1.1 Purpose of Regulation. This regulation contains the prices and procedures for calculating the approved maximum allowable sales price, including closing costs and sales commission fees, of Moderately Priced Dwelling Units (MPDUs) offered for sale through the Department of Housing and Community Affairs (Department).
1.2 Applicability of Regulation. The MPDU Pricing Standards and provisions of this regulation are applicable to new homes constructed and sold in accordance with the requirements of Chapter 25A of the Montgomery County Code, 2014 (Code), as amended (the MHP Law).
1.3 Sales Price Establishment Date. The Final Unit Sales Price for the MPDUs will be fixed when the Offering Agreement is signed by the Department.
2.1 The following words and phrases have the following meanings, as used in this regulation.
(b) Base Unit – Base Unit MPDUs are standard sized units for each structure type that provide the minimum necessary amenities and features as described in Section 25A.00.01.03.
(c) Base Unit Structure Cost – The sales price of the building aspect of a Base Unit MPDU as provided in the table found in Section 4.2 of this regulation, prior to any adjustments in price or addition of Soft Costs.
(e) Indirect Costs – Expense items that are not considered direct construction costs which include, but are not limited to, construction loan financing expenses, construction loan placement fee, legal and closing costs, marketing expenses and sales commissions, builder’s overhead expenses, engineering and architectural fees, permitting fees, as well as other general pre- and post- construction expenses.
(f) Final Unit Sales Price – The final sales price for which an Applicant can sell an MPDU as calculated under Section 4.1 of this regulation.
(g) Lot Development Cost – The cost to prepare undeveloped land for development, including engineering inspection, permitting, road work, clearing, grading, earthwork, driveways, site drainage, and installation of utilities, excluding water and sewer house connection fees. Lot development costs relate to costs directly attributable to the unit itself.
(h) Moderately Priced Dwelling Unit or MPDU – A dwelling unit which meets the definition provided in Section 25A-3 of the Code.
(i) Offering Agreement – A signed agreement between the Applicant and the Department identifying the MPDUs in a development, describing each MPDU, providing the price of each MPDU, and identifying the date on which the MPDUs will be marketed to eligible households.
(j) Options – Amenities not included in the Final Unit Sales Price that may be voluntarily selected by a purchaser of an MPDU, including upgrades of standard features of the home, and which may be charged at market rate. Options are subject to the limitations in Section 5.9.
(k) Square Foot – Square foot is calculated as finished square footage. Finished square footage is measured from the face of the interior wall, and includes any space with flooring, wall covering and ceilings, such as finished storage space, stairwells, and hallways inside the unit. Finished square footage does not include unfinished basement or attic storage areas, common stairwells, and common hallways.
(l) System Development Charge – A fee imposed by the Washington Suburban Sanitary Commission (WSSC) on new development to connect to the water and sewer system and to pay for the construction of major water and sewer facilities needed to accommodate growth.
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