Montgomery County is pleased to announce that the Workforce Housing Units in The Darcy have been sold. The information below provides general information and also guidance to existing owners.
- Description
- Workforce Housing Restrictions
- Reselling During the 20 Year Control Period
- Reselling After the 20 Year Control Period
- The Darcy Workforce Housing Information Packet
Description
Montgomery Countys previously announced the availability of 11 Workforce Housing condominium units for sale at The Darcy, a highrise community in downtown Bethesda. The 2 bedroom 2 bath condominium units were priced at $343,675 to be affordable to households whose average annual household income is at 100% of the Washington Primary Metropolitan Statistical Area median income.
The following chart describes the 11 WFH condominiums that were sold at The Darcy, number of bedrooms and bathrooms, approximate square footage, approximate monthly condo fees, and sales prices. Click on Unit No. to see floor plan.
| Unit Number | Number of Bedroom/Baths | Approximate Square Footage | Approximate Condo Fee | Sales Price |
|---|---|---|---|---|
| Unit 207 | 2BR/2 full baths | 855 sq ft | $756 | $343,675 |
| Unit 306 | 2BR/2 full baths | 890 sq ft | $781 | $343,675 |
| Unit 308 | 2BR/2 full baths | 820 sq ft | $726 | $343,675 |
| Unit 408 | 2BR/2 full baths | 820 sq ft | $726 | $343,675 |
| Unit 509 | 2BR/2 full baths | 820 sq ft | $726 | $343,675 |
| Unit 608 | 2BR/2 full baths | 820 sq ft | $726 | $343,675 |
| Unit 708 | 2BR/2 full baths | 820 sq ft | $726 | $343,675 |
| Unit 808 | 2BR/2 full baths | 820 sq ft | $726 | $343,675 |
| Unit 809 | 2BR/2 full baths | 845 sq ft | $747 | $343,675 |
| PH06 | 2BR/2 full baths | 820 sq ft | $726 | $343,675 |
| PH07 | 2BR/2 full baths | 845 sq ft | $747 | $343,675 |
Workforce Housing Restrictions
Homes that are purchased through the WFH program at the Darcy 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 an owner can no longer lives there due to employment or other reasons, they must sell the home to another WFH household.
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.
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.
If a WFH home is sold during the Control Period, a new 20-year Control 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 DHCA.
When the property is sold after the 20-year Control Period, the owner must pay half of the excess proceeds to the County’s Housing Initiative Fund. After the Control Period expires, owners are strongly encouraged to contact DHCA prior to refinancing their WFH home. Refinancing does not relieve the owner from the requirement to pay half of the excess proceeds to the County’s Housing Initiative Fund upon sale; therefore, it is important NOT to refinance for the full market value. See section below Reselling WFH Unit After the 20 Control Period.
Reselling a WFH at The Darcy During The 20 Year Control Period
During the 20-year Control Period, the WFH homeowner must first contact DHCA to obtain the controlled resale price of the WFH home and to see if the County wishes to purchase the home. If the County does not choose to purchase the WFH home, the home must be sold to a household whose income does not exceed the maximum income for the WFH program (120% of the area medium income). If the controlled resale price exceeds a price that is affordable to a qualified household, DHCA may provide a subsidy for the resale WFH home. If DHCA elects not to provide a subsidy during the 60-day offering period, the owner of the WFH home may be permitted to sell the WFH home at market price, and the Covenants will be released, but the homeowner may only keep $10,000 of the excess proceeds from the sale.
Example of how the resale price of a WFH home will be calculated during the 20 year control period.
Reselling a WFH at The Darcy After The 20 Year Control Period
After the 20-year Control Period expires, the WFH owner may sell the home at a market price, but must pay half of the excess proceeds to the County’s Housing Initiative Fund. The excess proceeds are the difference between the market sales price and the original WFH base sales price, plus a yearly percentage increase that is equal to the 10-year average percent change in the consumer price index, plus an allowance for a real estate commission (if a licensed real estate agent is used) not to exceed 6%, plus an allowance for transfer taxes and recordation charges.
Example of how the shared profit calculated is made after the 20 year control period.