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Obligations Under the Moderately Priced Dwelling Unit (MPDU) Program Once Mortgage is Paid Off

The MPDU covenants on an MPDU are not tied to the mortgage but to the property itself. Therefore, paying off the mortgage, whether an HOC, FHA, VA or conventional mortgage does not relieve the owner of the obligation to adhere to the MPDU rules agreed to when the property was purchased. Additionally, when the shared profit obligation is calculated for an owner selling an MPDU after the expiration of the control period, the formula for the shared profit calculation does not take into account the amount of the mortgage.
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Last Updated: 07/05/2016 16:09:50