FAQ For-sale MPDUs

1.        How are the prices of for-sale units determined? 

Provisions in Chapter 20.30 of the City of Annapolis Code determine the price of homes built under the MPDU Program. 

2.        What is the occupancy period on a for-sale MPDU and what does it mean? 

The occupancy period is a set period of time beginning on the settlement date of the initial sale of the MPDU and 30 years into the future (see question 10). If the MPDU is sold within the occupancy period, the home must be sold to another MPDU client at a price determined by the city. This 30-year occupancy period will renew each time the MPDU is sold. 

3.        What other financial means does an applicant need to purchase an MPDU? 

To purchase an MPDU, you must be able to qualify for financing and to pay the down payment, settlement and other costs that are necessary to -purchase a home. In addition, you must have a good credit rating. The lender decides if you are qualified for a mortgage.  

4.        What other monthly costs besides a mortgage payment must I pay if I purchase an MPDU? 

Your monthly mortgage payment typically includes your homeowner’s insurance payment and your property taxes, in addition to your loan payment. If you purchase a condominium or townhouse, you will be required to pay a monthly condominium fee or a homeowner’s association fee that covers the costs of maintaining the common areas in the development. Some condominium fees may also include part of the utility costs and/or front foot assessments. These fees may range from $100 to more than $500 per month, depending on the property that you purchase. You will be responsible for paying these fees the same as the other property owners in the development. 

5.        What are the requirements for the homebuyer classes? 

Before you sign a sales contract , you must complete a home buyers’ education course. When you complete the course, you will receive a “Home Buyer’s Certificate.” 

Home Buyers classes are offered through the following agencies: 

Arundel Community Development Services, Inc. (ACDS)

2666 Riva Road, Suite 210
Annapolis, MD 21401

Anne Arundel County Economic Opportunity Committee

251 West Street
Annapolis, MD 21401
410-626-1900 ext. 1004

Please contact the agencies above for information on class availability.  We will accept Home Buyers Certificates from other organizations which provide HUD certified home buyer classes. 

6.        Do you provide financing for my home? 

No. We do not provide financing to purchase MPDUs. You must receive financing through a conventional lender (like a bank), a mortgage company, or the Maryland Department of Housing and Community Development’s “Maryland Mortgage Program” (MMP). You can find more information on this program at https://dhcd.maryland.gov/Residents/Pages/default.aspx or by calling 1-800-638-7781.   

7.        Is assistance offered for down payment and settlement expenses?

The Maryland Department of Housing and Community Development offers funds through the Down Payment and Cost Assistance Program. You can find more information on this program at or by calling 1-800-756-0119.  ACDS also has a program called Mortgage Assistance Program (MAP).  This program offers funds for first time homebuyers purchasing a home in Anne Arundel County.  Please contact them at 410-222-7600. 

Please note that you must receive homebuyer education/housing counseling and obtain a housing counseling certificate prior to making an offer and executing a contract. To receive help with down payment, settlement expenses, and/or mortgage assistance from MMP or MAP program, you must obtain housing counseling through ACDS. 

8.     Can a buyer add upgrades to the allowable sales price of a unit and included in the mortgage? 

Yes, however, the sales price for the unit is set by the Department of Planning and Zoning based on the median family incomes determined by HUD. Consequently, if the unit is sold within the 30-year occupancy period, the homeowner may find that the costs of the upgrades may not be recaptured. 

9.        Can a buyer have a cosigner for a mortgage loan? 

There may be a cosigner on a loan as long as the cosigner does not appear on the deed as a co-owner. This provision is at the discretion of the individual lender. 

10.     What is the occupancy period for purchased MPDUs? What does this mean in terms of reselling a unit? 

The city imposes certain resale and occupancy restrictions on the MPDUs when the completed units are sold. The MPDU is subject to resale price controls and owner occupancy requirements. The occupancy period means the time a MPDU is subject to resale price controls and owner occupancy requirements. The occupancy period is 30 years and begins on the date of initial sale. If an MPDU is sold to an eligible person within 30 years after its initial sale, the unit must be treated as a new MPDU and a new occupancy period must begin on the date of the sale. 

The price for which the unit can be resold is controlled during this period, and the unit must be resold through the MPDU program to another MPDU certificate holder. The MPDU must be owner-occupied throughout the applicable occupancy period, and when the owner sells the unit for the first time after the 30-year occupancy period ends, it may be sold at a market price.  Any excess profit is kept by the owner of the MPDU. 

11.     If I pay off my mortgage, does my obligation to the MPDU program remain in effect? 

Yes, the covenants on your MPDU are not tied to your mortgage. The covenants are tied to the property itself. Therefore, paying off your mortgage does not relieve you of your obligation to adhere to the MPDU rules you agreed to when you purchased your property. 

12.  Can an MPDU owner refinance their MPDU at current market value? 

Technically yes, but the owners cannot refinance for more than the MPDU value, as determined by Department of Planning and Zoning. In addition, the owner must be aware that he/she is required to sell the unit to another MPDU-eligible household at a price set by the city if he/she sells during the occupancy period. Therefore, it is dangerous to refinance up to the new market value and take all the equity out of the property. If the owners are forced to sell shortly after the refinancing and before the occupancy period is completed, they could be put in severe financial jeopardy.  Contact the Department of Planning and Zoning at 410-263-7961 for additional information.

Revised    6-15-23