Answer

No. State law says that any land trust-related sale will be marked as “non-arms length” to ensure that the property will not be considered as a comparable in the appraisal of any surrounding property. In short, the transaction will be handled the same way that a “non-arms-length” sale between a parent and child is handled: not included for appraisal purposes and with no impact on the value of surrounding properties.

Source: Md. Code Real Prop. §14-509(b) and §§14-501 et seq.

Do Community Land Trusts (CLTs) pay local property taxes? Do CLT’s Negatively Impact Neighbors’ Property Value? Can CLTs own and control rental property? Do CLTs solve the problem of making low-income housing profitable? How Are CLTs funded and how do they sustain themselves?