1.        What is an MPDU?

A moderately priced dwelling unit (MPDU) is a housing unit that has a sales or rental price that is affordable to households with moderate incomes.  The City of Annapolis wants to ensure that housing options continue to be available to its moderate-income residents and employees. To achieve this goal, the City Council passed the Moderately Priced Dwelling Unit Law in 2004; amended in 2019. The law requires that 15% of the houses for sale and 15% of the rental units in new subdivisions of 10 or more units be MPDUs, i.e., affordable to moderate-income households. 

2.        What do you mean by moderately priced housing - is this low income housing? 

We define moderately priced housing as housing affordable to persons or households making approximately 100 percent or less of the Baltimore area median income (for example, $111,751 for a household of four). Realistically, to be able to afford to buy a home under this program, a household must be able to qualify for a mortgage that is at least equal to the price of the house. To afford the rent of an MPDU through this program, a household should earn approximately $40,000 or above in a year unless they have government housing assistance, a Housing Choice Voucher. 

3.        Is this a subsidized housing program? 

No. City law requires private developers to provide a certain number of affordable units within large developments. Neither the City nor the developers provide any subsidy to buyers. However, you may use federal, state, or local government assistance including, but not limited to, Section 8 housing choice vouchers, medical assistance subsidies, rental assistance, or rent supplements.  

4.        Who qualifies? 

Any person or household who meets the minimum program requirements may apply for the MPDU program. You must be income eligible and have the necessary income to make mortgage or rent payments and you must not currently own a home. 

The maximum income limits for the City of Annapolis MPDU Program FY 2023 are as follows: 

Household sizeMaximum Income*

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

 In addition, you must be one of the following: 

  • A City of Annapolis resident within the corporate limits (see map); or 
  • An employee of the City of Annapolis beyond your probationary period; or 
  • Be employed within the City limits for at least the past 12 months; or
  • Be a full-time teacher or staff member in an elementary, middle or high school within the city limits; or
  • A full-time teacher or staff member in the Annapolis Senior High School district, which includes Annapolis Senior High School, Annapolis Middle School, Hillsmere Elementary School and Rolling Knolls Elementary School: or
  • A person who has been employed within the Naval Academy or the Annapolis Naval Base for at least the past 12 months.
  • A resident of Anne Arundel County and have a disability as defined by the Social Security Administration. (Residents are not considered for a rental or purchase until 90 days have passed from the date the units were offered for sale or rental.) 

In addition, if purchasing an MPDU, you must complete homebuyer’s classes provided by Arundel Community Development Services, the Anne Arundel County Community Action Agency or a HUD-certified homebuyer program. 

5.        How do I know if I live in the City of Annapolis 

Maps are available in our office and on the MPDU website showing the corporate limits of the City of Annapolis.

6.        Is there a minimum income required to purchase or rent an MPDU? 

The program guidelines do not specify a minimum income, but you should be able to qualify for a mortgage that is at least the price of the house.  This is because house prices normally require at least that amount of income to make the payment requirements. If a person has sufficient assets to use for a down payment, that would reduce the mortgage. 

To qualify to rent your income should be at least $40,000 a year. You may also use any government subsidy. 

7.        Where can I get an application for the MPDU Program? 

You may download the form in PDF format here.  If you want an application mailed to you, you may call the City at 410-263-7961 ext. 7727.   

8.        What must I include with the application? 

With your application, you must include: 

  • A copy of a credit report with credit score for each applicant (not more than 6 months old). Credit reports can be obtained from one of the following:; Equifax: 1-800-685-1111, Experian: 1-888-397-3742 or Trans Union Corp.: 1-800-916-8800
  • Evidence of your current gross household income for a one-month period (i.e. copies of most recent pay stubs, child support, alimony, and gross annual statement for SSI or SSA or retirement income)
  • A copy of the last 2 statements from all asset accounts (i.e. checking, savings, investment, etc.) 
  • A copy of last two Federal Tax returns, including W2s for each applicant
  • A copy of a photo ID for each applicant 
  • Proof of high school or college enrollment for adult members who are students
  • If claiming a disability, you must provide medical documentation indicating the disability is in accordance to the definition established by the Social Security Administration.

9.        Will you perform a credit check?

The management at Bell Annapolis on West will perform a credit check for rental applicants. The City will not perform a credit check for either the sale or rental of an MPDU. This apartment complex is the only apartment complex in Annapolis that currently has MPDU units available. 

10.     I do not have a job can I still apply? 

Participants in the MPDU program must be able to pay a monthly mortgage or rental payment. You may use federal, state, or local government assistance including, but not limited to, Section 8 housing choice vouchers, medical assistance subsidies, rental assistance, or rent supplements. 

11.     If I am self-employed, what will you accept in the place of a pay stub? 

If you are self-employed, you must submit two years completed federal income tax returns signed and dated, including all schedules.  In addition, a current Profit & Loss Financial Statement(s) is required. If you have a 25% or greater interest in the corporation, we require two years of corporate tax returns. 

12.     I lost last year's tax return - do you really need it? 

Yes. We will return incomplete applications.  You must contact the Internal Revenue Service to request a summary statement of your previously filed tax return. You may request transcripts by calling 1-800-829-1040, or order by mail IRS Form 4506T (Request for Transcript of Tax Return). The IRS does not charge a fee for transcripts.  Allow two weeks for delivery. 

13.     My last tax return shows more income than I now make.   Will this affect my eligibility for the program? 

Probably not. We use pay stubs to determine your current income and we use your tax return to verify other information on your application. 

14.     I do not receive a paycheck stub.  What can I submit instead? 

You can have your employer verify your annual income and year-to-date earnings on company letterhead or request your employer to complete an Income Verification Form (available from our office). 

15.     When may I apply for a certificate? 

Applications for Certificates of Eligibility to purchase MPDUs will be accepted in person or by mail. City staff is processing application for the MPDU Program on a rolling basis. The application may be mailed or hand delivered to the Department of Planning and Zoning, 145 Gorman Street, 3rd floor, Annapolis MD 21401. 

16.     After a person submits an application for a Certificate of Eligibility, about how long does it take to receive the certificate? 

The City will mail certificates within 4 weeks of applications being received.  Within the first 4 weeks after submittal of an application, please do not call.   If an applicant does not receive a certificate within 4 weeks, then it is appropriate to call 410-263-7961 ext. 7727 to discuss the status of your application. 

17.     How long is a certificate valid?  When a certificate expires, can it be renewed? 

A certificate is valid for one year from the date of issue and may be renewed.   At the time of renewal, applicants must submit documentation that shows that their income limits still fall within the eligibility guidelines of the MPDU program and that you still meet all the minimum requirements of the program. When you are within 60 days of the expiration date of the current certificate, resubmit the MPDU application with the same required documentation.  

In addition, you are responsible for keeping the city staff up to date with your information. If you change your address or phone number while your certificate is still active, we may not be able to reach you with information on the availability of units. 

18.     How long do you keep my file? 

Files are only kept for 60 days beyond the expiration date of the certificate. 

19.     What types of units are available through the MPDU program? 

Most units that may be available under the Annapolis MPDU program are apartments, condominiums, townhouses, or single-family homes. The size of the eligible units may range from an efficiency or studio with approximately 600 square feet of gross floor area to a four-bedroom with approximately 2,000 square feet of gross floor area. 

20.     Once a Certificate of Eligibility is issued, then what happens? 

If you are eligible based on your household size, income, and the size of the MPDU being offered, you will receive a letter notifying you of the next time units become available. If you are interested in the units being offered, you must return the completed interest form by the date indicated. 

For rental units, you will receive a call from the management at Bell Annapolis on West to ask you if you are interested in renting a unit. 

21.     What if I do not want to buy or rent the unit that is offered to me by a builder?

If certificate holders are not interested in the unit available from the developer or rental complex that contacts them, they can decline to purchase, or rent, the unit. Their name remains on the list of certificate holders, which is given to future developers of MPDUs.  If a certificate holder chooses not to purchase or rent a unit, there is no guarantee that another unit will become available.  A name is only removed from the list when a certificate holder purchases or rents a unit, requests that his or her name be removed or the certificate expires. 

22.     If I purchase or rent an MPDU, can I rent it to someone else? 

No. You must live in the MPDU as your primary residence. 

23.     Can I come into your office to get more information?

Most of the information you need, including the application, can be found on the MPDU website.

Revised    6-15-23