1. (a)

   1. (1) In this section the following words have the meanings indicated.
   2. (2) “Controlled by” means a business structure in which a nonprofit organization is a managing member, general partner, or otherwise controlling entity with a for-profit member or partner as demonstrated by an attorney licensed in the State.
   3. (3) “Nonprofit organization” means an organization that is qualified as tax-exempt under § 501(c)(3) of the Internal Revenue Code and has been designated as such for at least 3 years.

   4. (4) “Qualified project” means a residential project that:

      1. (i) consists of new construction or substantial renovation;

      2. (ii) is on land, including land that is subject to a ground lease, that:

         1. 1. is wholly owned by a nonprofit organization; or
         2. 2. includes improvements owned by an entity that is controlled by a nonprofit organization;
      3. (iii) contains at least 25% of units that are affordable dwelling units; and
      4. (iv) is deed-restricted to include 25% of units that are affordable dwelling units for a period of at least 40 years.

2. (b)

   1. (1) In accordance with this subsection, a local jurisdiction shall allow the density of a qualified project to exceed the density otherwise authorized in a district or zone.
   2. (2) In an area zoned for single-family residential use, a qualified project may include middle housing units.

   3. (3) In an area zoned for multifamily residential use, a qualified project:

      1. (i) shall have a density limit that exceeds by 30% the allowable density in that zone for uses that are not part of a qualified project; and
      2. (ii) may consist of mixed-use.
   4. (4) Subject to § 7-509 of this subtitle, in an area zoned for nonresidential use, a qualified project may consist of mixed-use development with density limits that do not exceed the highest allowable density in the local jurisdiction's multifamily residential zones.
   5. (5) In an area zoned for mixed-use, a qualified project may include 30% more housing units than are allowed in that zone for uses that are not part of a qualified project.
   6. (6) If a qualified project is allowed to exceed the density otherwise authorized by a local jurisdiction in a district or zone under this section, the qualified project may not also exceed the authorized density under § 7-502 or § 7-503 of this subtitle.

Added by Acts 2024, c. 122, § 1, eff. Jan. 1, 2025.