HISTORIC PROPERTY REINVESTMENT PROGRAM
The current round of the Historic Property Reinvestment Program is closed.
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.
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 28th at 2pm
Required Application Forms
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.
- 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.
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.