MPDU -- is it legit? (Bethesda, Gaithersburg: section 8, for sale, rental)

[superseiyan]

Hi all. Wondering if low-income housing assistance is legit. I'm talking about the Moderately Priced Dwelling Unit program in Montgomery County.

I'm a graduate student winding up school and I will not be renewing my lease. I'm paying mid-$1600s rent right now in Gaithersburg for a 2BDR w/ loft (doesn't include utilities). For family and work reasons I'd like to move a little closer to DC, preferably Bethesda but Rockville might work again.

I understand that paradoxically, there is a chance I can get a better location, a better place and a better price under MPDU, but that seems to good to be true. Do luxury type places really offer low rent? Reason the numbers might work out is because I'd do it + wife.

Second question is that under this program, what terms are more favorable? Buying with MPDU, or renting with MPDU, saving and then buying on your own after 3-5 years?

Lastly a clarification--is MPDU essentially the same thing as section 8? I'm a little confused.

[North Beach Person]

I can't answer most of your questions except to state that the program was implemented several years ago. The idea is that developers get increased density in exchange for constructing work force (new PC term) housing.

[Zimar]

Yup, it's totally legit. We lived in an MPDU unit for 4 years while I was in grad school. It was really nice. The income restrictions basically make it available to middle class people, whereas section 8 is for someone who makes little to no money. But remember that a lot of people are aware of it and a lot of buildings have waitlists, tons of paperwork, etc., anything to thin out the herd.

[G-Burg Native]

Here is the MPDU link: Moderately Priced Dwelling Unit (MPDU): Homepage

Just remember, if you purchase a home there are requirements as to how long you have to live there before you can sell and make a profit...or something of that nature.

I know two people who bought an MPDU. Both have done very well for themselves. One still lives in hers as she bought many many years ago in North Potomac...before it was North Potomac. The other lady sold her condo in King farm during the boom and was able to make a profit.

MPDUs that are for sale are mixed in with homes that go for market rate and that is the case in my own neighborhood.

MPDUs are usually simpler in design and may offer basic design options like laminate counter tops, etc rather than upgraded features.

[armory]

Originally Posted by G-Burg Native

MPDUs are usually simpler in design and may offer basic design options like laminate counter tops, etc rather than upgraded features.

I don't know how people survived the last century. Laminate counter tops was the standard everywhere up to the turn of the century.

[G-Burg Native]

Originally Posted by armory

I don't know how people survived the last century. Laminate counter tops was the standard everywhere up to the turn of the century.

I know right? But I'm sure you've seen all the home buying shows where the potential buyers won't settle for anything less than granite counter tops, 3,000 square feet, stainless steel appliances, and a huge fenced in back yard for little Trixie..all for $250,000! Ha ha!

[North Beach Person]

Originally Posted by G-Burg Native

I know right? But I'm sure you've seen all the home buying shows where the potential buyers won't settle for anything less than granite counter tops, 3,000 square feet, stainless steel appliances, and a huge fenced in back yard for little Trixie..all for $250,000! Ha ha!

And the $250K is their "stretch" price.

[armory]

Originally Posted by G-Burg Native

I know right? But I'm sure you've seen all the home buying shows where the potential buyers won't settle for anything less than granite counter tops, 3,000 square feet, stainless steel appliances, and a huge fenced in back yard for little Trixie..all for $250,000! Ha ha!

A woman I know inherited a bunch of rental properties and wanted to sell them off a few years ago. She did some work to the houses - going overboard - so they would sell. She put designer tile in the bathrooms, granite counter tops, stainless appliances and custom fixtures in the kitchens.

I asked her repeatedly why and her reasoning was it would sell faster. No, they didn't. And she never recouped the money spent on fixing up the houses.

People will often buy a used home with nice appointments, and redo it to suit their tastes....even though the stuff they are replacing is brand new and expensive. I have seen it too many times.

[tw71]

Armory, yeah.... and I hate to sound sexist, but I've observed the same thing several times, always with women.

I think women tend to place more value on such things as updated kitchens or modern, elegant bathrooms than guys do -- and it can cloud their judgement when they're trying to calculate where money should be spent most wisely to get a given place to sell quickly and/or at top dollar.

The problem is, a lot of those things really do make for more appealing photographs when someone is first house shopping online. But those same people want to negotiate to get all of that thrown in at no extra cost to them. They compare with other homes they deem equivalent based strictly on square footage, number of bedrooms/baths and general location.

[superseiyan]

So I'm actively looking. The waiting lists are insane and demoralizing if anyone's trying to get on. 4 years.....70 people....etc. However, someone was telling me that the waiting list is really not as bad as it seems if you wait it out a few months as people have usually committed to another lease by the time their turn is up.