N.J. Admin. Code § 7:70-4.4

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

Section 7:70-4.4 - Highlands development credit issuance and purchase

(a) The Executive Director shall issue a HDC certificate provided:

1. The highlands development credit allocation set forth in the Highlands Council's HDC allocation letter has not changed;

2. The property owner has marketable title and is legally empowered to restrict the use of his property in a manner consistent with the Highlands Act, the New Jersey Department of Environmental Protection's Highlands Rules at N.J.A.C. 7:38, and the Highlands Regional Master Plan; and

3. The conservation restriction prohibits the future development of the property in perpetuity. The conservation restriction shall:

i. Not prohibit or limit uses which are otherwise permitted pursuant to the Highlands Act, the New Jersey Department of Environmental Protection's Highlands Rules at N.J.A.C. 7:38, and the Highlands Regional Master Plan; and

ii. Be in favor of a public agency or not-for-profit incorporated conservation organization and shall be specifically and expressly enforceable by the Highlands Council. In no case, however, shall the restrictions be in favor of the HDC Bank Board.

(b) A title search shall be required prior to the issuance of any credit certificate confirming that the owner has sufficient rights to grant an easement to the Highlands Council. In the event that the Executive Director determines that a question exists as to marketable title or the legal ability of the property owner to impose the necessary restrictions on the use of the property, the applicant may elect to conduct a more extensive search of the title or secure insurance which guarantees that the owner has an interest in the property sufficient to meet the standards set forth in (a)2 above. If the Executive Director then determines that the title questions are resolved, he or she shall issue the certificate. If the Executive Director determines that the standards are not met, he or she shall notify the applicant in writing of the reasons which prevent the issuance of a HDC certificate.

(c) The HDC certificate shall, at a minimum, specify the following:

1. The owner(s) of the highlands development credits;

2. The number of highlands development credits owned; and

3. The municipality, block, and lot of the property to which the highlands development credits are allocated.

(d) The highlands development credit certificate purchase process is as follows:

1. All the HDC certificates allocated to a property are issued at one time after the placement of a development easement on the entire property.

2. The highlands development credit certificate shall be signed over to the HDC Bank by the owner; and

3. The Executive Director shall approve final payment for the number of credits approved for purchase by the HDC Bank.

(e) The process for partial highlands development credit purchases is as follows:

1. An applicant may apply to the HDC bank for the purchase of all or part of the HDC certificates issued to an owner.

2. A partial purchase of HDC certificates shall be based upon the priority review in N.J.A.C. 7:70-4.2(a)1 vi of the entire property.

3. In the event that only a portion of the highlands development credits specified in the certificate are redeemed, the Executive Director shall re-issue a certificate for the highlands development credits not so redeemed.

N.J. Admin. Code § 7:70-4.4

Adopted by 48 N.J.R. 631(a), effective 4/18/2016