Reimbursements to Non-profit Organizations

301 CMR 51.10 applies to payments made by EEA or an EEA Agency to non-profit land conservation organizations and land trusts seeking reimbursement of reasonable costs and expenses borne by the organization or trust for activities directly associated with the planned acquisition of land or interests in land by the Commonwealth for Article 97 purposes. (1) Definitions applicable to 301 CMR 51.10. Non-profit Organization. a charitable conservation organization or trust whose Articles of Organization and/or By-laws indicate its dedication to land or natural resource protection and conservation and which is qualified or eligible for qualification under Section 501(c)(3) or (4) of the Internal Revenue Code. Reasonable Expenses. Actual out-of-pocket expenses for the following costs: (a) Interest on loans from a bank or from sources other than banks and interest foregone on organizational funds used to purchase the property. (b) Costs of appraisal, survey, title search, title insurance, fire, casualty and liability insurance, necessary repairs, property taxes and recording fees, site specific plans, maps, site restoration, soil testing, soil studies and environmental assessments, resource planning, and engineering. (c) Costs of legal services approved in advance by the reimbursing EEA Agency as a lump sum amount. (d) Cost of performing an audit if required by the reimbursing EEA Agency. (e) Other costs or expenses associated with the acquisition of land or interests therein which are approved in advance by the reimbursing EEA Agency. (2) Eligibility and Requirements. (a) To be eligible for reimbursement, all costs and expenses must be directly associated with the acquisition of land or interests therein for Article 97 purposes. In addition, all of the following requirements must be met: 1. the entity seeking reimbursement is a Non-Profit Organization as defined in 301 CMR 51.10(1). 2. the expenses or costs to be reimbursed are Reasonable Expenses as defined in 301 CMR 51.10(1), and are determined to be necessary and reasonable by the reimbursing EEA Agency. 3. the reimbursing EEA Agency has agreed, in advance of any expenditure by the Non-profit Organization, to reimburse the Non-profit Organization in accordance with a proposal submitted to the reimbursing EEA Agency by the Non-profit Organization. The proposal must calculate the estimated costs and expenses for the services to be rendered as well as actual rates to be used in calculating said costs and expenses. Any deviation from the proposal must be pre-approved by the reimbursing EEA Agency. 4. in the event the Non-profit Organization takes title to the land prior to conveyance to the Commonwealth, the sale price to the Commonwealth may not exceed the purchase price paid by the Non-profit Organization or the fair value of the land as established by an appraisal, whichever is less. 5. in the event the Non-profit Organization does not take title to the property prior to conveyance to the Commonwealth, acquisition by the Commonwealth of the land or interest(s) therein for which expenses were incurred by the Non-profit Organization must occur within two years from the date the initial proposal is submitted to the EEA Agency, unless this deadline is extended by the reimbursing EEA Agency in its discretion; provided further that if neither the Non-profit Organization nor the Commonwealth takes title to the land due to no fault of the Non-profit organization, the EEA Agency may reimburse the Non-profit Organization in its discretion in accordance with the requirements of 301 CMR 51.10(2). 6. in the case of an acquisition which results in subsequent conveyance of only a portion of the property to an EEA Agency, reimbursement shall be limited to reasonable expenses proportionate to the value of the land subsequently acquired by the EEA Agency. 7. all costs and expenses which are eligible for reimbursement must be fully documented and supported by the Non-profit Organization seeking reimbursement. 8. reimbursement procedures shall be made in accordance with generally accepted state operating practices as established by the Executive Office for Administration and Finance. 9. projects which were initiated under 801 CMR 28.00: Reimbursements to Non-profit Organizations or prior to November 4, 2016 may be reimbursed as long as they meet the current standards established in 301 CMR 51.10. (b) Reimbursement may be subject to review and approval by EEA.