Conn. Agencies Regs. § 10-416a-8 - Preliminary certification and reservation of tax credits
(a)
Application Requirements
(1) The
owner shall submit (A) a certificate of title or title insurance to the
certified historic structure for which a reservation of tax credits is
requested; (B) if the owner is a business entity, a certificate of legal
existence; (C) documentation required under rating criteria in accordance with
section
10-416a-9(a)
of the Regulations of Connecticut State Agencies; (D) an itemized budget of
estimated qualified rehabilitation expenditures prepared by a qualified
professional and signed by the preparer in accordance with subsection (b) of
this section; and (E) evidence of assessed value of the certified historic
structure as indicated in legal records not more than sixty calendar days
before submission of a request for preliminary certification and reservation of
tax credits.
(2) The owner shall
submit evidence of approval issued by the officer in accordance with section
10-416a-5
of the Regulations of Connecticut State Agencies. If a conditional approval was
given by the officer in accordance with section
10-416a-5(c)
(3), the owner shall demonstrate that the conditions have been met prior to the
certification of completed rehabilitation.
(3) If the rehabilitation plan has not
received prior approval by the officer and construction commenced after July 1,
2006, and is in progress at the time the owner files for a preliminary
certification and reservation of tax credits, the owner shall be eligible to
apply provided (A) the application is for a certified historic structure; (B)
the owner submits the application information required under section
10-416a-5
of the Regulations of Connecticut State Agencies and obtains approval of the
rehabilitation plan from the officer; and (C) the owner submits a description
of all completed, ongoing and proposed rehabilitation work and indicates all
phases, as applicable. All elements of the rehabilitation plan, including
completed, ongoing and proposed rehabilitation work, shall meet the standards.
If the rehabilitation plan has not received approval by the officer prior to
construction as provided for in section
10-416a-5
of the Regulations of Connecticut State Agencies, only those qualified
rehabilitation expenditures incurred after the date of approval of the
rehabilitation plan shall be considered for purposes of computing the
reservation of tax credits.
(4) The
owner shall remit with the application the required fee payment as indicated in
section
10-416a-12(a)
of the Regulations of Connecticut State Agencies.
(b)
Itemization of Costs
(1) Costs attributable to the rehabilitation
include (A) in general, all interior and exterior work to a certified historic
structure necessary to execute an approved rehabilitation plan; (B) abatement
of lead paint, asbestos or other hazardous building materials; (C) removal of
mold or other biological growths posing risks to human health; (D) installation
of new electrical, plumbing, and HVAC systems; (E) construction of any
handicapped access ramp which is physically connected to the certified historic
structure; (F) demolition of non-historic portions of a building prior to
restoration of a documented historic appearance; (G) reconstruction of
now-missing historic architectural features based on documentary, physical or
pictorial evidence; (H) demolition of a portion of a certified historic
structure owing to severe structural failure as documented in a structural
engineer's report prepared by a qualified professional; and (I) rental
equipment directly related to rehabilitation of a building, including dumpsters
or scaffolding. Allowance for contractor's overhead and profit, and general
requirements, shall not exceed fifteen percent of the total qualified
rehabilitation expenditures.
(2)
Costs attributable to new construction and not considered qualified
rehabilitation expenditures include (A) new additions, except as permitted
under section
10-416a
of the Connecticut General Statutes; (B) surface or structured parking; (C)
roads, driveways and sidewalks; (D) fencing; (E) landscaping; (F) environmental
remediation of the site; and (G) rehabilitation work to buildings or structures
that are not intended for residential use.
(3) Provision of site utilities, and new
sewer or water lines outside the envelope of the certified historic structure
shall not be considered rehabilitation.
(4) Kitchen and laundry appliances are
considered moveable property and shall not be considered
rehabilitation.
(5) Provision by
the owner of blinds and shades shall not be considered
rehabilitation.
(6) In cases where
rehabilitation commenced after July 1, 2006, but prior to approval of the
rehabilitation plan in accordance with 10-416a-5 of the Regulations of
Connecticut State Agencies, itemization of costs shall (A) indicate as excluded
those rehabilitation costs incurred prior to the date of approval of the
rehabilitation plan; and (B) provide such documentation as necessary for the
officer to make a determination of qualified rehabilitation
expenditures.
(c)
Department Actions
(1) The
department shall review and issue a decision not more than thirty calendar days
after receipt of a complete application. If an application is incomplete not
more than thirty calendar days after receipt the department shall notify the
owner in writing and indicate what information is needed to undertake or
complete review. The owner shall have thirty calendar days after the date of
notification by the department to respond in writing and provide the requested
information. Upon written request by the owner on or before the original
deadline, the department shall grant an extension to the owner of not more than
thirty calendar days.
(2) If the
application requirements under subsection (a) of this section are met, the
department shall issue (A) a preliminary certification; and (B) a reservation
of tax credits in accordance with subsection (d) of this section.
(d)
Reservation of Tax
Credits
(1) In accordance with section
10-416a
of the Connecticut General Statutes, the department shall reserve tax credits
based on the total estimated qualified rehabilitation expenditures indicated in
subsection (a) (1) of this section.
(2) In cases where a certified historic
structure is converted to non-residential as well as residential uses, the
reservation of tax credits shall be only for the portion of the certified
historic structure that is for residential use. The total rehabilitation costs
shall be divided by the square footage of the building to determine a per
square foot cost. The square footage of the non-residential portion shall be
subtracted from the total square footage of the building. Qualified
rehabilitation expenditures shall be based on the square footage costs of only
the square footage in residential use. In cases where there are shared common
areas, including entries, lobbies, or code required means of egress, the square
footage will be considered residential use and the square footage costs
included as qualified rehabilitation expenditures.
(3) Reservation of tax credits shall be
subject to availability in any state fiscal year.
(4) If at the time the department completes
review of a request for preliminary certification and reservation of tax
credits, the amount of available tax credits to reserve is less than
twenty-five percent of the qualified rehabilitation expenditures for which
application is being made under subsection (a) of this section, the owner shall
be notified. The department shall, at the request of the owner, reserve tax
credits equal to the amount available. The owner shall be eligible to request
the balance of tax credits when tax credits become available, provided the
owner submits written confirmation that the rehabilitation plan as approved
remains unchanged. Such request shall not be considered a new application for
preliminary certification and reservation of tax credits.
(5) In any state fiscal year, if, at the time
of receipt of a request for preliminary certification and reservation of tax
credits, no tax credits allowable under section
10-416a
of the Connecticut General Statutes are available, the department shall notify
the owner in writing and place the application on a waiting list. No
preliminary certification action shall be taken by the department, but the
department shall provide the owner with an advisory review of the application.
Applications placed on a waiting list shall be reviewed in the order of receipt
when tax credits become available.
(6) If in the same state fiscal year that the
tax credit is reserved, the owner notifies the department in writing that the
project has been cancelled, the tax credit reservation shall be cancelled and
tax credit may be reallocated by the department in the same state fiscal year
for pending or new applications in order of their receipt.
(7) The tax credit reservation shall expire
sixty months from the date of issuance. Requests for final certification shall
be made prior to the expiration date of the tax credit reservation.
Notes
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