1. 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 below). 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.
2. Are there any limits on the sale price of an MPDU after the occupancy period is up?
No. The owner may sell the MPDU at a fair market price.
3. Once the occupancy period has expired, can the owner sell to whomever they want?
4. How are the MPDU requirements enforced?
The city’s MPDU requirements are enforced through covenants that are placed on the property. Once the occupancy period has ended, these covenants are released.
5. How much of a deposit is required with the sales contract for the purchase of an MPDU?
The deposit required shall not exceed $1,000.
6. Does the City take action against MPDU owners who do not follow the covenants and program requirements?
7. May an MPDU owner rent his/her purchased MPDU?
No. The owners must live in the MPDU as their primary residence, or they must sell it to another Certificate Holder.
8. If an owner pays off his/her mortgage, does his/her obligation to the MPDU program remain in effect?
Yes. The covenants on the MPDU are not tied to the mortgage. The covenants are tied to the property itself. Therefore, paying off the mortgage does not relieve the owner of his/her obligation to adhere to the MPDU rules agreed to when the property was purchased.