N.J. Admin. Code § 19:31Z-1.3

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

Section 19:31Z-1.3 - Eligibility criteria

(a) The developer of a redevelopment project shall be eligible to receive a tax credit award only if the developer demonstrates to the Authority at the time of application that:

1. The redevelopment project is located on a brownfield site;

2. Without the tax credit award, the redevelopment project is not economically feasible;

3. A project financing gap exists and the tax credit award being considered for the project is equal to or less than the project financing gap;

4. The developer, including all affiliates:

i. Has not commenced any remediation activity at the site of the redevelopment project prior to submitting an application and will not commence any such remediation activity prior to execution of the redevelopment agreement, other than preliminary environmental assessments and environmental site investigations. The developer shall demonstrate and certify, under penalty of perjury, to the Authority that: it intends to remediate and redevelop the site immediately upon approval of the tax credit, satisfy all of the conditions in the approval letter, and execute a redevelopment agreement pursuant to N.J.A.C. 19:31Z-1.9; or

ii. Could not have reasonably known the full extent of the site contamination prior to commencing the remediation, if the developer or an affiliate has commenced remediation or clean up at the site for which the developer is applying for a tax credit. The developer shall demonstrate and certify, under penalty of perjury, to the Authority that the developer, including all affiliates, cannot reasonably finish the remediation and commence a construction project absent the tax credit;

5. The developer has obtained and submitted to the Authority a letter evidencing support for the redevelopment project from the governing body of the municipality or municipalities in which the redevelopment project is located; and

6. The developer and all affiliates shall comply with the prevailing wage requirements at N.J.A.C. 19:31Z-1.14.

(b) The Authority shall review the proposed total cost of remediation, evaluate, and validate the project financing gap estimated by each developer applying for a tax credit award, as follows:

1. The developer shall demonstrate that the redevelopment project has equity of at least 20 percent of the total cost of remediation, except that if a redevelopment project is located in a government-restricted municipality or a qualified incentive tract, the equity shall be at least 10 percent of the total cost of remediation;

2. The project financing gap analysis shall include, but not be limited to: an evaluation of the total cost of the remediation, the amount of capital sufficient to complete the remediation, and reasonable and appropriate return on investment; and

3. As determined by the Department, the remediation costs are reasonable and appropriate.

(c) The Authority shall not approve a developer or enter into a redevelopment agreement with a developer, unless the developer demonstrates, to the satisfaction of the Department, that the developer, including all affiliates: did not discharge a hazardous substance at the brownfield site proposed to be in the redevelopment agreement; is not in any way responsible for the hazardous substance; and is not a corporate successor to the discharger, or to any person in any way responsible for the hazardous substance, or to anyone liable for cleanup and removal costs pursuant to section 8 at P.L. 1976, c. 141 (N.J.S.A. 58:10-23.11g).

(d) A redevelopment project that received a reimbursement pursuant to sections 34 through 39 at P.L. 1997, c. 278 (N.J.S.A. 58:10B-26 through 31) shall not be eligible to apply for a tax credit pursuant to the Program.

N.J. Admin. Code § 19:31Z-1.3

Recodified from 19:31-27.3 56 N.J.R. 807(a), effective 5/6/2024