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HISTORIC PROPERTY REINVESTMENT PROGRAM

The application window for the Fall 2024 round of the Historic Property Reinvestment Program closed on December 5, 2024 at 2:00PM ET.

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.

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. Financing gap is not applicable for projects located within a Government Restricted Municipality (GRM) or if total cost of rehabilitation is less than $5 million.
  • Not have started any construction activity at the site prior to submitting the application or execution of the agreement except for limited instances meeting allowable 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.

Please be advised: New Jersey State law prohibits most cannabis license and certification holders from receiving or continuing to receive an economic incentive from the NJEDA. If the applicant, or any person who controls the applicant or owns or controls more than one percent of the stock of the applicant, has applied for or received a license or a certification from the New Jersey Cannabis Regulatory Commission (NJ-CRC), the applicant is ineligible for this program and should not proceed with an application. If an application is received from an applicant that meets this criteria, the application will be declined and the application fee will not be refunded.

APPLICATION

Fall 2024 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:              Tuesday, September 10, 2024
Application Deadline:           Thursday, December 5, 2024, at 2 pm

*A previous round of the Historic Property Reinvestment Program ran from November 29, 2023 – February 29, 2024.

AWARD SIZE

  • 50 percent of the cost of rehabilitation up to a maximum of $8 million, for rehabilitation projects NOT located within a qualified incentive tract or a government-restricted municipality
  • 60 percent of the cost of rehabilitation up to a maximum of $12 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.

PRIOR CONSTRUCTION ALLOWABLE EXCEPTIONS

The applicant entity cannot commence any construction or rehabilitation activity at the site of the rehabilitation project prior to submitting an application, or prior to the execution of the rehabilitation agreement unless work completed or to be completed meets one of the following exceptions: 

  • Work has been approved by the New Jersey Historic Trust or the New Jersey State Historic Preservation Office as meeting the Secretary of the Interior’s Standards for Rehabilitation. 
  • The business entity has been ordered by a building code or other official with jurisdiction over the site or the rehabilitation project to correct a health, safety, or other hazard.  The work must be limited to correcting the identified issue and must be completed in accordance with the Secretary of the Interior’s Standards for Rehabilitation. 
  • Work was completed by the applicant more than two years prior to the date of application to the Program. 
  • Work was completed within two years of application in accordance with the Secretary of the Interior’s Standards for Rehabilitation. 
  • Construction or rehabilitation activity completed at the project site was conducted by an entity that is not the current owner or business entity, or an affiliate of the current owner or business entity, and was not done at the direction of or under contract with the owner, business entity, or an affiliate of the owner or business entity. 

Any work completed prior to submitting an application or execution of the agreement under the Program may be considered as part of the project but will not be considered as an eligible cost when calculating and determining potential award amount under the Program. 

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.