Ch. 74

LAWS OF MARYLAND

BY adding to

Article 41B - Department of Housing and Community

Development
Section 2-501(j) (e) and 2-510
Annotated Code of Maryland
(1986 Replacement Volume and 1987 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section(s) 2-501(j) and (k) (e), (f), (g), (h),
(i), and (k), respectively, of Article 41B - Department of
Housing and Community Development of the Annotated Code of
Maryland be renumbered to be Section(s) 2-501(k) and (l) (f),
(g), (h), (i), (j), and (1), respectively.

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of
Maryland read as follows:

Article 41B - Department of Housing and Community Development

2-501.

(J) "RENTAL HOUSING" MEANS A RESIDENTIAL BUILDING

CONTAINING 5 OR MORE UNITS EACH OF WHICH IS OCCUPIED BY A FAMILY
OR PERSON IN RETURN FOR PAYMENT OF A MONTHLY AMOUNT TO THE OWNER
OF THE BUILDING. BUILDINGS OWNED BY A LIMITED EQUITY COOPERATIVE
QUALIFY AS RENTAL HOUSING AND OCCUPANTS MAY HAVE AN OWNERSHIP

INTEREST IN SUCH BUILDINGS. MONTHLY PAYMENTS NEED NOT BE

DENOMINATED AS RENT, AND MAY BE DENOMINATED BY OTHER TERMS,
INCLUDING MEMBERSHIP FEES AND SHARE ACCOUNT PAYMENTS.

(E) "LIMITED EQUITY COOPERATIVE HOUSING" HAS THE MEANING
STATED IN SECTION 143(K)(9)(C) OF THE INTERNAL REVENUE CODE AND
THE REGULATIONS ADOPTED BY THE INTERNAL REVENUE SERVICE UNDER
SECTION 143(K)(9)(C) OF THE INTERNAL REVENUE CODE.

[(j)] (K) (1) "Rental housing production project" or
"project" means any project or undertaking for the acquisition,
construction, or rehabilitation of buildings and improvements, or
any portion thereof, which buildings and improvements or portion
thereof will be occupied by families of lower income as follows:

[(1)] (I) For projects which qualify for federal
low-income housing tax credits, the number of residential units
selected by the sponsor to satisfy the federal requirements will
be occupied by families of lower income[,]; or

[(2)] (II) For all other projects, all residential
units will be occupied by families of lower income.

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