Montgomery County is pleased to announce that the Workforce Housing Units in Olney Springs have been sold.
Montgomery County's Olney Springs development is one of the first communities in the county to offer Workforce Housing homes for sale. The Workforce Housing (WFH) program provides an exciting and affordable opportunity to own a home in Montgomery County. The WFH Program offers affordably priced townhomes and single-family homes to homebuyers with household incomes between 71% and 120% of the Washington DC area median income (between $67,500 and $139,000).
Homes that are purchased through the WFH program have certain controls designed to keep the home affordable. New and resale homes have a 20 year control period, except as otherwise described in the Reselling a WFH Home section below. These controls are enforced by restrictive covenants placed on the property that state:
- During the control period, the owners must occupy the home as their primary residence. The home may not be rented out. If you can no longer live there due to employment or other reasons, you must sell the home to another Workforce Housing household.
- During the control period, the owner can sell the WFH home for no more than the DHCA established controlled resale price through the WFH program to an approved WFH program participant.
- When the property is sold after the twenty-year control period, the owner must pay half of the excess profit to Montgomery County.
- During the control period, the owner must not refinance the home for more than the controlled resale price established by DHCA (owners are prohibited from refinancing the property based on the market value of the property). The refinancing must not result in reducing the owner’s equity below $10,000.
After the control period expires, owners are strongly encouraged to contact DHCA prior to refinancing their WFH. Refinancing does not relieve the owner from the requirement of making a shared profit payment to the County upon sale; therefore, it is important NOT to refinance for the full market value.
If a WFH home is sold during the Control Period, a new twenty (20) year restriction period will start from the date of the resale. Once the WFH homes have been sold by the developer, the agency responsible for enforcing and administering the program's long-term rules and regulations is the Montgomery County Department of Housing and Community Affairs (DHCA). See the Reselling a WFH Home section below for more details.
- By purchasing a WFH home with a standard 30-year fixed rate mortgage, your monthly mortgage payment will not increase each year, unlike rent which landlords typically increase annually.
- When you sell your WFH home during the control period at the WFH controlled resale price, you are eligible to get back what you originally paid for the WFH, plus a yearly percentage increase that is equal to the 10-year average percent change in the consumer price index, and the cost of eligible improvements.
- When you sell your WFH home after the 20 year resale price control period expires, you may sell your home at a market resale price. You will keep half of the excess profit.
- By purchasing a WFH home in Montgomery County, you and your family receive all the great benefits of living in Montgomery County at an affordable price: great schools, cultural activities, shopping and employment opportunities!
WFH homes are sold at below-market sales prices. The sales prices for the WFH homes are determined by the County and are based on three income ranges, in order to ensure that affordable homes are available to the full range of income levels served by the program.
Median Income Group A prices are based on households with income of 71% to 80% of median.
Median Income Group B prices are based on households with income of 81% to 100% of median.
Median Income Group C prices are based on households with income of 101% to 120% of median.
An approximately equal number of homes will be available in each of these three groups. Interested households may only purchase a home priced according to the household’s income group.
The following chart outlines the 34 homes available at Olney Springs, average square feet, approximate monthly homeowners' association fees, and approximate sales prices. This chart is for illustrative purposes only. The individual home prices, sizes, and other related information will be provided to you by the Sales Representative once the income group for which your household qualifies is determined.
|Median Income Group||Type||Avg. Square Feet||#Avail.||Appx. HOA Fee||Appx. Sales Price|
- Household Income Range
The total household income range is based on household size and determines the WFH median income group for the household. To be eligible to participate in the Olney Springs Workforce Housing program, your total household income for your household size must be within the ranges listed for median group A, B, or C in the following chart (effective March 11, 2013):
WFH Household Income Ranges Household Size Median Group A
71% to 80%
Median Group B
81% to 100%
Median Group C
101% to 120%
3 $67,500 - $77,500 $77,500 - $96,500 $96,500 - $116,000 4 $75,000 - $86,000 $86,000 - $107,500 $107,500 - $129,000 5+ $81,000 - $92,500 $92,500 - $116,000 $116,000 - $139,000
To be eligible to purchase a WFH home at Olney Springs, your household size must include at least three people.
- Mortgage Pre-Qualification Letter
Households applying to the WFH purchase program must obtain and provide a mortgage pre-qualification letter from a developer-preferred lender in a format approved by DHCA (please contact sales office for a list of preferred lenders).
Median Income Group and Olney Springs Estimated Pre-Qualifying Amount Median Income Group Estimated Pre-Qualifying Amount Group A: 71% - 80% of median $223,500 Group A: 81% - 100% of median $289,000 Group A: 101% - 120% of median $364,000
The pre-qualification letter is used to demonstrate that the household qualifies for a mortgage amount equal to or greater than the sales price of the WFH home and has adequate funds available to pay the down payment. It also provides information on the household’s assets. Households who are unable to obtain a mortgage pre-qualification letter in the amount required will not be eligible to participate in the WFH program.
Pre-qualification letters from lenders other than a developer-preferred lender will not be accepted for purposes of the application. Once you are approved to participate in the program, you are not required to use the developer's preferred lender to obtain you mortgage.
In today's real estate market, lenders may require between three to ten percent down payment. The down payment can be paid using your own funds or by utilizing assistance provided by the Housing Opportunities Commission and other local government financing assistance programs. The pre-qualified mortgage amount plus funds the household has available for a down payment must be equal to or greater than the lowest sales price for your Income Group. The following chart shows the minimum total amount for each median income range (assuming you have enough cash assets for a five percent (5%) down payment).
- Total Asset Limitation
Total household assets must not exceed 25% of the amount for which your household is pre-qualified by a lender. Using the example in the preceding paragraph, if your household is pre-qualified for a mortgage of $256,500, then your combined household assets may not exceed $64,125.
DHCA will allow any funds used towards a down payment to be deducted from the asset calculation, up to 20% of the loan amount. Assets are defined as the amount of money in, or value of, the paid down payment, checking accounts, savings accounts, certificate of deposit and/or money market accounts, stocks and/or mutual funds, bonds, real property (less outstanding debt), and trust funds. Assets not included in this definition include the amount in tax deferred retirement savings plans, amount in tax deferred college savings plans, cash value of whole life insurance, automobiles (up to one per adult), and cash value of household furnishings and jewelry.
- Other Requirements
Households applying to the Olney Springs Workforce Housing program MUST be able to:
- Pay a down payment, settlement fees including advance taxes and advance insurance, other closing costs, and a monthly mortgage payment, utilities, and other costs
- Be responsible for all home maintenance, home improvements, homeowners’ association fees, and compliance with homeowners’ association rules and regulations.