Conn. Agencies Regs. § 10-416b-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 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 10-416b-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 10-416b-5 of the Regulations of Connecticut State Agencies. If a conditional approval was given by the officer in accordance with section 10-416b-5(c) (3), the owner shall demonstrate that the conditions have been met prior to the certification of completed rehabilitation.
(3) An owner seeking to qualify for a tax credit for a project that includes affordable housing as provided in section 10-416b of the Connecticut General Statutes shall provide an affordable housing certificate.
(4) The owner shall remit with the application the required fee payment as indicated in section 10-416b-12(a) of the Regulations of Connecticut State Agencies.
(b) Itemization of Costs
(1) Costs attributable to rehabilitation include (A) in general, all interior and exterior work to a certified historic structure for mixed residential and nonresidential uses or solely nonresidential use as 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 10-416b 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 other than the certified historic structure.
(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.
(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.
(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 10-416b 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) Reservation of tax credits shall be subject to availability in any state fiscal year.
(3) 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 that allowed under section 10-416b of the Connecticut General Statutes, 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.
(4) 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 10-416b 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.
(5) The tax credit reservation shall expire sixty months from the date of issuance. Requests for certification of completed rehabilitation shall be made prior to the expiration date of the tax credit reservation.
(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.

Notes

Conn. Agencies Regs. § 10-416b-8
Adopted effective October 6, 2008; Adopted effective September 17, 2012

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