Government > City Departments/Offices > Planning and Zoning > Community Development > MPDU Program

Applications are accepted on an open and continuous basis.

To ensure that housing choices continue to be available to its residents and employees with moderate incomes, the City Council passed the Moderately Priced Dwelling Unit Law in 2004. This law requires that 12% of the houses for sale in new subdivisions of 10 or more units be moderately priced dwelling units (MPDUs). This means that the sale price or rent is below the market rate for other units in the same development.

ELIGIBILITY

To be eligible to purchase, or rent, through the MPDU program an individual or household must:

1. Have an income that is 100% or less than the median family income for the Baltimore Metropolitan Statistical Area (MSA), with adjustments for household size, as reported by the United States Department of Housing and Urban Development (HUD).

Current Maximum Income Limits for an MPDU
Household Size	Maximum Income*
1	$56,875
2	$65,000
3	$73,125
4	$81,250
5	$87,750
6	$94,250
7	$100,750
8	$107,250

* Gross annual income from all current sources for all wage earners in the household.

2. Not currently own a home and be in one of the following 3 categories:
   
   • A City resident or employed within the City limits for at least the past twelve months (please refer to City limits map or Street Listing); or
   • A City of Annapolis employee beyond their probationary period; or
   • A teacher or staff member in a school that is included in the Annapolis Senior High School district as defined by the Anne Arundel County Public Schools. (Please refer to the Anne Arundel County Public Schools District Map to see if your school is eligible.)

To be eligible for the MPDU Program, you must complete an MPDU Program application for a "Certificate of Eligibility" which entitles the person or household to buy, or rent, an MPDU. City staff will review your application and supporting documentation to determine if you meet all the qualifications.

If you are eligible for the MPDU program, City staff will mail you a Certificate of Eligibility. Certificates will be mailed out within four weeks of applications being received by the City of Annapolis.

To purchase an MPDU, you must be able to qualify for a mortgage equal to the sales price of the house. If you have sufficient assets to use for a down payment, it may enable you to qualify for a lower mortgage. If so, you must document this in a letter attached to the application.

The City has established a minimum of $30,000 annual income to be eligible to rent an MPDU.

When May I Apply For A Certificate?

Applications for a Certificate of Eligibility to purchase or rent an MPDU are accepted in person or by mail. Currently the City is accepting applications on a rolling basis. The application may be mailed or hand-delivered to the MPDU Program, Department of Planning and Zoning, 145 Gorman Street, 3rd Floor, Annapolis MD 21401.

Rental Program

Currently the only MPDU rental units available are at the apartment complex 1901 West Street. These units are offered on a first come, first served basis, to certificate holders when units become available. The Property Manager at 1901 West maintains a waiting list. You must have a good credit rating that is acceptable to the management, which will perform a credit check prior to your application to the apartment complex.

In July 2026, the MPDU status of the 1901 West rental units expires. At that time, these units will no longer have reduced rental rates and will revert to market rate rents.

Purchase Program

The sales prices of the "for sale" MPDUs are set by the Department of Planning and Zoning. You must be able to qualify for a mortgage and pay down payment, settlement, and other closing costs that are necessary to purchase the house. All purchase agreements are negotiated between you and the private seller. To obtain a mortgage, you must have good credit, a steady income, and the house must be affordable for your family's income.

Below-market-rate mortgage financing and down payment and closing cost assistance may be available through the Maryland Department of Housing and Community Development's "Maryland Mortgage Program." You can find more information on this program at http://www.mmprogram.org/ or by calling 1-800-638-7781.

Arundel Community Development Services, Inc. (ACDS) also offers mortgage assistance to income eligible households through their Mortgage Assistance Program (MAP). Please contact ACDS at 410-222-7200 for more information.

If planning to purchase an MPDU, you must be able to qualify for a mortgage and must complete home buyers' classes before signing a contract. Persons interested in purchasing an MPDU are required to attend home buying classes prior to signing a sales contract to purchase a house.

Home Buyers classes are offered through the following agencies:

Arundel Community Development Services, Inc. (ACDS)
2666 Riva Road, Suite 210
Annapolis, MD 21401
410-222-7600

Anne Arundel County Community Action Agency
251 West Street
Annapolis, MD 21401
410-626-1900 ext. 1004

To ensure that the MPDUs serve eligible households and are affordable to future owners, restrictions are placed on the MPDUs. The MPDU must be owner occupied. The resale price of the MPDU is controlled for 10 years. The unit may be sold during the occupancy period; however, its resale price is restricted and the unit must be sold to another MPDU-eligible household.

Additional MPDU Information

Please read the MPDU Frequently Asked Questions (FAQs) section. It is intended to cover some of the commonly asked questions about the City's MPDU program. Further questions may be emailed to MPDU@annapolis.gov.