N.J. Admin. Code § 19:31J-1.6

Current through Register Vol. 56, No. 12, June 17, 2024

Section 19:31J-1.6 - Terms of financial assistance

(a) An entity applying for financial assistance from the Fund may only be awarded financial assistance in the form of an interest free loan, as follows:

1. Loans from the Fund shall be for a term of not more than 10 years. Interest on loans from the Fund, except loans to public entities, shall be equal to an amount fixed between two percent and the prime rate at time of approval, or at the time of closing if the prime rate is lower. The Authority shall determine the interest rate based on the applicant's ability to repay the loan.

2. If the facility for which the loan was made is sold, the unpaid balance of the loan shall become immediately due and payable in full.

3. A loan shall be awarded only upon a finding that the applicant, other than a public entity, is able to repay the loan.

4. Except for eligible owners and operators in Categories 2, 4 and 6, applicants cannot be awarded a loan unless they show the inability to qualify for a conventional loan for all or part of the eligible project costs.

(b) An applicant, other than a public entity, may apply for and receive a conditional hardship grant based on Authority findings under all of the following three criteria:

1. Eligibility:

i. In order to be eligible for a conditional hardship grant for closure or upgrade, in the case of a regulated tank, the applicant shall have owned or operated the subject regulated tank as of December 1, 2002, and continually thereafter or shall have inherited the property from a person who owned the regulated tank as of that date; and not have a taxable income of more than $ 250,000 or a net worth, exclusive of the applicant's primary residence and pension, of over $ 500,000 taxable income derived from the tax return in the year prior to making application.

ii. In order to be eligible for a conditional hardship grant for remediation, in the case of a regulated tank, the applicant shall have owned or operated the subject regulated tank at the time of tank closure; and not have a taxable income of more than $ 250,000 or a net worth, exclusive of the applicant's primary residence and pension, of over $ 500,000 taxable income derived from the tax return in the year prior to making application.

iii. The eligibility requirements for net worth and taxable income are not applicable to applicants qualifying as eligible owners or operators under Categories 4, 5, or 6 and seeking grant monies for closure or remediation costs;

2. Financial hardship:

i. A finding of financial hardship by the Authority shall be based on a review of the applicant's financial condition at the time of application to the Authority and a determination that an applicant cannot reasonably be expected to repay all or a portion of the eligible project costs if the financial assistance were to be awarded as a loan. Review of the applicant's financial condition shall include the criteria set forth at N.J.S.A. 58:10A-37.5.c(2) and include liabilities and any other financial information the Authority deems relevant. The following are examples of whether an applicant cannot reasonably be expected to repay all or a portion of eligible project costs if assistance is awarded as a loan:

(1) An applicant for eligible project costs for remediation of a property at which it does business and whose debt service coverage ratio does not exceed 1:1 will be considered to be able to repay at least a portion of the eligible project costs if assistance is awarded as a loan;

(2) An applicant for eligible project costs for remediation at a primary residence whose expenses do not exceed 51 percent of its taxable income will be considered will be able to repay at least a portion of the eligible project costs if assistance is awarded as a loan; and

(3) An estate applicant for eligible project costs for remediation whose liabilities do not exceed its qualified assets will be considered able to repay eligible project costs if assistance is awarded as a loan.

ii. The amount of an award of a conditional hardship grant shall be the amount of that portion of the eligible project costs the Authority determines the applicant cannot reasonably be expected to repay; however, any applicant with a taxable income of more than $ 200,000 who qualifies for a grant shall be required to pay no more than $ 1,000 of the eligible project costs; and

3. Satisfaction of statutory criteria at N.J.S.A. 58:10A-37.5(c).

(c) Upon the sale of the facility for which a conditional hardship grant was made, the conditional hardship grant shall become immediately payable in full, to the extent required pursuant to N.J.S.A. 58:10A-37.16. No repayment of a conditional hardship grant shall be required for a remediation necessitated by a discharge at the applicant's residence, nor shall repayment be required if the sale is pursuant to a condemnation proceeding or the exercise of the power of eminent domain.

(d) Conditional hardship grants shall be subject to the lien provisions set forth in the Act. The determination of the use and status as a primary residence of the property at which the facility is located will be based on the facts as of the time of application to the Authority, except that for estate applicants, the determination will be based on the facts as of the time of the decedent's death.

(e) An application for financial assistance from the Fund for an upgrade or closure of a regulated tank shall include all regulated tanks at the facility for which the applicant is seeking financial assistance.

(f) An application for financial assistance for an upgrade or closure of a regulated tank shall be conditioned upon the applicant agreeing to perform, at the time of the upgrade or closure, any remediation necessary as a result of a discharge from the regulated tank and commencement of the remediation within the time prescribed and in accordance with all appropriate rules and regulations.

N.J. Admin. Code § 19:31J-1.6

New Rule, R.2010 d.285, effective 12/6/2010.
See: 42 N.J.R. 2019(a), 42 N.J.R. 2969(a).
Former N.J.A.C. 19:31-11.6, Application for financial assistance, recodified to N.J.A.C. 19:31-11.8.
Amended by R.2019 d.099, effective 9/16/2019.
See: 51 N.J.R. 982(a), 51 N.J.R. 1473(b).
Rewrote (b)2i; and in (d), added the second sentence.

Recodified from 19:31-11.6 56 N.J.R. 807(a), effective 5/6/2024