Current through Register Vol. 47, No. 6, September 18, 2024
Upon successful registration of the project as described in
subrule 49.13(7) or 49.13(8), the eligible taxpayer shall have 120 calendar
days or until the end of the fiscal year, whichever is less, to purchase or
lease the property, if applicable, and enter into an agreement with the
authority. Nothing in these rules shall affect the authority's ability to
comply with the annual award limitations described in Iowa Code section
404A4..
A condition precedent to any agreement will be proof that the eligible taxpayer
is the actual fee simple owner or has a binding qualified long-term lease that
meets the requirements of the federal rehabilitation credit. An eligible
taxpayer shall not be eligible for historic tax credits unless the eligible
taxpayer enters into an agreement with the authority concerning the qualifying
rehabilitation project and satisfies the terms and conditions that must be met
to receive the tax credit award.
(1)
Terms and conditions. The agreement shall contain mutually
agreeable terms and conditions, which shall, at a minimum, provide for the
following:
a. The maximum amount of the tax
credit award. Notwithstanding anything in this chapter to the contrary, no tax
credit certificate shall be issued until the authority verifies the amount of
final qualified rehabilitation expenditures and compliance with all other
requirements of the agreement, Iowa Code chapter 404A, and the applicable
rules.
b. The rehabilitation work
to be performed. An eligible taxpayer shall perform the rehabilitation work
consistent with the U.S. Secretary of the Interior's standards for
rehabilitation, as determined by the department.
c. The budget of the qualified rehabilitation
project, including the projected qualified rehabilitation expenditures, and
those expenditures not qualified, and allowable cost overruns. The amount of
allowable cost overruns provided for in the agreement shall not exceed the
following amounts:
(1) For a qualified
rehabilitation project with estimated final qualified rehabilitation
expenditures of not more than $750,000,15 percent of the projected qualified
rehabilitation expenditures provided for in the agreement.
(2) For a qualified rehabilitation project
with estimated final qualified rehabilitation expenditures of more than
$750,000 but not more than $6 million, 10 percent of the projected qualified
rehabilitation expenditures provided for in the agreement.
(3) For a qualified rehabilitation project
with estimated final qualified rehabilitation expenditures of more than $6
million, 5 percent of the projected qualified rehabilitation expenditures
provided for in the agreement.
d. A schedule of all funding sources received
or anticipated to be received that will be used to fund the project, including
those funding sources used or that will be used to finance or reimburse both
qualified rehabilitation expenditures and those expenditures not being claimed
as qualified rehabilitation expenditures, along with supporting documentation.
The schedule must identify all government funding as defined in rule
261-49.3(404A), including any funding that originated or will originate from
any government, whether federal, state, or local.
e. The commencement date.
f. The completion date.
g. The agreement termination date, which
shall not be earlier than five years from the date on which the tax credit
certificate is issued.
h. Such
other terms, conditions, representations, and warranties as the authority may
determine are necessary or desirable to protect the interests of the
state.
(2)
Amendments. The authority may for good cause amend an
agreement. However, the authority may not amend an agreement to allow cost
overruns in excess of the amount described in paragraph
49.14(1)"c." In addition, the commencement date, completion
date, and agreement termination date may not be amended if such an amendment
would violate the statutorily prescribed time limits as described in Iowa Code
section
404A3(3)..
Any amendment approved by the authority shall be signed by both parties.
(3)
Authority.
Only the director or chief operating officer may enter into agreements on
behalf of the authority. Any agreement entered into on behalf of the authority
by a person other than the director or chief operating officer shall be
void.
