Ala. Admin. Code r. 460-X-23-.06

Current through Register Vol. 43, No. 1, October 31, 2024

Section 460-X-23-.06 - Application Review Process

(1)Delivery. Applications for the Program will be accepted beginning on October 1, 2013 and continuously thereafter. Applications should be delivered to the Commission.

(2)Project Review Priority. Applications for Tax Credit Allocation Reservations are placed on a Reservation Priority List in the order in which they are received and will be reviewed in that order. Complete Applications that include Parts A and B and all attachments will be eligible for a Tax Credit Allocation Reservation in that same priority order. Incomplete Applications will be removed from the list.

Applications received on the same day will be ordered in a lottery. All Applications received on or before 5:00 p.m. Central Daylight Time on October 1, 2013 will be considered to have been received on that date. The lottery shall be conducted by assigning sequential numeric characters to the Applications. The same sequential numeric characters will be written on identical white plastic balls measuring approximately 1.5 inches in diameter (a standard table tennis ball) and placed in a box of sufficient size to allow for the mixing of the balls when the box is shaken. Afterward, a member of the Commission staff shall blindly and randomly select one ball at a time and its corresponding number will be sequentially entered onto the Reservation Priority List. Three Commission staff persons will be present at the drawing, and the order of the numeric characters drawn will be witnessed and recorded by staff. The Commission's executive director will certify the review priority order of the lottery for assignment on the Reservation Priority List.

(a)Staff Review Order. The staff of the Alabama Historical Commission will review requests for Tax Credit Allocation Reservations in the following manner until the Aggregate Tax Credit Allocation is reached:

1. The staff will review Parts A and B of the Application to make certain that all information requested on the forms has been provided. If all the forms are complete, the staff will proceed to the next review step. If either of the forms is incomplete, the Application will be determined to be incomplete, and the Application will be removed from the Reservation Priority List. The Applicant will be notified of the Incomplete Application and may reapply, but it will be considered to be a new Application.

2. The staff will then review Part A of the Application as more fully described below to determine whether or not the building in question is a Certified Historic Structure, a Certified Historic Residential Structure, or a Qualified Non-historic Structure. After this determination is made, and complete Parts A and B of the Application have been received, the Commission will issue a Tax Credit Allocation Reservation within ninety (90) days and the staff will proceed to the next review step. If the Applicant submits only Part A of the Application, the Commission will notify the Applicant in writing of its determination.

3. The staff will then review Part B of the Application as more fully described below for the Project's compliance with the Standards.

(3)Application Part A. Part A of the Application will be reviewed by a Determination of Eligibility Committee composed of professional staff of the Commission. The committee will determine if a property is eligible for designation as a Certified Historic Structure, Certified Historic Residential Structure, or a Qualified Non-historic Structure. The Applicant shall be responsible for providing sufficient information to the Commission by which the Commission's staff may make a determination. For the purpose of buildings that are individually listed in the National Register, the Determination of Eligibility Committee may appoint a single staff member to make the determination on Part A of the Application. The Commission shall notify the Applicant in writing of any determination it makes after completing the review of Part A of the Application, including as part of the Tax Credit Allocation Reservation notification.

(a) If all requested information is not provided or if insufficient information is provided to make a determination that a building is eligible for designation as a Certified Historic Structure, Certified Historic Residential Structure, or a Qualified Non-historic Structure, the Application is incomplete and will be returned to the Applicant. If an incomplete Part A is submitted with Part B of the Application, placement in the Reservation Priority List will be lost and any subsequent Application for the Project shall be considered a new Application.

(b) There is no fee to review Part A of the Application.

(4)Application Part B. An Application fee is charged before the review of Part B of the Application for its compliance with the Standards based on the amount of estimated Qualified Rehabilitation Expenditures listed by the Applicant on the Part B Application. The fee is not refundable. Applicants will be invoiced for the fee upon the issuance by the Commission of a Tax Credit Allocation Reservation. If the invoice is not paid within thirty (30) calendar days of the Commission's issuance of the invoice, the Tax Credit Allocation Reservation will be rescinded. The Application may be resubmitted but it shall be considered a new Application. The fee is set at one percent (1%) of Qualified Rehabilitation Expenditures, except that the fee shall not exceed ten thousand dollars ($10,000.00) .

(a) The Commission shall notify the Applicant in writing of any determination it makes upon completing the review of Part B of the Application. In reviewing Part B of the Application, the Commission shall determine if the Part B and the Rehabilitation Plan are:

1. consistent with the Standards;

2. consistent with the Standards with specific Conditions of Information; Applications found to be consistent with the Standards with Conditions of Information shall correct all the conditions within thirty (30) days of receipt of the Commission review by submitting said corrections to the Commission; otherwise the Application will be determined to be not consistent with the Standards;

3. consistent with the Standards with specific Conditions of 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 within thirty (30) days of receipt of the Commission review, 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 may proceed with work but will only be eligible for the credits if the conditions listed are met as part of the rehabilitation work but failure to follow the conditions may result in a determination by the Commission that the project is not consistent with the Standards; or

4. not consistent with the Standards; Applications found to be not consistent with the Standards at any time will be considered to be incomplete Applications and the Tax Credit Reservation for the Project will be rescinded and the Project will be removed from the Reservation Priority List; the Commission shall make recommendations to the Applicant that might bring the Project into compliance with the Standards, however no warranty is made that the recommendations will bring the Project into compliance with the Standards; the Applicant may reapply and it will be treated as a new Application and will be subject to a new Application fee.

(5)Application Part C. The Applicant shall file Part C of the Application upon completion of the Project. The Commission shall review and approve Part C, and 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 and will verify compliance with the Approved Rehabilitation Plan. If the completed Project is found to be in compliance with the Approved Rehabilitation Plan and any conditions, and with the Standards, the Commission shall approve the Project. The Commission shall notify the Applicant in writing of any determination it makes upon completing the review of Part C of the Application.

(b) Within ninety (90) days, 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 expenses for Certified Historic Structures or Certified Historic Residential Structures, or ten percent (10%) of the actual qualified rehabilitation expenses for Qualified Non-historic Structures.

(c) 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.

(d) 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 amended Part C within ninety (90) days of the issuance by the Commission of the conditions for remedial work or 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 expenses for Certified Historic Structures or Certified Historic Residential Structures, or ten percent (10%) of the actual qualified rehabilitation expenses for Qualified Non-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)Commission Review Not Binding on Other Programs. Determinations that a building is a Certified Historic Structure utilizing Part A and that a Project is a Certified Rehabilitation utilizing Parts B and C apply only to the Alabama Rehabilitation Tax Credit Program and are not binding on any other local or 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 likewise not binding on the Commission although the Commission may take the determinations into consideration as part of their review of a Project.

Ala. Admin. Code r. 460-X-23-.06

New Rule: Filed December 13, 2013; effective December 20, 2013.

Author: Chloe Mercer, David Schneider

Statutory Authority: Act 2013-241

The amendment to this section by Alabama Administrative Monthly Volume XXXII, Issue No. 12, September 30, 2014, file. 9/3/2014 is not yet available.