N.J. Admin. Code § 7:22-5.7

Current through Register Vol. 56, No. 24, December 18, 2024

Section 7:22-5.7 - Real property

(a) Allowable costs for land and rights-of-way include:

1. The cost (including associated legal, administrative and engineering costs) of land acquired in fee simple or by lease or easement, provided the Department or the Trust, as appropriate, approves the cost and the cost is identified in the Fund or Trust loan agreement.

i. For wastewater treatment and stormwater management facilities, the costs of land that will be an integral part of the treatment process or that will be used for the ultimate disposal of residues resulting from such treatment are allowable. These costs include:

(1) The cost of a reasonable amount of land, considering irregularities in application patterns, and the need for buffer areas, berms, and dikes;

(2) The cost of land acquired for a soil absorption system for a group of two or more homes;

(3) The cost of land acquired for composting or temporary storage of compost residues which result from wastewater treatment; and

(4) The cost of land acquired for storage of treated wastewater in land treatment systems before land application. The total land area for construction of a pond for both treatment and storage of wastewater is allowable if the volume necessary for storage is greater than the volume necessary for treatment. Otherwise, the allowable cost will be determined by the ratio of the storage volume to the total volume of the pond.

ii. For nonpoint source management facilities (except new landfill facilities), the costs of land that will be used to site the proposed facilities and the associated buffer zones and other areas as may be reasonable and necessary to implement the project;

iii. For land acquisition and conservation projects, the costs of fee simple purchase of land or easement acquisition for water quality protection including the cost of purchase or easement acquisition (based on fair market value) of the parcel(s).

iv. For water supply facilities, the costs of land needed to locate eligible water supply facilities in conformance with the Federal Safe Drinking Water Act Amendments are allowable.

2. The cost of contracting with another public agency or qualified private contractor for part or all of the required acquisition and/or relocation services;

3. The cost associated with the preparation of the environmental infrastructure facilities site before, during, and, to the extent agreed on in the loan agreement, after building. These costs include:

i. The cost of demolition of existing structures on the environmental infrastructure facilities site (including rights-of-way) required based on health, safety, aesthetic reasons or by local code requirements;

ii. The cost (considering such factors as betterment, cost of contracting and useful life) of removal, relocation or replacement of utilities, provided the recipient is legally obligated to pay under State or local law; and

iii. The cost of restoring streets and rights-of-way to their original condition. The need for such restoration must result directly from the construction. For wastewater treatment facilities, the allowable cost of pavement restoration is limited to the existing paving width and, in no case, shall the allowable cost exceed the cost of restoring two lanes and abutting shoulders. For water supply facilities, the allowable cost of pavement restoration is limited to the width of the trench in which the pipeline is located.

4. The cost of acquiring all or part of existing publicly or privately owned environmental infrastructure facilities provided all the following criteria are met:

i. The acquisition, in and of itself, considered apart from any upgrade, expansion or rehabilitation, provides new pollution control or water supply benefits;

ii. The acquired environmental infrastructure facilities were not built with previous State, Federal, Trust or Pinelands Infrastructure Trust financial assistance;

iii. The primary purpose of the acquisition is not the reduction, elimination, or redistribution of public or private debt; and

iv. The acquisition does not circumvent the requirements of these regulations, or other federal, State or local requirements.

(b) Unallowable costs for land and rights-of-way include:

1. The costs of acquisition (including associated legal, administrative and engineering, etc.) of land to locate wastewater treatment and stormwater management facilities except as provided in (a)1i above.

2. Any amount paid by the recipient for eligible land in excess of just compensation, based on the appraised value, the recipient's record of negotiation or any condemnation proceeding, as determined by the Department or the Trust, as appropriate.

3. Removal, relocation or replacement of utilities located on land by privilege, such as franchise.

4. The cost of land acquired to site new landfill facilities.

N.J. Admin. Code § 7:22-5.7

Amended by R.1992 d.42, effective 1/21/1992.
See: 23 New Jersey Register 3282(a), 24 New Jersey Register 246(a).
Changed "Assistant Director" to "Department".
Amended by R.1997 d.346, effective 8/18/1997.
See: 29 New Jersey Register 2207(a), 29 New Jersey Register 3723(a).
In (a)3i, substituted "required based on health ... code requirements" for "if buildings cannot be undertaken without such demolition"; and in (a)3iii, substituted "limited to the existing ... abutting shoulders" for "generally limited to repaving the width of trench".
Amended by R.1998 d.407, effective 8/3/1998.
See: 30 New Jersey Register 1144(a), 30 New Jersey Register 2863(a).
Rewrote (a) and (b)1.
Amended by R.2000 d.284, effective 7/3/2000.
See: 32 New Jersey Register 363(a), 32 New Jersey Register 2426(b).
Rewrote (a)1; and in (b), substituted a reference to wastewater treatment and stormwater management facilities for a reference to environmental infrastructure facilities, and added 4.