(a) (1) In this section the following words have the meanings indicated. (2) "Controlled by" means a business structure in which a nonprofit organization is a managing member, general partner, or otherwise controlling entity with a for-profit member or partner as demonstrated by an attorney licensed in the State. (3) "Nonprofit organization" means an organization that is qualified as tax-exempt under § 501(c)(3) of the Internal Revenue Code and has been designated as such for at least 3 years. (4) "Qualified project" means a residential project that: (i) consists of new construction or substantial renovation; (ii) is on land, including land that is subject to a ground lease, that: 1. is wholly owned by a nonprofit organization; or 2. includes improvements owned by an entity that is controlled by a nonprofit organization; (iii) contains at least 25% of units that are affordable dwelling units; and (iv) is deed-restricted to include 25% of units that are affordable dwelling units for a period of at least 40 years. (b) (1) In accordance with this subsection, a local jurisdiction shall allow the density of a qualified project to exceed the density otherwise authorized in a district or zone. (2) In an area zoned for single-family residential use, a qualified project may include middle housing units. (3) In an area zoned for multifamily residential use, a qualified project: (i) shall have a density limit that exceeds by 30% the allowable density in that zone for uses that are not part of a qualified project; and (ii) may consist of mixed-use. (4) Subject to § 7-509 of this subtitle, in an area zoned for nonresidential use, a qualified project may consist of mixed-use development with density limits that do not exceed the highest allowable density in the local jurisdiction's multifamily residential zones. (5) In an area zoned for mixed-use, a qualified project may include 30% more housing units than are allowed in that zone for uses that are not part of a qualified project. (6) If a qualified project is allowed to exceed the density otherwise authorized by a local jurisdiction in a district or zone under this section, the qualified project may not also exceed the authorized density under § 7-502 or § 7-503 of this subtitle.
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