EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0503*
HOUSE BILL 503
M1 3lr1860
CF SB 923
By: Delegates Stein, Lehman, Addison, Allen, Boyce, Bridges, Edelson, Healey,
Ruth, Smith, and Stewart Stewart, Foley, Guyton, Holmes, J. Long, Love,
Terrasa, and Ziegler
Introduced and read first time: January 30, 2023
Assigned to: Environment and Transportation
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 7, 2023
CHAPTER ______
AN ACT concerning 1
Natural Resources – Greenspace Equity Program – Establishment 2
FOR the purpose of establishing the Greenspace Equity Program in the Department of 3
Natural Resources to provide grants to eligible applicants for enhancing the public 4
health and livability of overburdened communities and underserved communities by 5
implementing projects to preserve, create, and enhance community greenspace; 6
requiring the Department to submit each grant award to the Board of Public Works 7
for approval before awarding a grant under the Program; requiring the Board of 8
Public Works to approve or deny a proposed grant award submitted by the 9
Department requiring the Department to submit certain grant applications to the 10
Maryland State Clearinghouse for Intergovernmental Assistance; establishing that 11
certain grant applications are subject to approval by the Board of Public Works; 12
establishing the Greenspace Equity Advisory Board in the Department to serve as a 13
consultant to the Department in the implementation and administration of the 14
Program; and generally relating to the Greenspace Equity Program. 15
BY repealing and reenacting, without amendments, 16
Article – Environment 17
Section 1–701(a)(1), (7), and (8) 18
Annotated Code of Maryland 19
(2013 Replacement Volume and 2022 Supplement) 20
BY repealing and reenacting, without amendments, 21 2 HOUSE BILL 503
Article – Natural Resources 1
Section 5–903(a)(1) and (2)(i) 2
Annotated Code of Maryland 3
(2018 Replacement Volume and 2022 Supplement) 4
BY repealing 5
Article – Natural Resources 6
Section 5–903(a)(2)(vi) 7
Annotated Code of Maryland 8
(2018 Replacement Volume and 2022 Supplement) 9
BY adding to 10
Article – Natural Resources 11
Section 5–903(a)(2)(vi); and 5–9D–01 through 5–9D–04 5–9D–05 to be under the new 12
subtitle “Subtitle 9D. Greenspace Equity Program” 13
Annotated Code of Maryland 14
(2018 Replacement Volume and 2022 Supplement) 15
BY repealing and reenacting, without amendments, 16
Article – Real Property 17
Section 14–501 18
Annotated Code of Maryland 19
(2015 Replacement Volume and 2022 Supplement) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
Article – Environment 23
1–701. 24
(a) (1) In this section the following words have the meanings indicated. 25
(7) “Overburdened community” means any census tract for which three or 26
more of the following environmental health indicators are above the 75th percentile 27
statewide: 28
(i) Particulate matter (PM) 2.5; 29
(ii) Ozone; 30
(iii) National Air Toxics Assessment (NATA) diesel PM; 31
(iv) NATA cancer risk; 32
(v) NATA respiratory hazard index; 33
HOUSE BILL 503 3
(vi) Traffic proximity; 1
(vii) Lead paint indicator; 2
(viii) National Priorities List Superfund site proximity; 3
(ix) Risk Management Plan facility proximity; 4
(x) Hazardous waste proximity; 5
(xi) Wastewater discharge indicator; 6
(xii) Proximity to a Concentrated Animal Feeding Operation (CAFO); 7
(xiii) Percent of the population lacking broadband coverage; 8
(xiv) Asthma emergency room discharges; 9
(xv) Myocardial infarction discharges; 10
(xvi) Low–birth–weight infants; 11
(xvii) Proximity to emitting power plants; 12
(xviii) Proximity to a Toxic Release Inventory (TRI) facility; 13
(xix) Proximity to a brownfields site; 14
(xx) Proximity to mining operations; and 15
(xxi) Proximity to a hazardous waste landfill. 16
(8) “Underserved community” means any census tract in which, according 17
to the most recent U.S. Census Bureau Survey: 18
(i) At least 25% of the residents qualify as low–income; 19
(ii) At least 50% of the residents identify as nonwhite; or 20
(iii) At least 15% of the residents have limited English proficiency. 21
Article – Natural Resources 22
5–903. 23
(a) (1) (i) Of the funds distributed to Program Open Space under § 13–209 24
of the Tax – Property Article, up to $3,000,000 may be transferred by an appropriation in 25 4 HOUSE BILL 503
the State budget, or by an amendment to the State budget under Title 7, Subtitle 2 of the 1
State Finance and Procurement Article, to the Maryland Heritage Areas Authority 2
Financing Fund established under Title 13, Subtitle 11 of the Financial Institutions Article 3
to be used for the purposes provided in that subtitle. 4
(ii) Of the amount transferred under subparagraph (i) of this 5
paragraph, up to $300,000 may be distributed to the Maryland Historical Trust within the 6
Department of Planning to be awarded as noncapital historic preservation grants. 7
(2) (i) 1. Of the remaining funds not appropriated under paragraph 8
(1) of this subsection: 9
A. One half of the funds shall be used for recreation and open 10
space purposes by the Department and the Historic St. Mary’s City Commission; and 11
B. 20% of the funds or $21,000,000, whichever is greater, 12
shall be appropriated to the Forest and Park Service in the Department to operate State 13
forests and parks. 14
2. Except as otherwise provided in this section, any funds the 15
General Assembly appropriates to the State under this subsection shall be used only for 16
land acquisition projects. 17
[(vi) For each of fiscal years 2010 through 2015, $1,217,000 of the 18
State’s share of funds available under subparagraph (i)1A of this paragraph may be 19
appropriated in the budgets of the Department, the Department of General Services, and 20
the Department of Planning for expenses necessary to administer this Program.] 21
(VI) A PORTION OF THE STATE’S SHARE OF FUNDS AVA ILABLE 22
UNDER SUBPARAGRAPH (I)1A OF THIS PARAGRAPH FO R THIS PROGRAM SHALL BE 23
TRANSFERRED BY AN AP PROPRIATION IN THE STATE BUDGET TO THE GREENSPACE 24
EQUITY PROGRAM ESTABLISHED U NDER SUBTITLE 9D OF THIS TITLE AS FOLLOWS : 25
1. FOR FISCAL YEAR 2025, UP TO $5,000,000; 26
2. FOR FISCAL YEAR 2026, UP TO $7,000,000; AND 27
3. FOR FISCAL YEAR 2027 AND EACH FISCAL YEAR 28
THEREAFTER , UP TO $10,000,000. 29
SUBTITLE 9D. GREENSPACE EQUITY PROGRAM. 30
5–9D–01. 31
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 32
INDICATED. 33 HOUSE BILL 503 5
(B) “BOARD” MEANS THE GREENSPACE EQUITY ADVISORY BOARD. 1
(C) (1) “COMMUNITY GREENSPACE ” MEANS A COMMUNITY SP ACE THAT 2
ENHANCES THE PUBLIC HEALTH AND LIVABILIT Y OF AN OVERBURDENED 3
COMMUNITY OR AN UNDERSERVED CO MMUNITY. 4
(2) “COMMUNITY GREENSPACE ” INCLUDES: 5
(I) A COMMUNITY GARDEN ; 6
(II) A COMMUNITY GATHERING OPEN SPACE AREA ; 7
(III) A COMMUNITY WOODLAND ; 8
(IV) A GREEN NETWORK ; 9
(V) A PARK; 10
(VI) A TRAIL; AND 11
(VII) AN URBAN FARM . 12
(D) “ELIGIBLE APPLICANT ” MEANS: 13
(1) A LAND TRUST OR NONGOV ERNMENTAL ORGANIZATI ON LOCATED 14
OR WORKING IN AN OVE RBURDENED COMMUNITY OR AN UNDERSERVED 15
COMMUNITY WHERE A PR OJECT IS PROPOSED TO BE IMPLEMENTED ; OR 16
(2) A COUNTY OR MUNICIPALI TY. 17
(E) “GREEN NETWORK ” MEANS A SYSTEM OF GR EENSPACES THAT ARE 18
INTERCONNECTED BY LI NEAR CORRIDORS THAT FACILITATE THE MOVEM ENT OF 19
PEOPLE AND WILDLIFE . 20
(F) “LAND ACQUISITION ” MEANS: 21
(1) THE FEE SIMPLE ACQUIS ITION OF REAL PROPER TY; OR 22
(2) THE ACQUISITION OF A PERPETUAL CONSERVATION EASEMEN T. 23
(F) (G) “LAND TRUST” MEANS AN ORGANIZATIO N THAT: 24
6 HOUSE BILL 503
(1) IS A QUALIFIED ORGANI ZATION UNDER § 170(H)(3) OF THE 1
INTERNAL REVENUE CODE AND ANY REGULATI ONS ADOPTED UNDER TH AT 2
SECTION; 3
(2) HAS EXECUTED A COOPERATIVE AGREEMEN T WITH THE 4
MARYLAND ENVIRONMENTAL TRUST; OR 5
(3) IS AN AFFORDABLE HOUS ING LAND TRUST AS DE FINED IN § 6
14–501 OF THE REAL PROPERTY ARTICLE. 7
(G) (H) “OVERBURDENED COMMUNIT Y” HAS THE MEANING STAT ED IN § 8
1–701 OF THE ENVIRONMENT ARTICLE. 9
(H) (I) “PROGRAM” MEANS THE GREENSPACE EQUITY PROGRAM. 10
(I) (J) (1) “STEWARDSHIP ” MEANS ACTIVITIES UND ERTAKEN TO 11
MAINTAIN THE CONSERVATION VALUES AND PUBLIC USE OF A PROPERTY ON A 12
PROJECT TO: 13
(I) DEVELOP A PROPERTY FO R PUBLIC USE; AND 14
(II) IMPROVE THE CONSERVAT ION VALUE OF THE PRO PERTY. 15
(2) “STEWARDSHIP ” DOES NOT INCLUDE THE OPERATING EXPENSES 16
OF A RECIPIENT OF A GRANT UNDER THE PROGRAM. 17
(J) (K) “UNDERSERVED COMMUNITY ” HAS THE MEANING STAT ED IN § 18
1–701 OF THE ENVIRONMENT ARTICLE. 19
5–9D–02. 20
(A) THERE IS A GREENSPACE EQUITY PROGRAM IN THE DEPARTMENT . 21
(B) THE PURPOSE OF THE PROGRAM IS TO ENHANCE THE PUBLIC HEALTH 22
AND LIVABILITY OF OV ERBURDENED COMMUNITI ES AND UNDERSERVED 23
COMMUNITIES BY IMPLE MENTING PROJECTS TO PRESERVE, CREATE, AND ENHANCE 24
COMMUNITY GREENSPACE . 25
(C) (1) THE PROGRAM IS ADMINISTER ED BY THE DEPARTMENT . 26
(2) IN ADMINISTERING THE PROGRAM, THE DEPARTMENT SHALL : 27
(I) DEVELOP A GRANT APPLI CATION FOR THE PROGRAM; 28
(II) PUBLICIZE THE PROGRAM; 29 HOUSE BILL 503 7
(III) PROVIDE TECH NICAL ASSISTANCE TO PROGRAM 1
APPLICANTS; 2
(IV) AWARD GRANTS TO ELIGI BLE APPLICANTS ; AND 3
(V) CONSULT WITH THE BOARD. 4
(3) THE DEPARTMENT MAY ADOPT REGULATIONS TO CARRY OUT 5
THIS SUBTITLE. 6
(D) A GRANT APPLICATION SU BMITTED TO THE DEPARTMENT FOR THE 7
PROGRAM SHALL INCLUDE EVIDENCE OF SUPPORT FROM THE LOCAL GOVER NMENT 8
AND THE OVERBURDENED COMMUNITY OR UNDERSE RVED COMMUNITY IN WH ICH 9
THE PROJECT WILL BE LOCATED. 10
(E) (1) (I) BEGINNING IN FISCAL Y EAR 2025, THE DEPARTMENT 11
SHALL MAKE GRANTS TO ELIGIBLE APPLICANTS FOR COMMUNITY GREENSPACE 12
EQUITY PROJECTS LOCATED : 13
1. IN AN OVERBURDENED CO MMUNITY; 14
2. IN AN UNDERSERVED COM MUNITY; OR 15
3. ON A PROPERTY THAT: 16
A. IS OWNED OR MANAGED BY FOR WHICH AN ELIGIBLE 17
APPLICANT HOLDS A CONSERVATION EASEMENT OR OWNS THE PROPERTY IN FEE 18
SIMPLE; AND 19
B. IS THAT IS LOCATED IN A CENSUS TRACT THAT IS 20
ADJACENT TO AND SERVES AN OVERBURDENED COMM UNITY OR AN UNDERSER VED 21
COMMUNITY . 22
(II) 1. EXCEPT AS PROVIDED IN SUBSUBPARAGRAPH 2 OF 23
THIS SUBPARAGRAPH , AT LEAST 50% OF THE GRANTS AWARDE D EACH FISCAL YEAR 24
SHALL BE AWARDED TO PROJECTS THAT INCLUD E LAND ACQUISITION B Y LAND 25
TRUSTS OR LOCAL GOVERNMENTS , COUNTIES, OR MUNICIPALITIES . 26
2. IF THE TOTAL AMOUNT O F FUNDS REQUESTED FO R 27
LAND ACQUISITION BY PROGRAM APPLICANTS IS LESS THAN 50% OF THE GRANT 28
FUNDS AVAILABLE FOR A GIVEN FISCAL YEAR , THE REMAINING GRANT FUNDS MAY 29
BE AWARDED TO PROJEC TS THAT DO NOT INCLU DE LAND ACQUISITION . 30
8 HOUSE BILL 503
(2) GRANTS FOR LAND ACQUISITI ON UNDER THE PROGRAM MAY 1
ONLY BE AWARDED TO L AND TRUSTS, COUNTIES, AND MUNICIPALITIES . 2
(3) A GRANT RECEIVED UNDER THIS SUBSECTION MAY BE USED FOR: 3
(I) LAND ACQUISITION , APPRAISALS, ENVIRONMENTAL 4
ASSESSMENTS , SITE CLEARANCE OR DE VELOPMENT , AND OTHER DUE DILIGENCE 5
EXPENSES AND MATERIALS RELATED TO PLANNING AND IMPLEMENTING A 6
PROJECT, INCLUDING STEWARDSHIP OF THE S ITE; 7
(II) ADMINISTRATIVE AND PROGRAM COSTS IN AN AMOUNT 8
NOT MORE THAN 5% OF THE TOTAL PROJECT COST, OR $20,000, WHICHEVER IS LESS 9
ACCORDANCE WITH PARA GRAPH (4) OF THIS SUBSECTION ; OR 10
(III) STEWARDSHIP OF A PROJECT PROJECTS THAT: 11
1. PREVIOUSLY RECEIVED A GRANT UNDER THE 12
PROGRAM; OR 13
2. WOULD QUALIFY FOR A G RANT UNDER THE PROGRAM 14
BUT EXISTED BEFORE JULY 1, 2025. 15
(3) (4) A PORTION OF THE GRANT MAY BE USED TO PAY F OR: 16
(I) IF THE PROJECT INVOLV ES LAND ACQUISITION OR ONLY 17
PROJECT STEWARDSHIP , ADMINISTRATIVE COSTS NOT TO EXCEED 3% OF THE 18
GRANT AMOUNT ; AND 19
(II) IF THE PROJECT INVOLV ES LAND ACQUISITION , PROGRAM 20
COMPLIANCE COSTS FOR MONITORING EASEMENTS IF APPLICABLE. 21
(5) IN AWARDING GRANTS UN DER THIS SUBSECTION , THE 22
DEPARTMENT SHALL CONS IDER: 23
(I) THE EXTENT TO WHICH T HE PROJECT ENGAGES A ND IS 24
SUPPORTED BY RESIDEN TS, ORGANIZATIONS , AND BUSINESSES LOCAT ED IN THE 25
OVERBURDENED COMMUNI TY OR UNDERSERVED CO MMUNITY: 26
1. IN WHICH THE PROJECT WILL BE LOCATED ; OR 27
2. THAT IS SERVED BY THE PROJECT; 28
(II) THE AMOUNT OF FINANCI AL OR IN–KIND CONTRIBUTIONS 29
FOR IMPLEMENTATION O F THE PROJECT, IF ANY; AND 30 HOUSE BILL 503 9
(III) THE DEGREE TO WHICH T HE PROJECT: 1
1. DEMONSTRATES PARTNERS HIPS AND 2
COLLABORATION AMONG LOCAL GOVERNMENTS , LAND TRUSTS , 3
NONGOVERNMENTAL ORGANIZATIONS , AND COMMUNITY ORGANI ZATIONS; AND 4
2. ENHANCES THE PUBLIC H EALTH, LIVABILITY, AND 5
GREENSPACE IN THE OV ERBURDENED COMMUNITY OR UNDERSERVED COMMU NITY: 6
A. IN WHICH THE PROJECT WILL BE LOCATED ; OR 7
B. THAT IS SERVED BY THE PROJECT; AND 8
(IV) THE GEOGRAPHIC DIVERS ITY OF THE STATE. 9
5–9D–03. 10
(A) (1) THE DEPARTMENT SHALL SUBM IT EACH PROPOSED GRA NT 11
AWARD TO THE BOARD OF PUBLIC WORKS FOR APPROVAL BE FORE AWARDING A 12
GRANT UNDER THE PROGRAM. 13
(2) THE BOARD OF PUBLIC WORKS SHALL APPROVE OR DENY A 14
PROPOSED GRANT AWARD SUBMITTED BY THE DEPARTMENT UNDER THE 15
PROGRAM. 16
(B) (1) THE DEPARTMENT SHALL SUBM IT ALL GRANT APPLICA TIONS 17
UNDER THE PROGRAM TO THE FOLLOW ING ENTITIES FOR REV IEW AND COMMENT : 18
(I) THE DEPARTMENT OF AGRICULTURE ; 19
(II) THE DEPARTMENT OF HOUSING AND COMMUNITY 20
DEVELOPMENT ; 21
(III) THE DEPARTMENT OF PLANNING; 22
(IV) THE MARYLAND DEPARTMENT OF HEALTH; AND 23
(V) UNLESS THE APPLICANT IS A LOCAL GOVERNMEN T, THE 24
COUNTY OR MUNICIPALI TY IN WHICH THE PROJ ECT WILL BE LOCATED. 25
(2) THE DEPARTMENT SHALL CONS ULT WITH STATE OR LOCAL 26
AGENCIES AND LOCAL G OVERNMENTS AS NECESS ARY IN THE EVALUATIO N OF 27
COMMENTS RECEIVED UN DER PARAGRAPH (1) OF THIS SUBSECTION . 28
10 HOUSE BILL 503
(A) THE DEPARTMENT SHALL SUBM IT TO THE MARYLAND STATE 1
CLEARINGHOUSE FOR INTERGOVERNMENTAL ASSISTANCE FOR REVIEW AND 2
COMMENT ALL GRANT AP PLICATIONS THAT WILL BE RECOMMENDED TO TH E BOARD 3
OF PUBLIC WORKS FOR AN AWARD UN DER THE PROGRAM. 4
(B) EACH GRANT APPLICATIO N SUBMITTED TO THE MARYLAND STATE 5
CLEARINGHOUSE FO R INTERGOVERNMENTAL ASSISTANCE IS SUBJECT TO 6
APPROVAL BY THE BOARD OF PUBLIC WORKS. 7
5–9D–04. 8
(A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , LAND 9
ACQUIRED BY A GRANT AWARDED UNDER THE PROGRAM MAY NOT BE CO NVERTED 10
FROM OUTDOOR PUBLIC RECREATION OR OPEN SPACE TO ANY OT HER USE WITHOUT 11
THE PRIOR WRITTEN AP PROVAL OF: 12
(I) THE SECRETARY; 13
(II) THE SECRETARY OF BUDGET AND MANAGEMENT ; AND 14
(III) THE SECRETARY OF PLANNING. 15
(2) A CONVERSION OF LAND U NDER PARAGRAPH (1) OF THIS 16
SUBSECTION MAY BE AP PROVED ONLY AFTER TH E GRANT RECIPIENT RE PLACES THE 17
LAND BEING CONVERTED WITH LAND THAT HAS : 18
(I) AN AREA THAT IS AT LE AST EQUIVALENT IN SI ZE WITH THE 19
LAND BEING CONVERTED ; 20
(II) A RECREATION OR OPEN S PACE VALUE EQUIVALEN T WITH 21
THAT OF THE LAND BEI NG CONVERTED ; AND 22
(III) AN APPRAISED VALUE EQ UIVALENT TO OR GREAT ER THAN 23
THAT OF THE LAND BEI NG CONVERTED . 24
(B) LAND DEVELOPED OR IMP ROVED BY A GRANT AWA RDED UNDER THE 25
PROGRAM MUST BE OPERATED AND MAIN TAINED FOR PUBLIC US E BY THE GRANT 26
RECIPIENT FOR AT LEA ST 15 YEARS FROM THE PROJE CT COMPLETION DATE . 27
5–9D–05. 28
(A) THERE IS A GREENSPACE EQUITY ADVISORY BOARD IN THE 29
DEPARTMENT . 30
HOUSE BILL 503 11
(B) THE PURPOSE OF THE BOARD IS TO SERVE AS A CONSULTANT TO THE 1
DEPARTMENT IN THE IMP LEMENTATION AND ADMI NISTRATION OF THE PROGRAM. 2
(C) THE BOARD CONSISTS OF THE FOLLOWING MEMBERS : 3
(1) ONE MEMBER OF THE SENATE OF MARYLAND, APPOINTED BY THE 4
PRESIDENT OF THE SENATE; 5
(2) ONE MEMBER OF THE HOUSE OF DELEGATES, APPOINTED BY THE 6
SPEAKER OF THE HOUSE; AND 7
(3) THE FOLLOWING MEMBERS , APPOINTED BY THE GOVERNOR: 8
(I) ONE REPRESENTATIVE OF A COUNTY DEPARTMENT OF 9
PARKS AND RECREATION ; 10
(II) ONE REPRESENTATIVE OF A MUNICIPAL DEPARTME NT OF 11
PARKS AND RECREATI ON; 12
(III) ONE REPRESENTATIVE OF THE MARYLAND 13
ENVIRONMENTAL TRUST; 14
(IV) ONE REPRESENTATIVE OF A LAND TRUST WORKING IN AN 15
OVERBURDENED COMMUNI TY OR AN UNDERSERVED COMMUNITY ; AND 16
(V) FIVE REPRESENTATIVES WHO: 17
1. ARE RESIDENTS OF AN OVERBURDENED COMMUNI TY 18
OR AN UNDERSERVED CO MMUNITY; AND 19
2. REFLECT THE DIVERSITY OF THE STATE. 20
(D) THE BOARD MEMBERS SPECIFI ED IN SUBSECTION (C)(3) OF THIS 21
SECTION: 22
(1) SHALL SERVE A TERM OF 4 YEARS; AND 23
(2) MAY NOT SERVE MORE TH AN TWO 4–YEAR TERMS. 24
(E) THE GOVERNOR SHALL DESIGN ATE THE CHAIR OF THE BOARD. 25
(F) THE DEPARTMENT SHALL PROV IDE STAFF FOR THE BOARD. 26
(G) THE DEPARTMENT SHALL CONS ULT WITH THE BOARD IN THE 27
IMPLEMENTATION AND A DMINISTRATION OF THE PROGRAM, INCLUDING: 28 12 HOUSE BILL 503
(1) DEVELOPING A GRANT APPLICATI ON; 1
(2) ESTABLISHING OPPORTUN ITIES FOR MEMBERS OF THE BOARD 2
TO USE THEIR RESPECT IVE NETWORKS AND PUB LICATIONS TO PUBLICI ZE AND 3
EDUCATE THE PUBLIC A BOUT THE PROGRAM; AND 4
(3) THE REVIEW OF AND COM MENT ON GRANT APPLIC ATIONS AND 5
COMMENTS RECEIVED UNDER § 5–9D–03(B) § 5–9D–03 OF THIS SUBTITLE . 6
Article – Real Property 7
14–501. 8
(a) In this subtitle the following words have the meanings indicated. 9
(b) “Affordable housing land trust” means an entity that: 10
(1) Provides affordable housing to low –income families and 11
moderate–income families through an affordable housing land trust agreement; and 12
(2) Is organized or managed by: 13
(i) A nonprofit organization exempt from taxation under § 501(c)(2), 14
(3), or (4) of the United States Internal Revenue Code; or 15
(ii) A unit or instrumentality of the State or a political subdivision 16
of the State. 17
(c) “Affordable housing land trust agreement” means an agreement between an 18
affordable housing land trust and a purchaser of real property owned by the affordable 19
housing land trust, or for which the affordable housing land trust has a proprietary or 20
reversionary interest, that: 21
(1) Grants the affordable housing land trust a preemptive right to purchase 22
or repurchase the property, including any improvements on the property; 23
(2) Contains language restricting the transfer, lease, sublease, assignment, 24
or occupancy of the property with regard to: 25
(i) Potential transferees, sublessees, assignees, or occupants; and 26
(ii) The price at which the property may be transferred; or 27
HOUSE BILL 503 13
(3) Imposes other conditions on the use or transfer of the property that 1
would trigger a reversionary interest and that are designed to ensure that the property 2
remains available and affordable to low–income families and moderate–income families. 3
(d) “Family” means a household consisting of one or more individuals. 4
(e) “Low–income family” means a household with an income that does not exceed 5
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 7
exceed 140% of the area median income for a household of the same size. 8
(g) “Nonprofit status” means the recognition by the Internal Revenue Service that 9
an affordable housing land trust is exempt from taxation under § 501(c)(2), (3), or (4) of the 10
Internal Revenue Code. 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 12
1, 2023. 13
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.