N.J. Admin. Code § 5:80-5.2

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

Section 5:80-5.2 - General policy

(a) To be effective, all proposed changes in ownership interests of an Agency-financed housing project must receive the prior review and written approval of the Executive Director.

(b) The prior specific review and approval of the Agency members is required if a proposed change involves a general partner, or shareholder with more than a 10 percent interest, or where the change involves a transfer of control of the housing sponsor.

(c) Changes in ownership processed under these rules shall not result in a modification of the statutory, regulatory or contractual requirements governing the housing sponsor and housing project except as may be provided in cases of prepayment pursuant to N.J.A.C. 5:80-5.10.

(d) The Agency is under no obligation to approve the transfer or resale, unless the proposed buyer has the financial sufficiency, organizational capabilities, background and previous housing experience that will help ensure that the buyer will be capable of operating the project.

(e) The approval of the Public Housing and Development Authority must be obtained where necessary pursuant to the Limited-Dividend Nonprofit Housing Corporations or Associations Law, N.J.S.A. 55:16-1 et seq. (repealed by P.L. 1991, c. 431, § 20) (Limited Dividend Law).

N.J. Admin. Code § 5:80-5.2

Amended by 49 N.J.R. 3423(c), effective 10/16/2017