When used in this chapter, the following words have the following meanings:

1. (1) AFFORDABLE HOUSING. Any residential dwelling unit that is part of a project subject to a legally enforceable restriction limiting occupancy between one and four family housing units or to households comprising at least 40 percent of the units in a multifamily project, either based on an income threshold or rent and housing cost limitation. For purposes of this definition, a unit need not be restricted in perpetuity. Any unit subject to a qualifying restriction for any portion of its compliance or regulatory period shall constitute affordable housing during that period, and a ground lease may have a term longer than such period. These restrictions are applicable under any of the following programs or through lease or land use covenants that are substantially similar:

   1. a. Low Income Housing Tax Credits (LIHTC) Units. Any unit qualifying for low income housing tax credits under 26 U.S.C. § 42, including units qualifying under the income averaging election, regardless of the applicable income limit or any other percentage of area median income designated for the unit under the averaging set-aside requirements under that section.
   2. b. Project-Based Section 8 Units. Any unit covered by a Housing Assistance Payments (HAP) contract under 42 U.S.C. § 1437f, including Housing Choice Vouchers, project-based rental assistance (PBRA) or project-based vouchers (PBV).
   3. c. Other federally assisted units. Any unit receiving rental assistance, financing, or use restrictions under any federal affordable housing program, including, but not limited to, HOME Investment Partnerships authorized under 42 U.S.C. Chapter 130, USDA Rural Development Section 515 or 538 programs authorized under 42 U.S.C. § 1485, HUD Section 202 or 811 programs authorized under 12 U.S.C. § 1701q and 42 U.S.C. § 8013, and public housing under the United States Housing Act of 1937, 42 U.S.C. §§ 1437 et seq.
   4. d. State and Local Program Units. Any unit subject to a deed restriction, regulatory agreement, or other legally enforceable instrument imposed by or in connection with a state, county, or municipal affordable housing program, inclusionary zoning requirement, or housing finance agency financing.
   5. e. Other Income or Rent-Restricted Units. Any unit subject to an income restriction at or below 120 percent of area median income (AMI) or a rent restriction requiring that gross rent, including utilities, not exceed an affordable level as determined by reference to AMI, HUD-published fair market rents, or an equivalent benchmark established by a governmental or quasi-governmental authority, provided that if relying upon this restriction, at least 90 percent of the units in the project must be subject to this restriction.
2. (2) BOARD OF DIRECTORS. The governing body of a community land trust elected and formed in accordance with the bylaws of such entity, subject to the requirements of this chapter.

3. (3) COMMUNITY LAND TRUST. An entity that:

   1. a. Provides affordable housing to low-income and moderate-income families through ground leases; and
   2. b. Is organized by a Class 1 municipality.
4. (4) GROUND LEASE. A lease between a community land trust and a tenant of real property owned by a community land trust, that is designed to ensure that the property remains affordable housing.
5. (5) LIMITED EQUITY PRICE. A price for the sale of any improvement located on community land trust-owned land which is determined by means of a resale-restricted formula.
6. (6) LOW-INCOME FAMILY. A family household with an aggregate income at or below 80 percent of the metro statistical area median income adjusted for family size, as determined by the Department of Housing and Urban Development (HUD).
7. (7) MODERATE-INCOME FAMILY. A family household with an aggregate income at or below 120 percent of the metro statistical area income adjusted for family size, as determined by HUD.
8. (8) ORGANIZING MUNICIPALITY. The Class 1 municipality creating the community land trust pursuant to this chapter.
9. (9) PREEMPTIVE PURCHASE OPTION. The right of a community land trust or the organizing municipality to purchase the improvements constructed on the community land trust-owned real property pursuant to a ground lease prior to any other party.
10. (10) PROCEED-SHARING PROVISIONS. The resale formula provisions in the ground lease which establish the maximum resale price and determine the allocation of sale proceeds between the seller and the preservation of affordability for future buyers.
11. (11) PUBLIC RECORDS. Shall have the same meaning set forth in Section 41-13-1, as if the community land trust was a subdivision of government and the community land trust’s transactions constituted public business. Public records shall include any document that reflects the community land trust ownership, acquisition or leasing of real property, contracts with and records of vendors, and correspondence with any person or entity.
12. (12) QUALIFYING LESSEE. An individual or family that meets the criteria of low-income family or moderate-income family on the effective date of the lease.
13. (13) REAL PROPERTY. Both land and improvements, including a leasehold interest in real property.
14. (14) RESALE-RESTRICTED FORMULA. A formula designed to keep community land trust-owned real property affordable, or the requirements included as part of the program which determined the property as affordable housing.
15. (15) SPECIFIED INTEREST. The leasehold interest in the real property and associated structural improvements as distinct from the fee simple interest in the land retained by the community land trust.

(Act 2026-545, §3.)