N.J. Admin. Code § 5:47-7.2

Current through Register Vol. 57, No. 1, January 6, 2025

Section 5:47-7.2 - Failure to perform activities; corrective actions

(a) If, after notice and hearing pursuant to N.J.A.C. 5:47-7.1, the Commissioner finds that any assistance provided under these rules has been used for some purpose other than the activity or activities for which it was approved, or, although used for the activity for which it was approved, used in a manner that was illegal, improper, or in violation of the terms and conditions of the contract entered into between the nonprofit organization and the Department, the Commissioner may impose sanctions, including, but not limited to, any or all of the following:

1. Requiring that all or part of the funds provided to the nonprofit organization for the approved project be paid back to the Department, which shall expend them pursuant to N.J.A.C. 5:47-7.4;

2. Requiring that the nonprofit organization take corrective action as a condition of retaining tax credit funds, including, but not limited to:

i. Establishing or modifying administrative procedures, financial controls, or other measures as required by the Department;

ii. Removing or reassigning individuals found to be responsible for misuse of assistance provided to the nonprofit organization;

iii. Amending or abrogating any agreement between the nonprofit organization and any third party, where the third party has been found to be responsible in whole or in part for misuse of assistance provided to the nonprofit organization; or

iv. Placing one or more activities for which assistance has been provided under the administrative control of the Department, or of an entity selected for that purpose by the Department;

3. Revoking the Department's determination that the project was qualified; in which case the Department may abrogate the contract between the Department and the nonprofit organization, and reuse any unexpended funds held for the project as provided in N.J.A.C. 5:47-7.4; and/or

4. Barring the nonprofit organization for a period of time to be determined by the Commissioner from approval of future projects.

N.J. Admin. Code § 5:47-7.2