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HISTORIC PROPERTY REINVESTMENT PROGRAM

The Historic Property Reinvestment Program is now accepting application for Qualified and Transformative Projects. This application round will close at 2:00PM on Monday, April 3, 2023. 

The Historic Property Reinvestment Program is a $50 million competitive tax credit program to leverage the federal historic tax credit program to support rehabilitation projects of identified historic properties.

APPLICATION

2023 Regular and Transformative Projects Round

Projects must meet the program’s definition of a Rehabilitation Project and must include the rehabilitation of a Qualified or Transformative Property.

Application Launch:               Feb 1st at 10am
Application Deadline:            April 3rd at 2pm

Required Application Forms

ELIGIBILITY

To receive tax credits through the Historic Property Reinvestment Program, a project must:

  • Demonstrate that without the tax credit award, the rehabilitation project is not economically feasible.
  • Prove that a project financing gap exists, and the tax credit award being considered for the project is equal to or less than the project financing gap.   
  • Not have commenced any construction or rehabilitation activity at the site of the rehabilitation project prior to submitting an application and will not commence any construction or rehabilitation activity until the execution of the Rehabilitation Agreement (with certain limited exceptions).
  • Include business entity contributed equity of at least 20 percent of the total project costs; or 10 percent of the total project costs, if located in a government-restricted municipality.
  • Meet minimum cost requirements where the cost of rehabilitation for the selected rehabilitation period cannot not be less than the greater of the adjusted basis of the structure or $5,000.
  • For a residential project, the structure must serve a residential rental purpose and also contain at least four dwelling units.
  • Be a rehabilitation project.

AWARD SIZE

  • 40 percent of the cost of rehabilitation up to a maximum of $4 million, for rehabilitation projects NOT located within a qualified incentive tract or a government-restricted municipality
  • 45 percent of the cost of rehabilitation up to a maximum of $8 million, for rehabilitation projects located within a qualified incentive tract or a government-restricted municipality
  • 45 percent of the cost of rehabilitation up to a maximum of $50 million for rehabilitation projects that include a transformative property

Award size is based on the cost of rehabilitation (eligible costs)

FISCAL AND RESIDENT PROTECTIONS

In order to receive support through the Historic Property Reinvestment Program, the project must be in good standing with the NJ Department of Labor, NJ Department of Treasury, and the NJ Department of Environmental Protection.

FEES

Program fees have been calculated using a matrix similar to that used for other NJEDA programs.  They take into consideration anticipated level of effort needed to conduct review of applications as well as expected number of submissions through the course of the program, based on best available information and projections.

Fees have been set up using a 3-tier fee structure, with the first two tiers based on project site (as determined by cost of rehabilitation) and a third tier exclusively for transformative projects.  A guidance document, which includes a list of program fees and tables showing fee amounts, can be accessed here.

Detailed information on program fees can be found within the draft rules under N.J.A.C. 19:31-26.5.

Rehabilitation Project is defined as a specific construction project or improvement or phase of a project or improvement undertaken by a business entity that includes the rehabilitation of a qualified property, or transformative property.


Qualified Property is defined as a property located in the State of New Jersey that is an income producing property, and that is:

  • Individually listed, or located in a district listed on the National Register of Historic Places, the New Jersey Register of Historic Places, or the Pinelands Commission; OR
  • Individually identified or registered, or located in a district identified or registered, for protection as a significant historic resource by a municipality in accordance with criteria for identification or registration that has been approved by the Officer as suitable for substantially achieving the purpose of preserving and rehabilitating buildings of historic significance within the jurisdiction of the municipality

If located within a district the property must be contributing to the historic significance of the district.

Transformative Project is defined as a specific construction project or improvement or phase of a project or improvement undertaken by a business entity that includes the rehabilitation of a transformative property.

Transformative Property is defined as a property located in the State of New Jersey that is an income producing property, and that is:

  • An income producing property, not including residential, whose rehabilitation the Authority determines will generate substantial increase in State revenues through the creation of increased business activity within the surrounding areas
  • Individually listed on the New Jersey Register of Historic Places
  • Received a Determination of Eligibility from the Keeper of the National Register of Historic Places
  • Located within a one-half mile radius of the center point of a transit village, as designated by the NJDOT and within a city of the first class, OR located within a government restricted municipality

Questions regarding the Historic Property Reinvestment Program can be addressed to historictaxcredit@njeda.com.