Section 14-501 - Definitions

(a) In this subtitle the following words have the meanings indicated. (b) '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' 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)

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' means a household consisting of one or more individuals. (e) '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' 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' 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.