Affordable Dwelling Unit (ADU) Program - For-Sale Units

Affordable Dwelling Unit (ADU) Program - For-Sale Units is a shared-appreciation loan for homebuyers in Washington, District of Columbia, administered by DC Department of Housing and Community Development (DHCD). Affordable Dwelling Units (ADUs) are below-market, locally income-restricted for-sale and for-rent homes that DHCD monitors and enforces in the District. The for-sale ownership side provides price- and resale-restricted condos, townhomes, or houses produced in exchange for zoning relief, tax incentives, public financing, or access to District land. Income limits, affordability periods, and resale restrictions are set in each unit's originating documents; where not in conflict, DHCD administers ADUs under its Inclusionary Zoning regulations. ADUs exclude federally restricted (HOME/LIHTC/CDBG) and Housing Production Trust Fund units. Below-market purchase price on income-restricted homes. DHCD-monitored affordability. Resale-price protection. Administered under standardized IZ procedures where applicable. Combinable with HPAP/DC Open Doors. Funding comes from Units produced in exchange for zoning relief, tax incentives, public financing, and/or the right to purchase or lease District-owned land (no direct cash assistance).

Affordable Dwelling Unit (ADU) Program - For-Sale Units is a shared-appreciation loan and is repaid under the terms set by DC Department of Housing and Community Development (DHCD). Repayment is triggered by Resale governed by covenant/originating-document resale restrictions; owner must submit IZ-ADU Resale Price Request to DHCD and receive a pricing letter before selling or refinancing. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Affordable Dwelling Unit (ADU) Program - For-Sale Units is open to homebuyers who will live in the home as their primary residence. A homebuyer education course is required, through Where DHCD applies IZ procedures: IZ Orientation plus approved 8-hour homebuyer class for purchasers. Residency requirement: Owner must occupy as primary residence; live/work-in-DC priority where IZ procedures apply. Eligibility terms (income limit, affordability period, resale restriction) are project-specific and defined in the unit's deed/covenant/LDA/ADU administration plan; buyers must occupy as primary residence; owner must submit IZ-ADU Resale Price Request before selling/refinancing; third-party contributions subject to DHCD policy. Gaps: no uniform credit score, DTI, 4-person income dollar limit, or assistance amount (no cash provided; varies per project).

Affordable Dwelling Unit (ADU) Program - For-Sale Units limits household income to 80% of the area median income, which varies by county and household size. Income limits are project-specific, set in each unit's originating documents; where not in conflict, DHCD applies IZ income limits (commonly 50%-80% MFI). Exact dollar limits vary by project and household size. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Affordable Dwelling Unit (ADU) Program - For-Sale Units caps the purchase price as follows: Below-market purchase price set per unit by originating documents / DHCD pricing (varies by project). Eligible property types include Condo, Townhome, and Single Family. New construction is eligible. Manufactured homes are not eligible.

Affordable Dwelling Unit (ADU) Program - For-Sale Units serves homebuyers purchasing in Washington, District of Columbia.

Applications for Affordable Dwelling Unit (ADU) Program - For-Sale Units go through DC Department of Housing and Community Development (DHCD), which publishes the current terms and the application steps on its own site. Funds are reserved through DHCD lottery or waitlist (same mechanism as IZ for most units). Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.