N.J. Admin. Code § 19:65-2.8
Current through Register Vol. 56, No. 9, May 6, 2024
Section 19:65-2.8 - Approval of projects which constitute equivalent investments(a) The Authority may permit, in its sole discretion, a licensee to make equivalent investments in approved projects in lieu of purchasing bonds. In such instance, the licensee shall make an application in the same manner as other applicants under these rules.(b) The Authority may waive the requirement of a licensee to purchase bonds only after the licensee has provided the Authority with sufficient information to show good cause. For purposes hereof, good cause means and includes, but is not limited to, the following:1. Managerial, operational and financial responsibility for the project; or2. Acquisition, development, construction, improvement or rehabilitation of a project which would not be so acquired, developed, constructed, improved or rehabilitated through an investment by the Authority from the proceeds of bonds.(c) In determining the amount of an equivalent investment to be permitted as a tax credit in lieu of purchasing bonds, the Authority shall review all information provided by the licensee and permit credit only for costs of the project actually incurred by the licensee and, in the case of the acquisition of land or other property, the acquisition value approved by the Authority.(d) The licensee shall be required to provide the Authority with information sufficient for the Authority to make a determination of the amount of costs actually incurred, including a certification of such costs by a certified public accountant, licensed engineer or architect or other person or firm in a similar capacity independent of the licensee and acceptable to the Authority. The Authority shall have the right to retain the services of its own certified public accountant, licensed engineer or architect or other consultant at the cost and expense of the licensee, whenever it deems it necessary to do so to appropriately discharge its obligations.(e) In the event the licensee requests credit for an equivalent investment pursuant to these rules which includes as part of the investment a donation of realty, the amount of such investment shall include, in addition to the actual costs incurred, the amount of the donation of the realty determined in accordance with N.J.A.C. 19:65-2.9.(f) In the event that the Authority approves a licensee's request to make an equivalent investment in an approved project the amount of which is in excess of the licensee's current tax obligation, the Authority shall provide that such excess amount be applied against such licensee's tax obligations of future years, which annual amount of obligation shall be reduced by the Authority taking into account a current market discount rate (as determined from time to time by resolution of the Authority) from the date of the investment to the date on which the obligation would have been incurred.(g) Notwithstanding anything in this section to the contrary, the Authority shall not permit the licensee to make equivalent investments in lieu of purchasing bonds if it would result in: 1. The violation of any agreement or covenant, or the impairment of any contractual or financial obligation, of the Authority; or2. The impairment of the set aside for the SBMWE Development Authority as provided in 5:12-181; or3. The reduction or impairment of the allocation to be made pursuant to N.J.S.A. 5:12-144.1f relating to Atlantic City, South Jersey and North Jersey and the portions thereof to be used to finance housing facilities for persons or families of low through middle income.(h) In addition to the provisions of this section, the Authority shall require that, in order to permit a licensee to make an equivalent investment in an approved project in lieu of purchasing bonds, all the other requirements of this subchapter be met, including, in particular, the priorities set forth in N.J.A.C. 19:65-2.6; provided, that the provisions of N.J.A.C. 19:65- 2.5(b)2 and 3 need not be met.N.J. Admin. Code § 19:65-2.8
New Rule R.1987 d.213, effective 5/4/1987.
See: 19 New Jersey Register 404(a), 19 New Jersey Register 775(a).
Recodified from 19:65-2.9 by R.1992 d.383, effective 10/5/1992.
See: 24 New Jersey Register 1692(b), 24 New Jersey Register 3535(a).
Amended by R.1997 d.136, effective 3/17/1997.
See: 29 New Jersey Register 115(a), 29 New Jersey Register 934(a).
In (d) added the right of the Authority to retain professional services at the expense of the licensee to discharge its obligations; and amended N.J.A.C. references in (e) and (h).
Amended by R.1997 d.452, effective 10/20/1997.
See: 29 New Jersey Register 3708(a), 29 New Jersey Register 4562(b).
In (a), (f), and (h), added references to approved projects; in (b), added the second sentence, and (b)1 and (b)2; in (g)2, changed the name of the Authority; and in (h), amended N.J.A.C. references.