                                 CODE OF VIRGINIA

ASSESSMENT OR EXEMPTION OF CERTAIN REAL PROPERTY CONVEYED OR OWNED BY A
COMMUNITY LAND TRUST (§ 58.1-3295.2)

A. Notwithstanding any other provision of law, in determining the fair market
value of structural improvements conveyed by a community land trust as defined
in § 55.1-1200, subject to a ground lease having a term of at least 90 years,
while retaining a preemptive option to purchase such structural improvements at
a price determined by a formula that is designed to ensure that the improvements
remain affordable in perpetuity to low-income and moderate-income families
earning less than 120 percent of the area median income, adjusted for family
size, the duly authorized real estate assessor shall consider:

   1. Restrictions on the price at which the improvements may be sold, as
   evidenced by a ground lease or memorandum thereof duly recorded with the land
   records of the jurisdiction with taxing authority; and

   2. The amount of debt incurred by the owner of the improvements as evidenced
   by a deed of trust or leasehold deed of trust on the improvements or
   underlying real property owned by the community land trust and that earns no
   interest and requires no repayment prior to satisfaction of any
   interest-earning promissory note or a subsequent transfer of the property,
   whichever comes first.

B. Notwithstanding any other provision of law, in determining the fair market
value of real property owned by a community land trust, subject to a ground
lease having a term of at least 90 years, while retaining a preemptive option to
purchase any structural improvements on the real property at a price determined
by a formula that is designed to ensure that the improvements remain affordable
to low-income and moderate-income families earning less than 120 percent of the
area median income, adjusted for family size, in perpetuity, the duly authorized
real estate assessor shall utilize the income approach and, in so doing, shall
consider the property&#8217;s current use, the contract rent, the income
restrictions, and provisions of any arms-length contract, including restrictions
on the transfer of title or other restraints on the alienation of the real
property.

HISTORY: 2018, c. 436.