New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31Y - HISTORIC PROPERTY REINVESTMENT PROGRAM › Subchapter 1 - HISTORIC PROPERTY REINVESTMENT PROGRAM › Section 19:31Y-1.8 - Approval letter; rehabilitation agreement

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Upon receipt of a recommendation from the
				  Authority staff on the rehabilitation project, the Board shall determine
				  whether or not to approve the application, the maximum amount of the tax credit
				  award and the maximum percentage amount of allowed tax credits for its cost of
				  rehabilitation in a rehabilitation project, and promptly notify the applicant
				  and the Director of the Division of Taxation of the determination.
1. The Board's award of the tax credits will
				  be subject to conditions subsequent that must be met in order to retain the tax
				  credit award. An approval letter setting forth the conditions subsequent will
				  be sent to the applicant and any co-applicant. Such conditions shall include,
				  but not be limited to, the requirement that the project complies with the
				  Authority's prevailing wage requirements,
				  P.L.
				  2007, c. 245 (N.J.S.A.
				  34:1B-5.1), and affirmative action requirements, P.L. 1979, c. 303 (N.J.S.A.
				  34:1B-5.4), and that the rehabilitation project does not violate any
				  environmental law requirements, including, but not limited to, the Flood Hazard
				  Area Control Act Rules, N.J.A.C. 7:13. The approval letter shall also provide
				  the requirements necessary for the Authority to execute the rehabilitation
				  agreement, which shall include satisfaction of all conditions of
				  approval.
2. The approval letter
				  shall require documentation evidencing project financing and planning
				  approvals, including the submittal of executed financing commitments, documents
				  that evidence site control by the business entity or an affiliate of the
				  business entity, a copy of the site plan approval, and a copy of all required
				  permits and planning and zoning approvals and permits. If the Authority
				  approval included a co-applicant, the required documents shall also include the
				  executed participation agreement between the co-applicant and the business
				  entity with a term that extends for the duration of the compliance period.
				  Absent extenuating circumstances or the Authority's determination in its sole
				  discretion, the Authority's approval of the tax credit award shall expire if
				  the business entity or co-applicant, as applicable, does not submit the
				  documentation required in this paragraph within a year after approval of the
				  application.
3. The Authority shall
				  review, and may require clarifying information regarding, the construction
				  documents to determine if the proposed rehabilitation project is in substantial
				  compliance with the Secretary of the Interior's Standards for Rehabilitation,
				  36 CFR
				  67.7. The Authority's review of substantial
				  compliance shall be a condition of approval.
4. If the terms of the financial commitment
				  contained in the evidence required by the approval letter are materially
				  different from the projected terms in the application, the Authority may
				  reevaluate the project financing gap and reduce the size of the tax credit
				  award accordingly.
5. The approval
				  letter shall provide an estimated date of completion of the rehabilitation
				  project and include a requirement for periodic progress reports.
6. For a rehabilitation project with a
				  selected rehabilitation period of 60 months, as defined under "selected
				  rehabilitation period," the approval letter shall identify the phases for which
				  the business entity shall be allowed tax credits and shall state the maximum
				  cost of rehabilitation for each such phase.