Modification of rules related to community housing development organizations

(a) Definitions of community housing development organization and community land trust (1) In general Section 104 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704) is amended— (A) in paragraph (6)(B)— (i) by striking significant; and (ii) by striking and otherwise and inserting or as otherwise determined acceptable by the Secretary; and (B) by adding at the end the following: (26) The term community land trust means a nonprofit entity or a State or local government or instrumentality thereof that— (A) is not sponsored by a for-profit organization; (B) has as a primary purpose the provision and maintenance of housing that provides long-term affordability for low- and moderate-income persons; (C) provides housing described in subparagraph (B) using a ground lease, deed covenant, or other similar legally enforceable measure, as determined by the Secretary, that— (i) keeps the housing affordable to low- and moderate-income persons for not less than 30 years; and (ii) enables low- and moderate-income persons to purchase the housing for homeownership; and (D) maintains preemptive purchase options to purchase the property so the housing remains affordable to low-and moderate-income persons.. (2) Elimination of existing definition of community land trust Section 233 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12773) is amended by striking subsection (f). (b) Set-Aside for community housing development organizations Section 231 of the Cranston-Gonzalez national Affordable Housing Act (42 U.S.C. 12771) is amended— (1) in subsection (a), by striking to be developed, sponsored, or owned by community housing development organizations and inserting when a community housing development organization materially participates in the ownership or development of such housing, as determined by the Secretary; (2) by striking subsection (b) and inserting the following: (b) Recapture and reuse If any funds reserved under subsection (a) remain uninvested for a period of 24 months, then the Secretary shall make such funds available to the participating jurisdiction for any eligible activities under this title without regard to whether a community housing development organization materially participates in the use of the funds.; and (3) by striking subsection (c).