N.J. Admin. Code § 5:80-33.13

Current through Register Vol. 56, No. 11, June 3, 2024

Section 5:80-33.13 - Application for additional credits

(a) Applicants may apply for additional credits only through a hardship request from the Reserve.

1. Applicants submitting hardship requests of up to $ 150,000 shall apply for an award from the Reserve. See N.J.A.C. 5:80-33.8 for a description of the Reserve.

2. Applicants shall submit all of the following before NJHMFA will consider any hardship request:

i. The re-application fee;

ii. A Sponsor Certification for Re-Application (including all updates to the original application);

iii. A rent qualification chart, income and expense statements, and 15-year cash flow pro forma, all reflecting current projections. The pro forma shall be signed by the first mortgagee (or syndicator/investor if the project has no hard debt) exclusively reflecting the following language verbatim: "We acknowledge that this pro forma substantially matches the assumptions used in our underwriting of the mortgage (equity investment)";

iv. An explanation why additional credits are being sought plus supporting documentation. Projects that did not submit a Phase I environmental assessment (conducted in accordance with ASTM E1527-21, Standard and Poor's Enhanced Protocol) with their original applications for tax credits are not eligible for additional credits for environmental overruns;

v. Evidence that at least 50 percent of the developer fee is deferred, and that the applicant has attempted to increase funding from every other source (except State AHTF from DCA) before applying to the Reserve for additional credits. The developer fee cannot exceed that stated in the original application; and

vi. A letter agreement with the syndicator/investor that addresses the pricing to be paid for the original and additional credits. (If the applicant is still incurring costs and is using a projection of costs and basis in their application for additional credits, the investor shall verify the projection.) The agreement shall also identify the intended end user/purchaser of the tax credits.

(b) Should additional credits be awarded to a project, an allocation/issuance fee shall be paid as provided at N.J.A.C. 5:80-33.25.

(c) The sponsor of a project that receives its initial tax credit award prior to the 2024 funding cycle and also receives hardship credits from the Reserve, as provided in this section, as well as any affiliate entity effectively under the sponsor's control and any entity that is a related party with respect to the sponsor, for each award of hardship credits received shall be eligible for one fewer award for a new project from all tax credit cycles in the round following the day on which the Tax Credit Committee approves the request. The sponsor of a project that receives its initial tax credit award in the 2024 funding cycle or later and also receives hardship credits from the Reserve as provided in this section, as well as any affiliate entity effectively under the sponsor's control and any entity that is a related party with respect to the sponsor, shall be precluded from applying for tax credits for a new project for all tax credit cycles in the round following the day on which the Tax Credit Committee approves the request.

N.J. Admin. Code § 5:80-33.13

Amended by R.1997 d.284, effective 7/7/1997.
See: 29 N.J.R. 1441(a), 29 N.J.R. 2818(a).
In (a), deleted text relating to requirements for additional credit applications and awards, and inserted "See N.J.A.C. 5:80-33.8 for a description of the Reserve B."; and in (a)2, inserted reference to developer fee.
Recodified from N.J.A.C. 5:80-33.12 and amended by R.1998 d.279, effective 6/1/1998.
See: 30 N.J.R. 1132(a), 30 N.J.R. 1978(a).
In (a), added new 3 and 5 and recodified former 3 and 4 as 4 and 6. Former N.J.A.C. 5:80-33.15, Point system for the Suburban/Rural Cycle, was recodified to N.J.A.C. 5:80-33.18.
Recodified from N.J.A.C. 5:80-33.15 and amended by R.1999 d.120, effective 4/5/1999.
See: 31 N.J.R. 122(a), 31 N.J.R. 860(a).
In (a), changed N.J.A.C. reference in the introductory paragraph, and inserted "(or syndicator/investor if the project has no hard debt)" and "(equity investment)" in 3. Former N.J.A.C. 5:80-33.14, Application to a cycle/eligibility requirements, recodified to N.J.A.C. 5:80-33.13.
Amended by R.2000 d.132, effective 3/20/2000.
See: 32 N.J.R. 191(a), 32 N.J.R. 1065(a).
In (a)4, inserted "(conducted in accordance with A.S.T.M. E1527-97, Standard and Poors Enhanced Protocol)" following "environmental assessment".
Amended by R.2001 d.170, effective 5/21/2001.
See: 33 N.J.R. 932(a), 33 N.J.R. 1573(b).
Rewrote (b).
Amended by R.2002 d.233, effective 7/15/2002.
See: 34 N.J.R. 1574(a), 34 N.J.R. 2417(a).
Rewrote the section.
Recodified from N.J.A.C. 5:80-33.14 and amended by R.2003 d.300, effective 7/21/2003.
See: 35 N.J.R. 1616(a), 35 N.J.R. 3298(b).
In (a), amended N.J.A.C. reference in the introductory paragraph; in 2, deleted "(see definition)"; in (b), amended N.J.A.C. reference. Former N.J.A.C. 5:80-33.13, Application to a cycle/eligibility requirements, recodified to N.J.A.C. 5:80-33.12.
Amended by R.2006 d.112, effective 3/20/2006.
See: 37 N.J.R. 3879(a), 38 N.J.R. 1432(a).
Deleted "The developer fee cannot exceed that stated in the original application" from (a)1ii and added the language to (a)1v; also in (a)1v, substituted "deferred" for "pledged"; in (a)2, added the last sentence.
Amended by R.2008 d.133, effective 5/19/2008.
See: 40 N.J.R. 839(a), 40 N.J.R. 2429(b).
In (a)1vi, deleted "eligibility and" preceding "specific" and inserted "and the pricing to be paid for the additional credits".
Amended by R.2009 d.154, effective 5/4/2009.
See: 41 N.J.R. 917(a), 41 N.J.R. 1994(a).
In (a)1vi, substituted "agreement with" for "from", deleted "the specific need for the additional credits and" following "addresses", inserted "original and" and inserted the last sentence; in (a)2, substituted "that do not qualify for application under N.J.A.C. 5:80-33.8(a)2 or 3" for "of more than $ 100,000".
Amended by R.2013 d.086, effective 6/17/2013.
See: 45 N.J.R. 530(a), 45 N.J.R. 1511(a).
In (a)1v, substituted "DCA" for "the New Jersey Department of Community Affairs".
Administrative correction.
See: 45 N.J.R. 2032(a).

Amended by 56 N.J.R. 343(b), effective 3/4/2024