The Long Term Tax Exemption-Urban Renewal Entities program provides for the review of certificates of incorporation, limited partnership, or formation of urban renewal entities formed under the Long Term Tax Exemption Law (NJSA 40A:20-1 et seq.).  DCA approval is required before such documents can be filed with the State Treasurer or a County Clerk.
  • Long Term Tax Exemption Law and Urban Renewal Entities Defined
    The law defines an urban renewal entity as a limited dividend entity or a nonprofit entity.  These entities undertake redevelopment projects (both commercial and residential), relocation projects for residents displaced by the redevelopment area, and low and moderate income housing projects in return for tax exemptions (see N.J.S.A. 40A:20-3).

    The Long Term Tax Exemption law authorizes municipalities to enter into financial agreements with urban renewal entities.
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  • DCA’s role
    Department approval of the paperwork creating the urban renewal entity is required prior to filing the paperwork with the Department of Treasury (formerly Secretary of State) or county clerk.
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  • Filing Paperwork
    In general, the following types of paperwork must be approved by the Department:


    1. Certificate of incorporation (for corporations and nonprofit corporations);

    2. Certificate of limited partnership (for limited partnerships);

    3. Certificate of formation (for limited liability companies);

    4. Any other similar certificate or statement as required by law;

    5. Any amendments to the above paperwork.

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  • Information to Include in the Certificate or Similar Statement
    In order to be approved by the Department, the certificate or similar statement must contain the provisions required in N.J.S.A. 40A:20-5a through g. The exact statutory language can be found under the statutes section at<http://www.njleg.state.nj.us>

    The format can be in narrative form or on a form published by the Department of Treasury, with the statutory requirements of N.J.S.A. 40A:20-5a through g included as an exhibit.  Information and copies of Treasury's forms can be found at http://www.state.nj.us/treasury/forms.html.

    The statutory requirements of the enabling statute, such as N.J.S.A.14A:1-1 et seq. for corporations, or N.J.S.A. 42:2A-1 et seq. for limited partnerships, need to be included, or the paperwork will be rejected for filing by Treasury, which will delay the process.

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  • Procedure for Filing for DCA Approval
    Send in the original dated and executed certificate, along with five (5) copies, to:
     NJ DCA -Division of Codes and Standards
     Bureau of Homeowner Protection
     PO Box 805
     Trenton, NJ 08625-0805

    If using a courier service:

     NJ DCA -Division of Codes and Standards
     Bureau of Homeowner Protection
     101 South Broad Street
     Trenton, NJ 08608

    Also include one original and dated executed copy of the urban renewal entity disclosure information form, which can be found below..

    If an entity has already been created and filed with Treasury, and is filing an amendment with DCA to become an urban renewal entity, a copy of the original certificate marked “filed” by Treasury must be included in the submission.

    If the entity’s proposed project is low and moderate income housing, additional rules may apply.  N.J.A.C. 5:13-1.1 et seq., Limited Dividend and Nonprofit Housing Corporations and Associations, outline the requirements for these housing sponsors.  Contact the Department directly at 609-984-5831 for additional information.

    Upon approval of the certificate or similar statement, the Department will return the executed certificate with original signatures, along with four copies, with five original cover approval forms signed by the Division Director.

    Once the urban renewal entity is created, it is responsible for filing the DCA approval form and certificate or similar statement with Treasury or the county clerk.  Without the DCA approval form, Treasury will not accept the filing.

    The entity needs to send a copy of the filed certificate or similar statement, along with the DCA approval form, back to this Department.

    The entity is responsible for entering into the financial agreement with the municipality.

    Any amendments to the certificate or similar statement need to be filed with the Department before filing with Treasury or the county clerk.

    If the project is never built, no financial agreement is entered into with a municipality, and the entity will be dissolved, it is the entity’s responsibility to file for dissolution first with DCA and then with Treasury.

    N.J.S.A. 40A:20-1 et seq. specifies the additional responsibilities of the entity.

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  • Related Forms and Publications
      Urban Renewal Entity Disclosure Form
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  • Regulations
     
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