(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)    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.