As used in P.L. 1991, c.431 (C.40A:20-1 et seq.):
"Allowable profit rate" means the greater of 12% or the percentage per annum arrived at by adding 1 1/4% to the annual interest percentage rate payable on the entity's initial permanent mortgage financing. If the initial permanent mortgage is insured or guaranteed by a governmental agency, the mortgage insurance premium or similar charge, if payable on a per annum basis, shall be considered as interest for this purpose. If there is no permanent mortgage financing the allowable profit rate shall be the greater of 12% or the percentage per annum arrived at by adding 1 1/4% per annum to the interest rate per annum which the municipality determines to be the prevailing rate on mortgage financing on comparable improvements in the county.
The urban renewal entity shall provide to the municipality an annual audited statement which clearly identifies the calculation of net profit for the urban renewal entity during the previous year. The annual audited statement shall be prepared by a certified public accountant and shall be submitted to the municipality within 90 days of the close of the fiscal year.
$500,000 or less - | 10% |
$500,000 through $1,000,000 - | $50,000 plus 8% on excess above $500,000 |
$1,000,001 through $2,000,000 - | $90,000 plus 7% on excess above $1,000,000 |
$2,000,001 through $3,500,000 - | $160,000 plus 5.6667% on excess above $2,000,000 |
$3,500,001 through $5,500,000 - | $245,000 plus 4.25% on excess above $3,500,000 |
$5,500,001 through $10,000,000 - | $330,000 plus 3.7778% on excess above $5,500,000 |
over $10,000,000 - | 5% |
If the project includes units in fee simple, with respect to those units, "total project cost" shall mean the sales price of the individual housing unit which shall be the most recent true consideration paid for a deed to the unit in fee simple in a bona fide arm's length sales transaction, but not less than the assessed valuation of the unit in fee simple assessed at 100 percent of true value.
If the financial agreement so provides, there shall be excluded from the total project cost:
N.J.S. § 40A:20-3