N.J. Admin. Code § 5:80-6.1
The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.
"Community Development Escrow" or "CDE" means that fund established pursuant to a conversion, intended primarily for use in assisting community improvements, activities, or services related to a project.
"Conversion" means the overall transaction by which ownership of a project was transferred from a nonprofit entity to a profit-motivated partnership.
"Development Cost Escrow" or "DCE" means that fund established pursuant to a conversion, intended primarily for use in improving or supporting a project itself.
"Nonprofit" means the nonprofit owner of a project that conveyed its interest in the project and assigned its Agency mortgage on the premises to a profit-motivated partnership.
"Operating deficits" means all obligations, to the extent such obligations have not been or will not be paid in full out of operating income, arising out of the management and operation of the project, including without limitation:
1. Reserves, escrows or fees required by the Agency or by law;
2. Taxes or payments in lieu of taxes;
3. Utility bills;
4. Legal, accounting and other professional fees incurred by the partnership which have received prior approval by the Agency;
5. Insurance premiums; and
6. Judgments or settlements approved by the Agency.
"Partnership" means a profit-motivated limited partnership that has qualified as a limited dividend housing association pursuant to the New Jersey Limited-Dividend and Nonprofit Housing Corporations and Associations Law, N.J.S.A. 55:16-1et seq. (Limited Dividend Law), repealed by P.L. 1991, c. 431, § 20, and that has taken title to a project from a nonprofit entity.
"Project Subsidy Reserve Fund" or "PSR" means that fund established pursuant to a conversion, intended primarily for maintaining the operative viability of Section 236 projects.
"Purchase price" means the total amount of capital pledged to the nonprofit sponsor including cash proceeds and secondary financing.
"Stated equity" means an amount equal to 10 percent of the revised total development cost determined by the Agency pursuant to N.J.A.C. 5:80-6.3.
"Surplus cash" means funds, including funds in the DCE and CDE accounts, available after payment of equity distributions, project expenses and operating deficits, including the full funding of all required reserve accounts and proposed capital improvements, plus:
1. Two to six months of the annual budgeted project expense for senior citizen projects; or
2. Four to 12 months of the annual budgeted project expense for family projects.
"Syndication" means the admission of limited partners to a partnership through the sale of partnership interests.
"Transaction costs" means those costs related directly to the sale of the project which are paid by or on behalf of the nonprofit. All transaction costs must be approved by the Agency and include, with limitation, required fees and payments specified in N.J.A.C. 5:80-6.4 as well as professional fees of the nonprofit and title insurance.
N.J. Admin. Code § 5:80-6.1