N.J. Admin. Code § 7:36-9.4

Current through Register Vol. 56, No. 21, November 4, 2024

Section 7:36-9.4 - Disbursement of loan or matching grant

(a) Green Acres shall disburse the loan or matching grant in advance of closing, or as reimbursement after closing or after the filing of a declaration of taking.

(b) If a local government unit seeks payment in advance of closing, it shall submit its request at least 60 days before the scheduled date of closing.

(c) For each parcel of land in the project site for which payment is requested, the local government unit shall submit:

1. For payment in advance of closing, the following:

i. Until the deed is executed, a copy of the contract of sale or, for condemnation cases, the Declaration of Taking. Immediately upon acquiring the land, the local government unit shall record the deed and, within 30 days of its recording, shall submit to Green Acres a copy of the recorded deed or Declaration of Taking, containing the metes and bounds description required under (c)1ii below, including the clause stating that the parcel is subject to the Green Acres restrictions as required by the project agreement under 7:36-9.1(a);

ii. The survey package including:

(1) Two copies of a land survey plan prepared in accordance with the Local and Nonprofit Land Survey Overview, attached as Appendix 2, incorporated herein by reference, and supplied to the local government unit by Green Acres with the procedural letter at 7:36-8.1. The survey shall be prepared in accordance with the rules of the State Board of Professional Engineers and Land Surveyors at N.J.A.C. 13:40-5 and be compatible with the Mapping and Digital Data Standards at N.J.A.C. 7:1, Appendix A. The survey shall show areas to be subject to or excluded from Green Acres restrictions;

(2) One 3 1/2 inch floppy diskette or CD-ROM of the parcel survey lines in a .dxf format;

(3) Two copies of the metes and bounds description, stating acreage of each included lot, corresponding to the survey required under (c)1ii(1) above, submitted on the surveyor's letterhead, and signed and sealed by the surveyor, each with an 8 1/2 inch by 11 inch reduced survey plan described at (c)1ii(1) above attached for recording; and

(4) A Surveyor's Certification and Summary form provided by Green Acres, completed and signed by the surveyor, that identifies the project, provides information about the parcel's survey and title, and certifies that the survey was completed in accordance with the Local and Nonprofit Land Survey Overview, set forth herein as chapter Appendix 2, available from Green Acres at PO Box 412, Trenton, New Jersey 08625 or on the Green Acres web page at www.nj.gov/dep/greenacres;

iii. Until the title insurance policy described at (c)2iii below is issued, a copy of the title insurance binder, with copies of the deeds of record and of all easements, restrictions, and other instruments of record as attachments. The binder shall insure the land survey plan and shall name the State as an additional insured. Within 60 days of the recording of the deed, the local government unit shall submit to Green Acres the title insurance policy;

iv. A copy of each cancelled check (both sides) or evidence of each electronic transfer of funds for allowable project costs under 7:36-4.10 associated with the parcel;

v. An Acquisition Payment Request Form, provided by Green Acres with the notification of the eligible land cost under 7:36-8.4, with the following items completed:

(1) The project name, lot and block numbers, name of local government unit, and county;

(2) An itemized statement of the cost of acquisition of the parcel;

(3) A certification by the local government unit's chief executive officer, chief financial officer, or municipal clerk that the information contained in the form is accurate and that no bonus has been given or received in connection with any bill for which the local government unit seeks payment;

(4) A justification of any difference between the purchase price and the eligible land cost of the parcel; and

(5) A justification of any difference between the parcel acreage as described in the appraisal and the parcel acreage to be purchased;

vi. The certification from the local government unit's chief executive office regarding the Preliminary Assessment, required under 7:36-8.2, if not previously submitted; and

vii. For a purchase of a conservation or historic preservation restriction, the Present Condition Report described at 7:36-4.7(e).

2. For reimbursement after closing or after the filing of a Declaration of Taking, the following:

i. A copy of the recorded deed or Declaration of Taking, containing the metes and bounds description required under ii below, including the clause stating that the parcel is subject to the Green Acres restrictions as required by the project agreement under 7:36-9.1(a);

ii. The survey package including:

(2) One 31/2 inch floppy diskette or CD-ROM of the parcel survey lines in a .dxf format;

(3) Two copies of the metes and bounds description, stating acreage of each included lot, corresponding to the survey required under (c)2ii(1) above, submitted on the surveyor's letterhead, and signed and sealed by the surveyor, each with an 8 1/2 inch by 11 inch reduced survey plan described at (c)2ii(1) above attached for recording; and

(4) A Surveyor's Certification and Summary form provided by Green Acres, completed and signed by the surveyor, that identifies the project, provides information about the parcel's survey and title, and certifies that the survey was completed in accordance with the Local and Nonprofit Land Survey Overview, set forth herein as chapter Appendix 2 and available from Green Acres at PO Box 412, Trenton, New Jersey 08625 or on the Green Acres web page at www.nj.gov/dep/greenacres.

iii. A copy of the title insurance policy, with copies of the deeds of record and of all easements, restrictions, and other instruments of record as attachments, and conforming to the following:

(1) The policy must show that the local government unit has clear title to the project site;

(2) The policy must contain a survey endorsement that insures title to the area within the metes and bounds description;

(3) The policy amount must be at least equal to the purchase price; and

(4) The policy must name the State as an additional insured;

iv. A copy of each cancelled check (both sides) or evidence of each electronic transfer of funds for the purchase of the parcel and all allowable project costs under 7:36-4.10 associated with the parcel and, for condemnation cases, a copy of the final judgment;

v. An Acquisition Payment Request Form, provided by Green Acres with the notification of the eligible land cost under 7:36-8.4, with the following items completed:

(1) The project name, lot and block number(s), name of local government unit, and county;

(2) An itemized statement of the cost of acquisition of the parcel;

(4) A justification of any difference between the purchase price and the eligible land cost of the parcel; and

(5) A justification of any difference between the parcel acreage as described in the appraisal and the parcel acreage purchased;

vi. The certification from the local government unit's chief executive officer regarding the Preliminary Assessment, required under 7:36-8.2, if not previously submitted; and

vii. For a purchase of a conservation or historic preservation restriction, the Present Condition Report described at 7:36-4.7(e).

(d) Upon receipt of a request for payment under (c) above and approval of all required documentation, Green Acres shall send to the local government unit a payment invoice for Green Acres' share of the allowable project costs, up to the funding award. The local government unit's chief financial officer or the local government unit's authorized designee shall verify, sign, and return the invoice to Green Acres for processing, along with information related to the bank account required under (f) below.

(e) If the local government unit acquires a conservation restriction pursuant to 7:36-4.7(a)2 or 3, or a historic preservation restriction pursuant to 7:36-4.7(b)2, Green Acres will provide to the local government unit for land acquisition half of what the local government unit would otherwise be eligible to receive for the purchase of the restriction.

(f) The local government unit shall establish a separate, non-interest-bearing bank account for the purpose of receiving Green Acres disbursements for the project. If a local government unit has undertaken more than one Green Acres funded project, it may establish a single bank account to receive all Green Acres disbursements for all of the projects. If the local government unit will be receiving a Green Acres disbursement only as a reimbursement, it may designate an existing account into which the disbursement will be received, provided proper accounting procedures are in place to allow for easy and accurate financial tracking of Green Acres disbursements. Any account into which Green Acres disbursements are deposited will be subject to audit by the State. Upon receipt of the signed invoice and bank account information, the State shall:

1. Transmit each loan disbursement directly into such account; and

2. Mail each matching grant disbursement to the local government unit in the form of a check. The local government unit shall not sign over the check to the property owner or any other person, but shall deposit the check into such account.

(g) Immediately upon receipt of the funding disbursement under this section, the local government unit shall have the declaration provided by Green Acres at 7:36-9.1(g) recorded by the county clerk or registrar and returned to Green Acres. Prior to a subsequent disbursement of Green Acres funding, a local government unit may be required to submit to Green Acres an updated Recreation and Open Space Inventory and to execute and record an updated declaration.

(h) The local government unit shall immediately inform Green Acres if the closing date established in the contract of sale for the project site is postponed for any reason. A local government unit that has received a disbursement in advance of a scheduled closing that is postponed is subject to the following conditions:

1. As of the 30th day after the disbursement is made, the local government unit shall pay to the State interest accrued on the amount of the disbursement from that day up to the 90th day after the disbursement. The interest rate shall be the judgment interest rate established under the New Jersey Court Rules Governing Civil Practice at R. 4:42-11(a)(ii) in effect on the 30th day; and

2. As of the 90th day after the disbursement is made, the local government unit shall repay to the State the amount of the disbursement plus accrued interest from 30 days after disbursement to the date of repayment. The interest rate shall be the judgment interest rate established under the New Jersey Court Rules Governing Civil Practice at R. 4:42-11(a)(ii) in effect on the 90th day.

(i) A local government unit that has repaid the disbursement plus accrued interest under (h)2 above may, upon acquisition of the project site, submit a request for reimbursement after closing in accordance with (c)2 above.

(j) The local government unit may unilaterally withdraw the project at any time before it receives Green Acres funding. The local government unit shall not terminate the project agreement after it receives any Green Acres funding without the written consent of Green Acres.

(k) If the local government unit terminates the project agreement under (j) above, the local government unit is responsible for any costs of acquisition incurred as of the time of termination. The local government unit shall also repay, with interest at the judgment interest rate established under the New Jersey Court Rules Governing Civil Practice at R. 4:42-11(a)(ii) in effect at the time of termination, any disbursements that Green Acres made to the local government unit for the project.

(l) Green Acres shall provide to the local government unit a sign (or signs, as applicable) that identifies the parkland as a Green Acres funded site that is permanently dedicated to recreation and conservation purposes. The local government unit shall post the sign(s) in a prominent place on the funded parkland and maintain it.

N.J. Admin. Code § 7:36-9.4