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

2. (b) “Affordable housing land trust” means an entity that:

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

   2. (2) Is organized or managed by:

      1. (i) A nonprofit organization exempt from taxation under § 501(c)(2), (3), or (4) of the United States Internal Revenue Code; or
      2. (ii) A unit or instrumentality of the State or a political subdivision of the State.

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

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

      1. (i) Potential transferees, sublessees, assignees, or occupants; and
      2. (ii) The price at which the property may be transferred; or
   3. (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.
4. (d) “Family” means a household consisting of one or more individuals.
5. (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.
6. (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.
7. (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.

Added by Acts 2010, c. 609, § 1, eff. Oct. 1, 2010; Acts 2010, c. 610, § 1, eff. Oct. 1, 2010. Amended by Acts 2023, c. 487, § 1, eff. June 1, 2023.