/mpdu

Go to Section C – Click on “View MPDUs for Sale.”

Drawings for MPDUs in which you are interested.

You must enter the drawing by the Random Selection Entry Deadline.

The Results of the Random Selection Drawing are posted on the MPDU

website within one day of the date of the drawing. ONLY certificate numbers

are listed to protect your privacy.

Note: You will NOT receive a call from the MPDU Office about any available MPDUs or

the results of the drawing. Please visit the MPDU webpage for the results.

WHERE TO FIND MPDUs FOR SALE

THE RESULTS OF THE RANDOM SELECTION DRAWINGS ARE

PUBLISHED ON THE MPDU WEBSITE

Within a week or two:

• The builder will contact selected households depending on the MPDUs

available. Households will be contacted by phone and/or e-mail to set up

an appointment. The first person on the list will be offered the MPDU

first, and so on down the list.

• If you are contacted, you will meet with the builder to see floor plans and

choose options or upgrades that the builder may offer. (Examples: carpet

upgrade; finishing a basement.) The maximum price for options is 10% of

the MPDU sales price.

• If you wish to buy the MPDU, you must sign a contract (you have 48 hours

after the meeting to decide). Any adult listed as a participant on your

MPDU certificate must sign the required sales documents.

IF YOU ARE CONTACTED, BE PREPARED!

BRING with you:

1. Your original MPDU Certificate of Eligibility signed by all adults in the

household.

2. A check or money order for a deposit of 1% of the purchase price.

 Sales contract.

 Purchaser’s Agreement Form, by which you

promise to follow the MPDU rules.

 Receipt of MPDU Covenants* – a form that

says you have received the MPDU rules that

apply to your property and a copy of the

current MPDU law.

(*The MPDU Covenants define the MPDU rules for a development.)

YOU WILL SIGN:

WHAT HAPPENS AFTER I SIGN THE CONTRACT?

Meet with a lender to get a final loan approval

(it does not have to be builder’s lender).

Note: No ARMS (Adjustable Rate

Mortgage) or Interest Only loans are accepted.

Keep your documents up-to-date to take to the

lender. (All adults who will be on the loan must

provide all their financial documents).

Maintain good credit:

Do not buy a car or make other expensive

purchases before you buy your MPDU.

Avoid new credit cards.

MPDU

WHEN CAN I MOVE TO MY MPDU?

When you sign your contract, your MPDU will probably

not be built yet. It may take several months to build. The

builder will contact you to let you know when the MPDU

is ready.

You can move in after:

 The MPDU has been built

 Your final loan has been approved

 Settlement has occurred*

(*Settlement is an appointment at which you sign the legal sales documents and get

the keys)

Do NOT breach your rental lease if you are uncertain of your move-

in date for your MPDU. Tenants are responsible for any remaining

monthly rent expenses if the lease term has not expired. If you have

questions about rental lease requirements contact the Office of

Landlord-Tenant Affairs at

240-777-0311.

HOW DO I PAY FOR MY MPDU?

• The MPDU Program does not offer financing or financial

assistance to help you purchase an MPDU. However, loans

with favorable terms are available from the Housing

Opportunities Commission (HOC).

• You must get a Mortgage Loan from a lender.

• You will need savings for a deposit, down payment and

closing costs.

• MPDU owners are responsible for all home maintenance,

home improvements, condo and homeowner association

(HOA) fees (if applicable).

MPDU Sales Price: $165,000

Down Payment (about 5%): + 8,250

Closing Costs (about 4%): + 6,600

Seller Contribution (about 3%) - 4,950

Savings Needed: $9,900

ESTIMATE OF HOW MUCH MONEY YOU WOULD YOU

NEED TO PURCHASE AN MPDU

SAVE MONEY FOR YOUR MPDU PURCHASE

Some Years Have Gone By Since You Purchased

Your MPDU...

You are thinking about moving because:

• Your household size has increased or decreased.

• You have changed jobs and/or want a shorter commute.

• You want to live in another community, city, or state.

• You want your children to attend another school.

• Any other reason.

SELLING YOUR MPDU

Selling or Refinancing Your MPDU

The MPDU Program allows you to SELL YOUR MPDU at

ANY TIME

Remember, the longer you live in your MPDU,

the more benefits you will receive.

• A larger increase in your MPDU price

• Tax advantages for a longer period

• The money you get at the resale of your

MPDU (equity) represents savings that you

can use to purchase your next home.

When you want to sell your MPDU during the 30-year control period,

the MPDU Office will calculate the price at which you may sell your

MPDU, as follows:

*Save your contracts, permits and receipts for improvements

Original Purchase Price in 2010 $ 160,000

Inflation (2010 – 2020) = 16.3% + $ 26,000

Eligible Improvements* (up to 10%) + $ 4,000

MPDU Resale Price = $190,000

RESALE PRICE CALCULATION FOR MPDUs

MPDU Resale Price: $ 190,000

Pay your Loan Balance: ($ 120,000)

You Get (Equity): $ 70,000

You can use this equity to buy your next home.

MONEY YOU GET AT RESALE

SELLING AFTER THE CONTROL PERIOD

As part of the agreement with the MPDU Program, the

MPDU owner is required to share one-half of the “Excess

Windfall Profit” with Montgomery County.

The payment made to Montgomery County is called the

Shared Profit. This money is used to finance and produce

new affordable housing in Montgomery County for other

low- and moderate-income households.

30 Years Have Gone By Since You Purchased

Your MPDU...

MPDU P urchase Price in 2010: $ 160,000

Market Sales Price in 2040: $ 550,000

MPDU Price in 2040: $ 350,000

Profit: $ 200,000

County Share of Pr ofit (50%): $ 100,000

For the Owner:

One-Half of Profit $ 100,000

Plus Amount of MPDU Price $ 350,000

Seller Receives : $ 450,000

SHARED PROFIT CALCULATION AFTER 30 YEARS

Seller’s Profit

From the amount you get at your resale, you must pay

your loan balance.

Seller Receives: $ 450,000

Pay your loan balance: ($ 120,000)

You get to keep (Equity): $ 330,000

Use this equity to buy your next home.

(You will also have to pay sales costs,

such as realtor’s fees and closing costs).

EQUITY FOR YOUR NEXT HOME

Home Equity

IMAGINARY 30 YEAR CONTROL LINE

You must sell

at the MPDU

Price

You keep all

the increase

in price of

your MPDU

The money you have

left after you pay

your loan balance,

when you sell your

home. It represents

savings you can use

to buy your next

home

Before 30 Years

After 30 Years

You may sell

at market

price

You must

share profit

with the

county

Your equity will be

the money you get

after you pay the

shared profit to the

County and your loan

balance

CAN I REFINANCE MY MPDU?

What is refinancing?

• Changing your first loan for a new loan.

Why would I want to refinance my loan?

• You might get a better interest rate.

• Your monthly payments might be lower.

It will cost you some money to refinance.

• Refinancing can cost between 2% and 5% of a

loan's principal.

• You will start a new mortgage, which in many

cases requires an appraisal, title search, and

application fees.

BEFORE YOU REFINANCE YOUR MPDU

• You cannot refinance your MPDU for more than the MPDU

price at the time of the refinance.

• The 30-year control period does not start again.

• You must request an MPDU Price from the MPDU Office

before you go to the bank. The lender will ask you for a

refinance letter from the MPDU Office.

• You cannot owe more money on your MPDU than the

MPDU price at any time.

Facts you need to know …

MPDU

Refinancing

• MPDU Owners Are Not Permitted to Refinance an MPDU with a

Reverse Mortgage.

• The reverse mortgage program assumes that a housing unit has a "fair

market" value (FMV). MPDUs Do Not Have a Fair Market Value (FMV)

During the Resale Price Control Period.

SELLING OR REFINANCING YOUR MPDU

• For MPDUs under controls: Request a resale/refinance

price from the MPDU office.

• For MPDUs out of controls: Request a shared profit

calculation from the MPDU office.

Inform the MPDU

Office if you decide

to sell or refinance

• For MPDUs under controls: The MPDU sale/refinance

price is determined by the MPDU Office.

• For MPDUs out of controls: The MPDU may be sold at

market price. The MPDU office sends the shared profit

calculation.

There is a limit to

how much you can

sell or refinance for

Submit your request to the MPDU office at least 21 days in advance.

Legal action by County:

 Fines

 Required repayment of illegally collected

rent

 Forced sale of your MPDU

WHAT HAPPENS WHEN SOMEONE DOES NOT

FOLLOW THE MPDU RULES?

When you buy an MPDU, the MPDU must be your permanent

residence and the unit cannot be left vacant.

You may sell your MPDU whenever you want.

When you sell your MPDU during the 30-year control period, you

must request the resale price from the MPDU office.

When you sell your MPDU during the 30-year control period, you

keep all the equity, but you must sell at the MPDU Price.

When you sell your MPDU after the 30-year control period, you

must share profit with the County. You can sell the MPDU at market

price

MOST IMPORTANT THINGS TO REMEMBER

MPDU

HOW TO APPLY TO THE MPDU PROGRAM

How to Apply to the MPDU Program

1. Get all your financial documents ready for all adults

in your household. Each adult must have the

required documents to submit.

2. Become familiar with the MPDU application. Read it

carefully before you submit your application. Must

complete all sections. Incomplete applications will not

be accepted.

WHO MUST BE LISTED IN MY APPLICATION?

Anyone who will be living in the MPDU: spouse,

fiancé, children, parents, brother, sister or

adoptive child.

• Children older than 18 years old are

considered dependents if they are full

time students.

• Adults who are not working and do not

receive income are considered

dependents.

Each adult (including elderly parents) must be

listed on the household’s Federal income taxes,

UNLESS they have their own income and tax

returns.

BECOME FAMILIAR WITH THE MPDU APPLICATION

Have the listed information

available when you fill out

your MPDU application online.

1. Complete Names

2. Social Security Numbers (for

adults only)

3. Date of Birth for Each

Household Member

4. Employment Information

5. Pay Stubs

6. Income Taxes (most recent)

7. Benefit Statements

8. School Transcripts

9. FTHB Certificate

10.Lender Pre-Qualification

Letter

FTHB

Certificate

• Your First

Time

Homebuyer

(FTHB)

certificate

must be no

older than

two years

• Your FTHB

certificate

must list all

adults

qualifying for

a mortgage.

Lender

Letter

• Your Lender

Pre-

Qualification

Letter must

be from an

HOC

participating

lender

• The mortgage

amount

should be no

less than

$150,000

Proof of

Income

• Two most

recent

paystubs

showing

Gross

Income

• Year to date

statement of

income and

expenses

Tax

Returns

• Federal

income taxes

with all

pages

• W-2 form

And Or

• 1099 M form

Note: Self-

prepared taxes

are not

acceptable.

Provide IRS

transcript instead.

APPLICATION SUBMISSION DOCUMENTS

PROOF OF INCOME

Two most recent Pay stubs or four if paid

weekly from all adult wage earners

Notarized Year to Date

Statement of income and

expenses

Proof of Pension Income and

Social Security Income

Letter on company letterhead verifying

new employment and salary

Pay stubs

showing

Gross Income

If Self

Employed:

If Retired:

Other sources

of income:

Child

Support

statement

Alimony

court order

Social

Security

Income (SSI)

If New

Employment

Taxes:

State Withholding $182.00

County Withholding $87.68

Insurance: $62.00

Credit Union: $50.00

Net Pay: $915.92

SAMPLE PAY STUB

SAM’S APPLIANCE STORE

123 Main Street

Rockville, Maryland 20850

(301) 555-2790

Employee Name:

James Woods

Employee ID # 12345

Pay Period: 6/1/2020 – 6/12/2020

Number of Hours Worked Pay Rate Total

Gross Income

80 regular hours $16.22 $1,297.60

SAMPLE YEAR TO DATE STATEMENT OF INCOME AND EXPENSES

Income:

Sales

Services

Other Income

Total Income $______________

Expenses:

Salaries

Rent

Insurance

Other Expenses

Total Expenses $______________

Business Name:

For the Period:

January _______ to ______present

Net Income: (Total Income less Total Expenses) $

SAMPLE YEAR TO DATE STATEMENT OF INCOME AND EXPENSES

(continued)

The Year-to-Date statement needs to be notarized and must

include the following:

I hereby attest by my signature below that the information above

is true and accurate and represents the current status of my

income and expenses.

____________________ _______

Business owner signature Date

___________________ _______

Notary signature Date

• Provides

Housing

Counseling

• Provides

Housing

Education

• Provides

Financial

Assistance

(Loans)

• Sets Policy

and Enforces

MPDU Rules

• Qualifies

Applicants

Dept. of Housing

and Community

Affairs

MPDU

OFFICE

Housing

Opportunities

Commission

HOC

Housing

Initiatives

Partnership

HIP

Housing

Community

Initiatives

HCI

ORGANIZATIONS INVOLVED IN THE MPDU PROGRAM

MPDU PROGRAM:

• Provides educational materials,

reviews applications and gives MPDU

Certificates to households that are

eligible to purchase an MPDU.

• Runs Random Selection Drawings to

select certificate holders to purchase

MPDUs.

• Works with the builders who

construct new homes. The builders

determine where they are building

new homes, what type of homes and

how many homes.

• Ensures that at least 12.5% of the

homes that are built are sold at an

affordable price through the MPDU

Program

THE MPDU PROGRAM AND HOC ARE NOT THE SAME THING

MPDU

The Role of HOC in the MPDU Program

An HOC approved lender pre-qualifies applicants to the MPDU Program, giving

them a pre-qualification letter.

HOC provides mortgage loans with favorable terms to purchase MPDUs.

HOC is not the only lender that can give you a loan to purchase an MPDU.

Housing Opportunities Commission: 10400 Detrick Avenue, Kensington, MD 20895

(240) 627-9400

https://www.hocmc.org/homeownership.html

HOUSING OPPORTUNITIES COMMISSION (HOC)

ARE YOU READY TO APPLY TO THE MPDU PROGRAM?

Let’s Go Through A Checklist Together

YES

I am a first-time homebuyer

I am income-eligible

I have good credit

I can get a pre-qualification letter for

a loan of at least $150,000

I have enough savings

I can get all the documents I need in

order to apply

I understand the MPDU program well

You are ready to apply!

I am not a first-time home buyer

My income is too low/too high

I have credit problems

I do not know if I can get a loan

I do not have enough savings

I cannot get all the documents I need

to apply

I do not understand the MPDU

Program well enough

You are not ready. You need more

time and assistance.

If you are not ready to apply yet because you have credit problems or need financial

coaching, you can get individual assistance from a Housing Counselor free of charge.

Call for an appointment:

Housing Initiatives Partnership, Inc.

(HIP)

Main Office:

6525 Belcrest Road, Suite 555

Hyattsville, MD 20782

301-699-3835

• Montgomery County – Housing Counseling Offices

12900 Middlebrook Road, Suite 1500

Germantown, MD 20874

301-916-5946

640 East Diamond Avenue, Suite C

Gaithersburg, MD 20877

301-916-5946

https://hiphomes.org/

HELP IS AVAILABLE

City of Gaithersburg MPDU Program:

(240) 805-1119

https://www.gaithersburgmd.gov/services/housing-services

City of Rockville MPDU Program:

(240) 314-8200

https://www.rockvillemd.gov/194/Affordable-Housing

OTHER AFFORDABLE HOUSING PROGRAMS

Montgomery County's Moderately Priced Dwelling Unit

(MPDU) Program offers affordable rents at several MPDU

apartment complexes located throughout the County.

https://www.montgomerycountymd.gov/DHCA/housing/singlefam

ily/mpdu/programrental.html

READY TO APPLY? WHAT TO DO NEXT:

What to Do Next

1. Get all your financial documents ready for all adults

in your household.

2. Make an appointment to obtain a pre-qualification

lender letter from one of the HOC approved lenders.

3. Two weeks after you confirm your attendance at this

Orientation Seminar, go to Step 3 of the MPDU How to

Apply webpage. You will need your Orientation ID.

4. Follow the directions on the website to create an

account in the MPDU Application Portal, take the online

Application Tutorial and submit your application.

TO APPLY YOU MUST TAKE THE APPLICATION TUTORIAL

MPDU

The MPDU Office no longer accepts paper applications. In

order to apply you will need to create an online account

in the MPDU Application Portal. The MPDU office will

need to confirm your attendance at tonight’s Orientation

Seminar before you will be able to access the portal,

which will be approximately

two weeks after you confirm

your attendance at tonight’s class

. Instructions for

accessing the portal are available in Step 3 of the

How to

Apply

web page of the MPDU website.

After you create your account, you will be able to take

the Application Tutorial, complete the online application

form, and upload all the required documents. The

Application Tutorial is an online training that includes

tests that you must pass with a score of at least 80%. You

will be able to review the tutorial and re-take the tests as

many times as you wish.

IMPORTANT THINGS TO REMEMBER

 Before you will be able to create an account in the MPDU Application

Portal, our system will need to confirm that you have taken both the

First Time Homebuyer class and the Orientation Seminar within the

past two years. You will need your Orientation ID.

 You must wait for two weeks after you confirm your attendance at

the Orientation Seminar before you will be able to create an account

in the MPDU Application Portal.

 Use the same name and email as you did when you signed up for the

First Time Homebuyer class and the Orientation Seminar, and make

sure to spell your name and email correctly.

 Only one person per household will be able to sign up for the MPDU

Application Portal. That person will be the primary applicant and

must be an adult. However, all adults listed on the application must

watch the Application Tutorial and Acknowledge the rules of the

program before submitting the application.

APPLICATION DOCUMENTS

MPDU

1. Facts You Need to Understand Before

You Participate in Montgomery County’s

MPDU Purchase Program. (Please read

and make sure you understand it.)

2. Summary of Next Steps to Apply to the

MPDU program.

3. Instructions for getting a pre-

qualification lender letter from an HOC

approved lender.

4. The HOC Approved Lenders List.

5. Sample of the MPDU Application.

You will receive the following PDF documents

after this session:

Please answer T (True) or F (False) in the following statements: True False

The purpose of the MPDU program is to provide affordable housing in Montgomery County.

I sold my home in Texas two years ago. I can now buy an MPDU.

I never owned a home, but my spouse has. We can buy an MPDU.

The control period for MPDUs is 30 years from the date of settlement.

The MPDU Program will give me a loan to pay for my MPDU.

The MPDU Random Selection Drawing establishes a priority list for selling new and resale MPDUs.

I applied for the MPDU Program, but my certificate is expired. I can still participate in the

Random Selection Drawing.

The MPDU and HOC programs are the same.

My household size is one person. I can’t buy a 3-bedroom townhouse, unless it is a resale and

no other certificate holder wants to buy it.

If I decide to buy another home, I can rent out my MPDU.

I am applying to the MPDU Program with my Aunt Sally. She is not working, but she is listed on my

income taxes as my dependent. I can count her as part of my household.

I bought an MPDU and I need to add or delete a name on the deed. The MPDU staff will do it for me.

I can sell my MPDU to my adult daughter/son without contacting the MPDU office.

Once the control period expires, I can sell

my MPDU at market price.

I will have to give the

County 50% of the extra profit so that the County can use the funds to provide more affordable

housing in Montgomery

County

I bought an MPDU eight years ago as a single parent. Now I am getting married and buying a house

with my husband. My son is an adult now and is still living in the MPDU, so I am fulfilling the

“Owner Occupancy” rule for the MPDU.

My husband and I bought an MPDU together, but we are now getting divorced. I can continue to live

there with my children, if he agrees to leave the home to me.

I can refinance my MPDU for the appraised market value.

I can sell my MPDU that is still under control period, to anyone I want at the price I want.

Montgomery County 311

or 240

777

0311 is the designated number for the MPDU office if I have a

question that is not covered in my class material or I cannot find the answer on the MPDU website.

HOW MUCH DO YOU KNOW ABOUT MPDUs? Continues…

MPDU PROGRAM CONTACT INFORMATION

Website: www.montgomerycountymd.gov/mpdu

Phone: 311 - Ask to speak to someone in the MPDU

Office. You will be called back within 48 hours.

MPDU Office Address: 1401 Rockville Pike, 4

Floor,

Rockville, MD 20852

THE MPDU PROGRAM

MPDU

THANK YOU!

If you are seeing this slide

you have completed the

entire training.

CONGRATULATIONS! However, this is

not the end… You will need to take

down the CODE that will appear on

the Zoom screen and send an e-mail

with the code to HCI in order to

validate your attendance.

Partners with HCI (a non-

profit agency) to provide

MPDU training sessions.

Revised 122021