Moderately Priced Dwelling Units (MPDU)

"Annapolis Houses"

To ensure that housing choices continue to be available to city residents and employees with moderate incomes, the City Council passed the Moderately Priced Dwelling Unit Law in 2004. This law requires that 15% of the houses for sale or rent 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.


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

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),   

Household sizeMaximum Income*

* FY 2023 Gross annual income from all current sources for all wage earners in the household.

Not currently own a home and be:

  • A city resident or employed within the city limits for at least the past 12 months (please refer to City Limits map); 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, which include Annapolis Senior High School, Annapolis Middle School, Hillsmere Elementary School and Rolling Knolls Elementary School.
  • 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 has a disability as defined by the Social Security Administration. (May purchase or rent 90 days after the property becomes available.)

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. MPDU staff will review your application and supporting documentation to determine if you meet all the qualifications. 

If you are eligible for the MPDU program, MPDU staff will mail you a Certificate of Eligibility within four weeks.  

To purchase an MPDU you should 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, you may qualify for a lower mortgage amount.    

When May I Apply For A Certificate? 

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

Rental Program

Currently the only MPDU rental units available are at the apartment complex Bell Annapolis on West, located at 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 Bell Annapolis 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 Bell Annapolis rental units will expire. 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.

Homebuyers Classes Required

In addition, you must complete a Homeownership Counseling Program, before signing a sales contract. Persons interested in purchasing an MPDU are required to attend home buying classes prior to signing a sales contract to purchase a house.

Homebuyer classes are offered through the following agencies:

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

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

You may also take homebuyer classes from any HUD Certified counseling agency.
Certificates from both in person and online classes are acceptable.

Financing Resources

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.  Learn more online or call 1-800-638-7781. 

The City of Annapolis offers settlement expense assistance to income-eligible homebuyers (100% Median Household Income (MHI) and below needing assistance with down payment and closing costs associated with the purchase of an MPDU. Depending on your need, this program can provide up to $10,000 in assistance.  

To be eligible for this program, you must: 

  • Have an MPDU Certificate of Eligibility
  • Be a graduate of a HUD-certified Homeownership Counseling Program; and 
  • Be pre-qualified by a lender 

For more information, please go to the MPDU Settlement Expense Assistance section on this website.

Arundel Community Development Services, Inc. also offers mortgage assistance to income-eligible households (80% AMI and below) through their Mortgage Assistance Program (MAP). Please contact ACDS at 410-222-7600 for more information

Additional MPDU Information 

Please read the MPDU Frequently Asked Questions (FAQ’s) section since many questions are answered there. These questions and answers are intended to cover some of the commonly asked questions about the City's MPDU program.