Section 14-510 - Nonprofit organization operating trust. - Maryland Statutes

§ 14-510. Nonprofit organization operating trust.
 

(a)  Loss of nonprofit status.- A nonprofit organization operating an affordable housing land trust that gives up or loses its nonprofit status may no longer operate an affordable housing land trust under the terms of this subtitle. 

(b)  Transfer of interest.- A nonprofit organization operating an affordable housing land trust may transfer its interest in any affordable housing land trust agreement to another affordable housing land trust, provided that the nonprofit organization does not receive any financial or other valuable compensation for the transfer other than compensation for incidental costs associated with the transfer. 

(c)  Abrogation of agreement and loss of reversionary interest.- If a nonprofit organization operating an affordable housing land trust gives up or loses its nonprofit status and does not transfer its interest in an affordable housing land trust agreement as provided in subsection (b) of this section, the affordable housing land trust agreement is abrogated and any reversionary interest contained in the agreement or any provision for the sharing of proceeds becomes unenforceable. 

(d)  Title holder obtains fee simple title.- If an affordable housing land trust agreement becomes unenforceable, the title holder to the property obtains fee simple title to the property without restriction. 
 

[2010, chs. 609, 610.]