Definitions

In this Act: (1) Community development financial institution The term community development financial institution has the meaning given the term in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702). (2) Community land trust The term community land trust means a nonprofit entity, a State, a unit of local government, or an instrumentality of a State or unit of local government— (A) that is not managed by, or an affiliate of, a for-profit organization; (B) the primary purpose of which is acquiring, developing, or holding land to provide housing that is permanently affordable to low- and moderate-income persons; (C) that monitors properties to ensure affordability is preserved; (D) that provides housing that is permanently affordable to low- and moderate-income persons using a ground lease, deed covenant, or other similar legally enforceable measure, determined acceptable by the Secretary, that— (i) keeps the housing affordable to low- and moderate-income persons for not less than— (I) 99 years; or (II) the greatest minimum affordability period permitted by applicable State law, if that law restricts minimum affordability periods to a number of years that is less than 99; and (ii) enables low- and moderate-income persons to rent or purchase the housing for homeownership; and (E) that maintains preemptive purchase options to purchase the property, if such purchase would allow the housing to remain affordable to low- and moderate-income persons. (3) Eligible entity The term eligible entity means a unit of local government, an instrumentality of a State or unit of local government, or a nonprofit organization, including a community land trust, that manages a shared equity homeownership model program. (4) Eligible grantee The term eligible grantee means— (A) any agency of a State; (B) any authority chartered by a State to help meet affordable housing needs of the residents of the State; and (C) a community development financial institution that is certified by the Secretary of the Treasury. (5) Qualified homebuyer The term qualified homebuyer means a homebuyer with a household income that is not more than 120 percent of the area median income. (6) Resale formula The term resale formula means a permissible method of determining fair return and resale price under section 92.254(a)(5)(i)(A) of title 24, Code of Federal Regulations, as in effect on March 28, 2025. (7) Shared equity homeownership model The term shared equity homeownership model means a model of resale-restricted, owner-occupied housing the primary purpose of which is to create and preserve a supply of owner-occupied units affordable to low and moderate income households that— (A) carry terms of affordability that are not less than— (i) 99 years; or (ii) the greatest minimum affordability period permitted by applicable State law, if that law restricts minimum affordability periods to a number of years that is less than 99; and (B) restrict the resale value of properties in the program according to a resale formula described in a ground lease, deed restriction, or similar legal mechanism.