Definitions

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