Delaware Administrative Code
Title 1 - Authorities, Boards and Commissions
900 - Division of Historical and Cultural Affairs
901 - Historic Preservation Tax Credit Program
Section 901-5.0 - Procedures for Certification of Rehabilitation
Current through Register Vol. 28, No. 3, September 1, 2024
5.1 An applicant may submit a Part 2 application to the State Office requesting that the Delaware State Historic Preservation Officer determine if a proposed rehabilitation work meets the criteria as a certified rehabilitation as defined in Section 3.0 of this regulation. The applicant shall file the Part 2 application on standard forms developed by the State Office.
5.2 An applicant shall submit Part 1 of the application prior to, or with, Part 2. The State Office shall not process the Part 2 application until an adequately documented and approved Part 1 application is on file.
5.3 The State Office shall not process an incomplete Part 2 application until all required application information is received. Where adequate documentation is not provided, the State Office shall notify the applicant of the additional information needed to undertake or complete a review.
5.4 Applicants may submit subsequent Part 2 applications for the same property as long as the following criteria are met:
| * | 5.4.1 For certified properties held for income (depreciable properties), a new application may be submitted as often as the project work qualifies for income tax credits under Section 47(c)(1)(C) of the Internal Revenue Code (26 USC 47(c)(1)(C)) |
| * | 5.4.2 For all other certified properties, a new application may be submitted no sooner than 24 months from the date of the prior Part 2 approval as long as other program requirements have been met. |
5.5 The Part 2 application shall include any proposed rehabilitation work. Any rehabilitation work that has been completed prior to the approval of the Part 2 application is not eligible for consideration, except as provided for under Section 12.0.
5.6 An applicant requesting approval of a phased rehabilitation plan for a depreciable property shall provide the State Office with a description of the phases and their anticipated completion dates when submitting the Part 2 application. The Delaware State Historic Preservation Officer shall notify the applicant if the phased rehabilitation plan is approved. The final completion date for a phased rehabilitation is binding unless the applicant requests a change in writing. For a phased rehabilitation, the applicant is allowed up to 60 months to meet the substantial rehabilitation test.
5.7 The Delaware State Historic Preservation Officer shall determine whether the proposed rehabilitation for which a complete application is received under subsection 5.1 of this regulation meets the definition of a certified rehabilitation and shall send the applicant notice of the determination. The State Office may require modifications to the work as described in the Part 2 application in order to meet the definition of a certified rehabilitation. The State Office may also apply conditions to a Part 2 approval so as to insure the work meets the definition of a certified rehabilitation.
5.8The Delaware State Historic Preservation Officer may issue a Part 2 approval to an applicant who has obtained a Part 2 certification from the federal government pursuant to 36 CFR 67 . Under this provision, an applicant shall file only the cover page of the Delaware Part 2 application.
5.9 Applicants shall begin construction on the approved certified rehabilitation work as described in the approved Part 2 application within one year of receiving the Part 2 approval. If construction on the rehabilitation work as described in the Part 2 application is not substantially commenced and diligently pursued within this time period, the State Historic Preservation Officer will withdraw any assigned Credit Award. Substantially commenced and diligently pursued means the applicant can demonstrate that a minimum, 25% of the estimated rehabilitation costs was expended within the first year after the tax credits are assigned. The State Office reserves the right to obtain documentation from the applicant supporting the expenditure.
5.10 If, at any time before a project receives its Certificate of Completion, the State Office requests documentation of on-going qualified expenditures for the previous year and the applicant does not produce such documentation, the Delaware State Historic Preservation Officer will withdraw any assigned Credit Reservation.
5.11 The Delaware State Historic Preservation Officer, or his/her designated representative, may inspect the historic property to determine if the work is consistent with the approved certified rehabilitation work as described in the Part 2 application, and if the project has substantially commenced and is being diligently pursued.
5.12 The applicant may request that the State Office review proposed changes to the certified rehabilitation as described in the Part 2 application after it is approved. The Delaware State Historic Preservation Officer shall determine whether the proposed change meets the definition of a certified rehabilitation and shall send the applicant notice of the determination.
