N.J. Admin. Code § 7:36-19.4

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

Section 7:36-19.4 - Determination and notification of eligible land cost

(a) Green Acres shall determine the sufficiency of any appraisal submitted under N.J.A.C. 7:36-19.3 and shall notify the nonprofit in writing of any deficiencies that prevent the use of the appraisal submitted to determine the eligible land cost or the hypothetical land value.

(b) Green Acres shall determine the eligible land cost for each parcel within a project site as follows:

1. If only one appraisal has been obtained under N.J.A.C. 7:36-19.3 on a parcel, the eligible land cost shall be the parcel's certified market value, as determined pursuant to (c) below;

2. If two appraisals have been obtained under N.J.A.C. 7:36-19.3 on a parcel, and the difference between the two appraisal values is greater than 10 percent of the higher appraisal value, the eligible land cost shall be the parcel's certified market value, as determined pursuant to (c) below; and

3. Except as provided under (b)2i and ii below, if two appraisals have been obtained under N.J.A.C. 7:36-19.3 on a parcel, and the difference between the two appraisal values is 10 percent of the higher appraisal value or less, the eligible land cost shall be the average of the appraisal values:

i. If either of the two appraisal values exceeds $3 million, the eligible land cost shall be the certified market value, as determined pursuant to (c) below; and

ii. The nonprofit may request that Green Acres provide a certified market value rather than an average of the appraisal values, in which case the eligible land cost shall be that certified market value, as determined pursuant to (c) below.

4. Green Acres shall periodically audit its appraisal review process by providing a certified market value determined pursuant to (c) below for projects that qualify for an average of the appraisal values. In such instances, the certified market value shall be the eligible land cost for the parcel of land.

5. In addition to the eligible land cost, Green Acres also shall issue a hypothetical land value for the parcel of land, based on information provided with the appraisal(s) prepared in accordance with N.J.A.C. 7:36-19.3. This requirement shall be in effect until June 30, 2009, pursuant to the Garden State Preservation Trust Act (N.J.S.A. 13:8C-26).

(c) In order to certify the market value of a parcel, Green Acres shall review the appraisal(s) obtained under N.J.A.C. 7:36-19.3, inspect the project site, examine the comparable sales used by the appraiser(s), and review all other data pertinent to the market value as estimated by the appraiser(s) and, based on this information, reach a determination as to the market value of the parcel. Green Acres shall certify this value which shall then be considered the parcel's certified market value.

(d) Green Acres shall send to the nonprofit a notification of the eligible land cost, a hypothetical land value, and an Acquisition Payment Request Form that the nonprofit shall use to request a disbursement of funds under N.J.A.C. 7:36-20.4.

(e) If the final land survey plan of a parcel submitted with an advance payment or reimbursement request under N.J.A.C. 7:36-20.4(c) shows a total area of Green Acres restrictions on the parcel that is different from the acreage total shown in the notification of the eligible land cost, Green Acres shall notify the nonprofit or appraiser(s), request an adjusted market value determination, if needed, and revise accordingly the eligible land cost and hypothetical land value to reflect the actual acreage of the area of Green Acres restrictions on the parcel.

N.J. Admin. Code § 7:36-19.4