N.J. Admin. Code § 5:80-33.24

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

Section 5:80-33.24 - Reservations, allocations, and binding commitments

(a) Once the reservation is final as described at N.J.A.C. 5:80-33.22(b), projects must meet allocation criteria established by the Code and these rules in order to qualify for an allocation of tax credits. (The IRS does not recognize the reservation processes of housing credit agencies.) The deadline for meeting the allocation criteria described at (a)1 and 2 below is November 30 or the next business day if the 30th is a weekend or holiday. The deadline for meeting the 10-percent test required pursuant to 26 U.S.C. § 42(h)(1)(E)(ii) is six months from the date the carryover allocation agreement is executed by NJHMFA. The NJHMFA form evidencing satisfaction of this test must be completed and certified by an independent certified public accountant. Accrued developer fees in carryover basis shall not exceed the lesser of the fee earned to date or 20 percent of the total developer fee. On a case-by-case basis, NJHMFA may extend its filing deadline if the owner can show good cause; however, in order to defray the added expense and regulatory burden of processing allocation requests that arrive after the deadline, an extension fee of $ 1,000 shall be payable to NJHMFA for each week or part thereof that the owner is late in submitting a complete package. NJHMFA reserves the right to rescind a reservation if a deadline is not met.

1. Owners requesting a carryover allocation shall submit their certification for carryover, which must demonstrate that all sources shown on the owner's carryover schedule are accurate and that the costs shown in eligible basis are allowable under the Code. Title ownership is not required for carryover allocations, but site control must be maintained. Projects receiving carryover allocations have until the end of the second year after the execution of the carryover allocation agreement to place the project in service.

2. Owners requesting an allocation for a building in the same year the building is placed in service may receive a carryover allocation or a placed-in-service allocation depending upon the building's placed-in-service date. A building must be issued an allocation no later than December 31 of the year it is placed in service.

i. If the building is placed in service on or prior to August 1, the allocating document shall be the IRS Form 8609 and the owner shall submit all requirements listed at N.J.A.C. 5:80-33.26" by the filing deadline established at (a) above.

ii. If the building is placed in service after August 1, and if the timing of the final project cost certification, permanent closing, and the like do not allow for the timely issuance of an IRS Form 8609 by December 31, a carryover allocation shall be issued to the project provided that the owner submits to NJHMFA an updated 10-percent letter from the partnership's accountant reflecting the new reasonably expected basis in the building.

(b) NJHMFA may, in its discretion, enter into a binding commitment to allocate credits from future years' tax credit authority to fund projects that successfully compete in additional tranches of the Cycles at N.J.A.C. 5:80-33.4, 33.5, and 33.6, subject to any set-asides thereunder, as the Tax Credit Committee may decide to conduct in its discretion, or projects in a competitive cycle affected by an error as determined by the Tax Credit Committee. In no event shall the project receive credits and/or a binding commitment exceeding the maximum eligible tax credit amount.

N.J. Admin. Code § 5:80-33.24

Amended by R.1997 d.284, effective 7/7/1997.
See: 29 N.J.R. 1441(a), 29 N.J.R. 2818(a).
Deleted former (a); recodified former (a)1 through 3 as (a) through (c); in (b), substituted "October 15 (November 15 for Final Cycle reservations)" for "November 1st", and inserted sixth through eighth sentences; and in (c), inserted "typically" following "allocating document is", substituted "October 15 (November 15 for Final Cycle reservations) all items required by" for "November 1st all the requirements listed under", inserted fifth and sixth sentences, and deleted "(evidenced by a signed IRS Form 8609 from NJHMFA" following failed to receive an allocation".
Recodified from N.J.A.C. 5:80-33.23 and amended by R.1998 d.279, effective 6/1/1998.
See: 30 N.J.R. 1132(a), 30 N.J.R. 1978(a).
Rewrote the section. Former N.J.A.C. 5:80-33.28, Returning credits, was recodified to N.J.A.C. 5:80-33.33.
Recodified from N.J.A.C. 5:80-33.28 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. references throughout; and in (b), deleted "provided such project can meet the ten percent carryover test" at the end of the introductory paragraph, rewrote 1, and inserted a new third sentence in 2. Former N.J.A.C. 5:80-33.26, Committee review, recodified to N.J.A.C. 5:80-33.24.
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)1, inserted ", fully executed deed of easement and restrictive covenant (if the property has been acquired by the carryover allocation date)" following "carryover"; and in (b)1, deleted "(or the Reserve if the Final Cycle is cancelled)" following "Final Cycle" in the first sentence, and inserted a new second sentence.
Amended by R.2001 d.170, effective 5/21/2001.
See: 33 N.J.R. 932(a), 33 N.J.R. 1573(b).
In (a), substituted "30" for "15", inserted "or the 30th" after "15th", substituted "an" for "a graduated" following "deadline" and deleted "$ 500.00 per week or part thereof in November and" following "Cycle"; and in (a)2i, changed N.J.A.C. reference.
Amended by R.2002 d.233, effective 7/15/2002.
See: 34 N.J.R. 1574(a), 34 N.J.R. 2417(a).
In (a), rewrote the introductory paragraph and substituted "Owners" for "Sponsors" throughout; in (b), rewrote 1 and added 3.
Recodified from N.J.A.C. 5:80-33.26 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 1, substituted "which demonstrates" for ", fully executed deed of easement and restrictive covenant (if the property has been acquired by the carryover allocation date); rewrote (b). Former N.J.A.C. 5:80-33.24, Committee review, recodified to N.J.A.C. 5:80-33.22.
Amended by R.2006 d.112, effective 3/20/2006.
See: 37 N.J.R. 3879(a), 38 N.J.R. 1432(a).
In (b)2, deleted "is a preservation project and".
Amended by R.2007 d.168, effective 5/21/2007.
See: 39 N.J.R. 281(a), 39 N.J.R. 2011(a).
In (a), substituted "November 30 or the next business day if the< >30th is a weekend" for "October 15 (November 30 for Final Cycle reservations) or the next business day if the< >15th (or the< >30th) is a weekend", and "the carryover allocation agreement is executed" for "a tax credit reservation is issued by the Tax Credit Committee".
Amended by R.2008 d.133, effective 5/19/2008.
See: 40 N.J.R. 839(a), 40 N.J.R. 2429(b).
In the introductory paragraph of (a), inserted "by NJHMFA".
Amended by R.2009 d.154, effective 5/4/2009.
See: 41 N.J.R. 917(a), 41 N.J.R. 1994(a).
In the introductory paragraph of (a), substituted "six" for "three".
Amended by R.2011 d.239, effective 9/6/2011.
See: 43 N.J.R. 917(a), 43 N.J.R. 2293(a).
Rewrote (b).

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