Ala. Admin. Code r. 460-X-25-.05

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

Section 460-X-25-.05 - [Effective until 12/15/2024] Application Requirements

(1) A Complete Application, including both Parts A and B and the Application fee, as described below in (2), shall be submitted to the Commission for all Projects before commencing rehabilitation. Complete Applications are required in order for the Commission to recommend Qualifying Projects to the Committee for review and ranking and in order for the Commission to issue a Tax Credit Allocation Reservation based on that ranking. Part C of the Application shall be submitted to the Commission at the completion of work and as a requisite for the Commission issuing a Tax Credit Certificate. Applications are available from the Alabama Historical Commission. The Applicant shall sign each part of the Application, which certifies that the information provided is, to the best of the Applicant's knowledge, correct. Specific Application requirements are included in the Instructions and on each part of the Application.

(a)Application Part A - Evaluation of Significance: The Part A Application shall be completed for all buildings to be included in the Project and certifies that a Project is a Certified Historic Structure. Part A must demonstrate that the building is at least sixty years old, unless it is located within the boundaries of a National Monument or Park as declared by the United States Congress or the President of the United States, in which case the federal age provisions apply. A building, at least sixty years old, is evaluated against criteria for significance and integrity issued by the National Park Service for the National Register. Areas of significance include an association with events, activities, or developments that were important in the past or; with the lives of people who were important in the past or; with significant architectural history, design, or engineering achievements.

1. An Applicant must file Part A with the Commission simultaneously with the Part B and the Application fee, as described below in (2). If a property is not listed in the National Register of Historic Places, Applicants may consult with the Commission prior to submitting a Complete Application in order to determine if a property is eligible for listing in the National Register and meets the age requirements of this Program. Early consultation to determine National Register eligibility does not require a fee and does not replace a Part A Application.

2. Part A shall include enough information to determine whether a building is eligible for designation as a Certified Historic Structure. Part A shall include, among other information: an accurate street address or description of the location of the building; the name of the building's Applicant and the Applicant's address and telephone number; a description of the general setting and an architectural description of the building, including the exterior and the interior; a brief history of the building; a statement describing why the building is eligible for designation as a Certified Historic Structure; color photographs printed on photographic paper and keyed to plans, showing general views and all features discussed in the description; and a map indicating the location of the building.

3.Functionally Related Structures. For rehabilitation projects involving more than one Certified Historic Structure where the structures are judged by the Commission to have been functionally related historically to serve an overall purpose, these buildings will be treated and reviewed as functionally related structures per guidance provided in applicable Department of the Interior regulations Title 36 Code of Federal Regulations (CFR) Part 67.4 relating to functionally related structures.

(b)Application Part B - Description of Rehabilitation: The Part B Application certifies that a Project is eligible for the Program and proposed rehabilitation work is consistent with the Standards and shall be completed for all Projects. Part B must demonstrate through the Rehabilitation Plan that all work follows the Standards.

1. An Applicant must file Part B with the Commission simultaneously with the Part A and the Application fee, as described below in (2).

2. Part B shall include enough information to determine that the Rehabilitation Plan is consistent with the Standards. Part B of the Application shall include, among other information: an accurate street address or description of the location of the building; a Rehabilitation Plan including a description of the rehabilitation and drawings of the site plan and the building's floor plans showing existing conditions and all proposed work with elevation drawings if applicable to illustrate any new construction, alterations, or additions; and additional photos, as necessary, printed on photographic paper and keyed to plans, to completely illustrate all areas of the building that will be affected by the Rehabilitation Plan. Drawings of the existing building condition and drawings of proposed rehabilitation are necessary to review the Part B Application for all Projects.

3. The Part B shall also include information to demonstrate eligibility for the Program and state the timeframe by which all work included in the Project will be completed. The Application will state a projected starting date and completion date for the Project; the purchase price of the property minus the value of the underlying land and any buildings other than the Certified Historic Structure for which rehabilitation tax credits are being applied; estimated cost of project; the Fair Market Value of the property before rehabilitation as assessed by the local revenue commissioner; and answers to questions related to the economic impact and value of the Project.

4. Part B and Rehabilitation Plans are reviewed by Commission staff for eligibility for the Program and consistency with the Standards. See the Definition for the Standards.

(c)Application Part C - Request for Certification of Completed Work: The Part C Application certifies the completed work follows the Standards and the Rehabilitation Plan as approved by the Commission in the Part B review.

1. Part C must be submitted after the substantial rehabilitation is complete, which must be within sixty (60) months after the date of issuance of the written notice of a Tax Credit Allocation Reservation.

2. Part C of the Application shall include, among other information: an accurate street address or description of the location of the building; the name of the building's Applicant and the Applicant's address and telephone number, and taxpayer identification number or social security number; photographs, printed on photographic paper and keyed to plans, of completed work showing similar views of the photographs provided in Parts A and B; the number of actual jobs created during rehabilitation; and the approximate number of jobs created post-rehabilitation. A complete Part C also requires the submittal by the Owner of a Cost and Expense Certification and an Appraisal.

3. The Applicant must provide a Cost and Expense Certification, prepared by a licensed certified public accountant that is not an affiliate of the Owner, certifying the total Qualified Rehabilitation Expenditures and the total amount of tax credits against any state tax due. For the purposes of this Program, the affiliate shall mean independence for accounting purposes. The cost and expense certification shall include a certification by the licensed certified public accountant that the costs and expenses meet the requirements of this Program.

4. The Application must provide an Appraisal of the Qualified Structure prepared by an independent appraiser who is a Member of the Appraisal Institute (MAI) and is a licensed real estate appraiser.

(d)Amendment Sheet: Changes to the Project not anticipated in the original Application shall be submitted to the Commission on an Amendment Sheet. The Amendment Sheet shall include, among other information: an accurate street address or description of the location of the building; the name of the building's Applicant and the Applicant's address and telephone number; indication regarding which part or parts of the Application is being amended; and photographs printed on photographic paper or other drawings or exhibits that illustrate the proposed changes to the Project.

(2) This Program requires an Application fee. The fee is based on the amount of estimated Qualified Rehabilitation Expenditures listed by the Applicant on the Part B Application. For Qualified Rehabilitation Expenditures of one million dollars or less (Tier One), a fee of one percent (1%) of the Qualified Rehabilitation Expenditures is due. For Qualified Rehabilitation Expenditures from one million and one dollars to ten million dollars (Tier Two), a fee of fifteen thousand dollars ($15,000) is due. For Qualified Rehabilitation Expenditures over ten million dollars (Tier Three), a fee of twenty thousand dollars ($20,000) is due. Half of the Application fee is due with the simultaneous submission of Part A and Part B Applications. The remaining half is due when the Commission notifies the Applicant that their Project will receive a full or partial Tax Credit Allocation Reservation. The fee is not refundable.

Ala. Admin. Code r. 460-X-25-.05

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

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.