N.J. Admin. Code § 5:7-3.3

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

Section 5:7-3.3 - Loan terms and conditions

(a) Loans shall be issued for a period of 10 years at a fixed interest rate of four percent per annum; provided, however, that the Commissioner may, upon the request of a municipality, and for good cause, allow a longer or shorter repayment term and/or a lower interest rate. Any such request shall be accompanied by a supporting explanation of the necessity to deviate from the standard loan terms. In any case, the term of the loan shall not exceed the statutory maximum of 20 years.

1. The terms of any loan agreement shall be subject to approval by the State Treasurer.

2. Loan recipients shall comply with all applicable provisions of the Local Bond Law (N.J.S.A. 40A:2-1 et seq.), the Local Budget Law (N.J.S.A. 40A:4-1 et seq.) and N.J.A.C. 5:4.

(b) Prior to the demolition of any structure listed on the State or Federal Register of Historic Places or on any municipal register of historic places, or designated by the Pinelands Commission as an historic resource of significance to the Pinelands in accordance with the Pinelands Comprehensive Management Plan (N.J.A.C. 7:50), evidence of compliance with all applicable laws and regulations must be submitted to the Department.

(c) No expenditure of funds for demolition of a building or for disposal of building debris shall be undertaken unless and until the municipality has demonstrated legal authority to proceed with the work and until all approvals, consents, or permits required by law shall have been obtained.

(d) All contracting for demolition shall conform to the provisions of N.J.S.A. 40A:11-1 et seq., the Local Public Contracts Law, and shall require salvaging and recycling of reusable building materials to the greatest extent practicable, with the value of any such reusable materials retained or sold by the contractor to be credited against the cost of the work.

1. Either the municipality itself or, if the municipality so provides, one or more nonprofit historic preservation organizations shall have the first option to acquire any reusable building materials that may be of historic significance. If the building is owned by the municipality, the municipality may transfer any such materials to a nonprofit historic preservation organization at a nominal cost.

(e) Funds may be reloaned by a municipality to a developer under an agreement with the same or different repayment terms as the agreement between the applicant municipality and the Department, but the municipality shall remain obligated to repay the Department.

(f) Allowable local costs shall be limited to the necessary expenses incurred in connection with a building demolition and disposal project. Such expenses may include: costs incurred for actual demolition and/or removal work; costs incurred for the preparation and execution of necessary agreements and other documents; the procurement of engineering, inspection, planning, legal, financial, or other professional services; and the administrative, organizational, operating, or other expenses incidental to the financing and completing of any project authorized under the Act.

N.J. Admin. Code § 5:7-3.3