Ala. Admin. Code r. 460-X-25-.06

Current through Register Vol. 42, No. 10, July 31, 2024

Section 460-X-25-.06 - Application Review Process

(1)Delivery. Applications for the Program will be accepted beginning November 1, 2017, and continuously thereafter through the final Application Period in 2027, provided the $200,000,000 cap for the program has not been reached. Printed and signed Applications must be delivered to the Commission. Emailed and faxed versions of the Application are not accepted. It is strongly encouraged that all Applications and other documents be mailed via a method that confirms delivery. The Commission will not be held responsible for materials that are mailed but not received.

(2)Staff Review. Commission staff shall review Applications for all projects submitted during the Application Period and forward Qualifying Projects to the Committee. If Part A or Part B Applications do not provide requested information or sufficient information to determine whether or not a property is a Certified Historic Structure or whether or not the Rehabilitation Plan is consistent with the Standards, the Applicant will have an opportunity to provide additional information within a timeframe determined by Commission staff. If the Applicant fails to provide the requested information in the timeframe determined by staff, the Project will be considered incomplete and will not be recommended to the Committee as a Qualifying Project from that Application Period. The Applicant will have one additional opportunity to provide requested information to staff during the following Application Period, and if it is not received during this timeframe, the Application will be disapproved. A new Application may be resubmitted but shall be charged a new Application fee.

(a) Commission staff will review Part A as more fully described below to determine whether or not the building in question is a Certified Historic Structure. The commission will require an Owner to confirm that the property does not meet the definition of Disqualifying Use, as described in 460-X-25-.02.

(b) Commission staff will then review Part B as more fully described below to determine whether or not the Project meets the eligibility requirements for the Program and for the Project's compliance with the Standards.

(3)Application Part A. The Part A Application will be reviewed to determine if a Property is eligible for designation as a Certified Historic Structure. The Applicant shall be responsible for providing sufficient information to the Commission by which Commission staff may make a determination. For buildings that are not already listed in the National Register of Historic Places, the Applicant may consult with the Commission prior to the Part A being submitted.

(a) Refer to (2) Staff Review above for details on incomplete Applications.

(4)Application Part B. The Part B Application will be reviewed to determine if a Property meets the eligibility requirements for the Program and if the proposed rehabilitation meets the Standards. The Applicant shall be responsible for providing sufficient information to the Commission by which the Commission's staff may make a determination.

(a) Refer to (2) Staff Review above for details on incomplete Applications.

(b) If Commission staff determines that specific work does not follow the Standards, staff shall notify the Applicant of the deficient work and allow the Applicant to correct the Application in order to comply with the Standards. If the Applicant does not respond with a proposal that meets the Standards within the timeframe determined by staff, the Application is considered incomplete and will not be recommended to the Committee as a Qualifying Project from that Application Period.

(c) In reviewing Part B, the Commission shall determine if the Part B and the Rehabilitation Plan are:

1. consistent with the Standards;

2. Work; Applications found to be consistent with the Standards with Conditions of Work shall provide written acceptance to the Commission of all Conditions of Work, otherwise the Application will be determined to be not consistent with the Standards; Applications found to be consistent with the Standards with Conditions of Work will only be eligible for the credits if the conditions listed are met as part of the rehabilitation work, and failure to follow the conditions may result in a determination by the Commission that the project is not consistent with the Standards; or

3. not consistent with the Standards; the Application is disapproved and the Applicant may reapply, but it will be treated as a new Application and will be subject to a new Application fee.

(d) Applications will be recommended by the Commission to the Committee as a Qualifying Project if work described in the Part B is consistent with the Standards or consistent with the Standards with specific Conditions of Work as long as the Applicant accepts the Conditions of Work in writing within the timeframe determined by Commission staff. If the Applicant does not accept the Conditions of Work within the timeframe determined by staff, the Application is considered incomplete and will not be recommended to the Committee as a Qualifying Project from that Application Period.

(5)Application Part C. The Part C Application must be submitted by the Applicant within a reasonable time after completion of the Project. The Commission shall review the Part C to determine that the Substantial Rehabilitation is consistent with the Standards and the Rehabilitation Plan as approved in the Part B review. The Project shall meet all other requirements of these regulations before the Commission can issue a Tax Credit Certificate for the Project.

(a) The Commission will review the Part C to confirm it is complete and will verify compliance with the approved Rehabilitation Plan. The Owner must provide a Cost and Expense Certification, prepared by a licensed and independent certified public accountant that is not an affiliate of the Owner, certifying the total Qualified Rehabilitation Expenses match the amount provided on the Part C Application. The Commission will confirm that it was prepared by a licensed certified public accountant. The Commission will review the Appraisal to confirm that it was prepared by an MAI-designated and licensed real estate appraiser after the Project was completed. If the completed Project is found to be in compliance with the Standards and approved Rehabilitation Plan and any conditions, and the other documentation is correct, the Commission shall approve the Project. The Commission shall notify the Applicant in writing of any determination it makes upon completing the review of the Part C Application.

(b) Within ninety (90) days of receipt and approval of the Part C Application, the Commission shall issue to the Applicant a Tax Credit Certificate via a written form or letter in an amount equivalent to the lesser of the amount of the Tax Credit Allocation Reservation or twenty-five percent (25%) of the actual Qualified Rehabilitation Expenditures for Certified Historic Structures.

(c) If the Project is also a federal tax credit project, the Commission will hold approval of the Part C until the National Park Service certifies the federal application Part 3.

(d) If the submitted Part C is not consistent with the approved Rehabilitation Plan and the Project cannot, in the opinion of the Commission, be brought into compliance, then the Commission shall deny the Project and the Tax Credit Allocation Reservation will be rescinded. No refund of fees shall be allowed.

(e) If the submitted Part C is not consistent with the approved Rehabilitation Plan and the Project can, in the opinion of the Commission, be brought into compliance, the Commission may issue remedial conditions that will bring the Project into compliance with the approved Rehabilitation Plan. The Applicant shall complete the remedial work and file an Amendment to Part C within a time period agreed upon by the Commission and Applicant. If the remedial work is completed so that the Qualified Rehabilitation is consistent with the approved Rehabilitation Plan, then the Commission shall, within ninety (90) days, issue a Tax Credit Certificate in an amount equivalent to the lesser of their amount of the Tax Credit Allocation Reservation or twenty-five percent (25%) of the actual Qualified Rehabilitation Expenditures for Certified Historic Structures.

(6)Amendment Sheet. Changes to the Project not anticipated in the original Application shall be submitted to the Commission on an Amendment Sheet and must be approved by the Commission as consistent with the Standards before they are included in the Project. The Commission shall review the Amendment Sheet and issue a determination in writing regarding whether or not the proposed change in the Project is consistent with the Program.

(7)Scope of Review. For purposes of the review of Applications for this Program, the Project scope includes the entire building, along with any historically associated property under the same ownership. Individual condominiums or commercial spaces within a larger historic building are not considered individual properties apart from the whole. The scope of review for a Project is not limited to the work that qualifies as an eligible expense. The review encompasses the building's site and environment, as well as any buildings that were functionally related historically. Therefore, any new construction and site improvements occurring on the historic property are considered part of the Project. Likewise, all work completed six (6) months before the submission of the Application and Rehabilitation Plan is considered part of the Project, as is any work completed during the recapture period for the credit.

(8)Consideration of National Park Service Decisions on Commission Review. Determinations that a building is a Certified Historic Structure and that a Project is a Certified Rehabilitation apply to the Alabama Rehabilitation Tax Credit Program and if applicable, to projects participating in the National Park Service's federal tax credit program. Determinations made by the National Park Service for National Register eligibility or for compliance with the Secretary of the Interior's Standards for federal rehabilitation tax credit projects are binding on the Commission and the Commission will take the determinations into account during the life of a Project.

Ala. Admin. Code r. 460-X-25-.06

Adopted by Alabama Administrative Monthly Volume XXXV, Issue No. 11, August 31, 2017, eff. 9/24/2017.

Amended by Alabama Administrative Monthly Volume XXXVIII, Issue No. 08, May 29, 2020, eff. 7/13/2020.

Amended by Alabama Administrative Monthly Volume XL, Issue No. 03, December 30, 2021, eff. 2/13/2022.

Amended by Alabama Administrative Monthly Volume XLI, Issue No. 09, June 30, 2023, eff. 8/14/2023.

Author: Chloe Mercer; Lee Anne Wofford

Statutory Authority: Act 2017-380; Act 2021-431.