Applications for Pre-CLTC and LIN

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 st whether any are anticipated to close before December 31 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 Conser­ vation 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.