§ 520 — Definitions

§ 520. Definitions. As used in this article, the following terms shall\nhave the following meanings:\n 1. "Community land trust" shall mean a nonprofit organization exempt\nfrom certain taxes pursuant to section 501 (c) (3) or section 501(c) (4)\nof the United States internal revenue code and/or that is incorporated\nunder the not-for-profit corporation law whose primary purpose is to\nprovide affordable housing by owning land and leasing or selling\nresidential housing situated on that land to households that meet\ncertain income requirements.\n 2. (a) "Covered entity" shall mean an institutional real estate\ninvestor or an entity that receives funding from an institutional real\nestate investor for the purchase of a single-family residence or\ntwo-family residence. A loan provided in exchange for a mortgage of the\nresidence that is being purchased shall not be considered funding for\nthe purposes of this subdivision, provided that such mortgage must be of\na type for which members of the general public can apply.\n (b) "Covered entity" shall not include:\n (i) an organization which is described in section 501(c)(3) of the\nInternal Revenue Code and exempt from tax under section 501(a) of the\nInternal Revenue Code;\n (ii) a land bank;\n (iii) a community land trust; or\n (iv) a creditor or its loan servicer acquiring ownership of real\nproperty in full or partial satisfaction of a secured debt.\n 3. (a) "Institutional real estate investor" shall mean an entity or\ncombined group that, directly or indirectly:\n (i) owns ten or more single-family residences and/or two-family\nresidences;\n (ii) manages or receives funds pooled from investors and acts as a\nfiduciary with respect to one or more investors; and\n (iii) has thirty million dollars or more in net value or assets under\nmanagement on any day during the taxable year.\n (b) An entity is considered owning a single-family residence or\ntwo-family residence if it directly owns the single-family residence or\ntwo-family residence or indirectly owns ten percent or more of the\nsingle-family residence or two-family residence.\n 4. "Land bank" shall mean an entity created in accordance with article\nsixteen of the not-for-profit corporation law.\n 5. "Single-family residence" shall mean a residential property\nconsisting of one dwelling unit; provided that such term shall not\ninclude:\n (a) any single-family residence that is to be used as the principal\nresidence of any person who has an ownership interest in the covered\nentity that seeks to purchase the single-family residence; or\n (b) any single-family residence constructed, acquired, or operated\nwith federal, state, or local appropriated funding sources.\n 6. "Two-family residence" shall mean a residential property consisting\nof two dwelling units; provided that such term shall not include:\n (a) any two-family residence in which one of the dwelling units is to\nbe used as the principal residence of any person who has an ownership\ninterest in the covered entity that seeks to purchase the two-family\nresidence; or\n (b) any two-family residence constructed, acquired, or operated with\nfederal, state, or local appropriated funding sources.\n