§ 14-501. Definitions

   (a) In general. -- In this subtitle the following words have the meanings indicated.

(b) Affordable housing land trust. -- "Affordable housing land trust" means an entity that:

   (1) Provides affordable housing to low-income families and moderate-income families through an affordable housing land trust agreement; and

   (2) Is organized or managed by:

      (i) A nonprofit organization exempt from taxation under § 501(c)(2), (3), or (4) of the United States Internal Revenue Code; or

      (ii) A unit or instrumentality of the State or a political subdivision of the State.

(c) Affordable housing land trust agreement. -- "Affordable housing land trust agreement" means an agreement between an affordable housing land trust and a purchaser of real property owned by the affordable housing land trust, or for which the affordable housing land trust has a proprietary or reversionary interest, that:

   (1) Grants the affordable housing land trust a preemptive right to purchase or repurchase the property, including any improvements on the property;

   (2) Contains language restricting the transfer, lease, sublease, assignment, or occupancy of the property with regard to:

      (i) Potential transferees, sublessees, assignees, or occupants; and

      (ii) The price at which the property may be transferred; or

   (3) Imposes other conditions on the use or transfer of the property that would trigger a reversionary interest and that are designed to ensure that the property remains available and affordable to low-income families and moderate-income families.

(d) Family. -- "Family" means a household consisting of one or more individuals.

(e) Low-income family. -- "Low-income family" means a household with an income that does not exceed 80% of the area median income for a household of the same size.

(f) Moderate-income family. -- "Moderate-income family" means a household with an income that does not exceed 140% of the area median income for a household of the same size.

(g) Nonprofit status. -- "Nonprofit status" means the recognition by the Internal Revenue Service that an affordable housing land trust is exempt from taxation under § 501(c)(2), (3), or (4) of the Internal Revenue Code.

HISTORY: 2010, chs. 609, 610.