N.J. Admin. Code § 19:31Y-1.7

Current through Register Vol. 56, No. 18, September 16, 2024

Section 19:31Y-1.7 - Modifications

(a) Once a rehabilitation project has been approved by the Board, changes in the work as detailed within the rehabilitation agreement, including, but not limited to, demolition or removal of historic fabric, any change in the treatment of historic finishes, any change in the layout or proposed uses of the property, a reduction in the amount of the total cost of rehabilitation or cost of the rehabilitation, or any change in the financing, shall require prior review and written approval by the Authority. In considering whether to approve the modification request, the Authority shall:

1. Determine that the revised rehabilitation project continues to meet the requirements for the rehabilitation of a qualified property or transformative property, as defined under the program.

2. Confirm that any proposed change to the rehabilitation project will not undermine the basis for the tax credit award approved.

3. Determine that the revised rehabilitation project continues to meet the minimum score and would have been eligible based on the order of applications pursuant to N.J.A.C. 19:31Y-1.6(c), unless the business entity demonstrates to the Authority that:

i. The modification is due to unforeseeable conditions related to the rehabilitation project beyond the business entity's control and without its fault or negligence;

ii. The business entity is using best efforts, with all due diligence, to proceed with the completion of the rehabilitation project; and

iii. The business entity has made all reasonable efforts to prevent, avoid, mitigate, and overcome the modification.

(b) If the business entity discovers an unforeseeable condition for which additional work will be required, and such work would constitute a phase as defined under "selected rehabilitation period," the business entity may request a modification in the selected rehabilitation period from 24 months to 60 months. Notwithstanding the change in selected rehabilitation period, the amount of the tax credit award shall not be increased from the amount approved by the Board.

N.J. Admin. Code § 19:31Y-1.7

Recodified from 19:31-26.7 56 N.J.R. 807(a), effective 5/6/2024