New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 33 - LOW INCOME HOUSING TAX CREDIT QUALIFIED ALLOCATION PLAN › Section 5:80-33.24 - Reservations, allocations, and binding commitments

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Once the
				reservation is final as described at
				N.J.A.C.
				5:80-33.22(b), projects must meet
				allocation criteria established by the Code and these rules in order to qualify for
				an allocation of tax credits. (The IRS does not recognize the reservation processes
				of housing credit agencies.) The deadline for meeting the allocation criteria
				described at (a)1 and 2 below is November 30 or the next business day if the 30th is
				a weekend or holiday. The deadline for meeting the 10-percent test required pursuant
				to 26 U.S.C. §
										42(h)(1)(E)(ii) is six months
				from the date the carryover allocation agreement is executed by NJHMFA. The NJHMFA
				form evidencing satisfaction of this test must be completed and certified by an
				independent certified public accountant. Accrued developer fees in carryover basis
				shall not exceed the lesser of the fee earned to date or 20 percent of the total
				developer fee. On a case-by-case basis, NJHMFA may extend its filing deadline if the
				owner can show good cause; however, in order to defray the added expense and
				regulatory burden of processing allocation requests that arrive after the deadline,
				an extension fee of $ 1,000 shall be payable to NJHMFA for each week or part thereof
				that the owner is late in submitting a complete package. NJHMFA reserves the right
				to rescind a reservation if a deadline is not met.
1. Owners requesting a carryover allocation shall
				submit their certification for carryover, which must demonstrate that all sources
				shown on the owner's carryover schedule are accurate and that the costs shown in
				eligible basis are allowable under the Code. Title ownership is not required for
				carryover allocations, but site control must be maintained. Projects receiving
				carryover allocations have until the end of the second year after the execution of
				the carryover allocation agreement to place the project in service.
2. Owners requesting an allocation for a building
				in the same year the building is placed in service may receive a carryover
				allocation or a placed-in-service allocation depending upon the building's
				placed-in-service date. A building must be issued an allocation no later than
				December 31 of the year it is placed in service.
i. If the building is placed in service on or
				prior to August 1, the allocating document shall be the IRS Form 8609 and the owner
				shall submit all requirements listed at
				N.J.A.C.
				5:80-33.26" by the filing deadline established at
				(a) above.
ii. If the building is placed
				in service after August 1, and if the timing of the final project cost
				certification, permanent closing, and the like do not allow for the timely issuance
				of an IRS Form 8609 by December 31, a carryover allocation shall be issued to the
				project provided that the owner submits to NJHMFA an updated 10-percent letter from
				the partnership's accountant reflecting the new reasonably expected basis in the
				building.