N.J. Admin. Code § 19:31Y-1.2
The following words and terms, as used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:
" Act" means sections 2 through 8 at P.L. 2020, c. 156, as amended (N.J.S.A. 34:1B-270 through 34:1B-276).
" Affiliate" means an entity that directly or indirectly controls, is under common control with, or is controlled by, the business entity. Control exists in all cases in which the entity is a member of a controlled group of corporations, as defined pursuant to section 1563 of the Internal Revenue Code of 1986 (26 U.S.C. § 1563), or the entity is an organization in a group of organizations under common control, as defined pursuant to subsection (c) of section 414 of the Internal Revenue Code of 1986 (26 U.S.C. § 414).
" Archeology and historic preservation standards" means the Secretary of the Interior's Standards and Guidelines for Archeology and Historic Preservation, 48 Fed. Reg. 44716, as updated and revised by the National Park Service.
" Authority" means the New Jersey Economic Development Authority established pursuant to section 4 at P.L. 1974, c. 80 (N.J.S.A. 34:1B-4).
" Board" means the Board of the New Jersey Economic Development Authority, established pursuant to section 4 at P.L. 1974, c. 80 (N.J.S.A. 34:1B-4).
" Building services" means any cleaning or routine building maintenance work, including, but not limited to, sweeping, vacuuming, floor cleaning, cleaning of rest rooms, collecting refuse or trash, window cleaning, securing, patrolling, or other work in connection with the care or securing of an existing building, including services typically provided by a door-attendant or concierge. "Building services" shall not include any skilled maintenance work, professional services, or other public work for which a contractor is required to pay the "prevailing wage" as defined in section 2 at P.L. 1963, c. 150 (N.J.S.A. 34:11-56.26).
" Business entity," "developer," or "applicant" means a person who enters or proposes to enter into a rehabilitation agreement pursuant to the provisions of section 4 at P.L. 2020, c. 156 (N.J.S.A. 34:1B-272) and that has, or will have, site control over the qualified property or transformative property, including, but not limited to, a lender that completes a rehabilitation project, operates a rehabilitation project, or completes and operates a rehabilitation project.
" Co-applicant" means an entity that is non-profit for taxation purposes pursuant to the provisions at Section 501(c)3 of the Internal Revenue Code; contributes capital, real property, or services related to the project that directly affect and serve the anticipated residents, tenants, or customers of the tenants of the redevelopment project; and enters into a participation agreement with the business entity that specifies the co-applicant's participation in the redevelopment project.
" Compliance period" means a period of five years starting immediately after the conclusion of the selected rehabilitation period.
" Cost of rehabilitation" or "eligible costs" means the consideration given, valued in money, whether given in money or otherwise, for the materials and services that constitute the rehabilitation. Eligible costs shall be all costs associated with the structural components, as defined at 26 CFR 1.48-1(e)(2), within the qualified property or transformative property, and any soft costs associated with the rehabilitation project. Eligible costs shall not include any costs associated with an increase in total building volume.
" Director" means the Director of the Division of Taxation in the Department of the Treasury.
" Equity" means business entity-contributed capital that may consist of cash, deferred development fees, costs for project feasibility incurred within the 12 months prior to application, property or site value less any mortgages when the business entity owns the project site, and any other investment by the business entity in the project deemed acceptable by the Authority. Property or site value shall be valued at the lesser of: the purchase price, provided the property or site was purchased pursuant to an arm's length transaction within 12 months of application; or the value as determined by a current appraisal acceptable to the Authority. Equity shall include Federal or local grants and proceeds from the sale of Federal or local tax credits, including, but not limited to, the Historic Rehabilitation Tax Credit, 26 U.S.C. § 47, Low-Income Housing Tax Credit, 26 U.S.C. § 42, and New Market Tax Credit, 26 U.S.C. § 45D. Equity shall not include State grants or tax credits or proceeds from redevelopment area bonds. For a residential project utilizing Low-Income Housing Tax Credits awarded by the New Jersey Housing and Mortgage Financing Agency, equity includes the portion of the developer's fee that is deferred for a minimum of five years.
" Government-restricted municipality" means a municipality in this State with a municipal revitalization index distress score of at least 75, that met the criteria for designation as an urban aid municipality in the 2019 State fiscal year, and that, on the effective date of P.L. 2020, c. 156 (N.J.S.A. 34:1B-269 et seq.), is subject to financial restrictions imposed pursuant to the Municipal Stabilization and Recovery Act, P.L. 2016, c. 4 (N.J.S.A. 52:27BBBB-1 et seq.), or is restricted in its ability to levy property taxes on property in that municipality as a result of the State of New Jersey owning or controlling property representing at least 25 percent of the total land area of the municipality or as a result of the Federal government of the United States owning or controlling at least 50 acres of the total land area of the municipality, which is dedicated as a national natural landmark.
" Income producing property" means a property that is used in a trade or business or to produce rental income. A property is used in a trade or business if the property generates income.
" New Jersey S corporation" means the same as the term is defined in section 12 at P.L. 1993, c. 173 (N.J.S.A. 54A:5-10).
" Officer" means the State Historic Preservation Officer or the official within the State designated by the Governor or by statute in accordance with the provisions of Chapter 3023 of Title 54, United States Code (54 U.S.C. §§ 302301 et seq.), to act as liaison for the purpose of administering historic preservation programs in the State.
" Partnership" means an entity classified as a partnership for Federal income tax purposes.
" Program" means the Historic Property Reinvestment Program established by sections 2 through 8 at P.L. 2020, c. 156 (N.J.S.A. 34:1B-270 through 276).
" Project financing gap" means the part of the total cost of rehabilitation, including reasonable and appropriate return on investment, that remains to be financed after all other sources of capital have been accounted for. Sources of capital include, but are not limited to, equity, which shall not be less than 20 percent of the total cost of rehabilitation, and investor or financial entity capital or loans. The business entity, after making all good faith efforts to raise additional capital, certifies that additional capital cannot be raised from other sources. For a redevelopment project located in a government-restricted municipality, the equity shall not be less than 10 percent of the total cost of rehabilitation.
" Property" means a structure, including its site improvements and landscape features, assessed as real property, and used for a commercial purpose, or residential rental of at least four dwelling units, or a combination of both. Property shall not include multiple separate rowhouses included in a single application.
" Qualified incentive tract" means a population census tract having a poverty rate of 20 percent or more, or a census tract in which the median family income for the census tract does not exceed 80 percent of the greater of the Statewide median family income or the median family income of the metropolitan statistical area in which the census tract is situated.
" Qualified property" means a property located in the State of New Jersey that is an income producing property, and that is:
" Reasonable and appropriate return on investment" means the discount rate at which the present value of the future cash flows of an investment equal the cost of the investment. For purposes of the analysis of the reasonable and appropriate return on investment, an investment shall not include any Federal, State, or local tax credits. For a residential project utilizing Federal tax credits under the Low-Income Housing Tax Credit Program awarded by the New Jersey Housing and Mortgage Finance Agency, the reasonable and appropriate return on investment shall be based upon the approval of deferred developer fees pursuant to N.J.A.C. 5:80-33. The Authority may establish a deferred developer fee analysis for rehabilitation projects utilizing other tax credits, including, but not limited to, the Federal Historic Rehabilitation Tax Credit, as equity if the reasonable and appropriate return on investment analysis is not applicable, including, but not limited to, when such tax credits are the sole or primary equity for the rehabilitation project.
" Rehabilitation" means the repair or reconstruction of the exterior or interior of a qualified property or transformative property necessary to make an efficient contemporary use possible while preserving the portions or features of the property that have significant historical, architectural, and cultural values.
" Rehabilitation agreement" means the contract executed between a business entity, any co-applicant, if applicable, and the Authority pursuant to section 4 at P.L. 2020, c. 156 (N.J.S.A. 34:1B-272), which sets forth the terms and conditions under which the business entity and any co-applicant may receive the tax credit authorized pursuant to the provisions of sections 2 through 8 at P.L. 2020, c. 156 (N.J.S.A. 34:1B-270 through 34:1B-276).
" Rehabilitation of the exterior of the qualified property or transformative project" or "repair or reconstruction of the exterior of the qualified property or transformative property" means the repair or reconstruction of the building envelope, exterior historic finishes, and exterior fixtures and structural or substrate components of the exterior of a qualified property or transformative property.
" Rehabilitation of the interior of the qualified property or transformative property" or "repair or reconstruction of the interior of the qualified property or transformative property" means the repair or reconstruction of the structural or substrate components and electrical, plumbing, and heating components within the interior of a qualified property or transformative property.
" Rehabilitation project" means a specific construction project or improvement, or phase of a project or improvement, undertaken by a business entity that includes the rehabilitation of a qualified property or transformative property.
" Selected rehabilitation period" means the period starting on the date the rehabilitation agreement is executed during which, or parts of which, a rehabilitation is occurring. The selected rehabilitation period shall be 24 months, but a business entity may choose a selected rehabilitation period of 60 months if a rehabilitation is reasonably expected to be completed in distinct phases set forth in written architectural plans and specifications completed before or during the physical work on the rehabilitation. For purposes of this definition, a phase may be an early site package, demolition, or abatement, or a portion of a project that results in a separate certificate of occupancy or certificate of acceptance. The selected rehabilitation period shall end at the earlier of either 24 or 60 months, respectively, or the issuance of the final temporary certificate of occupancy or equivalent.
" Soft costs" means costs not directly related to construction, including capitalized interest paid to third parties, real estate taxes, utility connection fees, accounting, title/bond insurance, fixtures/equipment with a useful life of five years or less, affordable housing fees, and all costs associated with financing, design, engineering, legal, or real estate commissions, including, but not limited to, architect fees, permit fees, loan origination and closing costs, construction management, and freight and shipping delivery. The term does not include early lease termination costs, air fare, mileage, tolls, gas, meals, packing material, marketing and advertising, temporary signage, incentive consultant fees, Authority fees, loan interest payments on permanent financing, escrows, reserves, pre-opening costs, commissions and fees to the developer, project management, or other similar costs.
" Total cost of rehabilitation" means any and all costs incurred for, and in connection with, the rehabilitation project by the business entity and any affiliate of the business entity until the issuance of a permanent certificate of occupancy, or upon such other event evidencing project completion as set forth in the rehabilitation agreement, which shall include, but is not limited to, project costs, soft costs, and cost of acquisition of land and buildings.
" Transformative project" means a specific construction project or improvement or phase of a project or improvement undertaken by a business entity that includes the rehabilitation of a transformative property.
" Transformative property" means a property that is:
N.J. Admin. Code § 19:31Y-1.2