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-1.11 - Assignment of rights of rehabilitation agreement

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A business entity who has entered into a
				  rehabilitation agreement pursuant to N.J.A.C. 19:31Y-1.8(b) may, upon notice to
				  and written consent of the Authority, pledge, assign, transfer, or sell any, or
				  all, of its rights, title, and interest in and to the rehabilitation agreement
				  and in the tax credit awards payable under the rehabilitation agreement, and
				  the right to receive the tax credit awards, along with the rights and remedies
				  provided to the business entity under the rehabilitation agreement. To decide
				  whether to consent, the Authority will consider the purchaser's proposed use
				  and treatment of the qualified property or transformative property. Any
				  assignment shall be an absolute assignment for all purposes, including the
				  Federal bankruptcy code. If the Authority approval included a co-applicant,
				  prior to requesting the consent of the Authority, the business entity shall
				  obtain in writing the co-applicant's consent, and the business entity shall
				  provide the co-applicant's written consent to the Authority with the business
				  entity's notice.
(b) A co-applicant
				  who has entered into a rehabilitation agreement pursuant to N.J.A.C.
				  19:31Y-1.8(b) may, upon notice to and written consent of the Authority, assign,
				  transfer, or sell any or all of its rights, title, and interest in and to the
				  rehabilitation agreement and in the tax credit awards payable under the
				  rehabilitation agreement, and the right to receive the tax credit awards, along
				  with the rights and remedies provided to the co-applicant under the
				  rehabilitation agreement, provided that the purchaser shall be a non-profit
				  pursuant to section 501(c)3 of the Internal Revenue Code. To decide whether to
				  consent, the Authority will consider the contributions of the co-applicant and
				  the proposed contributions by the purchaser. The new purchaser shall be the
				  co-applicant and shall be required to receive an assignment of the
				  co-applicant's participation agreement or to execute a new participation
				  agreement with the business entity. Any assignment shall be an absolute
				  assignment for all purposes, including the Federal bankruptcy code. Prior to
				  requesting the consent of the Authority, the co-applicant shall obtain in
				  writing the business entity's consent, and the co-applicant shall provide the
				  business entity's written consent to the Authority with the co-applicant's
				  notice.
(c) Any pledge of a tax
				  credit award made by the business entity shall be valid and binding from the
				  time the pledge is made and filed in the records of the Authority. The tax
				  credit award pledged, and thereafter received, by the business entity shall
				  immediately be subject to the lien of the pledge without any physical delivery
				  thereof or further act, and the lien of any pledge shall be valid and binding
				  against all parties having claims of any kind in tort, contract, or otherwise
				  against the business entity irrespective of whether the parties have notice
				  thereof. As a condition of any tax credit award, the grantee, assignee,
				  pledgee, or subsequent holder of the tax credit award shall immediately file
				  notice of the same with the clerk of the county in which the project is
				  located.
(d) The Authority shall
				  publish on its Internet website the following information concerning each
				  pledge, assignment, transfer, or sale approved by the Authority pursuant to
				  this section:
1. The name of the person or
				  entity offering the pledge, assignment, transfer, or sale of a right, title, or
				  interest in a rehabilitation agreement;
2. The name of the person or entity receiving
				  the pledge, assignment, transfer, or sale of a right, title, or interest in the
				  rehabilitation agreement;
3. The
				  value of a right, title, or interest in the rehabilitation agreement;
				  and
4. The consideration received
				  by the person or entity offering the pledge, assignment, transfer, or sale of a
				  right, title, or interest in the rehabilitation agreement.