Current through Register 1531, September 27, 2024
The application for Pre-CLTC is a three part process. 301 CMR
14.03(1) through (4) is the review of the documents listed and focused on the
quality of the donation for an initial determination of the eligibility of a
proposed Property Interest or Restriction as Certified Land. If the first part
results in a determination of eligibility, 301 CMR 14.03(5) requires the
Applicant to provide EEA with an opinion of value of the Certified Land to be
donated, based on a Qualified Appraisal. EEA will then issue the Applicant a
notice to proceed based on a determination that the annual tax credit limit
will not be exceeded. 301 CMR 14.03(6) through (11) requires the Applicant to
complete the application.
In tax year 2011 only, there will be a public lottery to
establish the order of applications received. This lottery will be held two
weeks after September 16, 2011, on the next occurring Tuesday at 10:00 A.M. All
applications received by 5:00 P.M. the previous day will be considered.
In tax year 2011 only, Applicants who conveyed their Property
Interest between January 1, 2011 and September 16, 2011 may apply for
Pre-CLCC.
(1) For conveyances to an
Agency:
(a) The Applicant must apply to EEA
and secure the assignment of a number showing the receipt of the application.
The Applicant must comply with 301 CMR 14.03(2) and (5). The Applicant is also
subject to the notice to proceed, 301 CMR 14.03(2), (6) through (11);
(b) The Applicant is responsible for applying
to the Agency and complying with the requirements of that Agency, including due
diligence standards, statutory and regulatory requirements, and
protocols;
(c) The Applicant and
the Agency must notify EEA of the satisfactory completion of the grant of the
Certified Land and satisfaction of all requirements of the Agency;
(d) The Applicant shall provide documentation
of the recorded deed, appraisal, title, plan or metes and bounds
description;.
(e) The Applicant
must notify EEA as soon as it appears that the Property Interest is not
certifiable in the current tax year, or if the Applicant withdraws the Property
Interest from consideration; and
(f) The Applicant and the Agency will notify
EEA by October 1st of the progress of all pending
Pre-CLTCs, an explanation of the reason each application is still pending, and
whether any are anticipated to close before December
31st of the tax year. If it appears that the
application will not be certified by the end of the tax year, EEA, in its sole
discretion, may require that the application be withdrawn, or carried over to
the following year.
(2)
For all other donors, application forms for Pre-CLTC may be obtained from EEA.
EEA will track the order in which the applications are received.
(a) Applicants must submit a
Pre-certification application that consists of the following documents:
1. Evidence that the Applicant holds an
ownership interest sufficient to entitle the Applicant to convey clear and
marketable title and ensure the perpetual protection of a potentially eligible
Property Interest;
2. Proof that a
Qualified Organization or Public Conservation Agency is willing and able to
hold the Property Interest;
3. A
survey or sketch plan showing the subject land and its attributes, with a locus
map;
4. A proposed Restriction
which may be recorded after the deed by the donee, and, where applicable, a
complete draft of the instrument proposed to convey the Property Interest,
which instruments shall be in a form that meets conveyancing standards for the
interest to be conveyed and that would be recordable when fully executed.
If the steps in 301 CMR 14.03(2)(a)1. through 4. are
satisfactorily completed, the Applicant will be notified of EEA's determination
that the Property Interest and documents as proposed are either ineligible or
eligible for Pre-CLTC. If eligible, the Applicant must provide within 30 days
of notification:
(b) A duly certified opinion by a Qualified
Appraiser of the value of the donation of the Property Interest must be
provided to EEA. The opinion of value shall state what regulatory,
environmental, frontage, access, topographical, and other constraints were
considered. This will allow EEA to determine how many Applicants will be able
to receive the CLTC in each tax year.
(c) EEA will then issue the Applicant a
notice to proceed based on a determination that the annual tax credit limit
will not be exceeded. Within 60 days following the notice to proceed, the
Applicant must complete the following steps:
1. Subordination or release of all lien
holders;
2. A survey or metes and
bounds description, shown on a plan or sketch plan, labeled appropriately to
reflect its protected status;
3.
Exclusions, if any, defined by metes and bounds or survey plan;
4. A satisfactory title certification
evidencing capacity to convey a clear title. In cases where title insurance
would satisfactorily cover a defect in title that would otherwise make the
Applicant ineligible for the CLTC, the parties may seek approval from EEA to
obtain title insurance in favor of the Grantee(s) to cure said
defect;
5. A listing all of the
interests in the Real Property as disclosed on the Title Examination and any
other interests in the Real Property that the Applicant or Owners are aware of,
with a certification that each of the owners of an interest in the Real
Property have agreed to the Qualified Donation; and
6. Upon request, a copy of the Qualified
Appraisal.
(3) If the annual limit on the cost of
approved tax credits as provided under 830 CMR 62.6(6) has been reached,
Applicants potentially eligible for the tax credit will be notified that the
tax credit cost limit has been reached, and they will be eligible for Pre-CLTC
as funding becomes available, whether it occurs in the year of the original
application, or the following year(s).
(4)
Review of Pre-CLTC
Applications. Upon review of the completed Pre-CLTC application,
EEA will determine whether or not the proposed donation adequately and
perpetually protects the Natural Resource interests and deemed Certified
Land.
(5) The Applicant will be
notified of approval for the Pre-CLTC by letter within 30 days of receipt of
the applications in 301 CMR 14.03(2)(a) through (c).
(6) EEA will not reject Pre-CLTC applications
once the notice to proceed has been issued unless the application:
(a) is incomplete;
(b) is incorrect;
(c) does not meet the definition of Natural
Resource Protection in the Public Interest;
(d) includes a prohibited double benefit with
respect to the same land under 830 CMR 62.6(7);
(e) is submitted by an Applicant that has
received a CLTC within three years prior to the application date, unless waived
by EEA;
(f) includes land that has
been subdivided a part of which has been the subject of the receipt of a CLTC
within three years prior to the application, unless waived by EEA;
(g) includes land under existing perpetual
protection, unless waived by EEA; or
(h) that has unapproved or unacceptable
changes.
(7) If EEA
finds an application ineligible or rejects the Pre-CLTC application, the
Applicant may submit revised or corrected information for consideration within
15 business days of the postmarked date of the notice. EEA may, at its sole
discretion, authorize additional time for good cause. If the applicant is
unable to satisfactorily resolve the reasons for rejection, the application
will be denied.
(8) EEA will issue
an LIN for Certified Land that was Pre-certified only after the property
transaction has been recorded or registered with the appropriate Registry of
Deeds and the applicant provides proof of satisfactory recording to EEA within
30 calendar days of the Pre-CLTC approval letter from EEA unless extended in
writing. EEA will issue an LIN after the applicant has submitted the following
documents to EEA:
(a)
1. A copy of the Pre-CLTC from EEA;
2. an instrument granting to an Agency, a
Qualified Organization, or a Public Conservation Agency a Property Interest in
Pre-CLTC land that meets EEA's criteria and conveyancing standards which
perpetually protects the Qualified Donation and is recorded or registered at
the appropriate Registry of Deeds;
(b) A recorded or recordable survey showing
the subject and/or metes and bounds description referencing a recorded
instrument or a sketch plan containing a metes and bounds description. The
subject land must be clearly labeled to appropriately reflect its protected
status and recorded with the instrument(s) granting the Property Interest.
Excluded areas shall be described in the same manner, with permanent boundary
markers in place or provided for in the Qualified Donation
Instrument;
(c) Baseline
documentation sufficient to establish the condition of the property at the time
of the donation;
(d) Votes
authorizing the transaction, and attested copies of votes granting authority,
if applicable;
(e) Satisfactory
evidence that all liens affecting Certified Land have been released or
subordinated;
(f) If there is an
encumbrance or interest affecting the Certified Land, EEA may require an
agreement from the holders of said encumbrances or interest that they will
exercise their rights only in a manner consistent with Natural Resource
Protection, duly recorded with the registry of deeds;
(g) The instrument granting Certified Land
authorizes the right of entry to the Grantee(s) to monitor and enforce the
Restriction;
(h) A Title
Examination and certification of title that complies with EEA title
specifications and standards verifying all necessary signatories to the
instruments conveying the Property Interest and that the Qualified Donation
will have a first lien position;
(i) A copy of any final opinion of value of
the proposed Certified Land extracted from a
Qualified Appraisal; and
(j) Upon request by EEA or DOR, a copy of the
Qualified Appraisal by a Qualified Appraiser.
(9) Upon satisfactory receipt, an LIN will be
issued to the Applicant, which verifies to the Department the Certified Land's
eligibility for the tax credit.
(10) The Applicant shall be responsible for
all communications with other parties and owners, including providing copies of
the application and required documents.
