§ 6-1.1-4-47 — Community land trust assessed value

Indiana § 6-1.1-4-47

• Jurisdiction: Indiana
• Art. 1.1: PROPERTY TAXES
• Ch. 4: Procedures for Real Property Assessment

Text

(a) This section applies to assessment dates
occurring after December 31, 2025.
(b) As used in this section, "affordability restrictions" means
restrictions set forth in a ground lease concerning the future sale or
transfer of the community land trust improvement owned by a qualified
owner that are intended to maintain the continued affordability of the
community land trust improvement, including at least the following:
(1) The community land trust improvement may only be sold to
another qualified owner who intends to:
(A) use the community land trust improvement as the qualified
owner's primary place of residence; and
(B) enter into a ground lease with the community land trust.
(2) A formula to be used to calculate the sale or transfer price that
preserves the continued affordability of the community land trust
improvement.
(3) A purchase option for the community land trust intended to
preserve the continued affordability of the community land trust
improvement.
(4) The maximum amount for which the community land trust
improvement located on the community land trust land may be
sold or transferred.
(c) As used in this section, "community land trust" means a
nonprofit corporation that meets the following requirements:
(1) The nonprofit corporation is exempt from taxation under
Section 501(c)(3) of the Internal Revenue Code.
(2) A primary purpose of the nonprofit corporation is the creation
and maintenance of permanently affordable single family or
multi-family residences.
(3) The nonprofit corporation leases community land trust land on
which a community land trust improvement is located to a
qualified owner under a ground lease that provides for the
qualified owner's use of the community land trust improvement as
the qualified owner's primary place of residence.
(d) As used in this section, "community land trust improvement"
means a dwelling unit and associated improvements located on
community land trust land that is occupied by a qualified owner as the
qualified owner's primary place of residence according to the terms of
a ground lease.
(e) As used in this section, "community land trust land" means land
owned by a community land trust for the purposes described in
subsection (c)(2) and (c)(3).
(f) As used in this section, "ground lease" means a lease entered into
between a community land trust and a qualified owner that allows the
qualified owner to occupy a community land trust improvement located
on community land trust land and includes at least the following:
(1) Affordability restrictions.
(2) Restrictions for resale or transfer of the community land trust
improvement.
(3) A provision stating that the community land trust retains an
interest in the community land trust land.
(4) The initial appraised value of the community land trust
improvement at the time the lease is entered into or at the time
otherwise specified.
(5) The monthly fee that the qualified owner must pay to the
community land trust for use of the community land trust land.
(6) A term of ninety-nine (99) years that may be renewed.
(g) As used in this section, "qualified owner" means an individual
who is a member of a household with annual household income that is
not more than eighty percent (80%) of the median household income
in the community land trust land's surrounding area, as determined
according to the median household income amounts published by the
United States Department of Housing and Urban Development at the
time the ground lease is entered into.
(h) The assessed value of the land held by a community land trust
in an assessment year is equal to the assessed value of the land at the
time land was acquired by the community land trust.
(i) For purposes of making a reassessment of a community land trust
improvement under section 4.2 of this chapter or an annual adjustment
under section 4.5 of this chapter, the assessed value of a community
land trust improvement after the initial assessment under this section
may not exceed the maximum amount for which the community land
trust improvement may be sold or transferred as set forth in the
affordability restrictions of the ground lease to which the community
land trust improvement is subject.

Legislative History

As added by P.L.230-2025, SEC.21.